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Performance Equations
- 2. Successful Performance Development
Company History
Established in 1997
Niche organisational development and change consultancy
Specialising in building:
– High performance culture
– High performance leadership
– High performance teams
– Service excellence & customer experience management
At the core of all our work is on-going research, diagnostics,
delivering measurable results.
We describe the causal links between Performance Drivers,
Organisational Effectiveness and Performance Results
Design & implement solutions
Measure the results
© Performance Equations Ltd. All Rights Reserved. 2
- 4. Successful Performance Development
Our Philosophy About Organisational Performance
Pinpoint diagnosis, robust prioritisation and decision-making
An integrated systemic approach to providing solutions for the
organisation as a whole
Solutions that are contemporary, robust, sustainable
Solutions that create energy, drive and engagement
Support infrastructure that transfers learning into application
As much or as little external support as required
Measure the value
© Performance Equations Ltd. All Rights Reserved. 4
- 6. Successful Performance Development
The Need for Better Organisational Performance
Consider
90% of organisations believed that a clear, action oriented
understanding of their business strategies could significantly
influence their performance and business success.
However
Less than 60% of senior leaders and less than 10% of employees
believe a clear understanding of their c mp n ’
o ay sstrategy actually
exists in their organisation
Less than 30% of senior leaders believe their og n ain ’
ra i t s
s o
strategy are effectively implemented
In over 60% of organisations analysed through our consultancy work
there is no perceptible link between strategy and day to day
operations.
© Performance Equations Ltd. All Rights Reserved. 6
- 7. Successful Performance Development
The Challenge of Translating Strategy into Action
90% of organisations are unable to fully implement the strategy
te ’ s e t omuht , f r a dmo e p ni
hy e p n s
v c i ef t n
me o , ny l n g
a n
95% of employees d n t n esa dte c mp n’ srtg
o o ud rtn h i o a y t e y
r s a
85% of executives spend less than an hour per month talking about
strategy
73% of employees b lv te b se d n c mmui t te
eee h i o s s o ’ o
i r t n ae h
c
company vision and strategy clearly
Companies on average deliver only 63% of the financial performance
their strategies promise
Only 46% of executives & senior managers believe leadership gains
commitment effectively in their organisations
© Performance Equations Ltd. All Rights Reserved. 7
- 8. Successful Performance Development
A Word About Employee Engagement
12% employees actively engaged
70% neither engaged or disengaged
18% actively disengaged
Cost to business €260 billion
© Performance Equations Ltd. All Rights Reserved. 8
- 9. Successful Performance Development
Characteristics of an Engaged Workforce
Pride in the company
Belief in the organisations objectives
Trust in colleagues, direct boss and senior leadership
Desire to work to make things better
U d rtn i o b s e sc net n te‘g e p tr’
n esa d g f ui s o tx a d h b g r iue
n n i c
Respectful of, and helpful to, colleagues
Win n s t ‘ teet mi’
l g e s og h x a l
l
i o r e
Keeping up to date with developments across the business
Feeling valued
Belief in their ability to do their best every day
But employee engagement is not the same as employee satisfaction
© Performance Equations Ltd. All Rights Reserved. 9
- 10. Successful Performance Development
Diagnosing the Performance Culture
Performance Bearing Mechanisms
Strategic Focus
Performance Management
Leadership
Structure
Results / Outcomes
Business Performance
Satisfaction
Change
People Outputs
Overall
Effectiveness
1st 10th 25th 50th 75th 90th 99th
%ile %ile %ile %ile %ile %ile %ile
48
95
© Verax International Ltd. All Rights Reserved.030908 10
© Performance Equations Ltd. All Rights Reserved.
- 11. Successful Performance Development
Relationship Matrix
RESULTS/OUTCOMES
Business Performance Satisfaction Change People Outputs.
Understanding the drivers
of performance outcomes Client specific strategic
is critical in knowing which outcomes can be
levels to pull.
added
STRATEGIC FOCUS
PERFORMANCE
MANAGEMENT
LEADERSHIP
STRUCTURE
PRICING/VALUE FOR MONEY + +
PRODUCT/SERVICE PERFORMANCE +
BRAND IMAGE/TRUST + +
EASE OF DOING BUSINESS - - COMPETITIVE
RESPONSIVENESS TO CUSTOMERS - STRATEGIES
TOTAL SUPPORT PACKAGE +
EMPATHY/COMPATIBILITY -
© Performance Equations Ltd. All Rights Reserved. 11
- 13. Successful Performance Development
Leadership Bench Strength
Business challenges are becoming more complex and more difficult
to solve
60% of leaders say they face challenges that go beyond their
individual capabilities
84 % of executives and senior managers believe the definition of
effective leadership has changed in the last 5 years
Only 7% of executives believe their companies have enough
talented managers to pursue the most promising growth
opportunities
Only 36% of companies rate their overall leadership capacity to
ee uesrtg a “o d o “xee t
xct t e y s g o ” rec ln”
a l
40% of externally hired senior managers fail within 18 months
© Performance Equations Ltd. All Rights Reserved. 13
- 14. Successful Performance Development
The Way Ahead
Leadership today needs to be about creating adaptive performance
cultures that provide the conditions for innovation to flourish in
today's much more challenging and highly complex business
environments
In order to do that leadership capability and talent needs to be
developed as a journey at critical career transition points
The leadership capability requirements at each point need to
address the contextual setting of the business challenges faced and
the requirements of the role
© Performance Equations Ltd. All Rights Reserved. 14
- 15. Successful Performance Development
Developing talent through the leadership pipeline
Leadership
Pipeline:
Passage
A long-term, Six
systemic Passage
Five
approach to Passage
Four
developing a Passage
sustainable Three
Passage
supply of leaders Two
ready to execute Passage
One
your strategy
now and in the
future
—Charan, Drotter, Noel, The Leadership Pipeline, 2001
© Performance Equations Ltd. All Rights Reserved. 15
- 16. Successful Performance Development
Question ?
Is your talent management strategy meant to satisfy a tactical
performance requirement?
Or does it have to satisfy a strategic organisational requirement?
It could be both
© Performance Equations Ltd. All Rights Reserved. 16
- 17. Successful Performance Development
Different Approaches
Everyone is talented in some area, to some degree (Inclusive)
Only some people have the innate qualities to lead the company into
aftr ta c n q i b d sr e (Exclusive)
uue h t a ’ ue e e ci d
t t b
© Performance Equations Ltd. All Rights Reserved. 17
- 18. Successful Performance Development
Categories of Talent
Well Placed
– Well suited for their current role or a lateral position
– Unlikely to move to the next level or expanded responsibilities within the next 2
years—particularly considering the expected growth of the business
– May require development in order to scale and grow in their current role
Expandable
– Seen as being capable of contributing to the organisation in a role with greater
complexity, impact, scope and scale than their current role
– D mo s ae t th yc nsa a dgo wt t og n ain b s e s
e nt td h t
r a e a c l n rw i h ra i t ’ ui s
e h e s os n
Talent Pool
– An employee who has demonstrated top performance in increasingly challenging
roles and have the differentiating attributes to rise to and succeed in more
senior and/or more complex positions through expansion of current
responsibilities, lateral movement to different area of responsibility or promotion to
the next level
– Talent demonstrates what it will take to lead and grow the organisation beyond the
current strategy
© Performance Equations Ltd. All Rights Reserved. 18
- 19. Successful Performance Development
Performance Does Not (Always) Predict Potential
Current performance is a necessary condition for potential but does
not guarantee success at the next level
High Potential Staff by Performance Status High Performance Staff by Potential Status
7%
29%
93% 71%
BUT
Most high
Only 7% of performers are
high potentials not high
are not high potential
performers
© Performance Equations Ltd. All Rights Reserved. 19
- 20. Successful Performance Development
What Determines Talent
High Applied Capability
experience
Performance
Talent Talent
+ + Differentiators
= Pool
High
Potential Knowledge Capacity
& skills
© Performance Equations Ltd. All Rights Reserved. 20
- 21. Successful Performance Development
Connecting Business Capability to Business Strategy
Organisational Vision
Business Strategy
Strategic Cultural
priorities Business priorities
drivers
Organisational values and behaviour
Team capabilities
Individual capabilities
© Performance Equations Ltd. All Rights Reserved. 21
- 23. Successful Performance Development
How to build organisational performance
Recognise that organisational performance development is a
journey not an event
© Performance Equations Ltd. All Rights Reserved. 23
- 24. Successful Performance Development
How to Build Organisational Performance
Diagnose and measure accurately performance gaps and drivers
© Performance Equations Ltd. All Rights Reserved. 24
- 25. Successful Performance Development
How to Build Organisational Performance
Build a learning system that addresses the development needs of
each level
Bridge the gap between learning and real work with action learning
Design and implement a support infrastructure
© Performance Equations Ltd. All Rights Reserved. 25
- 26. Successful Performance Development
How to Build Organisational Performance
Involve leaders at all levels as champions, teachers, mentors, and in
linking learning and feedback to goals
Engage heads, hearts and hands by providing a flexible mix of
learning methods and approaches
© Performance Equations Ltd. All Rights Reserved. 26