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Building a Performance Culture: Using Technology to Demonstrate Value
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HIGH PERFORMING CULTURE What’s The Value?
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No one would argue with the importance of the human edge in today’s businesses. It is the inevitable source of creativity, speed, tactics and performance. The value is un-debatable, but the approach to managing this human treasure is often debated; Hire or grow? Structure or flexibility? Invest in low performers or replace? There are a multitude of decisions to take. This presentation will highlight the issues faced by one Jordan’s telecom operators, Umniah. Rada will share with you Umniah’s approach in building performance culture, and she will demonstrate how technology has enabled this process. Rada Hrout, HR Planning and Development Manager, Umniah
Transcript of Building a Performance Culture: Using Technology to Demonstrate Value
HIGH PERFORMING CULTURE What’s The Value?
Umniah Case Study
Time for Action Time for Action
MARKET IS TOUGHER REGULATIONS
TECHNOLOGY CHANGES
MENA INSTABILITY
OTT’S PRESSURE BY
COMPETITORS
REVENUES AFFECTED
CUSTOMER SATISFACTION
IMPACTED
EMPLOYEES SATISFACTION
STAKEHOLDER'S
Culture Impact on Corporate Performance
6x
Revenue Head Count
8x
Stock Value
12x 756x
Net Income
Revenue Growth 166% 682%
Category
Average Increase for Corporates without High Performance
Cultures
Average Increase for Corporates with High Performance Cultures
Culture Impact on Corporate Performance
Headcount Growth
36% 282%
Stock Value Growth
74% 901%
Net Income Growth
1% 756%
Corporate Culture and performance by John P. Kotter Study over 11 years
WHAT IS THE SECRET
RECIPE THESE
CORPORATES ARE
USING TO OUT
PERFORM OTHERS
IN THIS SUPERIOR
WAY
High Performing
Culture
*Harvard Business Review
Align
Execute Renew
High Performing Culture (HPC) Characteristics
Align
Values and behaviors
Performance expectations
Direction and vision
Execute
Top management living the values day by day
KPI’s continuously monitored
People held accountable
Performance rewarded
Adapt to change
Continuous improvement, faster than competitors
Review direction & achievements
Renew
Back to Umniah Case
The Challenge…
Implementation Path
Alignment
Execution
Renewal
Reviewing the direction & Values
Staff buy-in
Structural alignment
Processes review
Cascading the strategy into measured KPI’s
Individual base analysis
Departments with major red flags
KPI’s & Targets
Red Flagged Departments
42% 18%
0
1 2 3 4 5
Most Effective
Detached
Least Effective
Frustrated
27%
11%
57%
5%
Staff Effectiveness
Abilities
• Targets 5%
• Complaints 10%
• Reported Incidents 7%
Individual Base Analysis
Where to focus!
What actions to take?
The Top performers
Who has longer service period
Most Valued by their managers
The Lower performers
Develop under performers
Release low performers
Retain top performers
DO NOTHING
Performance Appraisal
Job Criticality
Abilities
Engagement
Individuals Classification Dimensions
DIMENSION 1:
JOB
CRITICALITY
Job Levels
Critical Positions: Positions with direct impact on the business continuity and the corporate strategic direction
Mid Level Positions: Positions with moderate impact on the company performance but critical for operations maintenance
Non Critical Positions: Positions with indirect impact on the company performance and business continuity
DIMENSION 2:
PERFORMANCE
APPRAISAL
Performance Appraisal Levels
ERNEST O’BOYLE: The Best & The Rest
20% of the workforce are producing 80% of the corporate performance
60th 80th
DIMENSIONS 3 & 4:
ABILITIES AND
ENGAGEMENT
Highly skilled individuals but lack the motivation to
deliver
High abilities with moderate Engagement
High abilities with High Engagement
Have moderate job requirements but lack the motivation and energy to
deliver
Moderate job requirements and engagement
High engagement with moderate abilities
Low abilities and engagement
Not meeting the job requirements and showing
moderate engagement
Have the attitude and the energy to deliver but their skills and knowhow is not
supporting
Low
High
Engagement High
Ab
iliti
es
Theory in Action
20% top appraisal
performers
Critical Jobs: Top priority actions
20% Layer two
Rest of employees
1
3
1
Ab
ility
Engagement
Move
Investigate how they can score
high in appraisal
Motivate Retention
1 1 3
1 2
Ab
ility
Engagement
Investigate why not performing
high
Immediate Replacement
Move
Motivate
1
Ab
ility
Engagement
Immediate Replacement
Move
Develop to Perform better
Motivate
Mid Level Jobs: Mid priority actions
1
1
1 2 1
Ab
ility
Engagement
Move
Investigate how they can score
high in appraisal
Motivate Retention
Engagement
4 1
1
Ab
ility
Investigate why not performing
high
Replacement Plan
Motivate
Move
20% top appraisal
performers
Rest of employees
20% Layer two
1
1
Ab
ility
Engagement
Replacement Plan
Move
Develop to Perform better
Motivate
Non Critical Jobs
Engagement
20% top appraisal
performers
1
2 7 1
1
Ab
ility
Move
Investigate how they can score
high in appraisal
Replacement Plan Move to more critical jobs
3 4 1
24 8 16
Ab
ility
Engagement
Rest of employees
Investigate why not performing
high Development plan to improve
abilities and engagement
1
1 3 2
5 5 4 A
bili
ty
Engagement
20% Layer two
Motivate
Move
Develop to Perform better
Investigate
•Replace staff in the critical positions red zone
Summary of Actions
•Dedicated development programs targeting junior level staff
•Apply more filters in the hiring process
•Apply a retention scheme for top performers in the Blue Zone
• Introduce Leadership development program for Midlevel managers
Culture and Technology
Strategy Cascading Values into Behaviors
Performance KPI’s
Monitoring & Evaluation Learning &
Development Hiring & Staffing
Talent Inventory Tracking & Analyzing
Align
Execute Renew
High Performing
Culture
Culture and Technology
High Performing Culture
is a journey and we just
started our first steps…
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HIGH PERFORMING CULTURE What’s The Value?
