Driving a High-Performance - 10 Insights by SupremeLord

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									                            CLC HUMAN RESOURCES
 CORPORATE
 LEADERSHIP
 COUNCIL

CORPORATE EXECUTIVE BOARD




                            Driving a High-Performance
                            Culture
                            Ten Key Insights from CLC Research

                            Webinar
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LEGAL CAVEAT
CLC Human Resources has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and CLC
Human Resources cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CLC Human Resources is not engaged in rendering legal, accounting, or other
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ROAD MAP FOR THE PRESENTATION




                                          Business Case for
                                                               Ten Key Imperatives   How CLC Can Help/
                                            Driving a High
                                                               from CLC Research       Taking Action
                                         Performance Culture




From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                         3
          Organizations are feeling
          the pressure to hold on to
                                                THE CURRENT PERFORMANCE CHALLENGE:
          recessionary cost savings
          while simultaneously
                                                DOING MORE WITH LESS
          looking for sales
          opportunities in a weak               Expectations on Revenue Growth and Cost Pressure in the Next 12 Months
          environment.                          Business Executives’ Sentiment Index BESI (October 2010)
                                                                                                                                             Higher

                                                                                                                                             No Change
     ■■   Executive expectations of
          higher revenue are driven                                                                                                          Lower

          primarily by assumptions
          of growth in emerging
          economies.

     ■■   Executives expect increases
          in foreign competition, and
          in energy and non-energy                                                                                               66%
          commodities costs.
                                                                          82%
     ■■   Although 82% of executives
          expect revenue growth,
          growth predictions are very
          modest.




                                                                                                                                 27%
                                                                           7%


 Methodology
                                                                           11%
                                                                                                                                  7%
 BESI is an index of leading
 economic indicators that is                                       Revenue Growth                                            Cost Pressure
 collected by CEB through a
 quarterly survey of senior executives
 at global organizations.                       n = 467.

                                                Source: Corporate Executive Board Business Barometer Survey, October 2010.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                         4
          Employees face
          significant change,
                                                LOTS OF CHANGE, LOTS OF UNCERTAINTY
          which is compounded by
          continuing uncertainty                Anticipation of Organizational Change1
          around global economic                Percentage of Employees
          performance.
                                                                  66%
     ■■   Although employees are less
                                                                                              50%                           50%
          concerned by change and                                                                                                                         47%
          upheaval than in previous
          years, nearly half still expect
          to be impacted by some
          form of significant change.

     ■■   Executive confidence in the
          global economy has not                                 Q4 2009                    Q4 2010                        Q1 2011                       Q2 2011
          risen much since 2009.



                                                Business Executive Confidence Levels in Global Economic Performance in the Next 12 Months, Indexed
                                                Percentage of Business Executives


                                                    Positive Outlook 100




                                                     Neutral Outlook 50




                                                Negative Outlook             0
                                                                                  Q4 2009       Q1 2010      Q2 2010       Q3 2010      Q4 2010       Q1 2011      Q2 2011


From CLC HUMAN RESOURCES
www.clc.executiveboard.com                          n = 1,278.

© 2011 The Corporate Executive Board Company.
                                                1    Percentage of employees anticipating at least one of the following events to occur over the next six months: layoff of team members,
All Rights Reserved. CLC1059811SYN                   significant organization restructuring, pay freeze, change of a senior leader, or change of direct manager.



                                                                                                                                                                                            5
          The economic downturn
          continues to impact
                                                ENGAGEMENT LEVELS STARTING TO RECOVER,
          employee engagement
          trends, particularly levels
                                                BUT UNCERTAINTLY REIGNS
          of discretionary effort.
                                                Employee Engagement Trends
                                                Percentage of Employees Exhibiting High Levels of Intent to Stay and Discretionary Effort
     ■■   The percentage of
          employees exhibiting high
                                                35%
          discretionary effort has
          started to climb again, but is                                                                                                                                                     Intent to Stay
          still far below 2008 levels.
                                                30%
     ■■   Intent to stay, however, has
          remained more constant
          which means that low                  25%
          performers are often
          remaining in role.
                                                20%
                                                                                                                                                                                             Discretionary Effort
     ■■   In Europe, discretionary
          effort is lower and intent to
          stay higher than the rest of          15%
          the world.

                                                10%



                                                 5%



                                                 0%
                                                       1H 2007


                                                                 2H 2007




                                                                                                                                                           Q3 2010
                                                                                                                             Q4 2009




                                                                                                                                                 Q2 2010




                                                                                                                                                                                         Q2 2011
                                                                                                                                       Q1 2010




                                                                                                                                                                               Q1 2011
                                                                                                                   Q3 2009
                                                                           1H 2008


                                                                                     2H 2008




                                                                                                                                                                     Q4 2010
                                                                                                         Q2 2009
                                                                                               Q1 2009




From CLC HUMAN RESOURCES
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© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                                                    6
          Performance
          improvement is driven by
                                                UNDERSTANDING WHERE PERFORMANCE COMES FROM
          a combination of hiring
          right-fit talent, and direct          Hire the Right Person                                                                                                  Provide Employees with the Right Resources
          and indirect performance              Impact of Candidate Fit on New Hire Engagement,                                                                        and Environment
                                                Indexed1                                                                                                               Percentage of Observable Performance
          enablers.
                                                                                                                                                                       Improvement2

     ■■   The first priority is to recruit
                                                               100
          the talent that meets the
          organization’s job needs. If                                                                                                                                                                    Indirect
          this does not happen, efforts                                          ∆ = (22%)                                                                                                         Performance Enablers
          to boost performance will                                                                                                                                                          More than 40% of
          have little impact.                                                                78                                                                               43%            performance improvements
                                                                                                                                                                                             come from employee




                                                                                                                                        Total Percentage Improvement
                                                                                                                                                                                             attitudes and behaviors.
     ■■   Direct performance enablers
          include giving employees
          the information, experiences,
          and resources to do their
          jobs.                                                                                                                                                                                           Direct
                                                                                                                                                                                                   Performance Enablers
     ■■   In addition to direct                                                                                                                                                               ■■   Job-relevant information
          performance enablers, over                                                                                                                                                               (e.g., training)
          40% of all performance                                                                                                                                              57%
          improvements can be
                                                                                                                                                                                              ■■   Experiences (e.g., on-
          attributed to the indirect                                                                                                                                                               the-job development)
          impact of employee                                                                                                                                                                  ■■   Resources (e.g., a better
          engagement levers.                                                                                                                                                                       computer)



                                                          New Hires                     New Hires
                                                       Who Are Confident               Who Are Not
                                                                                        Confident
                                                        “Right Decision”
                                                                                    “Wrong Decision”




                                                1   For the purposes of illustration, new hire engagement scores were indexed on a scale for which 100 points indicates the engagement for
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
                                                    new hires who are “confident” or “very confident” that they made the right choice in accepting the employment offer at the organization.
                                                2   Using structural equation models, the total effect of more than 100 levers for increasing performance was decomposed into two
© 2011 The Corporate Executive Board Company.       components: the direct effect of the lever on performance (consisting of job-relevant information, experiences, or resources) and the
All Rights Reserved. CLC1059811SYN
                                                    indirect effect of the lever on performance through emotional and rational commitment. The numbers presented are the average across
                                                    the top 100 levers.

                                                                                                                                                                                                                               7
          Employee performance is
          hindered by manager and
                                                BARRIERS TO HIGH PERFORMANCE
          organizational barriers.
                                                Managers Are Ineffective at Driving               Mixed Success for Performance Management
                                                Performance                                       Systems
     ■■   Only 45% of employees                 Employees Rating Managers as Effective at         HR Executives Agreeing with the Following
          think that their managers             Developing Direct Reports                         Statements
          are effective at developing
          direct reports, and this figure
                                                                                                            48%
          is even lower in Europe.
                                                                                    45%
                                                                                Effective                                           29%
     ■■   HR executives are
          ambivalent about the
          effectiveness of performance
          management systems, and
          most think that they have
                                                                                                          Performance       We Are Satisfied with
          little impact on performance                                                                 Would Not Suffer       the Performance
          levels.                                                                                     if the Performance    Management Process
                                                                                                     Management System
                                                                                                     Was Removed from
     ■■   Most employees do not                                                                           the Company
          understand organizational
          goals.

     ■■   Employees are less likely to          Employees Do Not Understand                       Innovation and Risk Taking are Stifled
          receive manager support               Organizational Goals                              Employees Agreeing with the Following Statements
          and encouragement for                 Employees Understanding the Strategic Direction
          being innovative and taking           of the Organization
          risks.

                                                                                                            33%
                                                                                                                                    28%

                                                                                   36%
                                                                             Understand
                                                64%
                                                Do Not
                                                Understand                                             My Job Provides         My Organization
                                                                                                      the Opportunity to       Encourages Me
                                                                                                      Work on Innovative      to Take Risks and
                                                                                                           Projects           Support Me Even
                                                                                                                                 After Failure
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All Rights Reserved. CLC1059811SYN




                                                                                                                                                    8
        Rather than focusing
        solely on the manager as
                                                LEVERAGE THE ORGANIZATION, TEAM, AND MANAGER
        the conduit for driving
        employee performance,
                                                TO BUILD A HIGH-PERFORMANCE CULTURE
        maximize performance
        by diversifying your                    Traditional Manager-Centric Approach                                Diversified Agent Approach
                                                Use Manager as the Conduit for Driving Performance                  Build Performance through Various Agents
        approach and using
        multiple agents.


                                                    Job               Team           Organization                    Organization                        Manager




                                                                                                                                       Employee
                                                                    Manager




                                                                    Employee                                                             Team




                                                 CLC Human Resources’ latest research on “Building Engagement Capital” in organizations shows that the
                                                 organization-related (9%) and team-related (6%) activities matter as much as manager-related (7%) activities
                                                 in driving long-term employee discretionary effort.

From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                   9
ROAD MAP FOR THE PRESENTATION




                                          Business Case for
                                                               Ten Key Imperatives   How CLC Can Help/
                                            Driving a High
                                                               from CLC Research       Taking Action
                                         Performance Culture




From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                         10
TEN IMPERATIVES FOR DRIVING A HIGH-PERFORMANCE CULTURE BASED
ON CLC RESEARCH



    1. Hire for the right fit

   2. Create greater clarity between roles and objectives

   3. Clarify the link between pay and performance

   4. Help managers provide constructive feedback

   5. Provide high-impact on-the-job-learning opportunities

   6. Empower employees to impact the organization

   7. Build connections that allow employees to better execute work activities

   8. Align employee interests with job opportunities

   9. Remove organizational barriers to manager effectiveness and impact

 10. Redirect leader behaviors to meet changing business needs




From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                 11
          When organizations
          make the wrong selection
                                                IMPERATIVE #1: HIRE FOR THE RIGHT FIT
          decision, new hire
          performance suffers.                  New Hire Performance                                                                          New Hire Engagement
                                                Indexed1                                                                                      Indexed2

     ■■   These lower-performing                            100                                                                                         100
          new hires will also be less                                     ∆ = (24%)                                                                                   ∆ = (22%)
          engaged and less likely                                                 76                                                                                          78
          to stay.




                                                     Hiring Managers          Hiring Managers                                                      New Hires                 New Hires
                                                    Who Are Confident          Who Are Not                                                      Who Are Confident           Who Are Not
                                                                                  Confident                                                                                  Confident
                                                     “Right Decision”                                                                            “Right Decision”
                                                                            “Wrong Decision”                                                                             “Wrong Decision”




                                                New Hire Intent to Stay
                                                Indexed3

                                                            100
                                                                           ∆ = (46%)

                                                                                     54




                                                       New Hires                 New Hires
                                                    Who Are Confident           Who Are Not
                                                                                 Confident
 Members of CLC Recruiting can                       “Right Decision”
                                                                             “Wrong Decision”
 measure quality of hire using the
 Recruiting Effectiveness Dashboard
 (RED).
                                                1   For the purposes of illustration, new hire performance scores were indexed on a scale for which 100 points indicates the performance for new
                                                    hires who report to hiring managers who are “confident” or “very confident” that they are a good hire for the organization.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com                      2   For the purposes of illustration, new hire engagement scores were indexed on a scale for which 100 points indicates the engagement for new
                                                    hires who are “confident” or “very confident” that they made the right choice in accepting the employment offer at the organization.
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN
                                                3   For the purposes of illustration, new hire intent-to-stay scores were indexed on a scale for which 100 points indicates the intent to stay for
                                                    new hires who are “confident” or “very confident” that they made the right choice in accepting the employment offer at the organization.


                                                                                                                                                                                                     12
          GlaxoSmithKline pulls
          forward reference
                                                FRONTLOAD INFORMATION GATHERING
          checking to give
          interviewers better
                                                TO IMPROVE JOB FIT
          quality information that
          improves the likelihood               GlaxoSmithKline’s Front-Loaded Reference Checking Process
          of selecting candidates
          with good job fit.                                                              GlaxoSmithKline’s                                                  Traditional
                                                                                         Reference Checking                                              Reference Checking

     ■■   GlaxoSmithKline found
          that most candidates were                 Candidate             Phone               Reference          Hiring Manager        Job Offer               Reference
          willing to provide references              Applies             Screen(s)             Check              Interview(s)         Extended                 Check
          in advance of the interview,
          drawing on their professional                            Advantages of pulling forward reference check:
          networks (consultants,
                                                                       Adds value to reference check—no longer a check-the-box exercise
          clients, etc.) if they did
                                                                       but instead an integral part of the interview process
          not wish to use names
          from within their current                                    Reference information can be used earlier in the hiring process
          organization.                                                Helps avoid bad hiring decisions through “too little” or “too late” information
                                                                       Reduces risk of recruiters—reluctant to waste time already invested
                                                                       in candidate—turning a “blind eye” to bad references



                                                Action Steps for Boosting Reference-Checking Effectiveness


                                                  1. Solicit candidate referees prior to hiring manager interview.
                                                  2. Ask candidates to review and accept waiver that limits risk of legal repercussions for referees and
                                                     their organizations.
                                                  3. Send referees a 10-minute, online feedback questionnaire about the candidate.
                                                  4. Receive completed responses from referees.
 Members of CLC Recruiting can
 access the full GlaxoSmithKline                  5. Aggregate questionnaire responses to create 360-degree candidate overview.
 case study at                                    6. Compile guidance for hiring managers on how to use report and suggested areas to focus
 www.rr.executiveboard.com.                          on in interview.

From CLC HUMAN RESOURCES
www.clc.executiveboard.com

                                                Members of CLC Recruiting can access the full GlaxoSmithKline case study via this link:
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN              https://rr.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=100084102.


                                                                                                                                                                              13
          To drive performance,
          organizations should
                                                IMPERATIVE #2: CREATE GREATER CLARITY BETWEEN
          define roles, managers
          should explain the
                                                ROLES AND OBJECTIVES
          connection between
          job and organization,                                                                                                   Maximum Impact on Commitment
          and teams should help
          translate goals into day-
                                                                                                                                To build commitment, the organization should…
          to-day activities.

                                                                                                                                      …define roles.                              11%
     ■■   Organizations should
          continue to fulfill traditional
          responsibilities related to                                                                                   …assess position criticality.                           10%
          workforce planning, but as
          part of this they should take                                                ORGANIZATION
                                                                                                                        …distribute responsibilities                      9%
          extra care to properly define                                                                                      across the workforce.
          roles.

     ■■   By explaining the connection
          between an employee’s                                                                                                                 Managers should…
          individual job and the
                                                                                          MANAGER                             …explain connection
          organization, managers can                                                                                                                                                  12%
                                                                                                                                 between job and
          build employees’ pride in                                                                                                  organization.
          and motivation toward their
          day-to-day work,

                                                                                                                                                  Teams should…
     ■■   Organizations can support
          employees’ immediate                                                                                                           …translate
                                                                                         EMPLOYEES                                   organizational
          motivation by encouraging                                                                                                      goals into                                     15%
          coworkers to help one                                                                                                         day-to-day
          another and understand how                                                                                                     execution.
          organizationally-set goals
          and roles translate into day-
          to-day work.



From CLC HUMAN RESOURCES
                                                Source: CLC Engagement Research Survey, CLC Human Resources research.
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                            14
          Managers should provide
          this discussion guide to
                                                LEVERAGING EMPLOYEES TO CLARIFY
          their teams to help them
          determine how to best
                                                GOAL ALIGNMENT
          support organizational
          goals via their day-to-day
          work.

                                                 Instructions
     ■■   Managers may or may
                                                 Review the organization’s current goals. Then, discuss as a group how your team can best
          not choose to participate
                                                 support those goals in your day-to-day work by considering the following questions:
          in the group discussion
          depending on their team’s
          ability to collaborate. While                         What are our expectations and concerns about how the
          managers can help facilitate                          organization’s goals will impact our job roles?
          the discussion, they may opt
          not to attend and assign a                            How might our roles and responsibilities need to change to best
          team member to serve as                               support the organization’s goals?
          facilitator so the discussion
          is as open and honest as
                                                                How should workloads be divided across the team to best support
          possible.
                                                                organizational goals?


                                                                What potential ideas and strategies do we have that can support the
                                                                achievement of organizational goals?


                                                                As a team, how can we overcome possible barriers to supporting the
                                                                organization’s goals?


                                                                What are the unique strengths and weaknesses of our team, and
                                                                how might those affect our ability to support organizational goals in
                                                                our daily work?


                                                                Do our team’s goals conflict with organizational goals in any way?
                                                                Do they conflict with goals in other parts of the business?



From CLC HUMAN RESOURCES
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© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                            15
          There is significant
          opportunity for
                                                 IMPERATIVE #3: CLARIFY THE LINK BETWEEN PAY
          organizations to improve
          pay perceptions, thus
                                                 AND PERFORMANCE
          driving intent to stay
          and effort.                            Potential Impact of Optimal Pay-for-Performance                                                   Impact of Pay Perceptions on Intent to Stay
                                                 Strategies on Pay Perceptions                                                                     and Effort

     ■■   The average organization                                                                                                                                        26%
          has an opportunity to
          drive pay perceptions (i.e.,



                                                Change in Employee Perceptions




                                                                                                                                                Change in Outcomes2
          employee perceptions of the



                                                   of Pay Value and Fairness1
          value and fairness of pay)
          by 33%.                                                                                             1.33x


     ■■   That increase in pay                                                             x                                                                                            11%
          perceptions translates into
          an increase in intent to
          stay of approximately 26%
          and an increase in effort of
          approximately 11%.
                                                                                        Average             Potential                                                 Intent to Stay   Effort
                                                                                        Current           Impact with
                                                                                      Organization       Optimal Pay for
                                                                                                          Performance
                                                                                                           Strategies




                                                                       Sample Strategies for Increasing the Link Between Pay and Performance
                                                                       ■■        Simplify the performance management process and the link between pay-for-performance
                                                                       ■■        Ensure other HR policies and processes (e.g., hiring and promotion criteria) align with pay-for-performance
                                                                                 philosophy
                                                                       ■■        Engage managers in the importance of pay differentiation and communication




From CLC HUMAN RESOURCES                          1      Change in pay perception is the percentage increase or decrease in the average pay perceptions score for an employee.
www.clc.executiveboard.com                        2      Measured as the percentage change in the average level of the employee’s intent to stay and effort indices.
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                                 16
          Alpha1 harmonized the
          way that individual
                                                INTEGRATING PERFORMANCE MANAGEMENT
          and organizational
          performance rating
                                                TO DRIVE PAY-FOR-PERFORMANCE TRANSPARENCY
          occurs, to drive greater
          transparency around how               Alpha’s Integrated Performance Management
          performance and pay                   Before                                                                                                   After
          relate to each another.                   Separate Rating Scales                                                                                Integrated Performance Rating Scale
                                                                                   Business                                                                                          Integrated
     ■■   Aligning performance
          rating scales means that                           50                            100                           150




                                                                                                                                                                       Below
                                                                                                                                                                 Expectations




                                                                                                                                                                                      Meets
                                                                                                                                                                                Expectations




                                                                                                                                                                                                    Above
                                                                                                                                                                                               Expectations




                                                                                                                                                                                                              Exceptional
          individuals have a far better
          understanding of how their
                                                                                  Individual
          performance relates to their
          business unit’s performance.
                                                               Under-
                                                           performing




                                                                                           Performing




                                                                                                                             Over-
                                                                                                                        performing
     ■■   This approach also leads                                                                                                                        Four-point scale selected because:
                                                                                                                                                          ■■ Even-numbered scale avoids tendency of clustering
          to greater transparency
                                                                                                                                                             around a middle rating
          (and simplicity) regarding                                                                                                                      ■■ Simpler than six- or eight-point scale
          how STI payouts are
          determined. STI payouts
          align far more strongly
          with both individual and              Alpha’s Performance-Driven STI Matrix
          organizational performance
          levels.                                                          Below                           Meets            Exceeds
                                                                                                                                           Exceptional
                                                                                       2
                                                                        Expectations                    Expectations      Expectations


                                                     Exceptional              0                             1.5                      2        2.5


                                                     Exceeds
                                                                              0                         1.25 or 1.5 3      1.5 or 1.75 3       2
                                                     Expectations

                                                     Meets
                                                                              0                              1             1.25 or 1.5 3      1.75
                                                     Expectations

                                                     Below
                                                                              0                             0.5                      1        1.5
                                                     Expectations



From CLC HUMAN RESOURCES
www.clc.executiveboard.com
                                                1   Alpha is a multinational organization headquartered in the UK.
                                                2   When individual performance is Below Expectations, line managers can apply judgement to award 0 or 0.5.
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN              3   Some matrix positions provide managers with further discretion regarding the STI bonus multiplier
                                                    (so that individuals’ bonus payouts are not overly affected by external factors beyond their control)


                                                                                                                                                                                                                            17
          The most effective
          managers accurately
                                                IMPERATIVE #4: HELP MANAGERS PROVIDE
          assess employee
          performance and conduct
                                                CONSTRUCTIVE FEEDBACK
          constructive feedback
          discussions with them.                How to Conduct Constructive Feedback Discussions
                                                Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness1

     ■■   Feedback conversations are
                                                                                                                            29%
          most constructive when they
          are open, evidence-based,                            26%                            26%
          and forward-looking.




                                                                                                                                                   What the Best Managers Do
                                                                                                                                                   ■■   Engage employees in a two-way
                                                                                                                                                        discussion, focusing on facts rather than
                                                                                                                                                        conjecture.
                                                                                                                                                   ■■   Ensure employees leave the
                                                          Conduct an                     Conduct an                    Conduct a                        conversations motivated and with clear
                                                        Open Discussion                Evidence-Based               Forward-Looking
                                                                                          Discussion                   Discussion                       and concrete steps to address any
                                                                                                                                                        weaknesses.
                                                       ■■   Foster an Open and        ■■   Focus on Facts           ■■   Provide Tangible
                                                            Positive Discussion       ■■   Explain Patterns              Steps to Address
                                                       ■■   Make Employees Feel            in Performance                Weaknesses
                                                            Comfortable               ■■   Give Clear Examples      ■■   Motivate Employees
                                                       ■■   Discuss Performance            of Strengths                  to Avoid Future
                                                            Weaknesses Together       ■■   Explain How                   Mistakes
                                                       ■■   Allow Employees                Strengths Positively     ■■   Show How Strengths
                                                            to Give Their                  Impact Performance            Can Improve
                                                            Perspectives              ■■   Explain                       Weaknesses
                                                                                           Consequences             ■■   Set Concrete
                                                                                           of Weaknesses                 Steps to Resolve
                                                                                                                         Consequences
                                                                                                                         of Mistakes


From CLC HUMAN RESOURCES                        1   Each bar represents a statistical estimate of the maximum impact each manager action can have on manager-led
www.clc.executiveboard.com                          development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness
                                                    between the lowest and highest value on each manager action. The impact of each manager action is modeled separately.
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                               18
          American Express helps
          managers determine
                                                DIAGNOSING KEY ROOT CAUSES
          performance root causes
          by providing probing
                                                OF PERFORMANCE ISSUES
          questions that are
          oriented around four                  American Express’s Performance Issue Root Cause Diagnostic
          key areas.


     ■■   American Express provides
                                                                                             Performance Issue Root Cause Diagnostic
          managers with a root cause
          tree to help them identify
          underlying causes of
          performance issues.
                                                                                Problem—Manager Perceives Employee Performance Issue
     ■■   Managers use the questions
          when they perceive an
          employee performance issue
          to ensure that they consider                        Questions for Managers to Consider to Correctly Identify Cause of Employee Performance Issue
          all possible contributing
          factors.

                                                           Motivation
                                                          Knowledge                            Process
                                                                                                Skill                      Knowledge
                                                                                                                           Motivation                    Skill
                                                                                                                                                       Process
                                                  ■■   Does the performer           ■■   Is the job scoped         ■■   Does the performer   ■■   Does the performer
                                                       want to do it?                    properly?                      know what to do?          know how to do it?
                                                  ■■   Is the task in line          ■■   Is the job description    ■■   Are expectations     ■■   Has he/she been
                                                       with his/her intrinsic            up-to-date and                 clear?                    trained?
                                                       motivations?                      relevant to the current   ■■   Does the performer   ■■   Can he/she do
                                                                                         business demands?
                                                  ■■   Is the performer                                                 have access               the task to the
                                                       fully engaged                ■■   Are intra- and inter-          to necessary              expected standard of
                                                       or committed?                     departmental linkages          information?              performance?
                                                                                         well-defined and
                                                                                         working?



                                                                                                                                                                         1

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                                                                                                                                                                             19
          On-the-job learning
          is three times more
                                                 IMPERATIVE #5: PROVIDE HIGH-IMPACT ON-THE-JOB
          impactful than formal
          training programs.
                                                 LEARNING
                                                 Performance Impact of On-the-Job Learning                                                 Characteristics of Effective On-the-Job
     ■■   Organizations should ensure            and Formal Training                                                                       Learning Activities that Boost Performance
          that employees are exposed             Impact of Learning Methods on Employee Performance
          to the right activities and            (as Reported by the Manager, Indexed to 100 Points)
          enable them to extract and                                                            300
          apply learning to work.
                                                                                                                                              Discomfort—Employees should be pushed
     ■■   The best on-the-job learning                                                                                                        beyond the type of work they already do well
          activities provide a healthy
          balance of discomfort,                                                                                                              Accountability—Employees should own and be
          accountability, visibility, and                                                                                                     responsible for the results of their work
                                                Employee Performance1

          relevance.                                                               ∆ = 3x
                                                                                                                                              Visibility—Employees should see a clear lesson
                                                     Impact on




                                                                                                                                              Relevance—Employees should learn
                                                                                                                                              specifically what they need to know in order to
                                                                                                                                              do their jobs

                                                                             100




                                                                        Formal Training     On-the-Job
                                                                          Programs           Learning


                                                      Additional Benefits of On-the-Job Learning
                                                       ■■      Reduced training expenses
                                                       ■■      Reduced time-to-productivity
                                                       ■■      Increased sharing of best practices


From CLC HUMAN RESOURCES
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                                                 1    Each bar represents a statistical estimate of the maximum total impact on employee performance each learning method will produce. The total impact
                                                      includes the method’s direct impact on performance as well as any indirect impact it may have through employee attitudes. The maximum total impact
© 2011 The Corporate Executive Board Company.         is calculated by measuring the predicted difference in application between the lowest and highest value on each method. The impact of each method is
All Rights Reserved. CLC1059811SYN                    modeled separately.



                                                                                                                                                                                                         20
UNDERSTANDING THE SIX TYPES OF ON-THE-JOB LEARNING
High-Impact On-the-Job Learning Activity Map


          Access to                                 Scope                   Change                Challenging               Persuading              Making Difficult
         Best Practice                            Expansion              and Adversity           Relationships             and Teaching               Decisions




   Activities                              Activities               Activities              Activities               Activities                Activities

   ■■   Shadow a                           ■■   Increase Amount     ■■   Work in a          ■■   Work with           ■■   Persuade Senior      ■■   Make a Risky
        Coworker to See                         of Responsibility        Situation with          People from              Managers to Take          Decision with
        How He or She                                                    Rapidly Changing        Other Business           a Difficult Action        Potentially
                                           ■■   Undertake a
        Conducts His or                                                  Circumstances           Units, Functions,                                  Adverse
                                                Challenging                                                          ■■   Teach Coworkers
        Her Work                                                                                 or Locations                                       Consequences
                                                Assignment          ■■   Handle a Crisis                                  How to Do a
   ■■   Work with a                                                      at Work            ■■   Work with                Component of         ■■   Make a
                                           ■■   Participate in a
        Recognized                                                                               Multiple                 Their Jobs                Decision(s)
                                                Group to Solve      ■■   Work in a
        Expert                                                                                   People with                                        Outside Area
                                                a Real Business          Situation Where
                                                                                                 Contradictory                                      of Expertise
   ■■   Experience a                            Problem                  Something Goes
                                                                                                 and Competing
        Notable Success                                                  Wrong or Fails
                                           ■■   Fill in for                                      Views
        in Work                                 Manager
                                                                                            ■■   Work with
                                                Temporarily
                                                                                                 Difficult
                                                                                                 Customers
                                                                                            ■■   Work with
                                                                                                 Difficult
                                                                                                 Coworkers



 Members of CLC Learning and Development can access the full Unlocking the Value of On-the-Job Learning study at
 www.ldr.executiveboard.com.


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All Rights Reserved. CLC1059811SYN




                                                                                                                                                                       21
          Employees who feel
          empowered to impact
                                                IMPERATIVE #6: EMPOWER EMPLOYEES TO IMPACT
          the organization in a
          meaningful way are more
                                                THE ORGANIZATION
          committed than other
          employees.                            Percentage Difference in Commitment Levels of Employees Who Do
                                                or Do Not Feel Enabled Versus the Average

     ■■   Empowering employees to                                                                        Average
          contribute to organizational
                                                                                                                                           Disagree
          success builds trust within
          the workforce and belief in             I Have the Authority to                                                                  Agree
          day-to-day work.                         Make Decisions About                         (20%)              7%
                                                                My Work




                                                 I Can Influence the Way
                                                     Work Is Done in My                         (21%)              8%
                                                             Department




                                                I Can Influence Decisions
                                                 Made in My Department                          (21%)               9%




                                                        I Feel Enabled to
                                                  Offer Ideas to Improve
                                                      My Organization’s                       (23%)                 9%
                                                               Outcomes



                                                                            More Directive/                              Less Directive/
                                                                            Less Enabled                                 More Enabled



                                                n = 11,063.

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All Rights Reserved. CLC1059811SYN




                                                                                                                                                   22
          Millennium bcp’s “One
          Thousand Ideas” portal
                                                FACILITATING EMPLOYEE-DRIVEN IDEA
          generates employee
          ideas, voted on by their
                                                GENERATION
          peers, deriving quality
          contributions and                     1. Millennium bcp’s “One Thousand Ideas” Portal                 2. Recognition Workshop
          ensuring the process is
          employee-centered.
                                                                                                                Overview
                                                                                                                One-day, annual off-site working session of
     ■■   Any employee can submit                                                                               employees with the best ideas as well as senior
          ideas to the intranet portal.                                                                         management. Rather than a traditional award
          Ideas can include open                                                                                ceremony, the workshop is a working group format
          submission on any topic, but                                                                          in which participants partner to inform innovation
          Millennium bcp also requests                         Reduce the consumption of irrigation water
                                                               used at Bank’s gardens.                          and the “One Thousand Ideas” program, and to
          ideas to solve specific                                                                               empower employees to innovate on a day-to-day
          challenges at the bank to                                                                             basis.
          ensure focus on key business
          needs.
                                                                                                                Objectives
     ■■   Submitted ideas are                                                                                     1. Credit authors and acknowledge the best
          posted on the portal and                                                                                   contributions.
          voted on by visitors to
                                                                                                                  2. Build Millennium bcp’s culture of innovation
          the site. The visibility and
                                                                                                                     by detailing the program’s impact on the
          peer voting drives the
                                                                                                                     organization and providing tools that allow
          quality of submitted ideas
                                                                                                                     authors to further act as ambassadors of an
          constructively because
                                                                                                                     innovative, collaborative culture.
          peers—not distant senior
          management—provide input                                                                                3. Improve the “One Thousand Ideas” program
          on the ideas.                                                                                              via working sessions that generate inspiration
                                                                                                                     and new methods.
     ■■   This peer voting process
          allows even employees who
          do not directly submit ideas
          to the site to voice their
          opinions and contribute to
          Millennium bcp’s success.

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                                                Members of CLC Human Resources can access the full Millennium bcp case study at
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN              www.clc.executiveboard.com.


                                                                                                                                                                 23
          Organizations that
          support informal
                                                  IMPERATIVE #7: BUILD CONNECTIONS THAT ALLOW
          employee networks
          across the organization
                                                  EMPLOYEES TO BETTER EXECUTE WORK ACTIVITIES
          have 16% more
          employees exhibiting                    Percentage of Employees Exhibiting High                              The Challenge of Leveraging Informal,
                                                  Discretionary Effort                                                 “Invisible” Networks
          high discretionary effort
                                                  By Organizational Support of Employee Network
          than organizations that
          do not support these
          networks.
                                                                                                                      “Work has become a collaborative
                                                                                    42%

     ■■   To operationalize these                                                                                      endeavour. But harnessing the power
          informal networks, HR                 Percentage of Employees with
          should first identify and               High Discretionary Effort                                            of seemingly invisible groups for
          prioritize high-ROI networks.                                                                 26%
                                                                                                                       organizational goals is a murky and
     ■■   Then, HR must mobilize
          networks for long-term
                                                                                                                       elusive undertaking.   ”
          success by facilitating                                                                                               Rob Cross, Jeanne Liedtka,
          collaboration and                                                                                                     and Leigh Weiss
          knowledge-sharing with                                                                                                “A Practical Guide to Social Networks”
          a semi-autonomous
          architecture.
                                                                                 Organization        Organization
                                                                               Supports Informal       Does Not
                                                                               Networks Across     Support Informal
                                                                               the Organization    Networks Across
                                                                                                   the Organization




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All Rights Reserved. CLC1059811SYN




                                                                                                                                                                         24
          MITRE’s online social
          networking platform,
                                                FACILITATING HIGH-VALUE NETWORKING
          “Handshake,” extends
          outside organizational
                                                WITHIN AND BEYOND THE COMPANY
          boundaries so employees
          can easily establish high-            MITRE’s Online Social Networking Platform, “Handshake”
          value connections within
          and beyond the company.               Employee Profile                                                      Group Profile
                                                Illustrative                                                          Illustrative

     ■■   Similar to LinkedIn,
                                                                                                                                                        My Connections                 My Groups
          employees create profiles                                              My Connections    My Groups
          indicating their work and                                                                                                   Elgg for the Enterprise
                                                 Donna Cuomo – MITRE                          Tag cloud
          expertise. The profiles                                                                                                                                 Tags:
                                                   Organizational Affiliation:
          allow employees to quickly               Job Title:                                                                         Owners:
                                                                                                                                                                  Web site:
                                                                                                                                                                   Group visible to: all Handshake members

          connect with relevant                    Location:
                                                                                              Group membership                                                     Membership: open


          internal and external                    Contact E-mail:                                                                    Latest discussion                          Group activity

          contacts. Groups can also                Telephone:
                                                                                                                                                                                   Nigel Sutton



          create pages to collaborate              Web site:                                                                                       Justin Smith                    Trevor Frank


          on specific topics or                    Personal Interests:                                                                                                             Justin Smith

                                                                                                                                      Group information
          projects.                                Professional interests:

                                                   Education:

                                                   About Me:                                                                          Group blog
     ■■   Handshake also supports
          ongoing relationships with
          relevant external experts
          such as clients, industry              Implementation Tips
          professionals, vendors,                To manage risks associated with external collaboration:
          academia, or former
                                                    Clearly articulate to employees the benefits and risks to the organization, as well as their responsibilities to safely
          employees.
                                                    manage information flow.
                                                    Set firm rules governing the type of content that is appropriate for external collaboration, and with whom it is
     ■■   MITRE’s willingness to
                                                    appropriate to collaborate.
          extend networks externally
          goes above and beyond to                  Require that participation of external connections is “by invitation only.”
          demonstrate its commitment                Allow group administrators to designate group pages as open or closed, with closed groups requiring the
          to employees’ success.                    administrator to invite participants.



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                                                 Members of CLC Human Resources can access the full MITRE case study at
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN               www.clc.executiveboard.com.


                                                                                                                                                                                                             25
          Ensuring that jobs are
          aligned to employee
                                                IMPERATIVE #8: ALIGN EMPLOYEE INTERESTS
          interests is important
          for driving employee
                                                AND JOB OPPORTUNITIES
          commitment and
          performance.                          Maximum Impact of Career Pathing Activities       Change in Rank Order of EVP Attributes
                                                on Commitment                                     (2006–2009)

     ■■   The recession saw job-
                                                       11%                                                                        Rank Order
          interests alignment become
                                                                                                                                of Importance
          an even more important, as                                                                                                             Change in
                                                                                                                               for Commitment
          it climbed to become the                                   9%                                                                         Rank Order,
          number one commitment                                                                         EVP Attributes         2009    2006     2006–2009
                                                                                     8%
          driver from CLC’s list of 38                                                            Jobs-Interest Alignment        1      3              2
          EVP attributes.                                                                         Manager Quality                2      5              3
                                                                                                  Coworker Quality               3      16            13
                                                                                                  People Management              4      4             0
                                                                                                  Respect                        5       1            (4)
                                                                                                  Collegial Work Environment     6      14            8
                                                                                                  Senior Leader Reputation       7       7            0
                                                                                                  Job Impact                     8      17            9


                                                  Organization   Organization    Organization
                                                    Ensures       Puts Right       Develops
                                                  Job-Interest   People in the    Employees’
                                                   Alignment      Right Roles    Current Skills



                                                n = 11,063.




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All Rights Reserved. CLC1059811SYN




                                                                                                                                                      26
        Chubb creates engaging
        career paths by matching
                                                CREATING INTEREST- AND ROLE-DRIVEN
        employees with realizable
        career paths that
                                                CAREER PATHS
        balance role profiles with
        employee interests.                     Chubb’s Realistic Career Lattice

                                                                                                                                            Generate Matches Based on Similarity
                                                                                CCI Senior                                                  to Current Role
                                                                               Underwriter III
                                                                                                                                            Employees are matched with potential roles
                                                                              (Two Levels Up)                                               based on their similarity to the employee’s
                                                                                                                                            current job profile. Matches are based on role,
                                                                                                                                            rather than employee interests only, to ensure
                                                                                 CCI Senior                                                 employee career path choices are realistic
                                                                                Underwriter II                                              and actionable. Similarity is determined
                                                                               (One Level Up)                                               by comparing the primary responsibilities,
                                                                                                                                            business goals, and competency goals of the
                                                                                                                                            current role versus potential roles.
                                                                                 CCI Senior
                                                                                                              CSI Senior
                                                                                 Underwriter
                                                                                                             Underwriter
 What About Interests?                                                                                     (Lateral Move)                   Limit Results by Distance from Current Role
 Role-based career planning                                                                                                                 Chubb provides matches that are two levels
 does not remove the interests                                                                                                              above or one level below the current role as
 of the employee from the career
 planning process. Rather, it                       Claims Examiner                                                                         well as lateral moves at the same level. Limiting
 ensures that employees do not                                                                                                              the span of matches not only increases career
                                                        (One Level
 receive unrealistic, irrelevant,                                                                                                           path satisfaction,1 it also increases clarity
 or overwhelmingly numerous                               Down)
                                                                                                                                            of the “next steps on the path,” and builds
 results. After employees take a self
 inventory to explore their interests                                                                                                       confidence in the future by making it relevant
 and skills, they can review their job                                                                                                      and achievable.
 matches, ensuring a realistic mind-
 set for pursuing suitable roles in the
 career planning process.                           Implementation Tip
                                                        Integrate job profiles with the central performance
 Members of CLC Human Resources                         management system to generate automatic updates
 can access the full Chubb case                         and ensure accuracy over time.
 study at
 www.clc.executiveboard.com.                    1   CLC Human Resources research finds that career satisfaction peaks when career path clarity extends 4–5 years, or approximately two
                                                    promotions. Beyond that point, satisfaction begins to drop.
From CLC HUMAN RESOURCES
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© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN              Source: Asia HR Executive Board, Beyond the Next Promotion, 2008.




                                                                                                                                                                                                27
          Leadership performance
          is explained not only
                                                IMPERATIVE #9: REMOVE ORGANIZATIONAL BARRIERS
          by the individual
          competencies of a leader,
                                                TO MANAGER EFFECTIVENESS AND IMPACT
          but also by how well the
          organization is managed.              Percentage of Variation in Leaders Outperforming MBO Expectations
                                                Explained by Leader and Organization

     ■■   Organizational obstructions
                                                                                        40%
          include lack of role clarity,
          poor goal alignment, poor
          job and work design, and
          weak knowledge transfer
          systems.


                                                              60%                       60%




                                                           Percentage                Percentage
                                                    of Explained by Individual      Explained by
                                                        Leader Attributes        Organization Factors




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All Rights Reserved. CLC1059811SYN




                                                                                                                    28
          HR and executives
          examine both “hard”
                                                ASSESSING HARD AND SOFT ORGANIZATIONAL
          and “soft” organizational
          barriers to business
                                                BARRIERS
          success.
                                                Unilever’s Organization-Focused Assessment Areas

     ■■   The organizational
                                                1A. ORGANIZATION CHART Q1 2010                                      “Hard” Organizational Barriers
          assessment includes                   Are the most important parts of the business
          an evaluation of                      linked closely to strategic senior leaders?                         Lack of Strategic Oversight—Strategically important
          organization charts and                                                                                   parts of the business are not linked closely to senior
                                                  1B. ORGANIZATION STRUCTURE                                        leadership levels
          proposed changes to the                 Does the organization design support
          organizational structure.               the strategic and financial objectives?
                                                                                                                    Resource Misalignment—Resources are not aligned
                                                  Highlight the key points thinking through the following           to areas with predicted importance for growth and
     ■■   Key questions focus on
                                                  prompts:                                                          market share
          testing the organizational                 1C. ORGANIZATION HEADCOUNT                                     Complexity of Job Design—Jobs are overly complex
                                                     Can you afford your organization?                              or customized to the incumbent
          structure’s sustainability
                                                      FUNCTION                    END07       END08         END09
          and link to strategy and its
          impact on customers and                     General Management

          employees in role.                            1D. INTERFACE ASSESSMENT
                                                        How well do handoffs with other business
                                                        units work?
     ■■   Issues included in the
          organizational assessment                        1E. ORGANIZATION HEALTH CHECK                            “Soft” Organizational Barriers
          change depending on                              How healthy is the organization and how well             Unhealthy Culture—High turnover is due to
                                                           is it functioning?
          business priorities and                                                                                   organizational rather than individual causes
          needs.                                                                                                    Interface Tensions—Tensions and asymmetric
                                                           1. How well aligned are your people to your strategy
                                                              and objectives?                                       information among business units hinder business
                                                                                                                    performance
                                                           2. What are the key messages from your GPS (Global       Business Processes—Key business or functional
                                                              People Survey) results in terms of improving          processes are ineffective or outdated
                                                              engagement and leadership effectiveness in your
                                                              organization?


                                                           3. How effective are your key business or functional
 Members of CLC Human Resources
                                                              processes?
 can access the full Unilever case
 study at
 www.clc.executiveboard.com.                               4. What are the current tensions in the organization?


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                                                                                                                                                                         29
          Organizational
          change and lack of
                                                IMPERATIVE #10: REDIRECT LEADER BEHAVIORS
          support expose leader
          performance to risks.
                                                TO MEET CHANGING BUSINESS NEEDS
                                                Anticipation of Organizational Change1                                                     Organizational Support for Applying
     ■■   With over half of employees           Percentage of Employees                                                                    Leadership Competencies and Skills
          expecting significant
          organizational change, many                                                                                                                   36%
          leaders are confused and
          worried about the future.

     ■■   Leaders do not receive the
          support they need to react                                                                                                                                                26%
          to such uncertainty, as
          organizations fail to teach
          them how to apply their
                                                                                                              50%
          skills and competencies to                                                                   Employees
          these changing situations.                                                                  Anticipating
                                                                                                          Change




                                                                                                                                                My Organization               My Organization
                                                                                                                                               Teaches Me How to             Teaches Me How
                                                                                                                                                Get Things Done              to Succeed at My
                                                                                                                                                                               Organization



                                                    The Legacy Leader Problem
                                                    Recent CLC Research on barriers to executive performance demonstrates that in 72% of business units analyzed,
                                                    strategic priorities had changed but individual leaders’ priorities and areas of focus had not.


                                                1   Percentage of employees anticipating at least one of the following events to occur over the next six months: layoff of team members,
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                                                    significant organization restructuring, pay freeze, change of a senior leader, or change of direct manager.

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All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                                30
          Cisco identifies
          competencies and
                                                ALIGNING LEADER BEHAVIORS TO CURRENT
          activities unique to its
          strategic direction
                                                AND FUTURE STRATEGIC IMPERATIVES
          to drive future growth.
                                                Cisco’s Leadership Behavior Transformation

     ■■   Cisco updates its                          Set Future Strategic Context for Leaders to                                          Interview Key Leaders to Surface
                                                 1                                                                                    2
          existing leadership                        Identify Relevant Leadership Competencies                                            Future-Focused Competencies
          expectations and
          competencies by asking                                   Objectives                                                         Leader Interview
          strategic leaders what will            (What is the organization trying to accomplish?)                                     Questions
          drive leadership to grow
          the business considering                                                                                                         1. What major challenges do you
                                                     Network as the Platform…Experience
                                                                                 Challenges (What challenges—internal                         believe leaders will face given
          current and future strategic               Cisco = Leader of Next-Generation
                                                                                       or external—will leaders face?)                        the long-term strategy of the
          contexts.                                  Communication and IT
                                                                                                                                              business?
                                                     Customer Partner Status
                                                                                 Managing talent: Labor market is becoming a              2. Given the business context and
     ■■   Business leader-led                        Business and Technology Architectural Leadership
                                                                                 “seller’s market;” it will become more difficult            objectives, which competencies
          development of the                                                     to or #2 Position
                                                     Building Major Investments…#1 find people with specialized, as well as more
                                                                                                                                             will differentiate the successful
          model lends credibility                    Leader in Financial Performance, Integrity
                                                                                 general, skills.                                            leaders?
          to the competencies.                       Systems/Solutions ➞ Innovation, Quality, Security,
                                                                                 Managing multiple economic and geopolitical
                                                                                                                                          3. Given that context, which
                                                     Manageability               factors that influence the business; many we can
                                                                                                                                             competencies will be non-
                                                                                 influence, many
                                                     Organizational Evolution…Built to Lead/Last we cannot.
                                                                                                                                             negotiable for executives?
                                                                                 Reinforcing Cisco’s culture while also striking an
                                                                                 appropriate balance between innovation/growth
                                                                                 and risk management/operational excellence.



                                                                                                                                             Cisco’s C-LEAD Model


                                                                                                                                                C ollaborate
                                                “It was important to interview the right group of leaders who could                             L earn
                                                 think strategically about the new direction Cisco needed to pursue.                            E xecute
                                                 That way, we weren’t simply cloning the leaders we already had.”                               A ccelerate
                                                          Kristie Wright                                                                        D isrupt
                                                          Talent Management Director
                                                          Cisco
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                                                                                                                                                                                 31
          Cisco assesses and
          highlights leaders’
                                                IDENTIFYING CRITICAL COMPETENCY GAPS
          existing competency
          levels against                        Cisco’s Leadership Behavior Transformation
          competencies critical
          in the future.                                 Define Temporal Differentiation—Cisco delineates the difference among past, present, and
                                                         future demonstration of C-LEAD behaviors to help leaders make distinct behavioral changes.

     ■■   Cisco compiles information
          from performance
          management systems,                     C-LEAD Model
          competency assessments,                of “Differentiator      Legacy Leadership           Leadership for Today          Horizon Leadership
                                                  Competencies”               (Past)                      (Present)                     (Future)               Build Self-Awareness—
          HR business partner                                                                                                                                  Assessments build
          conversations, and                                          Maintains primary focus      Collaborates cross-          Collaborates across            leaders’ self-awareness
          experience inventories to                                   on functional success        functionally by informing    functions to develop           of whether they are
          gain a detailed picture of               Collaborate                                     others of solutions and      solutions that benefit         demonstrating the
                                                                                                   approach                     function, region, and          transition from Legacy
          leaders’ capabilities.
                                                                                                                                enterprise                     Leadership to Cisco’s
                                                                                                                                                               Horizon Leadership.
     ■■   Cisco highlights                                            Builds deep expertise        Pursues development          Challenges self to look at
                                                       Learn          within functional area       outside of function and      and do things differently
          misalignments with
                                                                                                   area of expertise
          competencies critical for                                                 John Smith: 360 Assessment of C-LEAD Behaviors
          future success to improve                                   Demonstrates intense         Shows passion for            Build passion in others
          self awareness.                            Execute          focus on flawless          × execution as well as broad Leadership for Today and Horizon Leadership
                                                                                                     Legacy Leadership
                                                                                                                               for long-term goals
                                                                      execution                    objectives of the business   enterprise objectives
                                                                                                                                    Summary       Superiors      Peers       Directs
                                                                      Implements the strategy   Working Across BoundariesAdapts to market and
                                                                                               Participates in the
                                                                      as given                 development of strategy   global conditions to
                                                    Accelerate                     Collaborate Engaging Others
                                                                                                                         evolve and develop a new
                                                                                                Earning Trust            strategy
                                                                      Fixes problems to proven     Makes innovation a part      Continually challenges
                                                                      processes and strategies
                                                                                       Learn
                                                                                                    Developing Self
                                                                                                   of day to day execution,
                                                                                                                                        ×
                                                                                                                                and sets new standards
                                                                                                                                                         ×                     ×
                                                      Disrupt
                                                                      as issues arise               Developing Others
                                                                                                   prioritizing, teamwork and   for the status quo
                                                                                                   planning
                                                                                                    Demonstrating Passion                                                      ×
                                                                                       Execute      Empowering Teams

 Members of CLC Human Resources                                                                     Achieving Results
 can access the full Cisco case study
                                                                                                    Shaping Strategy
 at www.clc.executiveboard.com.
                                                                                     Accelerate
                                                                                                    Building Capability                 ×                ×        ×
From CLC HUMAN RESOURCES
www.clc.executiveboard.com                                                                          Promoting Innovation
                                                                                       Disrupt
© 2011 The Corporate Executive Board Company.                                                       Leading Change
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                       32
ROAD MAP FOR THE PRESENTATION




                                          Business Case for
                                                               Ten Key Imperatives   How CLC Can Help/
                                            Driving a High
                                                               from CLC Research       Taking Action
                                         Performance Culture




From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                         33
        Organizations can
        draw on resources from
                                                SAMPLE RESOURCES ACROSS CLC IN SUPPORT
        across CEB’s Corporate
        Leadership Council
                                                OF PERFORMANCE INITIATIVES
        practice to address their
        performance challenges.                                            CLC                                                 CLC Learning
                                                                                                 CLC Compensation                                         CLC Recruiting
                                                                      Human Resources                                        and Development


                                                Research         ■■   Building Engagement   ■■   Creating a Pay         ■■   Engaging Managers      ■■   Driving to Win-Win
                                                                      Capital                    for Performance             to Drive Employee           Selection Decisions
                                                                                                 Organization                Performance and
                                                                 ■■   Managing Leadership
                                                                                                                             Development
                                                                      Performance Risks     ■■   Best Practices
                                                                                                 for Differentiating    ■■   Refocusing L&D
                                                                 ■■   The Disengaged Star
                                                                                                 Performance and Pay         on Business Results:
                                                                 ■■   Benchmarking the                                       Bridging the Gap
                                                                      High-Performance                                       Between Learning
                                                                      Organization                                           and Performance
                                                                 ■■   Managing for High                                 ■■   Unlocking the Value
                                                                      Performance and                                        of On-the-Job
                                                                      Retention                                              Learning
                                                Diagnostics      ■■   Performance Culture   ■■   Compensation           ■■   Development            ■■   Recruiting
                                                                      Diagnostic                 Effectiveness               and Performance             Effectiveness
                                                                                                 Diagnostic                  Pulse Audit                 Dashboard (RED)
                                                                                                                        ■■   Employee
                                                                                                                             Development
                                                                                                                             Scorecard
                                                Implementation   ■■   E-Learning:           ■■   PayCoach:              ■■   Manager E-Learning     ■■   Recruiter
                                                Support               Driving Employee           Developing Critical         Modules on                  Effectiveness
                                                                      Engagement through         Pay Communication           Developing                  Academy: Sourcing
                                                                      Performance Reviews        Skills for Managers         and Managing                Great Candidates
                                                                                                                             Performance                 and Driving New Hire
                                                                 ■■   Employee              ■■   Differentiating
                                                                                                                                                         Performance
                                                                      Engagement Planning        Performance and Pay:
                                                                      Guide and Templates        Manager Guidebook


From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                               34
PERFORMANCE CULTURE DIAGNOSTIC TOOL
Use This Diagnostic Tool to Assess Your Effectiveness at Building a High-Performance Culture




                                                                                 Partially




                                                                                                                                                                                  Partially
                                                                           Yes




                                                                                                                                                                            Yes
                                                                                             No




                                                                                                                                                                                              No
 1. Hire for the Right Fit                                                                        6. Empower Employees to Impact the Organization
 ■■   We provide candidates with the information they need to evaluate                            ■■   We encourage and actively solicit employee contributions
      whether the job is right for them.                                                               and ideas.
                                                                                                  ■■   Our leaders are risk-tolerant and learn from failures.

 2. Create Greater Clarity Between Roles and Objectives                                           7. Build Connections that Allow Employees to Better Execute Work Activities
 ■■   Our new hire onboarding emphasizes how the role contributes to                              ■■   We create events and activities to facilitate business-relevant
      organizational objectives.                                                                       network building.
 ■■   Our senior leaders frequently and effectively communicate                                   ■■   We have established communications tools and platforms that allow
      organizational objectives.                                                                       employees to build and maintain job-relevant networks.
 ■■   Our managers and teams can identify tangible day-to-day actions
      that contribute to organizational objectives.
 3. Clarify the Link Between Pay and Performance                                                  8. Align Employee Interests with Job Opportunities
 ■■   We have established a simple but not simplistic link between pay                            ■■   Our career paths are flexible enough to balance individual and
      and performance.                                                                                 business needs.
 ■■   Our link between pay and performance is consistently applied.                               ■■   We support career self-ownership.
 ■■   We have clearly communicated the link between pay and
      performance.
 4. Help Managers Provide Constructive Feedback                                                   9. Remove Organizational Barriers to Manager Effectiveness and Impact
 ■■   Managers are effectively providing informal performance                                     ■■   We continually identify and address organizational barriers to our
      feedback.                                                                                        managers’ performance and collaboration.
 ■■   Managers are effectively identifying and addressing the root
      causes of performance issues.
 5. Provide High-Impact On-the-Job Learning Opportunities                                         10. Redirect Leader Behaviors Around Changing Business Needs
 ■■   We support employees to identify learning opportunities within                              ■■   We help leaders prioritize the behaviors with greatest impact on
      their current jobs.                                                                              business performance.
 ■■   We have identified activities with high levels of stretch, and use                          ■■   We continually assess what changes in leadership behaviors are
      them for accelerating the development of rising leaders.                                         needed to realize future business priorities.



From CLC HUMAN RESOURCES
www.clc.executiveboard.com


© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN




                                                                                                                                                                                               35
   CORPORATE
   LEADERSHIP
   COUNCIL

CORPORATE EXECUTIVE BOARD




© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN

								
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