Key strategy for riding the wave of change

Transcription

1 Presenter Strategic on-boarding: Key strategy for riding the wave of change Deborah Spence - ph deborah.spence@haygroup.com

2 We help organizations work. We provide insight into how individuals, skills and jobs connect to strategic goals.

3 Introduction Welcome! On-boarding is a crucial issue for organizations today and escalating in importance Yet, the importance and execution of on-boarding strategies is seldom valued by leaders in the organization Results in many challenges Seen as an HR activity versus a business-driven imperative with shared accountability Lip service as a strategic priority Inability to gain sustained focus and shared accountability by the executive/leadership team Challenges with acquiring funding Not seen as a valuable tool to help ride the wave of change and sustain organizational results 3

4 Agenda: today we will Start with the basics Explore existing definitions of on-boarding and create a common understanding of the term means Building the business case the key metrics Discuss why on-boarding is a key strategic focus for organizations for 2009 and onwards Best practice examples in on-boarding Three aligned phases Next steps: Challenge for HR in development and execution How well executed on-boarding processes help organizations navigate the wave of change 4

5 Examining on-boarding 5

6 Defining on-boarding - what is it? Let me hear from you. At your tables take 10 minutes to discuss the following questions: How is on-boarding defined at your organization? How important is on-boarding? What activities? Who owns on-boarding? How are results measured? 6

7 One definition A strategic process to attract, engage, retain, and reduce the performance ramp-up period of any employee whether new to the organization or new to the role attract and select the right people with the right skills engage them early get them to do the right things at the right time use their talents effectively & reduce time to productivity bring their discretionary effort retain Few organizations do this well Missed opportunity for many organizations 7

8 The on-boarding process: 3 interconnected phases Pre-boarding: Define the process & key metrics Pre-boarding Process overview Guiding principles Strategic direction Leading practices Scope & approach Define roles & accountabilities Key metrics Identify key positions Phase 1: Recruit based on talent need Phase 1 Roundtable to confirm key positions Evaluate key positions using Role-Profile Matrix Select assessment tools & process Assess risks Identify Talent Phase 2: Orientation Phase 2 Welcome Introductions Benefits sign-on Policies & procedures Organization vision, mission, values Acculturation - Provide cultural context Phase 3: Engage Reduce ramp-up period Phase 3 Confirm role accountabilities & expectations Build relationship with direct boss and peer Develop 30/60/90 day plan Receive feedback & coaching Development plan 8

9 Features of the best Process aligned to business strategy & talent management Process begins from 1 st contact end of ramp-up period Manager involved formally and informally Shared accountability for results 1-2 day intensive followed by series of activities over several months designed to engage & assimilate into the role On-the-job intensive orientation Relentlessly ygather data to better understand what new employees need to be successful what companies are doing to orientate and on-board which activities are most effective best timing of activities how to customize based on generational differences 9

10 The worst Designed from HR administrative perspective Narrow focus orientation not on-boarding Too short a time frame ideally 6 12 months Not offering on-boarding at multiple organizational levels Corporate level Location level Department level Team/job level Individual level Focuses on one way information o 10

11 The worst (cont.) No metrics or accountability Time to productivity, new hire retention rates, new hire error rates, new-hire referrals, new-hire quality, program ROI Ignoring diverse needs generational Rely on face to face versus on-line Lack of integration between phases Manager s expectations unclear No compelling business case Fails to reinforce the brand 11

12 Opportunities for improvement Begin with the end in mind In the recruiting process Treat the hiring process as a serious business process Hire for fit between the organization and its values Hire based in results and deliverables How the candidate used their technical skills & competencies to get results Use assessment tools to identify talent 12

13 In the design - ask key questions Begin with the end in mind What are the objectives of the on-boarding process? What roles do HR/co-workers/leaders/executives play? Duration of the on-boarding process? What needs to happen day 1, day 7, day 30, day 90? What do employees need to know about: The company The work environment The culture What key policies and procedures? What is needed in the work area? How will employee s goals be set? How will the effectiveness of the process be measured? 13

14 Opportunities for improvement Begin with the end in mind As you engage the employee during the ramp-up period Recognize there is never a 100% perfect fit Leverage the data to inform what support is required to set up the employee for success in the role Provide clarity with respect to expectations and what success looks like in the role Ensure access to a coach or mentor Provide frequent feedback Provide learning opportunities to minimize gaps & risk Success requires doing the right things, at the right time, in the right ways especially during the first 90 days 14

15 Building the business case

16 The war on talent The war on talent With babyboomers leaving en mass in the future, organizations must find ways to attract, develop and retain younger employees to step into leadership roles over the next 5-10 years Alberta labour market was over heated 2008 Best Company Research Only 9 months ago it was very difficult to source and hire talent Now some availability and movement The best have continued with selective hires for key roles Talent will again be difficult to find in the upswing 16

17 On-boarding senior leaders CEO & senior failure rates are nearing 40% Associated direct costs typically double the annual salary Plus potential loss of brand image Strained relationship with customers Potential loss of significant sales Real costs are incalculable To protect the risks and investments: Many organizations are investing significant amount of time and money in the on-boarding process Employing consultants and coaches to get the newly hired/promoted executive performing at a high level 17

18 Why the sudden interest & need to mitigate risk? Increasing complexity speed of change Raplexity (John Nesbitt) Combination of complexity and speed of change creates a system overload that paralyzes Cultural adaptation Difficult to speed up the learning cycle as it takes time to learn the subtle nuances of culture Organization performance need to shift the performance curve need to be able to respond quicker Individual performance need to get it right Visible of failure instant news with multiplier effect 18

19 Key metrics 19 Best practice organizations are closely monitoring the following metrics: Retention rates Employee engagement Time to productivity These metrics can all be converted into hard costs to the organization For example estimated costs of turnover vary from x 2.8 annual salary Employee engagement can impact productivity by up to 30% Reducing time to productivity increased organizational performance easily tracked in sales roles

20 Strategic on-boarding benefits Well executed on-boarding Supports brand recognition Feeds directly in talent management Informs the process Increases opportunities for discussion and feedback Strengths and opportunities for development are identified early Needed performance corrections can be addressed early Pivotal to sustainability Is flexible in response to strategic changes Enhances your organization s ability to ride the wave of change 20

21 Good on-boarding programs are still the expectation not the rule! Strategic on-boarding programs that involve a high degree of human interaction and are tailored to individual s needs can increase new-management effectiveness, satisfaction, and retention, and help ensure that companies realize a return on what they invest in recruiting.» Wiley InterScience (

22 Phase 1: Recruiting 22

23 Pre-boarding: First steps: Align business, work and people Business Context Strategy, business model, structure and culture the environment in which work gets done Jobs in context of the business, and implications for role requirements Work Risks/ Benefits People The competencies required to succeed in the role & assess gaps 23

24 Understanding the business context Strategy The way the organization chooses to compete in the marketplace Strategy Formulation Operating Model The way the organization chooses to deliver products and services to the marketplace and to allocate resources How roles, teams and organizations are structured to achieve the strategy Organization Structure Mission- Critical Roles Talent Requirements Strategy Execution 24

25 The role-profile matrix, at the heart of our approach, considers both levels of work and role type to evaluate and manage risks Global Enterprise Leadership 87% Proximity to Business Results Advisory * Matrix** Delivery*** Enterprise Leadership 76% Strategy Formation 66% 25 f Work Strategic Levels o Ope erational Strategic Alignment 57% Strategic Implementation 50% Tactical Implementation 43% * Contributory ** Shared *** Primary (direct control of resources)

26 Assessing talent: tools Competency Assessment Behavioural Interview 360 Feedback Psychological Tests Motivation Values Career History Key Achievements Range of Expertise TALENT FOLDER Leadership Surveys Leadership Styles Organizational Climate Performance Management Data 26

27 Assessing role shifts: Manage stretch to avoid talent snaps Role Profile Advisory Roles Collaborative Roles Operations Roles y of llenges Complexity ategic Cha C Stra Medium High Low Target Position 1 Target Position 2 Moderate Risk Current Position 27

28 On-boarding assignments: Accelerating role adjustment On-boarding Need Areas Selling the organization on why these candidates are best for these roles (e.g., to those who didn t get the job) Providing internal resources for advice/counsel on strategic external aspects of the role and the business Benefits to Peter Justine Position Holder Alston Bard Instant credibility Benefit of the co. s experience and know-how Coaching for new leaders ensure clarity of role Strong demands and leadership implications g and leaders Reviewing current organization and redesigning, as appropriate Organization Helping to ensure the right team members in place to ensure success (i.e., who gets onto respective teams to support position holders) Assisting in creating/managing position holder s team to deliver results Providing internal resource(s) for advice/counsel on nature of working in Corporate radar Organizational savvy & fewer missteps 28

29 29 Best practices

30 The problem with most on-boarding processes Most suffer from narrow design & perspective Focus on recruitment getting the right people Hire them and then forget them Fail to understand the first week is crucial in motivating, engaging and retaining new employees Role of manager is underestimated Managers need to take control of the process Opportunity to accelerate time to performance by: Ensuring guidance, equipment & training in place Clarifying manager s expectations Two-way street learn the expectations of your employee & best management style Provide feedback early and often 30

31 Best in class Take a wide angle view Encompass the recruitment/selection process From first contact through to interviewing, offer, formal orientation program, and engage phase Have a relentless focus on execution On-boarding starts before first day Seamless automation of paperwork Details matter first day impressions Early attendance at formal orientation session High visibility of leadership Leaders accountable for ramp-up phase 31

32 Best in class (cont.) Engagement reinforced by social interaction, clarity of role expectations, organizational support, and opportunities for feedback Welcomed & introduced Linked to a buddy or mentor Meeting set up with leader for two-way way discussion to clarify role accountabilities and agree upon expectations Early discussion of the culture & behavioural competencies The way we do things around here Clear process for getting frequent feedback Well defined organizational support 32

33 The top practices that predict better on-boarding 1. Having leaders at all levels who focus on creating a work climate that motivates employees to perform at their best 2. Ensuring that the company makes on-boarding a top priority - shared accountability between HR, line management & Executive 3. Providing training and coaching to leadership teams to on- board more effectively 4. Frequent surveying and scrutinizing of survey data - taking early action based on the data 33

34 The top practices that predict better on-boarding 5. Automation of the paperwork 6. Accessibility and accuracy of information 7. Early socialization into the organization 34

35 Not a one size fits all approach Many variables to consider The life cycle of the organization Roles require different skill sets and competencies at different points in the life cycle Performance is measured differently at different stages in the life cycle Tailor the approach based on the context Awareness and data collection help respond quickly to change Consider generational differences Take into account geographical distances 35

36 Generational differences There are generational differences in the values of the different generations: veterans; boomers; Xers, Nexters In terms of outlook, work ethic, view of authority; leadership, & relationships Important to think about these when devising the on-boarding process beginning g with the first point of contact Real value to train your leaders in the generational differences Need to understand not only individual differences but the make- up of the team 36

37 Tracking performance results At three intervals At 30 days: Focus on prestart expectations, settling into the job, clarity of role and expectations At 60 days: Focus in learning and performance phase and Critical wins At 180 days: Focus on view of overall on-boarding experience and reflecting on personal competency development 37

38 Orient & Engage 38

39 The orientation checklist Does your orientation: Offer the basic information an employee will want to know from day 1 through the on-boarding process? Provide information on policies, procedures, standards, practices for compliance? Ensure that training, tools, resources are available? Include information about the culture the way we do things around here? Include a conceptual framework as to how their role fits into the organization? Ensure that new employees feel welcome, accepted & part of the team? Ensure regular performance feedback? Look for opportunities for two-way communication? 39

40 Sample 90 day ramp-up process Day 1: Orientation Making connections with the right people Learning specifics of the business Obtain clarification of expectations Month 1: Identify learning priorities Review risk profile and key supports required Devise 90 day strategy key results Clarify relations with boss 40

41 Sample 90 day engagement g process (cont.) Month 2: Identify early wins feedback to set future performance Consensus on priorities Clarify expectations Identify resource requirement & support required Month 3: Review expectations & progress Revise plans based on expectations & feedback Review behaviour in alignment with culture Develop individual development plan 41

42 Presenter HR: Next steps

43 Increase your odds of success For HR professionals: Learn the language of business what are the key business measures Understand the strategic imperatives of the organization and what roles are mission critical Clarity accountabilities and competencies Develop and execute an integrated on-boarding process protect the brand Partner with business leaders to define key measures and targets Recruit/select on critical competencies for the roles Identify gaps and assess risks at the recruiting phase 43

44 Increasing your odds of success Engage leaders build case for shared accountability Prepare your leaders to provide necessary leadership, coaching, development and support Align targeted leadership development supports and clear engagement to maximize success Monitor results Focus on continuous improvements Collect, analyze & share data Create an on-boarding plan for internal moves into key positions 44

45 Table talk two. Based on today s presentation What opportunities do you identify and propose for revising your on-boarding process to: respond to changes in business strategy & ensure your organization maximizes available talent to ensure sustainability? 45

46 Strategic on-boarding: A proactive approach for riding the wave of change On-boarding viewed with a wide angle lens can be an important tool for responding to change and for sustaining business performance including: The reality of a business downturn Shifting strategy In each case, the key to responding to change begins with clarity on talent requirements Partnering with leaders to identify critical roles link to business strategy Identifying the requirements for those roles Identifying the best individuals to fill those roles 46

47 How can Hay Group help you? Strategy Decode clarity re. business strategy and how HRM supports an organization s strategy Efficient i organizational and djob bdesign Leadership assessment, risk analysis, & development Senior leader on-boarding and executive coaching Employee engagement surveys and related strategies Base salary management Incentive plan design and stress testing 47

48 Presenter Questions, comments, and discussion Deborah Spence

49 Appendix

50 The role-profile matrix is the foundation We define the We use the role-profile We assess each We slot existing and requirements and matrix to determine candidate to new positions competencies potential candidates for determine degree of of each cell each position o fit, readiness, ess, and risk 50

51 Role profiling: mapping people or requirements to mission-critical jobs Global Enterprise Leadership 87% Enterprise Leadership 76% N/A N/A Advisory Roles Collaborative Roles Operational Roles N/A N/A N/A CEO Strategy Formation 66% N/A Chief Marketing Officer CFO CIO evels of Work L tional Strategic Operat Strategic Alignment 57% Strategic Implementation 50% Tactical Implementation 43% Corporate Controller Head of HR Engineering Manager Corp Mgr of Staffing & Recruitment Corp Mgr of College Recruiting Attorney Head of Legal Head of IT Head of Trading Head of US Client Services Head of Sales/US Global Director Head of OFA Head of Independent Fiduciary Svcs Head of Passive Equity Head of Advisors Strategy Group Head of Sales and Marketing Mgr Director Europe Mgr Director Asia/Pacific Head of Active Fund Head of Global Asset Allocation Mgr Director Canada Mgr Director Australia Head of Global Alliances Head of US Bonds Head of International Cash Mgmt Head of International Equity CIO, Canada CIO, Japan Focused on achievement of bottom-line results and attainment of business objectives Directs diverse business groups; helps set corporate strategy Develops business plans aligned with corporate strategy Develops talent for future Identifies emerging issues; ensures business meets or surpasses market demands Operates within a timeline of 3+ years 51

52 Responding to change in mission-critical jobs: an example - Retail CEO position ip Nee ed to sustain growth Chang ge in ownersh CEO Accountabilities Today Directs Profitable Operations Directs acquisition/real estate plan Directs gasoline pricing Directs company operations Manages effective relationship with XYZ and the Board Ensures protection of company s assets Serves as company spokesperson CEO Accountabilities Future Leads sustainable profitable operations Develops business strategy Develops acquisition strategy and ensures achievement of results Develops gasoline strategy and monitors results Develops organizational capability to sustain growth Manages effective Board relationships Ensures access to capital and debt Ensures protection of company s assets Serves as an industry leader 52

53 Sample assessment report: Chris Smith Leadership growth potential ti Career Growth Opportunity Risks Cheryl would benefit from having more opportunities to expand her network of relationships within the organization. ation She should also begin to broaden her skill set in other functional areas (e.g. marketing). This would increase her capability to provide strategic insight for the customer. She may have difficulty assuming a role where she is not the subject matter expert and where she may need to actively solicit the advice and support of others. Lev vels of Work Enterprise Leadership Strategy Formulation Strategic Alignment Strategic Implementation Tactical Implementation Proximity to Results Planning & Policy Co-ordination & Commercial Business & Operations Next Steps Cheryl s leadership competencies could be developed and sharpened by moving into a major business and operations role. This movement will demand some strategic preparation and developmental planning but could be an important step in preparing her for a larger role in enterprise leadership. Chris Current Role Suitable Progression Stretching Progression Risky Progression 53

54 Risk mitigation: Creating a personal plan Risk Area Risk Level Plan to Mitigate Significant stretch in job size and complexity from VP to CEO Limited experience with enterprise-wide strategy Limited experience with external parties (e.g., Board, financial community, oil companies, media) Potential impact on other members of senior leadership team if he becomes CEO Minor competency gaps in under- standing of and ability to organize people High High Moderate Moderate Low Develop transition plan for more incremental increase in job scope and complexity Provide opportunities for direct involvement in strategy formulation Leverage negotiation experience with vendors to build other advantageous external partnerships Create viable alternative ti roles and opportunities for other candidates Provide ongoing feedback through robust development plan 54