Real People Challenges, What are They?

I have walked away after listening to people talk about our region with a “doom and gloom” attitude. According to the Center for Regional & Business Research located at Atlantic Cape Community College, the “Baby Boomers” will be changing the market and not necessarily for the better. Boomers are buying second homes that they are not renting. In some towns like Sea Isle City, over 79% of the homes are for vacation or second homes and it estimated that 85% of these homes will not be rented. Starting in three years, “Boomers” will be retiring at a 10 million clip per year for the next ten years. Many will continue to work but will work only where and when they want to work. This will leave us with a lot of part-time employees that require flex-time as a benefit. We will be at their scheduling mercy. The Department of Labor has been forecasting a major labor shortage of young people to fill our ranks with a $10M deficit around the year 2010. So let’s get going. Where? I do not know.

In an interview The Conference Board of Canada conducted with leading management guru, Dave Ulrich, he emphasized that the 21^st century will belong to human resources and to organizational capabilities. I agree with him as did the Conference Board of Canada. For the first time in the history of management, it is the human mind that is the primary creator of value. The quality of people and their engagement will be critical factors in both corporate and small business vitality and survival.

Companies must start building their leadership pipeline by formulating a developmental plan for its people. Leadership must be considered a role rather than a function, and individuals within a company must be called upon to exercise leadership within their spheres of influence internally. Succession planning by position and defining the importance of that position to the overall success of the company is a must. What is your succession plan for the future development of your company? What does it look like?

No market is more competitive than ours for employees. No market is more competitive than ours for management talent. In a tight labor market, like the one in which we are about to enter, a strong employment brand identity must be present. You will have to capture a larger portion of the employee mindshare by setting your company apart from the competition by branding your attractiveness to engagement. You will have to make sure that your employees are engaged and that they understand the real purpose of the organization. In our management development courses, we talk about “connecting the dots” for all employees within the company. Managers must exhibit the ways and means to motivate employees to become engaged and make sure at the same time they are connected to the mission and vision of the company. It is even more important that they understand the purpose. We need to provide an environment where the rate of learning exceeds the rate of change. Not an easy task even for the high achieving manager.

This culture of engagement and purpose can be achieved if we hire the “right person” for this culture. As business owners, we need to develop a Hiring and Selection Process that both demonstrates the flavor of our company in terms of a “brand” that attracts the candidate that is the “right person” for the position. What does your Hiring and Selection Process look like? You better get ready soon because us “Boomers” are coming!

Author: Richard J. Hohmann Jr.
P:(609) 390-2830
E-mail: rhohmann@innovativeleadershipdv. com

I am sitting on the plane reading an article titled, “3M CEO emphasizes importance of leaders”, which is in the format of an interview with George Buckley, CEO of 3M. 3M was rated the best at developing future leaders by Chief Executive Magazine and the Hay Group in 2009.

He was asked, “How long should talented people stay in one job”, and his response was, “there is a point somewhere around four years where you need to get refreshed”.

He responded to the question being presented in many companies today, “Should we be spending money on leadership training when these people may very well leave”? His response was, “What if we don’t offer them leadership training and they stay?”

He was also asked, “Why not save money on leadership development and recruit top talent from others?” and he responded, “I’d sooner own a fish farm then be reliant on catching a few fish”.

It is time for the HR professional to stand up to the CEO and reflect a similar philosophy to of Mr. Buckley. The strengths of your top producers are your most valuable asset of your company. It takes time and money to not only hire the person with high potential, train and develop the top producer and provide the work environment and career opportunities to insure retention of the top producers. This leadership attitude requires a people management plan of action which most companies are not willing to develop.

The Human Resources professional must be the champion for the “great” employees and make sure that the programs and development opportunities satisfy the needs of the top players in the organization. Processes must be developed and events must be discarded. This includes processes relative to hiring and selection, people development, performance management, and succession planning.

So what does your People Management Process look like? When will CEO’s realize the HR professional holds the key to their future? Let’s hope it starts in the near future.

Time Management Tip

Peak performance in the work environment is usually pre-determined.

Last month, an employee survey revealed that the majority of employees (over 70%) performed best between the hours of 8 AM and noon. I have always felt and promoted that the peak performance period for most of us was approximately 2 to 2.5 hours after you got to your work environment.

Less than 18% of those surveyed stated that they performed at their best after 2 PM. It is important that you perform your high payoff activities when you are in your peak performance period and hold your least important projects for the afternoon.

Maybe we should ask Nike to change their slogan to: “Just Do It! – before lunch.

10 Business reSolutions for 2010

1. Conduct a SWOT Analysis for 2009 and analyze your sales, operations, people, and financial commitments.
2. Conduct a Customer Satisfaction Survey to define benchmarks in your core competencies
3. Develop a Strategic or Business Plan for 2010.
4. Meet quarterly with your professional advisors (Accounting, Legal, Business Consultant, Financial Planner, etc.) to review progress and determine action plans.
5. Focus your energies on your talented people
6. Complete a course or take a workshop for self-improvement and/or business development
7. Focus on your strengths, the strengths of your people, and your processes.
8. Prioritize your tasks and make sure others do as well.
9. Remember that time management is personal management.
10. Celebrate success; offer praise and recognition to your top producers.

By Richard Hohmann, VP of Innovative Leadership
Business Consulting - Leadership/Management Development, Strategic Planning and more

10 HR Resolutions for 2010

1. Conduct an HR Self-Audit on your department.
2. Create a Leadership Development Strategy
3. Build better relationships with other departments
4. Establish and evaluate your Training Programs in regard to Level (Kirkpatrick) achieved.
5. Revitalize your Employee Orientation Program (Onboarding)
6. Focus on retaining great employees
7. Become more goal and strategic-oriented
8. Start using metrics to demonstrate the improvement in the profitability resulting from your department.
9. Conduct Organizational Needs and Employee Satisfaction Surveys to define baselines and benchmarks
10. Make sure your compensation plan compliments your performance management process

By Richard Hohmann, VP of Innovative Leadership
HR Services by Innovative Leadership

10 Management reSOLUTIONS for 2010

1. Make sure the business strategy is understood and clear to all employees
2. Make sure the employees understand how their value and job roles contribute to the overall success of the business
3. Improve your communication with employees
4. Help people reach their potential through coaching and/or mentoring
5. Make sure you are consistent in your message and actions
6. Focus yourself and all the employees on the “High Payoff Activities”
7. Become more goal and results-oriented
8. Understand that you are responsible for employee engagement.
9. Focus your energies on people development and career enhancement
10. Understand that the tools of accountability (data, metrics, analysis, assessments, and performance evaluations) are neutral and need to become the tools that high achievers use to understand and improve performance.

By Richard Hohmann, VP of Innovative Leadership
Making of an Effective Manager Course 2010

Critical Business Success Factor

Many experts feel that even though every company is different, it is important for each to develop a succession plan that includes hiring from within, conducting a developmental opportunity or audition, providing a defined plan with time lines for anyone to assume a leadership responsibility, and disclosing the process or succession plan to the shareholders.

Most succession plans do not take into consideration that different environments require different leadership competencies or skills. So, if we narrow our development process than we may never have the right person ready to assume the leadership role in any company. Companies need to consider what most professional sports teams do as a major component for success and that is a strong bench. Most championship teams, whether it be in basketball, baseball, or even football have a great bench or understudy for their key positions. Companies, like professional sports teams, must have a strong bench of candidates who can lead or “step up to the plate” under a variety of scenarios.

Many companies use different forms of people development processes. Some companies call them Leadership Academies or Institutes, and/or High Potential Candidate Schools. Despite the different names, the end result is the same: development of people toward a higher level. As a business owner, you need to provide a constant flow of internal talent but you also must be aware that when people don’t get the higher position, they do have a tendency to leave the organization so the funnel better continue to be adequately filled at all times.

It is also important for companies to deliver some kind of transparency to their shareholders, customers, and internal personnel. The ideal succession plan should minimize uncertainty, which is not a bad thing in this economic climate, and continue to promote the “real” culture of the company. The depth of the company’s disclosure should be predicated by the need at the time and situational circumstances.

Also, many experts believe that the succession plan must take into consideration the corporate culture to the extent that every company should have a corporate culture that transcends the exit of any leader or person. Most companies do not really know what they smell, taste, and feel like to their internal and external customers. The best way to determine the current culture and the culture employees want is to conduct an Organizational Needs Inventory (ONI) assessment but most companies don’t do them.

So, succession planning is just a more formalized name that can be defined as a process to help companies develop their people to meet their future needs.It certainly sounds like it is time for a Leadership Program! Let's get started!