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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
A FRAMEWORK FOR MEMBER CONVERSATIONS
The mission of the Corporate Executive Board is to create revolutionary economic advantage for leaders of the world’s great enterprises by enabling them to act with unparalleled
intelligence and confidence. We lift their performance at key decision points and career moments by delivering insight drawn from the most powerful global executive and professional
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encouraged. We look forward to the continued and robust sharing of insights by member executives and professionals at Corporate Executive Board events.
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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
professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult
an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in
their reports, whether caused by CLC Human Resources or its sources, or b) reliance upon any recommendation made by CLC Human Resources.
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
www.clc.executiveboard.com
© 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
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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
www.clc.executiveboard.com
© 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
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN
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
www.clc.executiveboard.com
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.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
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
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
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.
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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
www.clc.executiveboard.com
© 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
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
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?
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN
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,
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
significant organization restructuring, pay freeze, change of a senior leader, or change of direct manager.
© 2011 The Corporate Executive Board Company.
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
From CLC HUMAN RESOURCES
www.clc.executiveboard.com
© 2011 The Corporate Executive Board Company.
All Rights Reserved. CLC1059811SYN
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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