performance equations

Successful Performance Development

1© Performance Equations Ltd. All Rights Reserved.

Taking the Guesswork Out of Building

Organisational Performance



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



Clients We Have Worked With

O2



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



High Performance Culture



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 company’s strategy actually exists in their organisation

Less than 30% of senior leaders believe their organisations’ 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.



The Challenge of Translating Strategy into Action

90% of organisations are unable to fully implement the strategy they’ve spent so much time, effort, and money planning

95% of employees do not understand their company’s strategy

85% of executives spend less than an hour per month talking about strategy

73% of employees believe their bosses don’t communicate the 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



A Word About Employee Engagement

12% employees actively engaged

70% neither engaged or

disengaged

18% actively disengaged

Cost to business €260 billion



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

Understanding of business context and the ‘bigger picture’

Respectful of, and helpful to, colleagues

Willingness to ‘go the extra mile’

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



Strategic Focus Performance Management Leadership Structure

Strategic Focus Performance Management Leadership Structure

Performance Bearing Mechanisms

Business Performance Satisfaction Change People Outputs

Business Performance Satisfaction Change People Outputs

Results / Outcomes

10© Verax International Ltd. All Rights Reserved.030908

48

95

Overall Effectiveness

1st%ile

10th%ile

25th%ile

50th%ile

75th%ile

90th%ile

99th%ile

Diagnosing the Performance Culture



PRICING/VALUE FOR MONEY

PRODUCT/SERVICE PERFORMANCE

BRAND IMAGE/TRUST

EASE OF DOING BUSINESS

RESPONSIVENESS TO CUSTOMERS

TOTAL SUPPORT PACKAGE

EMPATHY/COMPATIBILITY

+

++

+

+

+

--

-

-

Business Performance People Outputs.

RESULTS/OUTCOMES

Relationship Matrix

STRATEGIC FOCUS

PERFORMANCEMANAGEMENT

LEADERSHIP

STRUCTURE

Client specific strategic

outcomes can be

added

COMPETITIVESTRATEGIES

Satisfaction ChangeUnderstanding the drivers of performance outcomes is critical in knowing which levels to pull.



High Performance Leadership

and

Developing Talent



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 execute strategy as “good” or “excellent”

40% of externally hired senior managers fail within 18 months



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



Developing talent through the leadership pipeline

Leadership Pipeline: A long-term, systemic approach to developing a sustainable supply of leaders ready to execute your strategy now and in the future

—Charan, Drotter, Noel, The Leadership Pipeline, 2001

PassageSix

Group Manager

PassageFour

Business Manager

Functional Manager

PassageTwo

Manager Manager

Manage Others

Manage Self

PassageFive

PassageOne

PassageThree

PassageSix

Enterprise Manager

PassageFour

PassageTwo

PassageFive

PassageOne

PassageThree



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



Different Approaches

Everyone is talented in some area, to some degree (Inclusive)

Only some people have the innate qualities to lead the company into a future that can’t quite be described (Exclusive)



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

– Demonstrated that they can scale and grow with the organisation’s business

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 Does Not (Always) Predict Potential

93%

7%

71%

29%

Current performance is a necessary condition for potential but does not guarantee success at the next level

Only 7% of high potentials are not high performers

BUT

Most high performers are not high potential



What Determines Talent

High Performance

High Potential

TalentPool

Talent Differentiators+ =

Applied experience

Capability

Knowledge & skills

Capacity

+



Connecting Business Capability to Business Strategy

Organisational Vision

Businessdrivers

Strategicpriorities

Culturalpriorities

Business Strategy

Organisational values and behaviourTeam capabilities

Individual capabilities



How to build organisational performance



How to build organisational performance

Recognise that organisational performance development is a journey not an event



How to Build Organisational Performance

Diagnose and measure accurately performance gaps and drivers



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





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



To discover more

contact us at

[email protected]

01252 545 171