Transforming Your Performance Management System - Getting Results is What Counts!

These 10 Statistics About Performance Management That Will Blow Your Mind

• 45% of HR leaders do not think annual performance reviews are an accurate appraisal for employee’s work.
• CFOs spend at least 40% of their time on business performance management, but they estimate that 30% of their company's performance potential is lost due to ineffective performance management processes and behaviors.
• Only 23% of HR executives think that their PM process accurately reflects employee contributions.
• Only 8% of companies report that their performance management process drives high levels of value, while 58% said it is not an effective use of time.
• A poll with 2,677 respondents revealed that 98% find annual performance reviews unnecessary. Among the respondents were 645 HR managers, 232 CEOs, and 1,800 other employees.
• Only 14% of organizations are happy with their performance management system.
• Two-thirds of performance management systems misidentify high performers.
• In 2013, most organizations needed a 20% improvement in employee performance, but typical performance management can only improve performance by 5%.
• 58% of organizations rated their performance management systems as “C Grade or below.”
• 30% of performance reviews end up in decreased employee performance.

Clearly, something is amiss when it comes to performance management and annual reviews. In fact, given the above statistics, it’s a relatively safe bet to say that performance management in your own company is lacking in some way or not delivering the kind of value you wish it could deliver.

The above facts were presented in an advertisement to promote their publication of the same name.  I agree with the statistics that show that most Performance Management Systems are failing or not performing at the designed level.  I believe that most of a company’s potential is lost due to ineffective performance management processes and behaviors.  I believe that this concern is a direct result of the following:

·         The lack of management and leadership training programs designed to help people reach potential and achieve results

·         The lack of support from both Senior Management and the Human Resources Department

·         The absence of a company culture that focuses on people development and high achievement

·         The perception that the ROI associated with Leadership and Management Development is not significant.

Our region is made up of mainly small to mid-size businesses primarily focusing on providing income for the owners.  Tourism, Gaming, Healthcare, Education, and public services are our primary industries that can support the growth and development of larger companies.  We have little manufacturing and distribution companies in our region.  We are basically a business environment that is seasonal in nature with little opportunity for growth and development.  

Our talent pool is one of the weakest in the State and we still don’t get it.  With the recent casino closings, much of our talent pool in that industry are seeking opportunities in other regions of the country.  Graduates from our local colleges and universities are not staying in this region for jobs.  Unemployment is high in all three counties: Atlantic, Cape, and Cumberland. Foreign owned companies are moving from the region and closing their local distribution or manufacturing plants as this article is being written.

Most businesses do not see the value in training their future or current management team yet most owners agree that their management team is the most valuable asset of their company. How contrary is that!   Innovative Leadership of the Delaware Valley, LLC is the only company in Southern New Jersey that offers Leadership and Management Development Programs designed for the small to mid-size company.  We provide programs that are facilitated by high achieving, experienced managers.  We offer the programs at times that have a minimal effect on the work schedule of an employee or manager at a location ideally situated for the Cape May, Atlantic, and Cumberland county employer.  Our references and outcomes are excellent, and most of our attendees have been promoted following the completion of the program.  Last but not least, we are the only company to use a vehicle that will demonstrate the ROI of the program upfront…before the check is written.

I ask each of you to comprehend the fact that the future of your business lies in the hands of your future leaders….and we develop leaders in companies by training one employee at a time.  It amazes me that we have difficulty filling a fifteen person Leadership Program from a region who talent pool is one of the weakest in the nation.  Developing your talent can make you even more competitive in the marketplace. We can help you develop the talent you need for future business growth and people development.  Please call us at 609-390-2830 for more information on our programs.

Best Practices for Assessment Selection

Companies are starting to depend on assessments to help acquire, develop, and promote the best talent.  Assessment instruments are one of the best tools to support your hiring and selection processes, people development initiatives including succession planning,  and helping to define you high potential candidate or future leader.

The challenges facing companies today include employee turnover, lack of employee engagement in the work environment, recruiting the right person for the right job, and retaining the future stars of tomorrow.   These are the major issues that affect the bottom line of any company today.

Most companies understand the various costs involved when a bad hire occurs.  It is estimated today that the cost of replacing a high achiever in any company is between three and four times the individual’s annual salary.  Your company’s investment spent on recruiting, development and retention can be a significant portion of your budget. 

Cost savings and outcomes more than justify the cost of an effective assessment process.  Here is how that assessment process can make it happen:

The Problem With Leadership Development

By Gordon Curphy, Robert Hogan, and Robert B. Kaiser


If leadership programs do not produce the bench strength, performance and behaviors desired, one or more of six problems could be the culprit.


During the past two decades, learning executives have persuaded U.S. corporations to double their
annual spending on various forms of leadership development to $14 billion. Yet over that same period, public confidence in leadership has dropped considerably. According to a 2012 poll by The Center for Public Leadership at Harvard University, 70 percent of Americans believe there is a leadership crisis that will lead to a national decline unless we find better leaders.


Many leaders, including some in the learning profession, recognize the problem. A 2011 survey by
consultancy Development Dimensions International Inc. of 14,320 executives reported that 38 percent of line leaders and 25 percent of HR leaders gave their organizations high ratings for leadership and only 32 percent and 18 percent, respectively, thought their organizations had the necessary bench strength to meet future business needs.


That leadership development is broken seems to be an open secret. In a 2013 survey by research firm Brandon Hall Group of 329 organizations, 75 percent of respondents described their leadership
development programs as ineffective. What accounts for this disconnect between money spent on
leadership development and leadership performance?


A Way Out of Darkness
Six problems undermine leadership learning and development initiatives, and these problems flow from deeply held convictions reinforced by so-called best practices. The evaluation problem. It is a dirty little secret that leadership development programs are rarely evaluated in a meaningful way. They are typically evaluated byasking participants how much they liked or benefited from it, or by using metrics such as how many directors received 360 feedback, how many managers watched an e-learning module and so on. But the real question is whether programs produce positive changes in behavior and financial results.


Thousands of leadership development programs are delivered in the U.S. every year, but a 2009 review article by Bruce Avolio and colleagues published in The Leadership Quarterly could only locate the results of 200 programs that were formally evaluated. Two-thirds of these programs were found to have positive outcomes. Because these programs likely were better designed and delivered than those not evaluated, the overall failure rate for the typical leadership program is probably higher than 1 in 3.


Learning leaders normally use evaluations to justify return on investment, but evaluations also can be used to improve programs. Without formal evaluation, many programs will use questionable methods, and no industry is more susceptible to fads than leadership development. The definition problem. Evaluation requires specifying desired outcomes, and this requires defining leadership correctly. Unfortunately, leadership is most often defined by a position — Marissa Mayer is
the leader of Yahoo Inc., or the senior vice president of marketing is the leader of that group. This
confuses status in organizations with leadership, and many senior managers are better at promoting
their careers than they are at leading.


Competency models also can be used to define leadership. But competency models are idiosyncratic lists of skills and abilities composed by asking senior managers what is needed to lead in particular jobs. Because few senior managers are good leaders, asking them about effective leadership is like asking a doctor for investment advice. He or she probably has an opinion, but it may not be a good one.


Teams are the building blocks of organizations. The essence of leadership is persuading individuals to work together to achieve a common goal. Thus, many believe leadership should be defined as the ability to build and guide teams that outperform the competition. Leadership development programs should be constructed from this perspective and should be evaluated in terms of whether they help leaders build high-performing teams.


The people problem. Many of the people who attend leadership development programs are drawn to high-status and high-paying leadership positions, but they have little talent for leading a team. These people fall into three broad types: savvy politicians who can play the game; technically competent individual contributors; and ambitious people who are also arrogant, defensive, incapable of selfreflection, and not open to learning and growing.


As a result, many people who attend leadership development programs lack the motivation and interest to do the hard  work and learn how to lead a high-performing team. Organizations need to rethink who they send to leadership development programs. They should focus on identifying individuals with people skills who are also team-oriented, results-driven and curious learners. It would also help to screen out self-promoters, satisfied technical experts and those unable to
change.


The content problem. Little of what is taught in leadership programs concerns the actual tasks of
leadership. Courses are often based on competency models which, in addition to being ad hoc, rarely concern how to build teams that get results. A review of the most popular, commercially available competency models shows they almost never include competencies specifically about getting results through teams. The same is true for the homegrown competency models used in most organizations.


Nonetheless, people in positions of authority often struggle to staff teams, launch virtual teams, fix
dysfunctional teams, and align competing interests and egos. Focusing leadership development efforts on these team concerns is essential if programs are to have a demonstrable impact on results.


The pedagogy problem. Most leadership programs are taught in inappropriate ways. They tend to be events with little follow-up support or accountability for transferring learning back to the job. Further, research summarized by author Malcolm Gladwell in his book "Outliers" shows that developing expertise — in writing fiction, figure skating or leading — requires 10,000 hours of practice, far more than a one-day seminar, weeklong training program or two-year MBA. Worse, leadership programs are often taught by HR staff, talent managers and consultants — individual contributors with no real leadership experience — which makes it difficult to translate theory into practice.


There are four ways to improve leadership training. First, reinforce learned lessons back on the job. For example, reporting back to the participants’ bosses, having a clearly defined action plan and periodically reviewing progress will add support and accountability. Second, provide l earning environments that allow experimentation and practicing new skills with real-team feedback. Third, use teachers who have track records for building high-performing teams. Fourth, involve intact teams together in the learning and development process.


The rationale problem. Leadership development programs are often launched for questionable reasons: A CEO decides a leadership book is the key to organizational salvation. Someone thinks the organization needs a leadership development program to teach "best practices." Or a senior manager wants a coach as a perk after reaching a certain level. Although these programs cost millions of dollars, they rarely improve his performance.


To get the best return on investment, start leadership programs for at least one of three reasons: to
help leaders learn how to develop the strategies and tactics needed to beat the competition; to help
leaders learn how to build and maintain a team; or to improve team dynamics and results.


Where Do We Go From Here?
The shortfall in leadership talent will continue unless learning leaders change their approach to
leadership development. CLOs are uniquely positioned to drive this change because they are responsible for talent development, they understand the mechanics of adult learning and they control leadership development budgets. The following recommendations are not expensive but do require learning leaders to think differently about leader development.


1. Clearly define leadership. Organizations need a clear definition of leadership to organize their
development efforts. If leadership is defined as the ability to build teams that outperform the
competition, this definition has specific implications for how to hire, develop and promote leadership talent.


2. Build better competency models. Organizations should build competency models either by observing what distinguishes leaders with track records for building high-performing teams or by interviewing these leaders. Including those who are not proven team builders muddies the waters.


3. Rethink who attends leadership programs. Well-validated assessment tools can be used to identify those with the right motivation, interest and talent for leadership. These tools also can be used to screen out those who are not likely to benefit from the training.


4. Offer programs on teams. Most leadership programs nibble around the edges of team development. They often concern goal setting, communication, coaching, delegation and performance management as applied to direct reports with no concern for how the concepts work with teams.


5. Teach intact teams. Because teams are the building blocks of organizations, leadership development programs should target intact teams rather than isolated individual leaders. This is particularly true for teams critical to driving the business strategy.


6. Resist the magnetic pull of fads. Far too many leadership development programs are based on the latest fad. Programs should be aligned with an organization’s definition of leadership, business strategy and the knowledge, behaviors and skills needed to guide teams to execute that strategy. Everything else is just noise.


7. Evaluate, evaluate, evaluate. Although the effect of some leadership development initiatives is more easily studied than others, all programs should be evaluated in terms of meaningful outcomes. The outcomes should focus on the skills, behaviors and competencies individual leaders need to build a high performing team as well as team performance.


Gordon Curphy is president of Curphy Consulting and Robert Hogan is president of Hogan Assess

The Problem with Leadership Development

I really enjoyed an article by that appeared online in the Chief Learning Officer blog on May 22^nd titled, The Problem with Leadership Development. I was particularly interested in their six problems that undermine leadership learning and developmental initiatives.  Also, that these problems flow from deeply held convictions reinforced by so-called best practices. The problems noted are as follows: 1) Evaluation, 2) Definition, 3) People, 4)Content, 5) Pedagogy, and 6) Rationale.

Focusing on the Evaluation Problem, I agree that leadership development programs are rarely evaluated in a meaningful manner. This is why most training programs end up becoming failures.  In most cases, no real metrics for success are defined prior to the start of the program, therefore there is no foundation or baseline on which to base success or failure. I wouldn't call it a “dirty little secret” but it is true.  

I don’t mean to “toot my own horn” but we are the only company in our area that provides a 180 degree feedback mechanism for each participant and the course evaluation is completed by not only the participant but the participant’s immediate supervisor or sponsor. Our entire learning process focuses on getting results. We really focus on behavioral change that results in: 

• Support individual development goals
• Improve morale
• Enhance engagement
• Strengthen participant skills for future career opportunities 
• Helps the company build their succession plan

I would like to say that the problem with Leadership Development today is the fact that companies are not focusing on the future of their company regarding the development of their future leaders.  Most personnel departments or HR professionals now report directly to the financial officer and the attitude coming from that department usually reflects some sort of  “cost cutting measures”.  Leadership Development does cost money and requires an investment in your future leaders but there are metrics that can determine your ROI. 

Don’t let the financial commitment hold you back, because the talent that you develop today directly correlates with the future success of your company.  The most valuable asset you have is the talent and skills that your people bring to the workplace.

Call 609-390-2830 to discuss the learning process that incorporates the most effective evaluation procedures. Let us show you the value of Leadership Development

Please pass this article on the decision maker for Leadership Development

Executive Coaching: A Leadership Development Tool for Top Performers By Gayle Lantz

"Coaching" used to be a popular approach for derailing executives or professionals whose performance needed a lot of work. Got a problem? Get a coach. However, increasingly, coaching is being sought by some of the most successful executives in their field - those who want to get even better at their business game. So the new thinking is…

Got a goal? Get a coach.

Executive coaching has evolved quickly over the years. Some consider it a field in itself; others consider it a form of consulting. There are many interpretations for "executive coaching". No matter how you define it, coaching can be a useful tool for executives who want to develop as leaders. Rather than debate the definition of coaching, it's more important to consider the type of coach and approach that's most appropriate for you given the results you want to achieve. Some executives have difficulty art iculating concrete desired results, but a skilled coach can help. Often executives simply haven't taken the time to slow down and think things through.

Coaches come in the form of business professionals, psychologists, trainers, consultants, authors, etc. They come from all walks of life. Some are tough, challenging and direct. Some are sensitive, encouraging and indirect in their style. Some impose a particular process. Some are more flexible. A consultant with expertise in communication may focus on executive coaching that emphasizes presentation skills. A fashion consultant may offer executive coaching with an emphasis on professional appearance. Other executive coaches focus on leadership skills or business strategy. The approaches are as varied as the professionals who deliver coaching services.

Selecting a Coach
Ultimately the most important factor in selecting a coach is the coach's track record and his/her ability to establish the kind of relationship with you that helps you achieve results. Senior leaders who have few peers seek out coaches to discuss business and professional goals. It's a decision that should not be made lightly.
Coaching relationships can be structured a variety of ways. Consider whether you want to work with a coach in person, by phone or both. Know what's most important to you in selecting a good coach. Finding the right fit is everything. You'll know you have the wrong fit if you feel you're wasting your time, dread your coaching conversations, or focus on issues that aren't directly relevant to your goals. Listen to your instincts and find the best fit.

Coaching Issues
With the complexity of issues that challenge executives, there is never a loss for discussion topics between a coach and client. Below are a few of the issues that many of today's top-performing leaders discuss with their executive coaches:

• Staying focused on top priorities
• Increasing accountability for follow-through
• Building skills in particular areas 
• Dealing with organizational politics
• Thinking strategically
• Handling stress & avoiding burnout
• Managing teams & dealing with sensitive personnel situations
• Influencing others
• Negotiating
• Brainstorming new ideas/creative thinking
• Personal career planning
• Life-work balance issues
• Establishing clear goals and action plans

Success Factors
In addition to finding the right coach, here are a few success factors to keep in mind for those who engage in a coaching process.

• Establish clear guidelines for the relationship and coaching process on the front end. Don't make assumptions.
• Share feedback. If something is not working, discuss it.
• Acknowledge progress and successes along the way. This helps build momentum.
• Involve other stakeholders if necessary. In some cases, others in the organization can participate in the process to share input and feedback.

Executive coaching is not for everyone. It's only for those executives who are highly motivated, who are committed to leadership development and who want to engage in the process. Expect a minimum commitment of six months to a year.

Company Sponsored Coaching Programs
Many more companies now recognize the importance of promoting coaching within their organizations. Many have formal coaching programs that include internal and external coaches. Organizations that sponsor coaching programs need to be diligent about connecting the benefits of coaching with business results in their organizations. Without a results focus, organizations run the risk of promoting coaching for its own sake - a "campaign for coaches," instead of solutions for executives. Coaching is simply a means.

Corporate initiatives that mandate or roll out a coaching program too broadly jeopardize the effectiveness of the program. Often those who need coaching most are least likely to be open to the process, but top performers are always looking for a leading edge.

Finding the right coach can be the leading edge you need to succeed professionally.

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Call now for a complementary Coaching Conference to discuss how we can provide the best practice for Leadership Development at 609-390-2830.

Hiring For Attitude

Everything in the business journals points to a dramatic shortage of talent in the workplace today.  I can’t tell you how many articles on “hiring for attitude” I have read in the past three months.  If all of this is true, then I know one thing for sure.  Companies must change their approach when it comes to the selection of new hires.

Recruiting today is much more difficult than it has been in the past.  Finding qualified people for certain job roles is becoming a real art.  It is certainly a fact of life that our management talent pool is shrinking and that experience or specialization is in great demand.  Experience or technical proficiency has become a commodity and the hiring focus has shifted toward attitude. And this shift has precipitated tactical changes in how job selection is being conducted.  It is important that you focus on your talent management processes before it is too late.

Here are some suggestions for recruiting and selection improvement:

1.       It is important that you use the most talented employees in your company  to help with the recruiting process.  You can use them to create a benchmark or hiring profile that is truly representative of what you need in your workplace to be highly successful. 

2.       Use a well defined Behavioral Interviewing Process that includes a scorecard based on the people that achieve at a high level in that particular position and what accounts for high achievement.

Are You Overlooking Leadership Talent?

By Jennifer Jones -  1/31/14

Global leadership development should identify individuals whose influence and following make them leaders, regardless of their position on the organizational chart.

More than half of global companies define leaders not by their position on the organization chart, but by their influence and performance. Findings from the fourth annual “Global Leadership Development: Everybody’s Game” survey from AMA Enterprise also indicate that organizations need to consider broadening their approach to leadership development programs, in terms of who participates and in content.

AMA Enterprise, where the author works, partnered with the Institute for Corporate Productivity and Training magazine to evaluate a study of 1,174 senior-level business, human resource and management professionals from 37 industry sectors in 40 countries. The survey was conducted in January 2013.

The largest proportion of participants, nearly four in 10 (Figure 1), said their definition of a leader is anyone whose role allows him or her to influence a group, regardless of direct reporting relationships. According to another 14 percent, a leader is anyone, whether they manage others or not, who is a top-performer in their specific role. In all, 53 percent of respondents consider people to be leaders not according to their authority, but their impact.

In global terms, pace-setting companies now recognize that leaders can emerge from a far broader group than those at the top of the organization chart. Teamwork, collaboration and contribution to success played key roles in shaping this trend.

“With organizations flattening and workplace challenges being more complex and requiring significantly broader collaboration, everyone needs to be able to step up,” said Brad Federman, founder and president of Performancepoint LLC, a performance management and employee engagement company. “Organizations that align structure, development and strategy around contribution and leadership capability will outperform those that don’t. The bottom line is … leadership development now needs to be an inclusive effort.”

Article reprinted fro Chief Learning Officer Online, January 31, 2014

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Innovative Leadership of the Delaware Valley, LLC offers the tools and processes to both identify and train future leaders at all levels of your organization.  Call us at 609.390.2830 to discuss our Total Leader Concept and the processes that can make a difference in your future. 

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