3 Tips for Executive Development

Leaders are suffering from their own business hangover. During our recent political in-fighting and economic uncertainty, businesses have had their nose to the grindstone striving to do more with less. Everyone was so focused on surviving and cutting, they're just now looking up and realizing they have no clear next steps, limited vision and no energy.

AmyK, who has worked with Martha Beck (Oprah's Life Coach, bestselling author and columnist for O), National Geographic, IBM, John Paul Mitchell Systems, to name a few, offers you, our readers, these three quick and easy tips for executive development that any business leader can practice to immediately improve his/her leadership performance:

• Focus on energy, not time. Time is a constant; energy is a manageable, renewable resource. What's sucking out your energy and what refuels it? Your answers will influence your strategy for energy management within the constraints of time.
• Leadership happens one conversation at a time. Slow down and ask better questions. Focus on thought-provoking questions over reports. In meeting prep, devote at least five minutes to think of three to five questions that will lead to a more productive, more thought-provoking meeting. These five minutes will save you hours down the road.
• Create internal alignment. Step back and ask yourself: What am I resisting? What am I judging? What am I attached to? Answer these three questions and you'll gain clarity, insight and a foundation for momentum.

About our Guest Author:

With over 700 presentations to 20,000+ executives in seven countries, AmyK Hutchens serves as an Intelligent Activist and business strategist to leaders around the globe. AmyK is a former senior EVP of operations for a leading sales and marketing firm, director of education for Europe and Australia for a 900 million dollar consumer products company, and chosen member of National Geographic's Educator Advisory Committee. She is the winner of five Telly Marketing Awards and the Summit International's Award for Creativity (2008) and a featured guest on NBC, Fox and ABC for her brain-based commentary on current events.

When the whole is greater than the sum of its parts: The intrinsic benefits of Group Think

New Study by Carnegie Mellon, MIT and Union College documents how collective intelligence of groups surpasses the cognitive abilities of the individual group members and that the tendency to cooperate effectively is linked to the number of women in a group.

The authors of the study confirmed the hypothesis that groups, like individuals, have a consistent ability to perform across different types of cognitive tasks and that the effectiveness of a group can, in fact, be predicted in many situations. Because the effectiveness of a group is derived by how well its members work together, it was also proven that in groups where one person dominated, the group was less collectively intelligent than groups where the conversational turns were more evenly distributed. Moreover, it was noted that groups containing more women demonstrated greater social sensitivity (social sensitivity is how well group members perceive each other's emotions) and greater collective intelligence compared to teams containing fewer women.

By extrapolation, the study postulates that it’s possible to improve the intelligence of a group by changing its members, by teaching them better ways of interacting or by giving them better electronic collaboration tools. The bottom line is that it is not the individual intelligence that will make the group succeed, but how the collective intelligence is harnessed together with the right mix of social sensitivities.



Questions to ponder:

• Based on the findings of this latest research, how do you encourage group thinking in your business?
  
• Or do you encourage it at all?
  
• Do all of your teams look alike or are their demographics such that you too can predict the effectiveness of the group?
  
• How do you help your groups to sharpen their thinking and therefore to improve their effectiveness?
• Finally, do you have tools in place to measure the effectiveness of your teams?
  

We will be discussing these questions and more on our Facebook page.

Leadership Roles: a process of co-construction

A new research article published in Academy of Management Review suggests that leadership identities are assumed by individuals in an organization through a process of co-construction. The mechanism appears to work as follows. In their social interactions, individuals either claim, grant or, it would seem, assign leader and follower identities to themselves and, relationally, to their colleagues. According to the paper's authors, "through this claiming-granting process, individuals internalize an identity as leader or follower, and those identities become relationally recognized through reciprocal role adoption and collectively endorsed within the organizational context."

It is not enough if every time during a team meeting, one member of the team takes it upon herself to delegate the majority of the tasks discussed to her peers. What is needed is co-construction. That is, in order for the team member who does the delegating to assume the identity of "leader", her peers must submit to the delegation; they must "grant" that the identity / role is appropriate through reciprocal adoption of the role of follower. By assuming the role of follower, they, in turn, confer a leadership identity upon the other. Thus, their roles are co-constructed. It takes two to make a leader.

How does this conceptualization of leadership challenge received wisdom on the topic of leadership development? Further, how does this affect our methods of identifying high potentials in the organization?

DeRue, D. Scott; Ashford, Susan J.. Academy of Management Review, Oct2010, Vol. 35 Issue 4, p627-647

You can also join the discussion of this topic on our facebook page.

Can HRM Practices Boost Employees Job Satisfaction?

A joint study by the Colorado State University and the Texas State University highlighted the relationship between perceived favorability of HRM practices vs. job satisfaction, and the extent to which trait entitlement alters that balance. While it appears that there is a direct link between perceived favorability of HRM practices and high employee job satisfaction, offering more or better HRM practices will not automatically yield increased job satisfaction as employees expectations differ with regard to what they feel they deserve.

Bottom line, employers need to consider other factors than just employee satisfaction when deciding what HRM practices to implement.

Do you have a particular success story related to HRM practices that you would like to share? You can leave your comments here or join the discussion on our Facebook page.



Zinta S. Byrne, Brian K. Miller and Virginia E. Pitts. "Trait Entitlement and Perceived Favorability of Human Resource Management Practices in the Prediction of Job Satisfaction.” Journal of Business and Psychology, Volume 25, Number 3 (2010): 451-464

Discussion Boards

We have added discussion boards to our Facebook page. These boards will facilitate an open and constructive dialog on the topics presented on this blog.

Connect with us Here and let's get the conversation started!

Current discussion board topic:

The post by Jim Moniz (Recruiters: making strong connections) argues that recruiters must have a handful of important characteristics but that, most importantly, they must catalyze a "happy marriage" between employer and employee. This most important characteristic also seems like the most tricky and hardest to nail down.

What's your method for ensuring a good fit? How about when you hire over the internet? How can you ensure a good fit when you have never met the the candidate in person?

Recruiters: making strong relationships

Getting the job filled with the right person may be the ultimate goal of a recruiter, but instilling trust and confidence in clients should always precede that target.

At the core of this challenging profession is the desire and skill to understand clients’ needs, specific industries and the geographical landscape of placement territory.

A “good recruiter” never rests on the laurels of past performance – its opening night every day for those in the recruitment business, and having more than a passing knowledge of the industry in which they specialize is paramount.

Many recruiters get into the business after enjoying a career in the industry for which they recruit – this rings true particularly in recent years within the high lay-off high technology realm. Having the ability to “speak” a client’s language cuts down on potential miscommunication and in due course the time it will take to make that working match. In addition, recruiters who have been personally involved in a specific industry understand how to best locate candidates for a particular geographical area.

Recruiters with the right stuff know the impact of trust. A client company should never have to worry about being left out in the cold if a new hire doesn’t work out. A dependable recruiter will be there with “replacement warranty” in hand to make sure that this bump in the road is smoothed out in the short distance.

Beyond building relationships with clients and candidates, recruiters must have integrity. They will never steal candidates from one client to “sell” to another and will always be available to clients to iron out problems.

And the cream of the recruiter crop will take the time to understand a client company’s corporate culture. It should never be about merely filling a position – it should always be about filling it with the right candidate, one who will meet the needs of a client and in turn make for a happy “marriage” between employer and employee.


About our Benefits Installment Author: James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Recruiting 2.0: A Guide to Success in the Web Jungle

The Internet provides for a diverse and individual recruitment program in which the new functionalities of what is called Web 2.0 can be used successfully. However, for many organizations, Web 2.0 is new territory and not every recruiter is proficient with its features. Yet, one thing is certain: The new Web 2.0 methods for communicating with applicants over the are better, faster, cheaper and modern.

Learn about Recruiting 2.0 in 2 stages: Stage 1 leads you through the basics of recruiting 2.0 using concrete examples in an interactive, conference style, webinar. Stage 2 will help you personally with the selection and installation of the Web 2.0 technologies that successful recruiters use worldwide for free.

Stage 1 - Web Conference (Webinar)
• What is Recruiting 2.0 in practice?
• What are the most successful online features of Recruiting 2.0?
• Alternative forms of candidate selection.
• New information technologies in the background: Funnel model for Talent Management
• What will be expected in the future from recruiters?
• Duration: about 90 minutes

Stage 2 - Web-Coaching Webinar
• Individual training in dealing with Webcams
• Installation and testing of selected Web 2.0 technologies on your computer
• Accompanied by a Recruiting 2.0 project
• In-depth Q&A
• Duration: variable


In developing these Webinars, HR-Meter has spoken with HR executives from around the globe about their experiences, done comparative research on the benefits of all of the tools and procedures we discuss and have even made use of them in our own recruiting processes.

PLEASE NOTE: Unlike many of the free Webinars on this topic, HR-Meter will never uses informative Webinars like these to sell products, software or advertising.

To register, please visit the official website by clicking here. The registration form is located at the bottom of that page.

Globally integrated, flatter, and leaner: the profile of a thriving global company in 2020

In September 2010, the Economist Intelligence Unit published the results of a quantitative study that demonstrated how the speed of change brought on by the evolutionary technological changes, the globalization of markets and the recent economic realities have forever redefined how companies must operate in 2020.

Because "speed" will increasingly become the keyword for success, companies will see a paradigm shift toward a more "just in time workforce" vs. a permanent workforce. Hiring local managers will guarantee an expeditious and seamless integration in new and emerging markets and HR will be a critical link between the centralized decision making authorities and the globally decentralized branches. Is your company ready for 2020?

"Global firms in 2020. The next decade of change for organizations and workers," Economist Intelligence Unit. Sep 2010: 1-32.

Establishing incentive plan measures, part II

Last month we took a look at Profit-Based Allocation as a basic approach for company executives to consider when developing incentive plan indicators; this month we’ll explore Targeted Key Performance Indicators (KPIs) and how they can lead to improvement in profits.

KPIs generically constitute incentive plans that are within the reach or control of employees, the theory being that the easier it is for employees to reach their goals, improvements in company profits will be the outcome. The KPI approach can involve company, department or individual metrics, but in order to achieve the best results the right metric must be selected.

Company metrics could be a combination of revenue growth and net income and might include return in equity, return in assets, gross sales, net income, revenue per employee and profit per employee. Departmental indicators could include gross sales and margins, overhead percentage, production quotas, client referrals, and employee retention percentage. Individual metrics are tied to personal performance goals.

While Targeted KPIs can achieve good results, down sides do exist:

-Miscalculations; KPI improvements sometimes do not sufficiently offset failures in other areas, leading to incentive payments even though profits are off the mark.

-“Gaming”; some employees may learn how to play the system and achieve KPIs without hitting profit goals, resulting in intentional or unintentional failure to achieve profit objectives.

-“Sandbagging; there may be a few employees who barely reach their targeted KPIs during the allotted time period, and then attempt to carry-over performance into the next period, leading to failure to achieve full profit potential.

-Misalignment; KPIs can sometimes force employees into action outside their skill sets and abilities. The KPI may be achieved, but job satisfaction could be diminished.

A single solution to designing an incentive plan with universal effectiveness simply does not exist – measures and metrics must be suitable and specific to the company and industry and based on an organization’s culture, business model and goals. By making a decision about which incentive plan indicators works best for your company, staying the course and tweaking when needed, the results in terms of both profitability and employee commitment will be evident.



About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Establishing Incentive Plan Measures: Part 1

In order to appropriately establish measures for a comprehensive incentive plan and determine which core approach will be taken to develop a program, company executives must first understand and embrace a few foundational principles.

These foundational principals boil down to three goals – creation of an incentive plan that not only improves profits but is also drives results and is self-financing (paid for with results realized). These principals pilot two basic approaches that company executives should consider in the development of incentive plan indicators – Profit-Based Allocation and Targeted Key Performance Indicators.

We’ll concentrate on Profit-Based Allocation for this month’s posting, and have Targeted KPI’s to look forward to next time.

Under the Profit-Based Allocation method, a company decides that it will allocate a percentage of annual profits to employees; the award amount is divided among employees based on a pre-determined formula with payouts typically occurring at the end of the year.

A “best practices” framework for a Profit-Based Allocation should address the following issues:

-Define profits, be it net income or another measure
-Establish a baseline upon which contributions to the profit pool will be based
-Identify a threshold to ensure that a certain measure or series of measures will be achieved prior to payments being made
-Select a fixed or tiered percentage to share
-Select an allocation formula to determine how the value will be distributed to participating employees
-Establish a personal performance component to clarify the performance threshold that must be achieved to receive benefits

Keep in mind that since the single focus of Profit-Based Allocation is on annual profits, the value created can lead to some inherent drawbacks. Some examples might be: long term needs are overlooked, individual accomplishments are not recognized and it can be possible to “cook the books” shorterm to impact a bonus. Seeing that this approach has its anchor in company performance, the absence of a strong performance management system or an apathetic workforce can compromise the effort.

Next month we’ll examine Targeted KPIs and how they can lead to improvement in profits.



About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Have you ever been published? Would you like to be?

If you or your company have participated in an Employee Engagement Survey like this one in the last couple of years, we would love to hear from you as your feedback is important to us and to those who are interested in our services.

New market research suggests both companies and employees are increasingly aware of a definite shift in fiscal, professional, and personal priorities. Undoubtedly, you have seen and felt their impact on your business and professions as well. This shift has and continues to affect the following:

- Need for flexible or non-traditional work schedules
- Need for more "modern" work conditions
- Need for meaningful and measurable accomplishments
- Need for personal recognition and validation
- Need for professional growth
- Need to identify with the organization, etc

We, therefore, invite you to write a little comment or article to our editorial staff so we as well as others viewing this blog can grow from your experience. Our Staff will review your submission and we will gladly publish them on this blog along with your photo and a brief biographical reference if you want.

Lastly, feel free to contact us if you are interested in receiving our complimentary current research compilation on the topic of the above mentioned shift in employee engagement.

Also, please feel free to take a look at one our Employee Engagement Surveys available here. Receiving these survey's results may be of interest to you. We can send them to you, if you would like. It's a free report.

Employee Engagement Survey

Today we are putting up a beta HR-Meter Employee Engagement Survey to collect some basic benchmark data on these modules.

If you've got a couple of minutes and are interested in filling out an interesting survey concerning employee statisfaction then click here.

You'll even get an opportunity at the end of the survey to request that the results be sent to you when they become available.

Click here to fill out the new Employee Engagement Survey

If you have any comments or suggestions on how we could improve this survey, please let us know!

Creating a culture of employee “ownership mentality”: Part II

Last month we took a general look at measures to establish that all-important culture of employee “ownership mentality;” one that once created can help impel a business to greater success.

Now, let’s see how compensation structure impacts that desired ownership mentality, beginning with short-term incentives.

Essentially, short-term incentives are performance measured and typically paid out in 12 months or less. These incentives can play a large role in engendering an employee’s sense of “investment” in an organization if they are based on the achievement of certain departmental goals and/or hitting a profitability threshold.

Most companies utilizing short-term incentive components as part of an overall “ownership” approach will “weight” the incentive based upon a tier system. As such, tiers are established for different classes of employees in conjunction with their impact on various performance measures.

For example, incentive for Tier 1 or top level management is usually based on company performance, not department or individual contribution. Incentives for Tier 3 or 4 employees, however, are heavily weighted on team and individual performance, and hardly at all on overall company achievement. The objective with both tiers is to create focus and tie incentives to specific goals that the employee is best positioned to help meet – in other words, allowing an employee to feel engaged and invested in the workplace, which translates into that coveted ownership mentality.

Long-term incentives, which can include shares of stock, stock options, phantom stock, a profit pool or incentive deferred compensation, are designed for top talent retention.

Key among the intentions of long-term incentives is to create a focus on attaining the company’s long term financial goals and engender a sense of “investment” in those goals.

Long-term incentives provide a substantive reason for top talent to both join and stay with a company. Attractive inducements can “reel them in” and likewise maintain star employees.

Sustained growth and hitting those important goal milestones occurs when key employees are motivated to focus on performance, leading to execution and a pattern of continued achievement – in the long run, a win-win for both the company and its employees.

About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation. Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Do your employees know where they stand?

Sure... right? We do our annual reviews. We sit down with our employees and we say, "good job with this or that" or "we'd like to see some improvment on your TPS reports". Of course our employees know where they stand.

Ok, and if I were to ask you, say, "what percentage of your employees is uncertain about their job security?" or perhaps something a little more specific like, "what percentage of your employees thought they were on the right track for a promotion right up until they didn't get one?" and "how did not getting that promotion affect their performance?", "did they start looking for another job?", "do they think you care?". You might say something like, "I'm not sure. But, more importantly, I'm not sure it matters"... and I'd believe you. And you'd have to also give me that your employees don't know where they stand; that you don't know where your employees stand; that maybe you don't know where you stand.

It starts to look somewhat amazing that the company functions. Of course, if you were to ask around, folks would say, "ahh, but we are such a dysfunctional, uncooperative, catty, bunch." He knows it, she knows it, I know it and you know it.

If you're a mamanager, start scheduling some time, right now, for each memeber of you team to come in and talk to you about "things". Maybe type up and distribute a little survey and put a box outside your door or cube or tent. Make it a "check yes or no" survey and pass it out. Get some feedback. Ask your team if they want to do a little survey too. Ask HR if you can do a big survey. Ask HR to ask if you can do a really really big survey. Ask some questions.

Creating a Culture That Encourages Employees to Think Like Owners: Part 1

January Installment by Jim Moniz:

Success now and in the future – let’s face it; that’s the ultimate goal of any business owner. But to achieve that vision of a “bigger and better” organization, you first have to identify a few key elements for success and then make sure that your staff possesses the appropriate ownership mentality to assist in both your short and long term objectives.

Fundamental to any growth strategy are three factors: fulfilling your original business plan (mission, values and company vision); the emergence of sustainable growth patterns (revenue development); and a suitable return in capital for company shareholders.

In order to best achieve those elements for growth, employees must be on board – and the most direct line to meet that aim is by fostering a culture of employee ownership. In other words, employees have to draw the same conclusions as you about what’s important, but for that to occur, ownership mentality must be personalized.

Most employees recognize the bottom line to a company’s success is well…the bottom line; but it’s also vital that they understand how their contribution will help to make that happen. Without this important engagement on the part of employees, their focus may be off center.

That engagement occurs when an employee not only appreciates the unique talents he brings to the organization but recognizes that those skills are also appreciated by management. And that is accomplished by utilizing and amplifying those special talents to allow the employee to find meaning in his work and create a framework for both his and the company’s success. The coveted ownership mentality occurs when the employee sees that connection between his and the company’s goals.

It all boils down to employees embracing the fundamental elements of understanding, importance, contribution and connection.

But a few well-placed “atta boys” aren’t going to fully engender ownership mentality. Motivation comes in many forms, including a regular and attainable incentive program designed not as an employee entitlement, but as a means to create engagement and ownership.

A sound incentive plan – which includes both short and long term motivations – always connects the dots between performance and results. It can best be described as a conditional payment in exchange for meeting specific performance standards.

Next month we’ll break down the differences between short and long term incentives and the role each plays in creating and maintaining that all important ownership mentality.


About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

Jim Moniz will be presenting at this years SHRM conference in Phoenx, be sure to check out our presentation: “Creating and Sustaining a Competitive Advantage, The Role and Impact of Effective Compensation and Rewards Strategies”

Maybe the problem is not you … just your environment

Today we present an article by a new HR-Worldview Guest Author.

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This year at My Next Path, we have worked with a certain number of clients who started a coaching process because they felt uneasy with their current job. Some of them even got the unpleasant sensation they might have some sort of issue. When we started working together, they in fact quite quickly came to realize that they did not have any problem themselves: the source of their trouble was their environment! Therefore, instead of feeling bad, stuck, paralyzed or sometimes worst, what they had to do was actively take action and work their way out to another environment that would better fit them. Let us explain more below.

Mary*has been working for 8 years in the same company. She was a middle manager in the sales and marketing area. She had always been travelling a lot for her job and liked it. She liked her industry and was very knowledgeable about key factors of success, players, etc. But more recently, she had 3 different bosses in 2 years, an increasing pressure and despite good results in her region, little recognition. Her self confidence was eroded and she found herself drowned in micro-management tasks imposed by an insecure manager. When we started working together, Mary was really unsure about her own abilities.

After a few sessions of analyzing what she thought were her issues, she came to realize, she had lost her self confidence because of the environment (poor management, wrong cultural fit etc), not because she had problems herself! In fact, she was perceptive enough to take action, seek help, and finally take that healthy distance to realize that. A few months later, Mary landed a new job in a company more in line with her style and expectations. Although everyone around her told her to stick to her current job because of the tough economy, she overcame her initial fear, dedicated the appropriate time to look for the right opportunity and found one.

We have seen more than one case similar to Mary’s this year: Before feeling bad about yourself and jumping to conclusions, make sure you are able to analyze your situation with perspective. Actively take action to find a work environment that better fits you maybe the best decision you will ever make! This obviously could mean changing company but not necessarily. This could also mean changing job/department within a corporation: very often in big companies, people have been offered jobs that do not properly fit their profile; by changing to another job, area or department within the company, they suddenly feel better and everybody wins.

About our Guest Authors:

Myriam Le Cannellier and Catherine Bortolotti are Career Coaches who work with professionals who are experiencing a transition in their career, because of relocation, an unexpected situation in their current job or the will to make a significant change in their professional life. Learn more about them at www.mynextpath.com

Beyond the Cookie Cutter Approach: Customizing your Company’s Incentive Program

August Benefits Installment by Jim Moniz

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Vision, potential, communication and motivation – are the key elements to an effective company’s incentive program. But in the absence of well-defined indicators and a “best practices” framework, even the most comprehensive program can fall short.

The foundation of an incentive program is basic; it must project the potential that can be realized by the company if its purpose if fulfilled. It must also identify employees who are in a position to impact those outcomes. Moreover, it should standardize its benefits/rewards and determine how much of an increased shareholder value will be allocated to employees and how its value will be measured.

Indicators, sometimes referred to as measures and metrics in a company’s reward strategies, are pivotal to a well-oiled incentive program.

The role of indicators is straightforward – they should seek to improve performance, influence behavior and create focus. This is accomplished through communication and reinforcement to encourage a company wide culture of employee ownership mentality.

Indicators should not be confused with motivators. Motivation is an internal element, something that is encouraged by aligning employees with roles and tasks that are consistent with their abilities. This will encourage them to shine. Motivation is additionally stimulated by a mutual vision between the company and employees.

That said, if indicators are not properly nor thoroughly defined, employee motivation can collapse under an incentive program – this can happen when workforce members see a disconnection between their role in the company and how rewards are earned. This is why a “best practices” framework – a Profit Based Allocation – is a vital component to a company’s incentive program.

A “best practices” framework should address a number of issues, including how company growth is defined; the baseline upon which contributions to the profit pool will be based; payment threshold; percentage to be shared; an allocation formula; and a definition of the expected individual’s performance.

There is nothing “cookie cutter” about an effective incentive program– what may work for one company could be way off the mark for another. The most expedient way to achieve the ideal program for your company is to be fully aware of best practice standards and frameworks, and then work within that structure to customize indicators and measures specific to your organization.

Incentive programs that work best are based on a company’s culture, business model and goals. Communication and reinforcement of results on an ongoing basis is critical. A C- incentive program will outperform an A+ program without ongoing communication and reinforcement. Companies should match their incentive program to those crucial components and then stay the course.

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About our Benefits Installment Author:

James E. (Jim) Moniz, CEO of Northeast VisionLink, a Massachusetts firm that specializes in structuring executive compensation. James E. Moniz is a national speaker on the topic of wealth management and on executive compensation.

Performance Compass (Beta)

We don't usually do this, but today HR-Worldview would like to direct your attention to a useful new tool designed by HR-Meter that is still in Beta.

HR-Meter is looking for folks to Beta test this tool. This basically means "use the tool for a month and give HR-Meter feedback on it".

The tool is called the Performance Compass. Check out this little video HR-Meter sent over.

You can also view the video here.

HR-Meter has asked that we don't give out any more information than this.

So, if you are interested in participating in the Beta of this tool, click the link below to sign up and HR-Meter will give you more information.

Sign up for more information & to Beta Test Performance Compass

Are Your Employees Afraid of You?

At a meeting in a manufacturing town in the old Soviet Union, the speaker was wrapping up his presentation. The factory had once again exceeded its goals for the five year plan, “Thanks to the wisdom and inspiration of our great leader, Comrade Stalin!” The audience leaped to its feet, shaking the hall with their clapping. The applause went on for a minute. Then two minutes. After five minutes, people started looking around to see who would stop first. After ten minutes, hands sore from clapping, old white-haired Ivan sat down. Relieved, the rest of the group settled back down in their seats.

Ivan didn’t show up for work the next day. No one seemed to know what had happened to him, but no one asked, either.

I was never that kind of leader, or so I thought. At a staff cocktail party after work, my fiancee pointed out that my staff members were really very good at sucking up to me without being obvious. “Nonsense!” I told her. “They don’t need to butter me up. They know they can say anything they want to me, good or bad.” She just smiled. I then realized that, while I genuinely liked my subordinates, I had power over them, even when I didn’t use it. I could put off that raise, delay that promotion, reduce that bonus, and not realize I was doing it. And then I saw I treated my boss the same way. I always held back a little, knowing that my career depended on his good opinion.

It’s hard to manage, even when you have good information to work with. But if your staff is afraid to deliver bad news, criticize your proposals, or argue with you over a decision, you’re operating in the dark. You may have already told your staff that you want to hear open and honest communication. But your message to them consists of more than words. All it takes is a frown or a roll of the eyes to let people know that what they just said was not welcome. Even worse, a comment like, “That’s a dumb idea” will shut down all but the most self-confident employee.

I was lucky. I always had at least one staff member who realized I would always be fair (see my other blogs on Trust.) They would alert me to my blunders. Find one of those folks if you can. In addition, there are some things you could do to keep the communication lines open:

• Have someone watch your body language in meetings. They should let you know what messages you’re sending without realizing it.
• Practice neutral language to handle ideas or comments from your staff when you really don’t agree with something they’ve said. Try, “Interesting idea, Ted. I’ll give it some thought,” instead of, “No, I don’t think that will work.” Follow up with a one-on-one session with Ted to let him know where his idea fell short - if it did.
• Put criticisms in a “parking lot” for later review, and let people know you’ll go over them later. Then give yourself time to react rationally rather than emotionally.
• Learn to listen. That means hearing what people say and mean, both verbally and emotionally. Mirror what they’ve said to let them know you heard and understood it, and to be sure you really got it right.
• Give credit where it’s due. Acknowledge the person who came up with an idea or a valid criticism.
• Acknowledge your mistakes and say what you’ll do to prevent them from happening again.
• Finally, say what you mean and mean what you say. If your actions match the words the use, your employees will learn to trust you.

George Krafcisin is President of Mosaic Management, Inc., where he does coaching and training for businesses and executives who want to become better leaders. He gives his services away to those who don’t have “profit” in their mission statements. Contact him at Mosaic_Management@mac.com, www.MosaicCoaching.biz, or www.LinkedIn.com/in/krafcisin.

The New First Class Compromise

When companies cut budgets, a typical target is anything considered to be a frivolous gadget. An unneeded gizmo. There certainly are a lot of frivolous gadgets and unneeded gizmos. It all makes perfect sense.

But then I feel like I'm in the Twilight Zone when I talk to clients who have cut their annual or bi-annual on-line performance appraisals and assessments when I clearly remember them saying to me in the past that they don't know how their team, their department, even their business as a whole could continue to function and grow without them. 

They used to say stuff like “We were such a dysfunctional, uncooperative bunch.” 

So when the tools that 'functionalized' the dysfunctional and got the 'uncooperative' to cooperate are put to pasture, I always want to say “My word! Is it that bad? I hope you didn't have to get rid of the Tassimo coffee maker too!” But, inevitably, I get my head on straight and get with it again.

Here is what we need to do. 

If your team, department, or company as a whole is a dysfunctional, uncooperative bunch but you can't seem to find room in the budget for the tools and support that you need to 'fix it' then either you're company is not taking the 'human factor' seriously enough or providers are not taking your budgets seriously enough. It's probably a little bit of both.

They say that in money, a perceived need is as real a need as a real need. I don't know if they actually say that, but I think it's true. We were going in this direction anyway, and it is simply the case that the state of the economy has accelerated the HR market's need for easy to use (which is time efficient) and cost-effective (which is cash efficient) technology solutions. 

HR needs to start making the case that these tools are as necessary a part of the frictionless functioning of a business as the workstations, the network bandwidth and the Tassimo. Uncooperative people don't just start cooperating especially when they are afraid that their jobs are on the line. No company would sell all of their workstations and replace them with typewriters to save money. It would end up being more expensive... that's why we have computers. The best question to ask is, “How is that any different than getting rid of the other tool that time and again has provided stability and openness to the workforce?” 

At the same time, HR solutions providers need to start innovating and moving away from the old model that companies don't see room for in their budgets. Solutions providers cannot just weather the storm and when the skies clear up approach their clients with the same garbage that got tossed at the first sign of trouble. That is about as backward as selling off workstations for typewriters. HR solutions providers need to learn that HR is now going to want more control over implementation and management of these systems. It's a particular brand of protectionism. HR solutions providers need to have a whole new game that's easy to learn. The products need to be better than they were before and we can actually define what we mean by "better": easy to integrate into company culture, easy for the client to learn, easy to use, quick to deploy, stable, error free. Of course, some HR solutions providers will be quick to say “oh but our systems have always been like that”. But, if that were true then we wouldn't be having this conversation.