Topgrading Address The MFG Meeting. March 7, 2014 Brad Smart
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1 Topgrading Address The MFG Meeting March 7, 2014 Brad Smart
2 Leading Companies Topgrade 2
3 Smaller Companies Topgrade
4 Famous Topgraders Note: 4
5 Topgrading Solves the Three Biggest Hiring Problems Typical Hiring Dishonest Shallow Interviews Poor Verification Topgrading Hiring Honest Topgrading Interview Excellent Verification 25% Success 85% Success 5
6 Truth Serum! 6
7 Global 100 Heads of HR Meeting 20% hiring success with: Resumes (deceptive?) Behavioral interviews (Forrest Gump could fake) Reference calls (meaningless with candidates friends?) 25% promoting success with: Short performance reviews Limited developmental plans Mediocre coaching 7
8 8 MFG Survey Results Percent high performers on my team: 50% Percent of my hires who turn out to be high performers: 50% 76% sat doubling the percent high performers hired/promoted would have a Profound or Very Significant impact on performance Cost of mis-hiring someone earning $150k: $300k Number of wasted hours with that mis-hire: 400
9 Talent Mix at MFG Non-A Players A Players 9
10 Topgrading Hiring B Player A Players 10
11 Topgrading 12 Hiring Steps 1. Measure Company s Hiring Success Percent As, Costs of Mis-Hires 2. Create Job Scorecard 3. Recruit from Networks 4. Screen with Topgrading Career History Form 5. Conduct Telephone Screening Interviews 6. Conduct Four 1-Hour Competency Interviews 7. Use the Topgrading Interview Guide to Conduct Tandem Topgrading Interview 8. Master Advanced Interviewing Techniques 9. Analyze all Data; Write Draft Executive Summary 10. Candidate Arranges Reference Calls with Bosses 11. Coach Your New Hire 12. Measure Company s Hiring Success Annually 11
12 1. Business growth and profitability; companies are more successful Proof: 26% - 85% high performers hired and promoted 2. You are more successful, resulting in faster promotions 3. Positive energy; morale 4. Better life balance Topgrading Benefits 12
13 Topgrading Talent Solutions 13
14 What Are the Characteristics of High Performers, A Players? 14
15 A Players Tend to Be: Smart (intellect and business savvy) Driven to succeed; passionate Trustworthy Consistent high performers Able to adjust to many different personalities Surround themselves with high performers Very hard workers Resourceful, overcome obstacles Effective leaders Down-to-earth and well-grounded, self-aware, humble 15
16 How Can We Improve on Vague Job Descriptions? 16
17 (Vague) Job Description Job Description: Vice President Sales Responsibilities: Competencies: 1) Boost global and domestic sales 1) Leadership 2) Launch some new products 2) Integrity 3) Achieve profitability goals 3) Excellence 4) Team Player Budget: (whatever) 5) Communication One year later the team is disappointed. President: Global sales to increase stock price VP Manufacturing: Domestic sales to fill capacity VP Marketing: 10 product launches VP Finance: 15% increase in profits 17
18 Clear Job Scorecard SCORECARD COMPONENTS 1. Identify Mission and Strategy 2. Identify Measurable Job Accountabilities ( what ) 3. Identify Additional Critical Competencies ( how ) linked to accountabilities KEYS All stakeholders AGREE on measurement that will differentiate A, B, C players. Be sure Competencies spell out the fit for the specific job. Competencies are color-coded Study Dorsman Job Scorecard on page 77 18
19 Question: What is the Best Way to Recruit High Performers? Ads? Promote from within? Networks for referrals? Social media? Other? Recruit 50+ candidates 19
20 What is the Best Way to Weed Out Weak Candidates? 20
21 Truth Serum! 21
22 Topgrading Career History Form (in your Application) 22
23 23
24 24
25 25
26 26
27 What is the Topgrading Interview? 27
28 28
29 29
30 30
31 31
32 Isn t the Topgrading Interview Too Long? I don t have time for a 4-hour Topgrading Interview but, because ½ the people I hire or promote fail in the job, I guess that means I m willing to waste $300,000 and 400 hours with each failure before I get a high performer. 32
33 Are Competency Interviews Worthwhile? 33
34 How Can Our Managers Improve at Interviewing? Training Coach each other after each Tandem Topgrading Interview 34
35 What is the Best Way to Assess and Coach Internal Candidates Tandem Topgrading Interview Internal references you choose Coaching and developmental plan How Can We Improve as Coaches? Hire more A Players Coach using above Topgrading method 35
36 How Much Time Should Be Allocated for Topgrading Interviews? 36
37 Topgrading Lower Levels Career History Form Number of Interviewers Number of References Length Number of Competency Interviews Manager Full Hours 4-6 Professional Full Hours 4 Entry Level Shorter Hours 2 37
38 How Can Topgrading Be Used Globally? Global companies have done it for 30 years All Forms & Guides can be tailored to reflect the regional culture Topgrading is for hiring/promoting; firing is for performance management 38
39 Free Topgrading Resources Leave business card for: Topgrading 201 (ebook) Chat With a Topgrader invitation Topgrading Tips enewseltter 39
40 Summary: Immediately Hire Better by Replacing: Dishonesty Honesty ( truth serum ) Shallowness Thorough Topgrading Interview No verification Solid verification (reference calls) 40
41 Q&A 41
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