WI SHRM: What to do with a talent anchor?

(note:  Whenever I speak to groups I provide cards to them in case they have a question I cannot answer during our conversation(fyi:  I call all my presentations ‘conversations’).   My commitment is that I will blog answers in 2 weeks.  This question was submitted to me after my Talent Scorecard presentation at the 2011 Wisconsin SHRM Conference in Madison.  I do not edit questions – because my commitment is to answer what is asked.)

Question:  What doyou do if your most successful sales employee and shareholder is the one costing leadership to lose money and sleep?

One of my core beliefs since working with many smaller businesses is that loyalty matters, and being slow to let someone go is okay.  As I read your question two things come to mind:

  1. How is success defined for this person?
  2. When their performance is evaluated – are they judged based on WHAT they accomplish, as well as HOW they accomplish it?

I think back to a situation where the top technology person at a company struggled for years with alcoholism that caused multiple missed work days, missed deadlines, and bristled work relationships as he relapsed repeatedly at company parties, sales events, etc.  All of this, and he stayed in place for many years.

One key habit that is critical for any organization is the CEO going down the list of their people and talking through each person in terms of what they provide, what success looks like for them, and how they are performing from a metrics as well as a culture standpoint.  The key people/key role discussion that is described in the Talent Scorecard is critical to bringing focus to this issue.  Since doing this with an internal HR person is often difficult, it should be done with a board group or an outside consultant.  The value is a safe place to process information and ask yourself some tough questions.

Finally, the book SWAY made a point about irrational decisions.  In studies of people, if they looked at a situation from a net loss perspective, they were less likely to make a rational decision.  An example is investing:  When people say to themselves – If I sell today I will lose 10% of my initial investment – then the are more likely to ride it down lower, even if the outlook is grim.  People are the same way.  When they start looking at people and saying – if we let this person go then our sales will suffer, or the knowledge they have will go away – then we keep them, even if all the other evidence points to it being a bad decision.

Anything to add based on your experience?

Is Your Talent At-Risk? Talent Scorecard – Part 2

I asked the roomful of HR Leaders this question:  Why  do over 50% of your CEO’s have lists of key people/key positions, and yet <20% are doing anything to follow-up on those lists? 

The room was very silent, then one lone voice offered an answer:  Talking with them would mean we are making some guarantees – and nobody wants to break a promise.  This is one of those things that make me go hmmmm . . .  statements.  I wonder what a high performer in an organization thinks of the silence?

Here are the results after I asked HR leaders to fill out the Talent Scorecard as if their CEO was doing the survey.  The only two measures are 100% and <100%, because those are they only two measures that matter.  100% means you are doing the right things.  <100% means that there is a person out there with a name, friends, bills to pay, skills/talents, and goals . . .  that is not getting their needs met.  These are basic needs.  Here are the numbers.

Key Habits for Managing Most Valuable People and Roles

  100% <100%  
1. I have a list of key people whom we cannot afford to lose AND: 56.7  % 43.3 %
  •   I have checked in with them within the last month to see how they’re doing.
40.0 % 60.0 %
  • I have written development plans for them.
20.7 % 79.3 %
2. I have a list of the key roles in my company AND: 51.7 % 48.3 %
  •  I have a performance/potential chart for people currently in each role.
17.2 % 82.8 %
  •  I have list of candidates in case of openings in these roles.
20.7 % 79.3 %
3. I have a list of high potentials for promotion and we have spoken with each person on the list within the last six months about his/her future. 14.3 % 85.7 %

 

Development programs are not a promise, they are a map.  A map that provides an individual with key places they need to visit/experience over the next 12 months in their career journey.  It gives an individual ownership of their development and puts the leader in the position of support.  So what is the ROI of this conversation?  The cost is about 2-4 hours of work on the part of the leader.  Their might be some training costs, but they should be minimal given that 90% of learning happens outside a classroom.  An effective development plan leverages real experiences and great mentors.  What is the benefit of someone being 5% more excited about their work?

For a quick look at a performance conversation tool/development plan that works see trUTips #13

Do we need a Talent Management Initiative? No . . . Part I

I created a Talent Scorecard to help leaders think through what they have been doing around connecting with their people to make sure they are focused, understanding their challenges, getting their needs met, and receiving feedback on their progress.  In the human resources world we call this talent management.  To most of the rest of the world this is called leadership, management, or friendship.

The first set of numbers shocked me.  Here they are and remember that I asked HR leaders to fill these out as if their CEO was doing this survey.  The only two measures are 100% and <100%, because those are they only two measures that matter.  100% means you are doing the right things.  <100% means that there is a person out there with a name, friends, bills to pay, skills/talents, and goals . . .  that is not getting their needs met.  These are basic needs.  Here are the numbers.

 Key Habits for Managing Talent

  100% <100%
I delivered all of the evaluations on time. 36.7 % 63.3 %
I have one-on-one discussions with each member of my staff at least once a month. 63.3 % 36.7%
I have reviewed all the evaluations of my team’s staff. 51.7 % 48.3 %
Each person on my team has a development plan. 27.6 % 72.4 %

Too many people are getting late evaluations and do not have any sort of development plans. 

Remember the Gallup Q12?  The first two questions are:  I know what is expected of me at work and I have the tools I need to do my job.  On-time performance conversations and frequent one on ones to hear progress, identify needs, and solve problems make these questions a reality.  The development plan is critical in getting people thinking about the future and helping them grow.

Based on these numbers, it is not happening enough.

For a quick look at a performance conversation tool/development plan that works see trUTips #13.