CREATING TRANSFERRABLE WEALTH THROUGH STRENGTHS AND ENGAGED MANAGEMENT Jim Downing, PhD Executive Leadership Resources, Inc. January 2, 2013

PURPOSE OF A BUSINESS To Create Transferrable Wealth for Owners & Shareholders

GALLUP RESEARCH BASED PROCESS Over 30 years of research Millions of employees surveyed Thousands of companies analyzed 80,000 managers polled

GALLUP RESEARCH QUESTIONS “What do the most talented employees need from their workplace?” “How do the world’s greatest managers find, focus and retain talented employees?”

GALLUP RESEARCH FINDINGS 28% of employees are “engaged” 53% of employees are not “engaged” 19% of employees are actively “disengaged”

SO WHAT? On engagement scale, compared to bottom-quartile companies, top- quartile companies had: 12% higher customer satisfaction 18% higher productivity 16% higher profitability Also, 37% lower absenteeism 27% less theft 49% fewer safety incidents 60% fewer quality issues

WHAT ENGAGES EMPLOYEES? Direction - - What is organizational mission or purpose. Focus on Strengths - - Put the right people on the team Based on strengths, proper employee utilization - - Put the right people in the right positions. Monitor, measure and adjust as necessary - - Keep score

DIRECTION Mission or purpose statement  What market is addressed  What is offered to that market  What makes you different Vision Internal, aspirational statement of goals Strategy Broad statement of how mission and vision will be achieved

FOCUS ON STRENGTHS Primary component of Engaged Management Process Strength = Talent x (Knowledge + Skills) 34 identified talent themes or strengths/ top 5 most important “Strengths Finder 2.0” by Tom Rath Same top 5: 1 in 278,000/same order of top 5: 1 in 33 million Manage to strengths – do NOT correct weaknesses

BENEFITS OF STRENGTHS APPROACH Provides insights into you and your team A non-threatening language for discussing “people” issues Provides direction for team building Provides cues for building high-energy culture

PROPER EMPLOYEE UTILIZATION Describe positions in terms of strengths Compare best employees and worst employees on strengths criteria to guide position description Use business intuition and judgment

MONITOR, MEASURE AND ADJUST Sustainability of system is crucial Gallup 12 questions of employee engagement Constantly monitor and adjust as necessary

ENGAGED CUSTOMERS/CLIENTS Not just purchasers or users or references, BUT Active loyal advocates Systematic, constant communication and interaction with clients and customers Formal and informal research

SUSTAINABLE, PROFITABLE GROWTH Clear, challenging goals that are communicated to all employees Consistent with mission, vision and strategy Key performance indicators Monitor, measure and adjust

ELEMENTS OF TRANSFERRABLE VALUE Decision-Making Management Team Owner Independency Effective Financial Systems and Controls Compelling Business Plan Customer Diversification Intellectual Property Scalable Systems

SUGGESTED NEXT STEPS Thoughtfully create mission, vision and strategy Benchmark current employee engagement level Describe positions in terms of strengths Assess employee strengths and compare to position

CONCLUSION