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ExecutiveHumanResourceProgramThePromiseofPerformanceManagementHayGroupBoston

10109-9271-HAYGLemaireExecutiveHumanResourceProgrTheCurrentChallengeofPerformanceManagementTheHRprocess—IscompletelyunrelatedtootherkeybusinessprocessesIsdreadedbymanagersandemployeesalikeDoesnotresultinanymeaningfulfeedbackDoesnotdifferentiateperformanceorpayIsafocusforonlyoneortwodays—orhours—peryear20109-9271-HAYGLemaireTheCurrentChallengeofPerfoThePromiseofPerformanceManagementImagineasystemthatcould—IncreasethelikelihoodthatyourstrategyiseffectivelyexecutedHarnessanddirectthe10–60minutesadayofdiscretionaryeffortthateveryoneofyouremployeeshasRationalizeandfocusthenumberofgoalsthatanyoneinyourorganizationhasImprovethedecisivedialoguethatoccursinyourorganizationRewardperformanceinawaythatitismotivatingandengagespeopleDifferentiateperformanceinwaysthatmakelinemanagersfeelgoodabouttheirdecisions30109-9271-HAYGLemaireThePromiseofPerformanceManPerformanceNumberofEmployeesSource:Hay/McBerOptimizingtheperformanceofyourpeoplewillhaveapositiveimpactonbusinessperformanceImprovingPerformanceManagementImprovesBusinessResults40109-9271-HAYGLemairePerformanceNumberofEmployeesPercentageofvariationinchangeincompanyperformanceaccountedforbymanagerialpracticesSource:SheffieldEffectivenessProgrammeHumanResourceManagementPracticesDriveProfitabilityandProductivity50109-9271-HAYGLemairePercentageofvariationinchaHighlySuccessfulCompaniesaredefinedashaving—5-yearsalesgrowth=17.5%peryear5-yearprofitgrowth=10.8%peryearAnnualequitygrowth=16.7%peryear5-yeardividendgrowth=13.4%peryearSource:D.Karvetz,TheHumanResourcesRevolutionClearEmployeeGoalsParticipativeStyleAttentiontoDevelopmentEncourageCreativityPerformance-BasedRewardsHighlySuccessful

CompaniesLessSuccessful

Companies80%70%67%62%86%26%4%27%10%30%High-performingcompaniesarebetteratmanaging,motivating,andrewardingemployeesImprovingPerformanceManagementImprovesBusinessResults60109-9271-HAYGLemaireHighlySuccessfulCompaniesarSource:Mavrinac&Siesfield,MeasuringIntangibleInvestmentStrategyExecutionMatterstoShareholdersThirty-fivepercentofaninstitutionalinvestor’svaluationofacompanyisattributabletononfinancialinformationthatgaugestheabilityofthemanagementteamtodeliverresults:StrategyExecution:Canmanagementmaketoughdecisionsandseizeopportunitiesquickly?ManagementCredibility:Doesthecompanykeepitscommitments?StrategyQuality:Ismanagement’svisionofthefuturelikelytooptimizevaluecreationinavolatile,globalized,andconnectedeconomy?Innovativeness:Howreadilydoesthiscompanyadapt?AttractingandRetainingTalent:Isturnoverhigherorlowerthankeycompetitors?Donewhiressurpassleaversinskillsandexperience?ManagementExperience:Whatskillsandexperiencesdoesthemanagementteambringtothetable?Compensation:Docompensationpoliciessupportthefirm’sstrategicintent?70109-9271-HAYGLemaireSource:Mavrinac&Siesfield,35%improvementinhuman-capitalsystemsresultedin

10%–20%gaininshareholdervalueAlignmentandIntegrationofHRSystem“HumanCapital”Enhancements290310330350370390020406080100QuintileImprovementsinStrategicMarketValueperEmployee(000)Source:HuselidandBaker,1995HumanCapitalSystemsIncrease

ShareholderValue80109-9271-HAYGLemaire35%improvementinhuman-capitImprovingPerformanceManagementImprovesBusinessResultsHigh-performancecompaniesdefinePerformanceManagementinitsbroadestsense:itiscriticaltoexecutingandimplementingstrategyPerformanceManagementisnowwidelyrecognizedasdeliveringmorereturnsanddeliveringmorecompetitiveadvantagesthanotherHRinvestmentsPerformanceManagementisthekeyto“raisingthebar”inanorganization,foralllevelsofperformanceOrganizationswithahigh-performanceorientationandstrongmanagementcapabilityhavehigherrevenue,profits,andmarketvaluations90109-9271-HAYGLemaireImprovingPerformanceManagemePerformanceManagementPerformanceManagementisaboutimprovingbusinessperformancebyimprovingteamandindividualperformance,andensuringthatthecompany’sstrategyisexecutedandimplemented.Itis—AprocessthatensuresthatpeopleexecutethestrategyoftheorganizationAprocessforestablishingasharedunderstandingofwhatisto

beachievedandhowAprocessforensuringthatdecisiveandconstructivedialogueoccursAprocessofmanagingselfandotherssothatpeopledoachieveAprocessforensuringthatpeoplearedoingtherightthingsin

themosteffectiveways,tothebestoftheirability100109-9271-HAYGLemairePerformanceManagementPerformaPerformanceManagementStagesDesignParameterPerformanceAppraisalPerformanceManagementPerformanceOwnershipHumanResources“Checkthebox”compliance-orientedManagepoorperformersPassiveReportcard(retrospective)ManagersandHumanResourcesEvaluationrewardemphasisManagethetailsofbellcurveJointownershipforgoal-setting/reviewBarometerofprogress(periodic)Employees,managers,andleadershipStrategicclarity,coaching,dialogueRaiseperformanceoforganizationSharedaccountabilityforresultsDialogue(continual)FunctionRoleofEmployeeFocusEmphasesOwnership110109-9271-HAYGLemairePerformanceManagementStagesDPerformanceAppraisalPerformanceManagementManagingPerformanceHighLowLowHighImpactonResultsLevelofOrganizationalCommitmentImprovedbusinessresultsrequireorganizationalcommitmentCommitmenttoachievecompanygoalsGoodsettingandreviewMeritincreasesefficientlyallocatedPerformanceManagementStagesthis120109-9271-HAYGLemairePerformanceAppraisalPerformanTheperformancemanagementmodelisnotnew,butthewayinwhichleadingorganizationsdoitisverydifferent&&DialogueDialogueDialogueDialogueBestPractices130109-9271-HAYGLemaireTheperformancemanagementmodBestPractices—What’sDifferent?Therearefourdifferentiatorsofbestpractice:ClearStrategyTranslationProcessIntegratedPerformanceProcessesCultureofDialogueMultipleandDifferentiatedRewards140109-9271-HAYGLemaireBestPractices—What’sDifferenStrategyTranslationProcessADefinition:“Earlyinthehistoryofthecompany,whilethinkingabouthowacompanylikethisshouldbemanaged,Ikeptgettingbacktooneconcept:ifwecouldsimplygeteveryonetoagreeonwhatourobjectiveswereandtounderstandwhatwearetryingtodo,thenwecouldturneverybodylooseandtheywouldmovealonginacommondirection.”DavePackard150109-9271-HAYGLemaireStrategyTranslationProcessAStrategyTranslationProcessChecklist:Arealltopteammembersunifiedandfocusedonthe“must-win”battlesoftheorganization?Aretheinterdependenciesclearbetweenthetop-teammembers?Arethemiddlemanagersclearonthe“must-win”battles?Doemployeesknowwhattheyneedtodofortheorganizationtobesuccessful?Financialgoals,operationalgoals,behaviors160109-9271-HAYGLemaireStrategyTranslationProcessChIntegratedPerformanceProcessesADefinition:“Leadersmustseetoitthattheorganization’s‘socialoperatingmechanisms’—thatis,theexecutivecommitteemeetings,budgetandstrategyreviews,andothersituationsthroughwhichpeopledobusiness—havehonestdialogueattheircenter.Thesemechanismssetthestage.Tightlylinkedandconsistentlypracticed,theyestablishclearlinesofaccountabilityformakingdecisionsandexecutingthem.”RamCharam,HBR4/2001170109-9271-HAYGLemaireIntegratedPerformanceProcessIntegratedPerformanceProcessesChecklist:Dothegoalsoftheorganizationreflectinterdepartmentalobjectives?Arethefinancial,operational,andpeopleprocessesintegrated?Istheinformationfromtheseprocessesusedtomakebusinessdecisions?Aretheprocessesefficientandeffective?180109-9271-HAYGLemaireIntegratedPerformanceProcessCultureofDialogueADefinition:“Aleadershouldbeconstructinghisappraisalallyearlongandgivinghisappraisalallyearlong.Youhave20,30,60opportunitiesayeartoshareyourobservations.If,attheendoftheyear,someoneistrulysurprisedbywhatyouhavetosay,thatisafailureofleadership…Byfailingtoprovidehonestfeedback,leaderscheattheirpeoplebydeprivingthemoftheinformationthattheyneedtoimprove….Criticalfeedbackisthe“heavylifting”ofleadership”EDS’sDickBrown190109-9271-HAYGLemaireCultureofDialogueADefinitioTypicallyanewemployee’sproductivitycurveincreasesquickly,thenlevelsoffWithoutreinforcementandfeedbackthelevelstaysthesameormayfalloffSporadic,inappropriate,orgeneralfeedbackwithoutreinforcementhasadistinctiveeffectonmotivationandperformanceConsistent,specificfeedbackanddialoguebuildself-esteemandperformanceFeedbackFeedbackFeedbackFeedbackCultureofDialoguePerformanceCoaching/FeedbackIsCritical200109-9271-HAYGLemaireTypicallyanewemployee’sproCultureofDialogueChecklist:Aremanagers(andemployees)trainedinandgoodatperformancedialogue?Aremanagersselectedandheldaccountableforperformancecoaching?Arecoachingbehaviors“lived”bytheleadersoftheorganization?Isthedialogueopen,informal,andcandid,anddoesitprovideclosure?210109-9271-HAYGLemaireCultureofDialogueChecklist:2Thebettermyperformance,thebettermytotalcompensationwillbeMultipleandDifferentiatedRewardsWhenmostemployees,eventhestars,getthesamepay,itreducesclarityaboutwhatgoodperformancelookslikeSource:HayGroup220109-9271-HAYGLemaireThebettermyperformance,theMultipleandDifferentiatedRewardsApproaches:IncreasedialogueUsemultiplecurrenciesReviewuseofratingsUseforcedrankingsFindnewwaystodifferentiatemerit230109-9271-HAYGLemaireMultipleandDifferentiatedReDifferentiatedRewardsSeparatemeansfromendsTactics/StrategiesBehaviorsTrainingTrainingTrainingTrainingTactics/StrategiesBehaviorsTrainingTrainingObjectivesEnablersConductanalysisofwhyOTissohigh;developstrategytoreduceOT;implementstrategyImplement3programsaimedatincreasingcustomersatisfaction:begintrainingprograms;upgradecallcentersoftware;establishamonitoringprogramSethighgoalsforyourselfandfortheteam:trytoreducefrom50to30permonth;communicatetoteamwhatneedstobedone;“own”thisprocessIdentifycustomerissues:thinkaboutandactonopportunitiestoaddresstheseissues;actasarolemodeltosubordinates—showthemhowtoworkwithcustomers;improvecall-centersoftwaresystemTrainingTrainingTactics/StrategiesBehaviorsDevelopaplantomeetwitheachofyoursubordinatesandgetthe“pulse”onhowtheyaredoing(re:jobs,projects,expectations);developcareer-pathingplanswitheachofyoursubordinates;developideasaroundnonmonetaryrewardsCoachconsistently:delivertimelyandconstructivefeedback;addressissuesimmediately;makesureotherscontributeandhavewhattheyneedtodothejobTactics/StrategiesBehaviorsBusinessObjectivesCareerDevelopmentObjectivesImproveconsistencyofcustomer’sdelivery(evidencedby98%customersatisfaction)[Goalssetforyear]Improveemployeeretentionindepartmentby50%[Goalssetfornext8months]Reduceovertimefrom150to50hours/month(costnottoexceed$12,000)[Goalssetforyear]240109-9271-HAYGLemaireDifferentiatedRewardsSeparateExtentof

Differentiation1. CompanywidesuccessmeasuresCompanyrevenueProfitabilitymeasuresNoneNone2. BusinessunitsuccessmeasuresUnitrevenueProfitabilitymeasuresOthermeasuresAnnualincentiveSome,basedonindividualcontribution3. Successmeasures—currentroleContributiontounit/companymeasuresSalaryincreaseLittle4. Requirements—currentroleMeet“current”jobdescriptionLivethevaluesNoneNone5. Successmeasures—futurerolesDemonstrationofsuccesscompetencies/behaviorsAchievementofdevelopmentgoalsFutureearningsSalaryAnnualincentiveLong-termincentiveRecognitionSignificant,basedonpotentialMeasuresFirst-LevelManagersReward

Linkage1. Company-widesuccessmeasuresCompanyrevenueProfitabilitymeasuresLong-termincentiveAnnualincentiveSome,basedonroleSome,basedonrole2. BusinessunitsuccessmeasuresUnitrevenueProfitabilitymeasuresOthermeasuresAnnualincentiveSignificant,based

onunitperformance3. Successmeasures—currentroleContributiontounit/companymeasuresAnnualincentiveSomediscretionary

component4. Requirements—currentroleMeetcurrentjobdescriptionLivethevaluesNoneNone5. Successmeasures—futurerolesDemonstrationofsuccesscompetencies/behaviorsAchievementofdevelopmentgoalsFutureearningsSalaryAnnualincentiveLong-termincentiveRecognitionSignificant,basedonpotentialSalaryincreasetiedtomarketmovementLittleMeasuresExecutivesReward

LinkageExtentof

DifferentiationExtentof

DifferentiationDifferentiatedRewardsDon’tdouble-count!250109-9271-HAYGLemaireExtentof

Differentiation1. CoInSummary:TwoExamplesPerformanceAligningProcessesPerformanceCoaching/FeedbackDifferentiated

RewardsSignificantemphasisonmanagementprocessesonintegratedtalentmanagemente.g.,two-daydetailedevaluationofbusinesswithmanagersbeingcolor-codedCEOmodelsdesiredbehaviorsTeaches/coachesMentors/counselshighperformersSignificantinvestmentintraining/developingpeopletobegoodcoachesBusinessesrankedat multiplelevelsand informationispublicly sharedHeavyuseofincentives (upto50%,evenfor first-levelmanagers)Strongfinancialand operationalprocessesCECSessionCS1/S2Significantmovement

ofstartalentOpen,candiddialoguethatstretchesindividualsandorganizationsFrequentconversationsaboutperformanceanddevelopmentSignificantinvestmentintraining/developingpeopletobegoodcoachesPerformancemeasuredatmultiplelevels20-70-10planlaunchedin1996ForcedrankingsystemTop20%rewardedsolikelyfewleaveBottom10%givenopportunitytoimproveAppliesatalllevelsThePrerequisitesAspirationalmissionClearstrategyHighlydecentralized organizationEVP—“Superjobsfor superpeople”AspirationalmissionPortfoliostrategyTough,stretchtargetsHighlydecentralizedPepsiCoGEOrgani-zation260109-9271-HAYGLemaireInSummary:TwoExamplesPerforExecutiveHumanResourceProgramThePromiseofPerformanceManagementHayGroupBoston

270109-9271-HAYGLemaireExecutiveHumanResourceProgrTheCurrentChallengeofPerformanceManagementTheHRprocess—IscompletelyunrelatedtootherkeybusinessprocessesIsdreadedbymanagersandemployeesalikeDoesnotresultinanymeaningfulfeedbackDoesnotdifferentiateperformanceorpayIsafocusforonlyoneortwodays—orhours—peryear280109-9271-HAYGLemaireTheCurrentChallengeofPerfoThePromiseofPerformanceManagementImagineasystemthatcould—IncreasethelikelihoodthatyourstrategyiseffectivelyexecutedHarnessanddirectthe10–60minutesadayofdiscretionaryeffortthateveryoneofyouremployeeshasRationalizeandfocusthenumberofgoalsthatanyoneinyourorganizationhasImprovethedecisivedialoguethatoccursinyourorganizationRewardperformanceinawaythatitismotivatingandengagespeopleDifferentiateperformanceinwaysthatmakelinemanagersfeelgoodabouttheirdecisions290109-9271-HAYGLemaireThePromiseofPerformanceManPerformanceNumberofEmployeesSource:Hay/McBerOptimizingtheperformanceofyourpeoplewillhaveapositiveimpactonbusinessperformanceImprovingPerformanceManagementImprovesBusinessResults300109-9271-HAYGLemairePerformanceNumberofEmployeesPercentageofvariationinchangeincompanyperformanceaccountedforbymanagerialpracticesSource:SheffieldEffectivenessProgrammeHumanResourceManagementPracticesDriveProfitabilityandProductivity310109-9271-HAYGLemairePercentageofvariationinchaHighlySuccessfulCompaniesaredefinedashaving—5-yearsalesgrowth=17.5%peryear5-yearprofitgrowth=10.8%peryearAnnualequitygrowth=16.7%peryear5-yeardividendgrowth=13.4%peryearSource:D.Karvetz,TheHumanResourcesRevolutionClearEmployeeGoalsParticipativeStyleAttentiontoDevelopmentEncourageCreativityPerformance-BasedRewardsHighlySuccessful

CompaniesLessSuccessful

Companies80%70%67%62%86%26%4%27%10%30%High-performingcompaniesarebetteratmanaging,motivating,andrewardingemployeesImprovingPerformanceManagementImprovesBusinessResults320109-9271-HAYGLemaireHighlySuccessfulCompaniesarSource:Mavrinac&Siesfield,MeasuringIntangibleInvestmentStrategyExecutionMatterstoShareholdersThirty-fivepercentofaninstitutionalinvestor’svaluationofacompanyisattributabletononfinancialinformationthatgaugestheabilityofthemanagementteamtodeliverresults:StrategyExecution:Canmanagementmaketoughdecisionsandseizeopportunitiesquickly?ManagementCredibility:Doesthecompanykeepitscommitments?StrategyQuality:Ismanagement’svisionofthefuturelikelytooptimizevaluecreationinavolatile,globalized,andconnectedeconomy?Innovativeness:Howreadilydoesthiscompanyadapt?AttractingandRetainingTalent:Isturnoverhigherorlowerthankeycompetitors?Donewhiressurpassleaversinskillsandexperience?ManagementExperience:Whatskillsandexperiencesdoesthemanagementteambringtothetable?Compensation:Docompensationpoliciessupportthefirm’sstrategicintent?330109-9271-HAYGLemaireSource:Mavrinac&Siesfield,35%improvementinhuman-capitalsystemsresultedin

10%–20%gaininshareholdervalueAlignmentandIntegrationofHRSystem“HumanCapital”Enhancements290310330350370390020406080100QuintileImprovementsinStrategicMarketValueperEmployee(000)Source:HuselidandBaker,1995HumanCapitalSystemsIncrease

ShareholderValue340109-9271-HAYGLemaire35%improvementinhuman-capitImprovingPerformanceManagementImprovesBusinessResultsHigh-performancecompaniesdefinePerformanceManagementinitsbroadestsense:itiscriticaltoexecutingandimplementingstrategyPerformanceManagementisnowwidelyrecognizedasdeliveringmorereturnsanddeliveringmorecompetitiveadvantagesthanotherHRinvestmentsPerformanceManagementisthekeyto“raisingthebar”inanorganization,foralllevelsofperformanceOrganizationswithahigh-performanceorientationandstrongmanagementcapabilityhavehigherrevenue,profits,andmarketvaluations350109-9271-HAYGLemaireImprovingPerformanceManagemePerformanceManagementPerformanceManagementisaboutimprovingbusinessperformancebyimprovingteamandindividualperformance,andensuringthatthecompany’sstrategyisexecutedandimplemented.Itis—AprocessthatensuresthatpeopleexecutethestrategyoftheorganizationAprocessforestablishingasharedunderstandingofwhatisto

beachievedandhowAprocessforensuringthatdecisiveandconstructivedialogueoccursAprocessofmanagingselfandotherssothatpeopledoachieveAprocessforensuringthatpeoplearedoingtherightthingsin

themosteffectiveways,tothebestoftheirability360109-9271-HAYGLemairePerformanceManagementPerformaPerformanceManagementStagesDesignParameterPerformanceAppraisalPerformanceManagementPerformanceOwnershipHumanResources“Checkthebox”compliance-orientedManagepoorperformersPassiveReportcard(retrospective)ManagersandHumanResourcesEvaluationrewardemphasisManagethetailsofbellcurveJointownershipforgoal-setting/reviewBarometerofprogress(periodic)Employees,managers,andleadershipStrategicclarity,coaching,dialogueRaiseperformanceoforganizationSharedaccountabilityforresultsDialogue(continual)FunctionRoleofEmployeeFocusEmphasesOwnership370109-9271-HAYGLemairePerformanceManagementStagesDPerformanceAppraisalPerformanceManagementManagingPerformanceHighLowLowHighImpactonResultsLevelofOrganizationalCommitmentImprovedbusinessresultsrequireorganizationalcommitmentCommitmenttoachievecompanygoalsGoodsettingandreviewMeritincreasesefficientlyallocatedPerformanceManagementStagesthis380109-9271-HAYGLemairePerformanceAppraisalPerformanTheperformancemanagementmodelisnotnew,butthewayinwhichleadingorganizationsdoitisverydifferent&&DialogueDialogueDialogueDialogueBestPractices390109-9271-HAYGLemaireTheperformancemanagementmodBestPractices—What’sDifferent?Therearefourdifferentiatorsofbestpractice:ClearStrategyTranslationProcessIntegratedPerformanceProcessesCultureofDialogueMultipleandDifferentiatedRewards400109-9271-HAYGLemaireBestPractices—What’sDifferenStrategyTranslationProcessADefinition:“Earlyinthehistoryofthecompany,whilethinkingabouthowacompanylikethisshouldbemanaged,Ikeptgettingbacktooneconcept:ifwecouldsimplygeteveryonetoagreeonwhatourobjectiveswereandtounderstandwhatwearetryingtodo,thenwecouldturneverybodylooseandtheywouldmovealonginacommondirection.”DavePackard410109-9271-HAYGLemaireStrategyTranslationProcessAStrategyTranslationProcessChecklist:Arealltopteammembersunifiedandfocusedonthe“must-win”battlesoftheorganization?Aretheinterdependenciesclearbetweenthetop-teammembers?Arethemiddlemanagersclearonthe“must-win”battles?Doemployeesknowwhattheyneedtodofortheorganizationtobesuccessful?Financialgoals,operationalgoals,behaviors420109-9271-HAYGLemaireStrategyTranslationProcessChIntegratedPerformanceProcessesADefinition:“Leadersmustseetoitthattheorganization’s‘socialoperatingmechanisms’—thatis,theexecutivecommitteemeetings,budgetandstrategyreviews,andothersituationsthroughwhichpeopledobusiness—havehonestdialogueattheircenter.Thesemechanismssetthestage.Tightlylinkedandconsistentlypracticed,theyestablishclearlinesofaccountabilityformakingdecisionsandexecutingthem.”RamCharam,HBR4/2001430109-9271-HAYGLemaireIntegratedPerformanceProcessIntegratedPerformanceProcessesChecklist:Dothegoalsoftheorganizationreflectinterdepartmentalobjectives?Arethefinancial,operational,andpeopleprocessesintegrated?Istheinformationfromtheseprocessesusedtomakebusinessdecisions?Aretheprocessesefficientandeffective?440109-9271-HAYGLemaireIntegratedPerformanceProcessCultureofDialogueADefinition:“Aleadershouldbeconstructinghisappraisalallyearlongandgivinghisappraisalallyearlong.Youhave20,30,60opportunitiesayeartoshareyourobservations.If,attheendoftheyear,someoneistrulysurprisedbywhatyouhavetosay,thatisafailureofleadership…Byfailingtoprovidehonestfeedback,leaderscheattheirpeoplebydeprivingthemoftheinformationthattheyneedtoimprove….Criticalfeedbackisthe“heavylifting”ofleadership”EDS’sDickBrown450109-9271-HAYGLemaireCultureofDialogueADefinitioTypicallyanewemployee’sproductivitycurveincreasesquickly,thenlevelsoffWithoutreinforcementandfeedbackthelevelstaysthesameormayfalloffSporadic,inappropriate,orgeneralfeedbackwithoutreinforcementhasadistinctiveeffectonmotivationandperformanceConsistent,specificfeedbackanddialoguebuildself-esteemandperformanceFeedbackFeedbackFeedbackFeedbackCultureofDialoguePerformanceCoaching/FeedbackIsCritical460109-9271-HAYGLemaireTypicallyanewemployee’sproCultureofDialogueChecklist:Aremanagers(andemployees)trainedinandgoodatperformancedialogue?Aremanagersselectedandheldaccountableforperformancecoaching?Arecoachingbehaviors“lived”bytheleadersoftheorganization?Isthedialogueopen,informal,andcandid,anddoesitprovideclosure?470109-9271-HAYGLemaireCultureofDialogueChecklist:2Thebettermyperformance,thebettermytotalcompensationwillbeMultipleandDifferentiatedRewardsWhenmostemployees,eventhestars,getthesamepay,itreducesclarityaboutwhatgoodperformancelookslikeSource:HayGroup480109-9271-HAYGLemaireThebettermyperformance,theMultipleandDifferentiatedRewardsApproaches:IncreasedialogueUsemultiplecurrenciesReviewuseofratingsUseforcedrankingsFindnewwaystodifferentiatemerit490109-9271-HAYGLemaireMultipleandDifferentiatedReDifferentiatedRewardsSeparatemeansfromendsTactics/StrategiesBehaviorsTrainingTrainingTrainingTrainingTactics/StrategiesBehaviorsTrainingTrainingObjectivesEnablersConductanalysisofwhyOTissohigh;developstrategytoreduceOT;implementstrategyImplement3programsaimedatincreasingcustomersatisfaction:begintrainingprograms;upgradecallcentersoftware;establishamonitoringprogramSethighgoalsforyourselfandfortheteam:trytoreducefrom50to30permonth;communicatetoteamwhatneedstobedone;“own”thisprocessIdentifycustomerissues:thinkaboutandactonopportunitiestoaddresstheseissues;actasarolemodeltosubordinates—showthemhowtoworkwithcustomers;improvecall-centersoftwaresystemTrainingTrainingTactics/StrategiesBehaviorsDevelopaplantomeetwitheachofyoursubordinatesandgetthe“pulse”onhowtheyaredoing(re:jobs,projects,expectations);developcareer-pathingplanswitheachofyoursubordinates;developideasaroundnonmonetaryrewardsCoachconsistently:delivertimelyandconstructivefeedback;addressissuesimmediately;makesureotherscontributeandhavewhattheyneedtodothejobTactics/StrategiesBehaviorsBusinessObjectivesCareerDevelopmentObjectivesImproveconsistencyofcustomer’sdelivery(evidencedby98%customersatisfaction)[Goalssetforyear]Improveemployeeretentionindepartmentby50%[Goalssetfornext8months]Reduceovertimefrom150to50hours/month(costnottoexceed$12,000)[Goalssetforyear]500109-9271-HAYGLemaireDifferentiatedRewardsSeparateExt