RITA GRAZIANO, MA EXECUTIVE COACH FOCUSED SOLUTIONS GROUP Beyond Performance Management: Igniting Innovation in Employees 1

Agenda  Key elements of Performance Management  Performance Management & Employee Engagement: An Urgent Call for Innovation!  What is innovation?  Integrating innovation into performance management  Q&A 2

Key Elements of Performance Management Aligning performance expectations to VISION, MISSION, STRATEGY, GOALS Clear performance expectations, with standards & metrics Influencing engagement: encouraging, using emotions, igniting passion, walking the talk Informal and formal on-going feedback re: strengths & development areas Training, career development opportunities 3

Employee Engagement Poll Which of the following most closely reflects your organization today? (Choose one) Employee engagement is at an all time high Employee engagement is relatively good and staying steady Employee engagement has dipped and we are concerned about engagement and retention Employee engagement is at an all time low and some employees are looking to leave We don’t have an good read on employee engagement 4

Performance Management & Employee Engagement: An Urgent Call for Innovation! "Employee Engagement is a measureable degree of an employee's positive or negative emotional attachment to their job, colleagues, and organization which profoundly influences their willingness to learn & perform at work". During the height of the recession, the threat of employee turnover seemed low However, during that time, employee engagement levels have dropped A late 2010 Corporate Executive Board survey found only 23% of employees had a high level of “intent to stay” Employees most committed to their organizations put forth 57% more effort and are 87% less likely to leave than those employees who consider themselves disengaged Managers who are highly effective at performance management have teams that outperform their peers by 25% 5

More…..from a 2011 Mercer study All the measures commonly used to get a bead on employee engagement have been declining over the past few years, and steadily increasing numbers of employees are looking to change jobs. Overall, 32 percent of workers say they’re ready to go. The malaise is most pronounced amongst the youngest workers–those aged Some 44 percent of those folks have got one eye–if not two–on the door. As employees get older, they’re more likely to stay put. Of those who are 25 to 34 years old, 40 percent say they’re seriously considering leaving. But even among the oldest age group (those 55 to 64 years old) 24 percent say they’re seriously considering leaving. An additional 21 percent of workers view their employers very unfavorably and have what Mercer calls “rock bottom” scores on engagement–measures of how much they care about their jobs, their work, and their employer. 6

And still more… from a 2011 Maritz Research Poll According to the poll: Approximately, one-quarter (25 percent) of employees report having less trust in management than they did last year Only 10 percent of employees trust management to make the right decision in times of uncertainty. The percentage increases to 16 percent among employees years of age who only recently entered the workforce and didn’t directly experience many of the management scandals of the past 10 years. Slightly more than one in 10 Americans (14 percent) believes their company’s leaders are ethical and honest. Only 12 percent of employees believe their employer genuinely listens to and cares about its employees Only 7 percent of employees believe senior management’s actions are completely consistent with their words. 7

Innovation and Engagement 8

Fostering Innovative Ideas Poll Which of the following most closely reflects your organization today? (Choose one) We actively encourage and reward employees for innovative ideas We capture some product or process innovation ideas We do our best to hear new ideas but few are adopted We have a value of continuous improvement but not innovation We have no way of capturing new ideas from employees 9

Doing Performance Management well has become a baseline --- a must do. It is necessary --- but increasingly not sufficient. _____________ Employees want to:  Use their brains (and their education)  Be listened to, included and heard  Balance routinized, automated work with creative, challenging work Many employees have IDEAS… Doing Performance Management well has become a baseline --- a must do. It is necessary --- but increasingly not sufficient. _____________ Employees want to:  Use their brains (and their education)  Be listened to, included and heard  Balance routinized, automated work with creative, challenging work Many employees have IDEAS… I have an idea!! 10

What is Innovation really? “A unique idea transformed into a significant, useful and valuable change.” 11

Some companies who leverage employee Innovation  Google  Sony  3M  Gore  P&G 12

Innovation INNOVATION is:  Inquiry - the ability to observe, probe & see acutely  Imagining - the ability to create a vision – to imagine  Inclusion - the ability to collaborate & synergize with others  Initiative - the ability to prototype and test the vision  Influencing - the ability to present a case powerfully 13

The 5 I’s as Performance Expectations COMPETENCY AREA: Innovation COMMENTSRATING Identifying opportunities for improvement Creating a vision for significant and valuable change Collaborating with others on improvement ideas Developing and testing an improvement idea Presenting an improvement idea for buy-in 14

The 5 I’s as Performance Goals SMART GOALMETRIC Identify one or two opportunities to increase customer retention as measured by satisfaction ratings. Collaborate with the SE and Sales groups to develop one high-value opportunity and prepare to present to management by end of Q2. Using recent employee satisfaction scores, choose 2 critical areas of dissatisfaction and research root causes through confidential employee interviews and on-line surveys. Prepare 2 to 3 options for positively addressing these areas in order to increase scores by 25% or more in one year. Prepare presentation for management to be delivered by January 1. Research competitive products and customer satisfaction ratings in the area of Quality. Study competitive products, conduct customer visits and identify 3 breakthrough opportunities for increasing customer positive perception of our product quality by Q3. 15

Emphasize Innovation IdeaResults Section IV – Ideas for Improvement & Innovation 16

Innovation Conversations What Interests You What the Organization Needs What You Uniquely Do Well Your Sweet Spot for innovative ideas That’s my idea! 17

Innovation Self-Assessment (Example questions) Rate yourself on the practices in each statement. Consider: to what degree this is true of you in work and life. There are no right or wrong answers; answer according to how you see yourself. 1= not at all true of me 2= rarely true of me 3= sometimes true of me 4= often true of me 5= always true of me ___ 1. I acutely observe processes and products to consider how work can be improved. ___2. I ask penetrating questions to better understand how things work. ___3. I keep an on-going list of ideas. ___4. I often see answers to problems in places where others don’t look. 18

Time to Innovate  Integrate innovation into performance expectations/evaluations/rewards  Showcase an employee’s innovative idea  Customize for your organization the “Google 20%”  Utilize facilitated Action Learning meetings  Integrate innovation into existing project debrief meetings  Provide “comp time” hours for innovation work done on an employee’s own time Begin the conversation! 19

Reimagining Performance Management 20 Aligning performance expectations to VISION, MISSION, STRATEGY, GOALS Clear performance expectations, with standards & metrics Influencing engagement: encouraging, using emotions, igniting passion, walking the talk Informal and formal on-going feedback re: strengths & development areas Training, career development opportunities Integrate Innovation into all Set expectations for innovative ideas Encourage new ideas – set a tone of possibilities, not fear Provide assessment opportunities & help identify development goals in innovation Offer training in Innovation

The Payoff Increased engagement, commitment & retention! Competitive advantage through breakthrough ideas! Organization agility, vitality and market leadership! 21

Q&A 22

Thank you--- and more information Rita Graziano Focused Solutions Group *