Bruce CrumleyBlog:

www.executiveandhrguidance.blogspot.com/

Technologically Advanced Assessments/Systems in driving

Sustainable Business Success through Performance Modeling/Benchmarking

and 360 Performance Reviews in Business and the BPO Industry

Bruce CrumleyDirector – Enterprise Solutions

Profiles Asia Pacific/People DynamicsSeptember 21, 2011

WHY THESE TWO TOPICS?

• HUMAN RESOURCES IS THE DRIVING DIFFERENCE FOR SUSTAINABILITY

• PERFORMANCE MODELING/BENCHMARKING DRIVES SUCCESS THROUGH JOB FIT

• 360 PERFORMANCE REVIEWS GIVE METRICS FOR CAREER DEVELOPMENT AND LEADERSHIP

• BIGGEST SHORTAGE GLOBALLY IS LEADERSHIP IN THE COMING 5-10 YEARS

Overview

• Advent of Technology – Online• Performance Modeling/Job

Pattern/Benchmarking• Job FIT• BPO Experiences and Processes• Technologically Advanced Systems – Recently

Developed• Applicant Tracking Systems to Speed Delivery• 360 Performance Reviews

Advent of Technology

Forms of Administration of Assessments

• Paper and Pen– Still Used in Areas of the Philippines where

Broadband is not reliable– Presently generally Small/Medium users still use

these– Disadvantages: Slow, Prone to Error, Difficult to

Use the Information and Merge it, Consumes a lot of Peopletime leading to SIGNIFICANT LOST PRODUCTIVITY

• LAN Based, Computer-Based – Mid-90’s• Online – Introduced in The Philippines in 2002

Assessments• Costs per Assessment have come down

significantly in recent years• Information is more Scientific and Predictive

than ever before - Psychometricians are not required to obtain reliable results

• Information can now be Utilized in many different formats and uses – Quantification rather than just Qualification

• Distortion – consistency in answering questions is measured in good Assessments

Assessments II• Need to Screen and Hire larger quantities of

candidates in less time – fast ramp-up! GLOBALLY

• Some Have Behavioral Event Interview Questions

• Ipastive is being replaced more by Normative Assessments – Normative is based on a population rather than how one compares oneself to oneself

• Speed of Results and Accuracy!

The Top Three Reasons People Fail

Incompetence

Incompatibility

Dishonesty

Peter Drucker,Famous Management Consultant:

“Chances are good that up to 66% of your company’s

hiring decisions will prove to be mistakes in the first

twelve months.”

Why New Hires Fail• Technical skills are not the primary reason new hires fail.

• Poor interpersonal skills within management dominate the list.

• 46% of newly-hired employees will fail within 18 months.

• 19% will achieve unequivocal success.

Leadership IQ, News Release (WASHINGTON, D.C.) December 2, 2009

Have you ever hired someone

who did not reach your

expectations?

The Total Person

10% - Good But Limited Information:

Skills, Experience - Resume

90% - Essence of the Total

Person:Thinking Style

Occupational Interests

Behavioral Traits

Job and Company Fit

Utilize All Of Your Resources

75%

66%

54%

38%

26%

14%InterviewBackground Checks & Integrity Testing Personality TestingAbility Testing

Interest TestingJOB MATCHING

– Psychological Bulletin Vol. 96, No. 1, August 1994 Professor Mike Smith, University of Manchester

Performance Model =Job Pattern =

Benchmarking=>

Job FIT

Creating Job Patterns

• Benchmarkingis an important and often

neglected aspect in the correct use of Employment Assessments

• It is Company and Job Specific

Consider Behaviors, Interests, and Abilities Identify the most critical characteristics needed for

job success Establish a benchmark based on top performing

incumbents to which prospects may be compared Must be based on critical job performance measures Results in a Job Match Percent to help make

decisions about hiring, placement, and training Job Match should NEVER be more than 1/3 of the

information used to make a hiring decision.

16

Performance Models/Benchmarking

® 2010 Profiles International www.profilesinternational.com

Benchmarks

• Selected Tools allow the Ability to almost instantaneously refine/revise Benchmarks– Eliminates the need for Consultants to benchmark

positions – flexibility, cost and time– Dynamic and rapid market changes require

frequent adjustments to benchmarks

Source: Oracle Human Capital management event

Essential First Step is Hiring Right

SPEED

is the real

differentiator of

today.

TALENT ACQUISITION: Your Strategy

1. Determine measurable criteria for position.

21

1. Determine measurable criteria for position.

2. Based on selected measurable criteria, determine top performers.

Identifying Top Performers

Identifying Top Performers

• Use new sheet for each position

• Carefully identify objective performance criteria (‘Pers’)

• Use new sheet for each position

• Carefully identify objective performance criteria (‘Pers’)

Score each employeeScore each employee

New Business Sales

Margin/Profitability

Client Retention

Repeat Business TargetD

ave

Mik

e

Car

en

Jim

Oli

via

Shau

n

Noe

l

9 16 10 10 15 20 18

Sales Representative

July 22nd 2007

Tom Manager

Top Performers score highest

Top Performers score highest

Review for accuracyReview for accuracy

5

21

1

3

54

332

2

23

4

34

5

55

5

44

3 4 5 524

23

1. Determine measurable criteria for position.2. Based on selected measurable criteria,

determine top performers.3. Communication to individuals that will be

taking assessments. (Suggested that you assess all in position)

24

1. Determine measurable criteria for position.

2. Based on selected measurable criteria, determine top performers.

3. Communication to individuals that will be taking assessments. (Suggested that you assess all in position)

4. Schedule Assessments.

25

1. Determine measurable criteria for position.2. Based on selected measurable criteria,

determine top performers.3. Communication to individuals that will be

taking assessments. (Suggested that you assess all in position)

4. Schedule Assessments.

5. Build pattern

a

a

28

1. Determine measurable criteria for position.2. Based on selected measurable criteria,

determine top performers.3. Communication to individuals that will be

taking assessments. (Suggested that you assess all in position)

4. Schedule Assessments.5. Build pattern

6. Review pattern

Thinking and Reasoning [CAN THE PERSON DO THE JOB?]

Learning Index Verbal Skill &

Reasoning Numerical Abilities & Reasoning

Occupational Interests [WILL THE PERSON DO THE JOB?]

Enterprising Financial / Administrative People Service Technical Mechanical Creative

Behavioral Traits [HOW WILL THE PERSON DO THE JOB?]

Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodati

ng Independence Objective Judgment

Graph Report

One-page graphical summary of candidate vs. position

All critical information

For experienced users

Useful in multi-candidate reviews

One-page graphical summary of candidate vs. position

All critical information

For experienced users

Useful in multi-candidate reviews

Top and Bottom Performers

Representation of Top Performer STEN ScaleFor the top performers, the computer-generated Performance Model (blue) is toward the high end for this trait.

Representation of Bottom Performer STEN ScaleThe computer-generated Performance Model for bottom performers (red) is toward the low end of this trait.

Representation of STEN scores for two groups of employeesThe results for bottom performers are shaded red and the results for the top performers shaded blue.

STEN Scores 1 2 3 4 5 6 7 8 9 10

Subjects 1 2 3 3 2 1

STEN Scores 1 2 3 4 5 6 7 8 9 10

Subjects 1 2 3 3 2 1

1 2 3 4 5 6 7 8 9 10

32® 2010 Profiles International www.profilesinternational.com

Justifications:

JOB FIT=>TURNOVER

ROI

The New Art of Hiring Smart

JOB MATCH OR NO JOB MATCH

Low Turnover Industry – Sample Size: 5,941

Percentage who quit or were fired after 6 months: 25% 5%

Percentage who quit or were fired after 14 months: 34% 8%

YesNo

Job Match?

Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching forBetter Sales Performance,” Harvard Business Review, Vol. 58, No. 5.

: 13,102

Percentage who quit or were fired after 6 months: 46% 24%

Percentage who quit or were fired after 14 months: 57% 28%

YESsHigh Turnover Industry No

Job Match?

37

Business Case and ROI

Note: Graph is improvement in 30-day attrition in North America after rollout of Profiles XT vendor.

April May June0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

16.3%15.4%

7.5%

Skills AddedMidway through Month

Skills

30 DayLinear (30 Day)Skills Added

Impact of Assessment and skills Testing on 30-Day turnover

ROI Calculator

38

Based on 2009 to date 90-Day attrition: 732

Reducing the attrition numbers with improved processes and better screening directly impacts cost to re-hire for the same positions.

Direct correlation of decreased attrition and costs

39

1 2 3 4 5 6 7$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

650

660

670

680

690

700

710

720

730

Direct Correlation of Reduced Attrition and Cost Savings

Annual Savings Annual Attrition Logarithmic (Annual Attrition)

40

Talent War – a new playing field

They have changed the rules of the game ……

They have new players…………..

Winning in talent sourcing is a business imperative…….

They even break the rules….

So you think your business is impervious to this onslaught …..

BPO PROCESSES

HIRING PROCESS

Application/ATS

Phone Screen

Job Preview

Assessments

Structured Interview

Job Offer

Background Checks

Follow-up call/Welcome Call

Associate Selection Process I

Application/ATS – 30 mins

Screening Interview – 15 mins

Language Assessment – 20 mins

Skills Verification – 60 mins

Program Fit – 30 mins.

Organizational Fit – 30 mins

Job Offer – 30 mins

Follow-up call/Welcome Call

Associate Selection Process II

Technologically Advanced Systems

Avatar Audio Visual - Giving Instructions and Explanations

THESE AVATARS CAN BE IN MULTIPLE LANGUAGES

in our caseOver 32 different Languages

and Normed for Each Country

ARTIFICIAL INTELLIGENCE

ATS / RMS

Preparing for Success

Overview ATS/ RMS

• Makes a complete solution• Makes using assessments easier• Makes comparing candidates easier• Makes hiring better employees easier• INTEGRATES with Job Boards, Assessments,

HRIS

Overview ATS• Key competitive advantages

– Built around world class assessments designed to help your organization hire people that “FIT”

– Flexible implementation• Complete custom job board• One time usage or annual license with unlimited usage• Everything in between!

– Robust Applicant Processing Features• Candidates easily apply online• Tools to move candidates through the process• Easy to review RSD (Rapid Screening Data)• Easy to share candidate information with hiring managers

– Affordable

AdvantagesAdvantages• Easy-to-use online system for processing unlimited

applicants for unlimited numbers of positions• Priced for unlimited use of selection tests per year or

per job posting.• Designed for long-term development of and

management of a private talent pool.• Enables an organization to inexpensively implement

selection testing across the company or for specific positions.

• Premium quality tests like ours provide significant competitive advantage over most applicant-tracking systems.

• System complements internal corporate recruiters.• System simplifies screening and selection

administration.

TACTICAL RECRUITING SOLUTION

What PDI Acclaim Does

Automate the process. Accelerate your business. Dominate the market.

Fully-Automated Processes

Computer-adaptive interviews

Extensive Job Matching Assessments

Candidate Ranking

Auto-scheduling of Face-to-Face Interview

Automate your hiring process with intelligence

Easy integration with other on-boarding processes

Uses the IVR (interactive voice response) technology

Automate the process. Accelerate your business. Dominate the market.

What PDI Acclaim Does:

Configurable script engine enables changing the flow of questions, on the fly, based on candidate responses, can also: launch another program, or redirect candidate to

another website

The Acclaim Reporting Suite includes the following reports:• Analysis of Candidate Responses• Candidate Volume• Source of Referral• Partial vs. Completed Candidates• Desired Compensation vs. Previous Experience• Applicant Review Code Status Summary• Application Intake Methods• Quality of Candidates vs. Source of Referral• EEOC Summary• Adverse Impact Analyses• Job Satisfaction vs. Initial Qualifications• Productivity of Employees vs. Initial Qualifications

Automate the process. Accelerate your business. Dominate the market.

What PDI Acclaim Does:

Our goal today…

Web delivery System•Scheduling an

assessment•Retrieving reports•Candidate

experience

360 PERFORMANCE REVIEWS

Internal CustomersDirect Report

Direct Report

Direct Report

ExternalCustomers

Suppliers

PeersMe/Mgr(ratee)

Supervisor/Boss

Supervisor/Boss

Me/Manager

Comparison of Feedback Systems

Traditional Feedback 360° Feedback

The 360o ConceptBoss

Direct Report

Peers

Self

Others

OBSERVABLE BEHAVIOR

59© 2010 Profiles International www.profilesinternational.com

Managers Ignoring Employees

• Employees want a lot more attention and feedback from management.

• 66% of employees say that they have too little interaction with their boss.

• This number is up from 53% in May, 2008, the last time this study was conducted.

Leadership IQ, News Release (WASHINGTON, D.C.) December 2, 2009

The News Gets Worse

The Threat of Loosing High Performers

According to a new study by Leadership IQ, 47% of high performers are actively looking for other jobs (posting and submitting resumes, and even going on interviews).

Consequences at the Top

• 31% of CEOs get fired for mismanaging

change• 28% for ignoring customers• 27% for tolerating low performers • 23% for denying reality • 22% for too much talk and not enough action LeadershipIQ.com. News Release (WASHINGTON, D.C.)

Why 360’S Now?• Managers are chasing the numbers• Have most dialog with their Boss• Spend little time analyzing or defining their own

Competencies and Skill Sets• Hamster on wheel analogy• Issues with learning “something new”• Working without a net…little or no information• Much easier place to start in this market

(internal candidates)• 360’s Points to additional solutions….logically

and Quantifiably

ONLINE 360

• CONFIDENTIALITY• CANDID RESPONSES• IF ASSEMBLED AND MERGED ALL ON LINE-

COMPLETE CONFIDENTIALITY – as no one sees the inputs coming from raters

Management Gap

The Gap

PATH GOAL!

Information Bridge

GOAL!

The Gap

PATH

Feedback

Fee

dbac

k

Closing the Gap

The 360 is businesses feedback bridge to ensure Managers/Leaders can safely

close the information gap.

Gaps Between Individual Respondent Groups

These gaps occur when there is a difference of at least 1.5 points between respondent group averages.

68© 2010 Profiles International www.profilesinternational.com

Executive Skill Set Summary Report

69© 2010 Profiles International www.profilesinternational.com

Reasons for 360’s1. Current Reality, Leaders need and want to know “how are they

doing?”2. Issue awareness.3. Addresses business’ most pressing needs “Leadership development”4. Career Development and Advancement5. Gives employees a safe place to give honest feedback on a regular

bases.6. Timing…many companies readily admit they have a weak “bench”

Regarding leaders. A lot of great talent is lost in financial downturns.7. Establishes the RoadMap for a Manager’s Individual Development

Plan (IDP

McKinsey Reports 2007

Making Talent a Priority

• Experience suggests – exclusive focus on top players can damage the morale of the rest of the Organization -> Overall Performance

Overview• Advent of Technology –> Online• Performance Modeling/Job

Pattern/Benchmarking• Job FIT• BPO Experiences and Processes• Technologically Advanced Systems – Recently

Developed – Avatars, Artificial Intelligence• Applicant Tracking Systems to Speed Delivery• 360 Performance Reviews for Leader ID

HR and Technology:

• If you want one year of prosperity, grow grain.

• If you want 10 years of prosperity, grow trees.

• If you want 100 years of prosperity, grow people.

— Chinese proverb

Thank You!

Bruce CrumleyBlog: www.executiveandhrguidance.blogspot.com/

Director Enterprise SolutionsProfiles Asia Pacific/People Dynamics

Bruce@ProfilesAsiaPacific.comBruce@Peopledynamics.phMobile: +63-917-528-9862