People Mgmnt Slides

7/27/2019 People Mgmnt Slides

1/31

READE

RSHIPINSTITU

TE

MediaMana

gementCenter,N

orthwesternUniv

ersity

PEOPLEMANAGEMENT

PRACTICES:Displays to Accompany

Survey Findings

July, 2000


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2001 Readership Institute

Todays Objectives

Understand the business case for people management

Examine newspaper survey resultsI3

- Inform (findings and patterns)

- Insight

- Implications

Build your confidence, conviction and capability to inform others

Ensure that you know how to read the various reports

Address some of your most important questions

Provide a near-term path for moving forward


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Premise

Our employees are our

most valuable resource

and therefore, the management

of people makes a significant

difference to companyperformance.

Challenge

Prove it,

or else stop

talking about it!

The Mega-Study


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Overall Business Impact

People Factors Core drivers

High-impact practices

Specific actions

Constructive culture

Economic Factors

Relative market share

Company size

Industry profitability

67%

33%


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Business Case Was Built in Two Ways

Correlational

Studies

Determine what

organizations

should do

Real World

Applications

Describe what

world-class

companies do andhow they do it


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Empirical Validity

Strength of

Practice-

Performance

Relationship*

Selection

Compensation

PerformanceManagement

500 1,000 1,500 2,000 2,500 3,000

Number of Organizational Units Included in Research

Total number of organizational units: 21,304

VeryStrong

Strong

Creativity &Innovation

LeadershipChange

Management

Culture

EmployeeSatisfaction& Retention

CustomerSatisfaction& Retention

Development



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People Management Model

Returns to Shareholders Profitability Growth ProductivityREADERSHIP?

Selection

Development


Compensation

1

2

Creativity &Innovation

KnowledgeManagement

ChangeManagement

Leadership

Customer Satisfactionand Retention

Employee Satisfactionand Retention

3

CULTURE

CULTURE

CULTURE

CULTURE



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Five Strata Examined

Strata

I

II

III

IV

V

Circulation Ranges

0 25,000

25,001 50,000

50,001 100,000

100,001 200,000200,001+



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Three Levels of Analysis

Level 1

DRIVERS(4 + 1 sectionsof the survey)

What to focus on

Level 2

HIGH IMPACTPRACTICES(17 Best PracticesDerived from Mega-Study)

What you shouldstrive to achieve

Level 3

SPECIFICACTIONS(90 Survey Questions)

What you can do



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Overview Level 1 and Level 2

* Note: Employee Retention is an Intermediate Outcome.

Drivers

(Level 1) High-Impact Practices (Level 2)

Selection Selection criteria and processes have consistent structure

Selection skills are a key leadership attribute

Seek to fill positions internally

18-20

Pre-Reading

Pages

Development Promote integration and corporate glue

Significant leadership responsibility

Commitment is balanced between organization and individual

Effective succession planning and talent pool processes

22-25


Clear mutual expectations

Stretch objectives with meaningful measures

Ongoing coaching and feedback

26-27

Compensation Market-based compensation

Performance-driven rewards and recognition

Alignment of employee and shareholder interests

28-30

EmployeeRetention*

Latitude and authority for determining how best to execute jobaccountabilities, particularly to meet customer needs

Quality and sustainability of highly effective leadership, particularlyemployees immediate supervisor

Extent to which employees possess the knowledge and skills to contribute plus the opportunity to grow and advance

Customer satisfaction is a high priority and is balanced with making thenumbersplusrewards are provided for contributions

33



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Newspaper ResultsEmerging Themes

Very low scores!

Performance management highest

Development lowest

Amazingly flat!

More effective at and inclined to managevertically versus horizontally


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-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Selection Development Performance

Management

Compensation Employee

Retention

Emerging Theme #1: Very Low Scores!

Stron

glyAgree

plu

s

Agree

Disagre

eplus

StronglyD

isagree

82% 87%

71%

91%

69%

18%13%

29%

9%

31%

Strongly Agree

Agree

Disagree

Strongly Disagree

All Newspaper RespondentsBest Practices Are in EffectLEVEL 1 ANALYSIS

100%

80%

60%

40%

20%



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-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

S1 S2 S3 D1 D2 D3 D4 P1 P2 P3 C1 C2 C3 R1 R2 R3 R4

Emerging Theme #1: Very Low Scores!All Newspaper RespondentsBest Practices Are in Effect

StronglyAgree

plusAgree

Disagreeplus

Strongly

Disagree

Selection

Strongly Agree

Agree

88

39 41

83

6973

90

56

85

55

81 8265

51 45

76

35

64

18 24

5549

2318

45

14

44

10

2731

17

5961

12

Development PerformanceManagement

Compensation EmployeeRetention

Relevant Page inConsolidated Report

8 17 28 37 46

LEVEL 2 ANALYSIS

Disagree

Strongly Disagree

X1 denotes the Drivers High-Impact Practicein the order it appears in your reports

100%

80%

60%

40%

20%



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Emerging Theme #1: Very Low Scores

May reflect the newspaper industryshistorical oligopolistic structure and

behavior of the industry

Newspaper industry might be inwardlynot externally focused

Newspaper industry, on average, is likelystuck in the Ingredients Era of peoplemanagement practices

Why?


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Eras of People Management Practices

People were

thought of

as part of the

machinery

Cogs

People managementactivities are:

Discrete

Inconsistent

Contradictory

Not aligned

Ingredients Enablers


Systematic

Consistent

Aligned

Integrated

Differentiators


Core to businessstrategy

Key to differentiation

Source of competitiveadvantage



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Performance

Managementis highest!

Typically the most advanced Driver instable or static industries that have

undergone little change Other Drivers are characteristically brought

into play more strongly as companies andindustries are confronted by major change

Newspaper Results

Findings Insights & Implications

Development

is lowest!*

Typically viewed to be the softest Driver

Is the most complex Driver of all

*Assuming we ignore Compensation


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Emerging Theme #4: Amazingly Flat ResultsLEVEL 1 ANALYSIS

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3.0

Disagreeplus

Strongly

Disagree


EmployeeRetention

Selection Development Compensation



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LEVEL 2 ANALYSISBy Department

Emerging Theme #4: Amazingly Flat Results



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Emerging Theme #4: Amazingly Flat ResultsLEVEL 2 ANALYSISBy Circulat ion Strata



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Emerging Theme #4: Amazingly Flat ResultsLEVEL 2 ANALYSISBy Strata by Department



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Emerging Theme #4: Amazingly Flat ResultsLEVEL 3 ANALYSISSelection

Relative Strength

Relative Weakness



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Emerging Theme #4: Amazingly Flat Results!

Industry has very homogeneous practices

May be implied or accepted standards

External changes may not have yet stimulatedaggressive adoption

Newspaper industry may be currently trappedin transformational no mans land

Why?


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Industry Transformation

Performance

Time

Low

High

Today

Change unrecognizedor not acted upon

Successful Change

Newspapers?

Triggers:

Competitors Changing needs Technology Economics Demographics



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Emerging Theme #5: Newspapers are more effective at andinclined to manage vertically versus horizontally

The standards we use for selecting internalcandidates for open positions are set at relativelyhigh levels

The selection standards we use for outside hires areset at relatively high levels

Selection of qualified people for position vacancies isa top priority of our newspaper's leaders

We encourage self-nomination to open positions

Our selection process is efficient (i.e. provides us withqualified people quickly)

When we consider candidates from outside thenewspaper to fill job openings, the size and quality ofour external applicant pool is strong (i.e., weconsistently choose among many qualifiedcandidates)

Our leaders are held accountable for attracting and

selecting high-caliber candidates from outside theindustry

Driver Top Strengths Greatest Weaknesses

Selection

Our newspaper's leaders place a high priority ondeveloping people

Managers generally help their subordinates meettheir career aspirations

Qualified employees generally demonstrate sufficientinitiative in developing their own skills

Our newspaper possesses and continuously updatesa newspaper-wide database that keeps track ofcompetencies and skills individuals need to succeedin their positions

Attending training programs for at least 35 hours ayear is strongly encouraged by our newspaper

Our organization systematically and regularly reviewsits talent pools frequently (i.e. at least twice a year)

We believe that one of the primary purposes ofperformance management in our newspaper is tosupport the execution of our business strategy

Performance evaluations entail a discussion of anemployee's performance, including the manager'sown perspective on the employee's performance

Performance evaluation discussions focus both onrecent performance and identifying developmentneeds

Our strategies and strategic plans are regularlycommunicated so that all employees understand howtheir performance expectations are linked to them

Each person's performance evaluation incorporatesinput from people within the company who areimpacted by their work

Performance evaluations incorporate input from theemployee's peers/ team

Development

Performance

Management



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Emerging Theme #5: Newspapers are more effective at andinclined to manage vertically versus horizontally

On average, our employees exhibit a high level ofattendance on the job

Employees possess a clear understanding of the

limits within which they are permitted to act Achieving high levels of customer satisfaction is a

high priority with my superior

Employees possess a clear sense of how theypersonally contribute to meeting customer needs

Employees are energized by the newspaper's cultureand work environment

Our managers spend unusually large amounts of time

coaching and developing their subordinates Employees receive appropriate recognition and

rewards for their contributions

Driver Top Strengths Greatest Weaknesses

Compensation

Employee

Retention

Performance is the key determinant in establishingvariable compensation (i.e., incentive) levels

Our newspaper effectively recognizes (formally andinformally) performance that supports our goal

Change in overall job accountabilities is a keydeterminant in reviewing fixed (i.e., base salary)levels

Our newspaper's compensation programs enable usto attract and retain required talent

Change in external market pay levels is a keydeterminant in reviewing fixed ( base salary) levels

Our compensation programs support the philosophyof providing superior rewards for superiorperformance

Share-based compensation (e.g., employee shareownership plans, profit-sharing) for employees is ameans of providing a single shared objective thatbinds together the various entities across ournewspaper

Employee share ownership is encouraged in ournewspaper through our compensation plans



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Why Should I Really Care About This People Stuff?

High Levels of Employee Sat isfact ion &

Retent ion A re Asso ciated with Greater

Customer Satisfaction & Retention...

which create a powerfulway to m ove the needle

1Extremely

Dissatisfied

2Somewhat

Dissatisfied

3Slightly

Dissatisfied

4Satisfied

5Very

Satisfied

Customer Satisfact ion Measure

100%

80%

60%

40%

20%

Cus

tomer

Re

ten

tion

Source: Harvard Business School; Heskett, et. al.Source: RNW Research

48%defected!

Satisfied Loyal

Customer

Satisfaction

&Retention

High

Low

Low HighEmployee Satisfaction & Retention

3.0 4.0

The Zone of AffectionThe Royalty of Loyalty



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Latitude36.6%

Authority

19.2%

14.6%

14.0%

13.6%

0

10

20

30

40

50

60

70

80

90

100%

ExplanatoryPower*

Leadership

and CultureCapability and

Development

Recognition, Rewards

and Focus on

Customer Satisfaction

*Represents the proportion of the total R2

explained by each determinant.

55.8%

70.4%

84.4%

98.0%

36.6%

Four Key Factors of Employee Retention



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Real Effect of Employee Retention

Employee Satisfaction & Retention

Agent tenure 200% longer thanindustry average

Agent productivity 150% higher than

industry average

7% employee turnover rate

Two-thirds lower than industryaverage

Most productive organizationreflected by home office cost per$1,000 of face value premiums sold

Customer Satisfaction & Retention

93% customer retention

98% customerretention in auto

95% customer retention

Company

State Farm

USAA

NorthwesternMutual Life



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So, what can/shou ld you ...

Do

Not do

when you return home?



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Between Now and Our Next Meeting

GuidingPrinciples

Ready, aim, fire!

Dont jump in and fix itgo slow to go fast

For now, ask more questions than give answers

Take the time to really create understanding and insight

Thencreate strong alignment in terms of your desiredend state

Set expectations carefully

This is a technical and a political challenge; i.e., a formidablechange management challenge

Objectives

Get under the survey to gain clarity and commitment to the realissue(s) and their root causes

Come back in October with the issues and their root causesthe data that is ready then will help you set priorities and beginto act



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Between Now and Our Next Meeting

High-powered

committed team

and create a

charter

Set expectations for objectives and time commitment Provide clear directional guidance for what you really want

to discover.

Describe specific outcomes and deliverables that you wantthem to produce

Strive for

insight and

understanding

What specific factors have resulted in our current situation? Why?

Build understanding through focus groups and one-on-oneinterviews.

What has been (is still) the impact on our organization?How do we know?

What is our desired future state? Why?

If we are successful, what specific differences/impacts would weexpect to see become visible?

What decisions must we make and what actions must we take,to close gaps?

Who needs to be involved in making the above happenbased onexpertise, political considerations and the need for the change?

People Mgmnt Slides

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