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Smart Hiring – Selecting
High Performance
Employees for the New
Economy
  The Smart Guide to Human Resource and
  Management Seminars

  Presented by
  Warren J. Rutherford
  The Executive Suite
Program
   Smart Hiring Survey
   Our new economy – knowledge based
   Company future strategies - planning
   Person – future fit - asking
   Alignment
   Company needs
   Applications & Interviews
   Job Descriptions
   Assessing Person – Position Alignment
   Decision attributes – thinking our talents
   Assessment process
   Selection



                              © theexecutivesuite.com   2
Smart Hiring Survey
  S ta t e m e n t                                                                             S c o re
  1 .           E m p lo y e e s a r e t r a i n e d a n d q u a li f i e d f o r t h e
  f u n c t io n s t h e y p e r f o r m a n d t o m e e t t h e f u t u r e n e e d s
  of the c om pa n y.
  2 .           W e h a v e d e v e l o p e d a r e c r u it i n g s t r a t e g y t o g e t
  th e w o rk e r s t h a t t h e c o m p a n y n e e d s f o r it s fu tu re .


  3 .       W e h a v e d e v e lo p e d a j o b a p p li c a ti o n fo r m t h a t
  w ill g iv e       u s t h e in f o rm a t io n w e n e e d a b o u t a
  c a n d id a t e ’s fit t o o u r fu tu re n e e d s .

  4 .       W e h a v e d e v e lo p e d in te rv ie w in g q u e s t io n s t h a t
  w ill g iv e       u s t h e in f o rm a t io n w e n e e d a b o u t a
  c a n d id a t e ’s fit t o o u r fu tu re n e e d s .

  5 .       W e u s e a ss e ss m e n ts t o p u t p e o p le in p o s i ti o n s
  t h a t b e s t s u i t t h e i r s k i ll s , b e h a v i o r s , a n d v a l u e s .


  A ve ra g e = T o t a l/ 5




                                                  ©theexecutivesuite.com                                  3
Smart Hiring Survey
   Results -
        If your average score is 4 to 5,
         you are hiring smart.
        If your average score is 3 to
         3.8, you are in the caution
         zone & need improvements to
         your hiring program. You can
         benefit from better alignment,
         making you much more
         productive & profitable.
        If your average score is < 3,
         you are in the danger zone &
         are probably out of alignment,
         and much less productive &
         profitable than you could be.




                                  ©theexecutivesuite.com   4
The Economy We Knew
   1978 NYU Stern
    School of Business
    Study (5,000
    companies)                               Balance Sheet

                                             Intangible
   95% correlation
    between balance
    sheet and business
    value


                    ©theexecutivesuite.com                   5
The New Economy We Need to
Know & Understand
   2005 NYU Stern School of
    Business Study
   28% correlation between
    balance sheet and business
    value                                                  Balance Sheet

   Intangibles – the 72%                                  Intangible
       Intellectual Property
       Strategy
       Brand
       Systems
       Processes
       Access to Capital
       Off balance sheet items
       Customer reputation
       Executive Team



                                  ©theexecutivesuite.com                   6
Why it is Important!
   Only 5% of a workforce understands their
    company’s strategy.
   Only 15% of senior management spends more
    than 1 hour a month defining strategy and aligning
    operations to it.
   Only 25% have their operations aligned to the
    strategy.
   Only 40% align company from budget to strategy.
                 David Norton, Balanced Scorecard Report, Vol. 3, No. 5 (Sep/Oct 2001)



                    ©theexecutivesuite.com
Strategies to Succeed
   How do people contribute to the success of our
    business?
   Cornell Study –
     Workforce    alignment requires -
          The right types of people,
          In the right places at the right times,
          Doing the right things right.
          A company with the right types of people has
           employees with the knowledge and skills necessary to
           help that company achieve its goals.


                           ©theexecutivesuite.com                 8
Person – Future Fit
   3 different strategies companies use to select employees –
        Person job fit - match job applicant’s knowledge and skills to the
         requirements of specific job openings and focus on an applicant’s ability
         to perform well right away without extensive training.
        Person organization fit - focus on how well the individual fits with the
         culture or values of the company and hire people with the capacity to
         work well with other company employees
        Person future fit - focus on the potential long-term contribution of
         applicants, often to the extent that they are willing to leave positions
         open until the find the best and brightest new employees.
   Creating and maintaining that person-future fit that the Cornell
    research identified as creating the best, long-term workforce
    alignment.
   Better to define where we are going and who we need to get us
    there to create a more aligned and focused workforce.


                                 ©theexecutivesuite.com                          9
Alignment Enhances Productivity
and Profit
   Doesn’t it make sense that -
     An  aligned workforce increases productivity and
      profit,
     We need to better understand our employees to
      further drive the success, growth, and performance of
      our business.
   A study of large publicly traded firms, found that
    companies using “high performance” human
                             performance
    resource practices have market values that
    range from between $16,000 and $40,000 per
    employee higher than firms that do not use such
    practices.
                        ©theexecutivesuite.com            10
Aligning Your Hiring Practices to Hire
the Right Types of People Requires -
   Better understanding the company’s needs by defining
    and communicating our long-term company strategy and
    plan;
   Communicating that strategy and plan as a recruitment
    strategy – attracting who we want and need for our
    future success;
   Refining the application and interviewing process to
    solicit information about current talents as well as future
    potential and interests;




                          ©theexecutivesuite.com              11
Aligning Our Hiring Practices to Hire
the Right Types of People Requires -
   Identifying an applicant’s current potential to perform the
    functions of a job by understanding what is important in
    the job and matching that to what is present in the
    applicant;
   Assessing and understanding how an applicant’s long-
    term potential can match with the company’s long-term
    strategy; and
   Enabling job role changes to better fit a person’s natural
    talents – by understanding a person’s natural strengths
    and adapting the job role(s) as needed.



                          ©theexecutivesuite.com              12
Company Needs
   What is your company’s long-term company strategy and
    plan? Mission, vision, values, purpose.
   Have you involved your employees in its development?
    What are some of the steps you used – retreat,
    questionnaire?
   Are you communicating that strategy and plan to your
    existing employees, (in person, email, postings,
    meetings, interactive discussions) and
   Are you communicating that strategy and plan to job
    applicants so that you can -
       attract who you want and need for your future success?


                             ©theexecutivesuite.com              13
Application and Interviewing
Process
   Remember – we are seeking Alignment to your
    company’s future strategy and plans, so –
     Do you ask an applicant to describe their future
      position responsibilities,
     What talents they believe that they have that will
      enable them to achieve their future vision,
     What talents do they believe they are strong in, and
     Why?




                        ©theexecutivesuite.com               14
Application and Interviewing
Process
   For each of the common interviewing questions,
    ensure there are questions on the application
    which solicit this information.
   For certain positions you may want the applicant
    to write out the response so that you can go over
    it in the interview.
   These questions and this process will help to
    identify their behavioral tendencies, their values,
    and their decision-making patterns.
                       ©theexecutivesuite.com        15
Application and Interviewing
Process
   Get specific with them on their future interests –
       What type of position do they want to have,
       Why,
       With what level of responsibilities,
       Who do they want to interact with,
       What type of guidance or direction will they want or need,
       What kind of company environment will they be most
        comfortable in.
   Let them describe these responses in their own words –
    in writing.
   Do these answers ALIGN with your future vision?



                              ©theexecutivesuite.com                 16
Interview Questions
    Six common question types –
    1.   Credential verification – ask and expect accuracy. Example
         – “How long were you at…?”
    2.   Experience verification – verifies experiential features of his
         background. Example – “What were your responsibilities in
         that position?” Look for an answer that shows how such
         experience made use of one of their strengths.
    3.   Opinion – an opportunity to subjectively analyze how an
         applicant would respond to a scenario, and gauge their level of
         self-awareness. Look here for their confidence level in their
         self-awareness. Examples – “What would you do in this
         situation?” “What are your strengths and weaknesses?”



                            ©theexecutivesuite.com                    17
Interview Questions
    Six common question types –
    4.   Dumb Questions – yup, gets past the pre-programmed
         answers to find out capability of original thought. Example –
         “What kind of animal would you like to be?” Tests ability to
         think on their feet. Look for an answer that goes with their gut,
         is light, not too serious.
    5.   Behavioral – anticipates predictable future behaviors based
         on past responses. Example – “Can you give me a specific
         example of how you did that”? or “What were the steps you
         followed to accomplish that task?” Look for a reply that
         demonstrates how they used a skill strength to accomplish the
         task.



                             ©theexecutivesuite.com                     18
Interview Questions
    Six common question types –
    6.   Competency – identifies alignment of past
         behaviors with specific competencies required for
         the position (problem solving, leading, initiative,
         etc.). Example – “Can you give me a specific
         example of your leadership skills?” “Explain a
         way in which you sought a creative solution to a
         problem.” Look for a reply that identifies HOW
         their strengths (understanding others, concrete
         organization, leading others) are used to answer
         the question. These questions are usually key to
         the interview process.

                         ©theexecutivesuite.com            19
Interview Questions
   Competency Question Examples –
     “Give me an example of a project that you were
      responsible for organizing from beginning to end. How did
      you go about it?”
     “Give me an example of a lesson you have learned from
      making a mistake. What did you do differently going
      forward?”
     “What is the one thing in your life that you have not been
      able to accomplish or complete that gives you the most
      frustration? Why didn’t you complete it?” (Note – this helps
      to identify what they perceive as their weakness and how
      they have adapted (or not) to not rely on that weakness for
      their success.)


                          ©theexecutivesuite.com                20
How to Gauge a Quality Question
Response
   Shake ‘em and make ‘em remember
   Did he take time to think through what he was
    going to say?
             say
     Remember    the proverb – “It is better to remain
      silent and be thought a fool, then to speak and
      prove them right.”
   Did he give a specific example of a personal
    strength or weakness to support his answer?
   Did he qualify the question – did he ask you to
    qualify what you were asking or looking for?

                        ©theexecutivesuite.com            21
Interview Essentials
   Some basic standards –
     Brief answers  – applicant ~ 1/3rd of the time,
      interviewer rest of time to ask questions and answer
      questions.
     Appropriate dress – Did you tell them “casual” was
      OK?
     Did he identify his goals up front and ask you what
      you were looking for?
     Did he ask you what you want, what you think, how
                                 want
      you know when you will have found it and your
      opinions?
     Did he explain why he left his last position? Honestly?
                                          position
     Did he make a personal connection on a personal
      level with you, are there shared values, behaviors, or
      strengths you have in common?
                        ©theexecutivesuite.com             22
Interview Essentials
   Some basic standards –
     Did he ask what you are looking for in a solution and did
      he ask you what you think of his ability to be that solution?
     How does he handle rejection – if you indicated that he
      has not shown how his experience and future vision fits
      your position – how does he respectfully respond to your
      concern?
     How does he show you he is interested in your company –
      research, questions?
     Did he bring up his weakness before you asked about it?
     Did he follow up after the interview – handwritten, at least
      an email? Thank you, and reiterate his interest?


                           ©theexecutivesuite.com                23
Job Descriptions
   Do they effectively summarize the type of
    knowledge, skills, & abilities necessary to ensure
    that the essential functions are fulfilled.
   Do they effectively identify functions that can
    describe the major categories of the position –
    management, sales, finance, marketing,
    process?
   Do they identify how the position contributes to
    the accomplishment of company objectives?
   Do job descriptions exist?

                      ©theexecutivesuite.com        24
Functional Assessment of Each
Position
   We know that there are 3 ways we can think about anything –
        Our head – systems & structure
        Our hands – practical, let’s get it done
        Our heart – empathy, the impact on others
   Each of us has a different balance of these 3 styles & explains why
    our decisions and actions are different.
   The way we make decisions & how we use them are at the core of
    who we are. They are key to our preferences, our strengths, and our
    weaknesses.
   What are the dominant thinking patterns required for people in
    each position?
   How does knowing that help to ensure that the person filling
    the position will be more successful in achieving position
    objectives and be more able to accomplish the desired person-
    future fit?
   Think Position-Person Alignment & Workforce Alignment.
                                ©theexecutivesuite.com               25
Assessment Process
 Identify position tasks
 Aggregate tasks up to categories
 Identify decision attributes for each
  category
 Develop a position-specific profile to
  measure applicant match to profile as part
  of selection process.

                 ©theexecutivesuite.com    26
Selection
   Seek alignment to
     Company   needs
     Application and Interview
     Applicant needs
     Job Description
     Assessment match
     Remember –
          A company with the right types of people has
           employees with the knowledge and skills necessary to
           help that company achieve its goals.


                           ©theexecutivesuite.com                 27
Thank you!
For more information -

Warren J. Rutherford
Owner
The Executive Suite
129 Airport Road
Hyannis, MA 02601
wjr@theexecutivesuite.com
www.theexecutivesuite.com
508-778-7700

                    ©theexecutivesuite.com   28

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Smart Hiring

  • 1. Smart Hiring – Selecting High Performance Employees for the New Economy The Smart Guide to Human Resource and Management Seminars Presented by Warren J. Rutherford The Executive Suite
  • 2. Program  Smart Hiring Survey  Our new economy – knowledge based  Company future strategies - planning  Person – future fit - asking  Alignment  Company needs  Applications & Interviews  Job Descriptions  Assessing Person – Position Alignment  Decision attributes – thinking our talents  Assessment process  Selection © theexecutivesuite.com 2
  • 3. Smart Hiring Survey S ta t e m e n t S c o re 1 .           E m p lo y e e s a r e t r a i n e d a n d q u a li f i e d f o r t h e f u n c t io n s t h e y p e r f o r m a n d t o m e e t t h e f u t u r e n e e d s of the c om pa n y. 2 .           W e h a v e d e v e l o p e d a r e c r u it i n g s t r a t e g y t o g e t th e w o rk e r s t h a t t h e c o m p a n y n e e d s f o r it s fu tu re . 3 .       W e h a v e d e v e lo p e d a j o b a p p li c a ti o n fo r m t h a t w ill g iv e u s t h e in f o rm a t io n w e n e e d a b o u t a c a n d id a t e ’s fit t o o u r fu tu re n e e d s . 4 .       W e h a v e d e v e lo p e d in te rv ie w in g q u e s t io n s t h a t w ill g iv e u s t h e in f o rm a t io n w e n e e d a b o u t a c a n d id a t e ’s fit t o o u r fu tu re n e e d s . 5 .       W e u s e a ss e ss m e n ts t o p u t p e o p le in p o s i ti o n s t h a t b e s t s u i t t h e i r s k i ll s , b e h a v i o r s , a n d v a l u e s . A ve ra g e = T o t a l/ 5 ©theexecutivesuite.com 3
  • 4. Smart Hiring Survey  Results -  If your average score is 4 to 5, you are hiring smart.  If your average score is 3 to 3.8, you are in the caution zone & need improvements to your hiring program. You can benefit from better alignment, making you much more productive & profitable.  If your average score is < 3, you are in the danger zone & are probably out of alignment, and much less productive & profitable than you could be. ©theexecutivesuite.com 4
  • 5. The Economy We Knew  1978 NYU Stern School of Business Study (5,000 companies) Balance Sheet Intangible  95% correlation between balance sheet and business value ©theexecutivesuite.com 5
  • 6. The New Economy We Need to Know & Understand  2005 NYU Stern School of Business Study  28% correlation between balance sheet and business value Balance Sheet  Intangibles – the 72% Intangible  Intellectual Property  Strategy  Brand  Systems  Processes  Access to Capital  Off balance sheet items  Customer reputation  Executive Team ©theexecutivesuite.com 6
  • 7. Why it is Important!  Only 5% of a workforce understands their company’s strategy.  Only 15% of senior management spends more than 1 hour a month defining strategy and aligning operations to it.  Only 25% have their operations aligned to the strategy.  Only 40% align company from budget to strategy. David Norton, Balanced Scorecard Report, Vol. 3, No. 5 (Sep/Oct 2001) ©theexecutivesuite.com
  • 8. Strategies to Succeed  How do people contribute to the success of our business?  Cornell Study –  Workforce alignment requires -  The right types of people,  In the right places at the right times,  Doing the right things right.  A company with the right types of people has employees with the knowledge and skills necessary to help that company achieve its goals. ©theexecutivesuite.com 8
  • 9. Person – Future Fit  3 different strategies companies use to select employees –  Person job fit - match job applicant’s knowledge and skills to the requirements of specific job openings and focus on an applicant’s ability to perform well right away without extensive training.  Person organization fit - focus on how well the individual fits with the culture or values of the company and hire people with the capacity to work well with other company employees  Person future fit - focus on the potential long-term contribution of applicants, often to the extent that they are willing to leave positions open until the find the best and brightest new employees.  Creating and maintaining that person-future fit that the Cornell research identified as creating the best, long-term workforce alignment.  Better to define where we are going and who we need to get us there to create a more aligned and focused workforce. ©theexecutivesuite.com 9
  • 10. Alignment Enhances Productivity and Profit  Doesn’t it make sense that -  An aligned workforce increases productivity and profit,  We need to better understand our employees to further drive the success, growth, and performance of our business.  A study of large publicly traded firms, found that companies using “high performance” human performance resource practices have market values that range from between $16,000 and $40,000 per employee higher than firms that do not use such practices. ©theexecutivesuite.com 10
  • 11. Aligning Your Hiring Practices to Hire the Right Types of People Requires -  Better understanding the company’s needs by defining and communicating our long-term company strategy and plan;  Communicating that strategy and plan as a recruitment strategy – attracting who we want and need for our future success;  Refining the application and interviewing process to solicit information about current talents as well as future potential and interests; ©theexecutivesuite.com 11
  • 12. Aligning Our Hiring Practices to Hire the Right Types of People Requires -  Identifying an applicant’s current potential to perform the functions of a job by understanding what is important in the job and matching that to what is present in the applicant;  Assessing and understanding how an applicant’s long- term potential can match with the company’s long-term strategy; and  Enabling job role changes to better fit a person’s natural talents – by understanding a person’s natural strengths and adapting the job role(s) as needed. ©theexecutivesuite.com 12
  • 13. Company Needs  What is your company’s long-term company strategy and plan? Mission, vision, values, purpose.  Have you involved your employees in its development? What are some of the steps you used – retreat, questionnaire?  Are you communicating that strategy and plan to your existing employees, (in person, email, postings, meetings, interactive discussions) and  Are you communicating that strategy and plan to job applicants so that you can -  attract who you want and need for your future success? ©theexecutivesuite.com 13
  • 14. Application and Interviewing Process  Remember – we are seeking Alignment to your company’s future strategy and plans, so –  Do you ask an applicant to describe their future position responsibilities,  What talents they believe that they have that will enable them to achieve their future vision,  What talents do they believe they are strong in, and  Why? ©theexecutivesuite.com 14
  • 15. Application and Interviewing Process  For each of the common interviewing questions, ensure there are questions on the application which solicit this information.  For certain positions you may want the applicant to write out the response so that you can go over it in the interview.  These questions and this process will help to identify their behavioral tendencies, their values, and their decision-making patterns. ©theexecutivesuite.com 15
  • 16. Application and Interviewing Process  Get specific with them on their future interests –  What type of position do they want to have,  Why,  With what level of responsibilities,  Who do they want to interact with,  What type of guidance or direction will they want or need,  What kind of company environment will they be most comfortable in.  Let them describe these responses in their own words – in writing.  Do these answers ALIGN with your future vision? ©theexecutivesuite.com 16
  • 17. Interview Questions  Six common question types – 1. Credential verification – ask and expect accuracy. Example – “How long were you at…?” 2. Experience verification – verifies experiential features of his background. Example – “What were your responsibilities in that position?” Look for an answer that shows how such experience made use of one of their strengths. 3. Opinion – an opportunity to subjectively analyze how an applicant would respond to a scenario, and gauge their level of self-awareness. Look here for their confidence level in their self-awareness. Examples – “What would you do in this situation?” “What are your strengths and weaknesses?” ©theexecutivesuite.com 17
  • 18. Interview Questions  Six common question types – 4. Dumb Questions – yup, gets past the pre-programmed answers to find out capability of original thought. Example – “What kind of animal would you like to be?” Tests ability to think on their feet. Look for an answer that goes with their gut, is light, not too serious. 5. Behavioral – anticipates predictable future behaviors based on past responses. Example – “Can you give me a specific example of how you did that”? or “What were the steps you followed to accomplish that task?” Look for a reply that demonstrates how they used a skill strength to accomplish the task. ©theexecutivesuite.com 18
  • 19. Interview Questions  Six common question types – 6. Competency – identifies alignment of past behaviors with specific competencies required for the position (problem solving, leading, initiative, etc.). Example – “Can you give me a specific example of your leadership skills?” “Explain a way in which you sought a creative solution to a problem.” Look for a reply that identifies HOW their strengths (understanding others, concrete organization, leading others) are used to answer the question. These questions are usually key to the interview process. ©theexecutivesuite.com 19
  • 20. Interview Questions  Competency Question Examples –  “Give me an example of a project that you were responsible for organizing from beginning to end. How did you go about it?”  “Give me an example of a lesson you have learned from making a mistake. What did you do differently going forward?”  “What is the one thing in your life that you have not been able to accomplish or complete that gives you the most frustration? Why didn’t you complete it?” (Note – this helps to identify what they perceive as their weakness and how they have adapted (or not) to not rely on that weakness for their success.) ©theexecutivesuite.com 20
  • 21. How to Gauge a Quality Question Response  Shake ‘em and make ‘em remember  Did he take time to think through what he was going to say? say  Remember the proverb – “It is better to remain silent and be thought a fool, then to speak and prove them right.”  Did he give a specific example of a personal strength or weakness to support his answer?  Did he qualify the question – did he ask you to qualify what you were asking or looking for? ©theexecutivesuite.com 21
  • 22. Interview Essentials  Some basic standards –  Brief answers – applicant ~ 1/3rd of the time, interviewer rest of time to ask questions and answer questions.  Appropriate dress – Did you tell them “casual” was OK?  Did he identify his goals up front and ask you what you were looking for?  Did he ask you what you want, what you think, how want you know when you will have found it and your opinions?  Did he explain why he left his last position? Honestly? position  Did he make a personal connection on a personal level with you, are there shared values, behaviors, or strengths you have in common? ©theexecutivesuite.com 22
  • 23. Interview Essentials  Some basic standards –  Did he ask what you are looking for in a solution and did he ask you what you think of his ability to be that solution?  How does he handle rejection – if you indicated that he has not shown how his experience and future vision fits your position – how does he respectfully respond to your concern?  How does he show you he is interested in your company – research, questions?  Did he bring up his weakness before you asked about it?  Did he follow up after the interview – handwritten, at least an email? Thank you, and reiterate his interest? ©theexecutivesuite.com 23
  • 24. Job Descriptions  Do they effectively summarize the type of knowledge, skills, & abilities necessary to ensure that the essential functions are fulfilled.  Do they effectively identify functions that can describe the major categories of the position – management, sales, finance, marketing, process?  Do they identify how the position contributes to the accomplishment of company objectives?  Do job descriptions exist? ©theexecutivesuite.com 24
  • 25. Functional Assessment of Each Position  We know that there are 3 ways we can think about anything –  Our head – systems & structure  Our hands – practical, let’s get it done  Our heart – empathy, the impact on others  Each of us has a different balance of these 3 styles & explains why our decisions and actions are different.  The way we make decisions & how we use them are at the core of who we are. They are key to our preferences, our strengths, and our weaknesses.  What are the dominant thinking patterns required for people in each position?  How does knowing that help to ensure that the person filling the position will be more successful in achieving position objectives and be more able to accomplish the desired person- future fit?  Think Position-Person Alignment & Workforce Alignment. ©theexecutivesuite.com 25
  • 26. Assessment Process  Identify position tasks  Aggregate tasks up to categories  Identify decision attributes for each category  Develop a position-specific profile to measure applicant match to profile as part of selection process. ©theexecutivesuite.com 26
  • 27. Selection  Seek alignment to  Company needs  Application and Interview  Applicant needs  Job Description  Assessment match  Remember –  A company with the right types of people has employees with the knowledge and skills necessary to help that company achieve its goals. ©theexecutivesuite.com 27
  • 28. Thank you! For more information - Warren J. Rutherford Owner The Executive Suite 129 Airport Road Hyannis, MA 02601 wjr@theexecutivesuite.com www.theexecutivesuite.com 508-778-7700 ©theexecutivesuite.com 28