5/30/2012 PERFORMANCE PRESSURE & DIFFERENTIATION

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1 PERFORMANCE PRESSURE & DIFFERENTIATION 1

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3 THE BASIC PREMISE i. People change when their circumstances change. ii. There are specific circumstances that stimulate improved performance in groups of people. iii. Leaders create the circumstances that stimulate improved performance & business execution. A High Performance Environment is an environment that stimulates those within it to consistently become or pursue better, stronger, faster 5 BUSINESS RESULTS: REALIZE YOUR STRATEGIC POTENTIAL BY LEVERAGING YOUR ASSETS Business Strategy x Assets Business Execution (BizX) x = Business Results The right people doing the right things in the right way Many Companies have elaborate systems to define strategies and monitor assets, but few effectively manage and measure the capability to execute. 6 3

4 HIGH PERFORMANCE ENVIRONMENTAL STRUCTURE DRIVERS OF HIGH PERFORMANCE Clear Direction High & Low Performance (refer Black components) THE RANGE Executive Team RANGE INDICATOR 82.0 Level 3 Leadership Team RANGE INDICATOR

5 HIGH PERFORMANCE ENVIRONMENTAL STRUCTURE DRIVERS OF HIGH PERFORMANCE Clear Direction High & Low Performance (refer Black components) Motivation Systems (Light Blue) Trusted Exposure of Performance (Grey components) High Performance Philosophy (Dark Blue) Performance Pressure PRESSURE /MEANING COMPARISON Fast Food Company PRESSURE INDICATOR 55.3 MEANING COMPONENT 79.7 High Tech Company PRESSURE INDICATOR 71.7 MEANING COMPONENT

6 PRESSURE CLARITY COMPARISON Fast Food Company PRESSURE INDICATOR 55.3 CLARITY INDICATOR 68.6 High Tech Company PRESSURE INDICATOR 71.7 CLARITY INDICATOR PRESSURE MEASUREMENT COMPARISON Fast Food Company PRESSURE INDICATOR 55.3 MEASUREMENT INDICATOR 64.7 High Tech Company MEASUREMENT INDICATOR 51.4 PRESSURE INDICATOR

7 Academic Collaborators OVERLOOKED i. Individual Exposure Systems Systems/methods of exposing the reality of individual current performance standards Function: To provide an individual an accurate sense of current performance standards 7

8 HOW? Performance Definition a) Good measures of performance come from a good definition of performance b) What is a High Performer in this environment/team? The fewer the performance measures the better a) Keep it simple less is more b) General Measure v Performance Measure 16 8

9 GENERAL MEASURE V PERFORMANCE MEASURE Exceeding these does not differentiate you Missing any expectations can trigger improve or exit Non-differentiating, expected deliverables/behaviors What makes you a high performer? What are you really here to do? High Performance Outcomes & true differentiation Missing agreed failure concept will trigger improve or exit HOW? Performance Definition a) Good measures of performance come from a good definition of performance b) What is a High Performer in this environment/team? The fewer the performance measures the better a) Keep it simple less is more b) General Measure v Performance Measure Clarify the acceptable excuses for non-performance a) Excuses release performance pressure, stifle innovation & introduce complexity 18 9

10 EXAMPLE Performance Definition: Great strategic thinkers with strong influencing skills MEASURES WHAT/MEASURED HOW/MEASURED CATEGORY 1 Strategic Thinking Index (Peer) Ability to think strategically Peer Survey or interview PM 2 Buy-In Index (RM s) Ability to influence Regional managers Survey of RM s opinion regarding effectiveness PM 3 Profit by Product Profit Financials PM 4 Growth by Product Revenue Growth Financials GM 5 Team Contribution (Peer) Teamwork Peer Survey/Feedback GM 6 Learning Agility (Leader) Behaviors/Skills Competency assessment Manager Opinion Peer Feedback GM DIFFERENTIATING PERFORMANCE IMPROVING THE PERFORMANCE FACTOR Do your LOB Leaders? Care about producing Outcomes that matter? Know their key individual exposure mechanism/s? Know how to create accurate/credible performance measures to assist in performance differentiation? Think about, in the context of their business, how to implement improved Performance Differentiation for the organization? 20 10

11 Outcomes Matter THE IMPACT OF ELITE HR How do you measure the results? 1. Change in the Environment: Cycle-to-Cycle Diagnostic Comparison of Key Components 2. Impact: Before and after movement of targeted business metrics 22 11

12 MEASURE BUSINESS EXECUTION CYCLE 1 CYCLE th th st th th nd th th th th rd nd th th rd th th st THE IMPACT CONT. Movement of Targeted Business Metrics Representative Client Targeted Metric HPES Attributed Result Director, Call Centre, Financial Services Revenue 400% revenue increase in Call Center GM People, Financial Services Performance Improvement 40% of low performers exited the environment. 40% improved their performance. 15% transferred into roles where their skills were better suited. CEO, Building Net Profit Contribution $100K per month increase of net profit contribution Managing Director, Pharmaceutical Complacency More engaged executive team and an increased in positive performance pressure CEO, Manufacturing Leadership Accountability Improved clarity, alignment, and transparency of expectations and increase in % of people hitting objectives 24 12

13 THE IMPACT CONT. "We are developing a high performance, achievement-based culture. Without this methodology, I would expect us to be behind our competitors. Shenaz Khan GM People Rob Coombe CEO BT Financial "It is often difficult to unify a leadership team on improving the performance within a business. The high performance environment process provided powerful yet easily understood information on the factors effecting performance at Cisco. This process unified my team on the specific actions to improve performance." Gerard Lithgow VP Enterprise Sales North East USA Cisco "The high performance diagnostic facilitated clarity on what actions needed to be taken in order to improve the performance of my team and why these actions would have the greatest impact. Importantly the process unified my senior executive team around these actions. Charlie Brown Senior Executive Accenture There has been a significant attitudinal and behavioral change from increasing the potency of the exposure mechanisms. I have an MBA in this discipline and read books on leadership, management, and performance every month. There is no flaw in the HPES model and I highly recommend it.. Paul Lirette Managing Director GlaxoSmithKline 25 13