Performance Equations

Successful Performance Development

Taking the
Guesswork Out of
Building
Organisational
Performance

© Performance Equations Ltd. All Rights Reserved. 1


Company History

 Established in 1997
 Niche organisational development and change consultancy
 Specialising in building:
– High performance culture
– High performance leadership
– High performance teams
– Service excellence & customer experience management
 At the core of all our work is on-going research, diagnostics,
delivering measurable results.
 We describe the causal links between Performance Drivers,
Organisational Effectiveness and Performance Results
 Design & implement solutions
 Measure the results



Clients We Have Worked With

O2



Our Philosophy About Organisational Performance

 Pinpoint diagnosis, robust prioritisation and decision-making
 An integrated systemic approach to providing solutions for the
organisation as a whole
 Solutions that are contemporary, robust, sustainable
 Solutions that create energy, drive and engagement
 Support infrastructure that transfers learning into application
 As much or as little external support as required
 Measure the value



High Performance Culture



The Need for Better Organisational Performance

Consider
 90% of organisations believed that a clear, action oriented
understanding of their business strategies could significantly
influence their performance and business success.

However
 Less than 60% of senior leaders and less than 10% of employees
believe a clear understanding of their c mp n ’
o ay sstrategy actually
exists in their organisation
 Less than 30% of senior leaders believe their og n ain ’
ra i t s
s o
strategy are effectively implemented
 In over 60% of organisations analysed through our consultancy work
there is no perceptible link between strategy and day to day
operations.



The Challenge of Translating Strategy into Action

 90% of organisations are unable to fully implement the strategy
te ’ s e t omuht , f r a dmo e p ni
hy e p n s
v c i ef t n
me o , ny l n g
a n
 95% of employees d n t n esa dte c mp n’ srtg
o o ud rtn h i o a y t e y
r s a
 85% of executives spend less than an hour per month talking about
strategy
 73% of employees b lv te b se d n c mmui t te
eee h i o s s o ’ o
i r t n ae h
c
company vision and strategy clearly
 Companies on average deliver only 63% of the financial performance
their strategies promise
 Only 46% of executives & senior managers believe leadership gains
commitment effectively in their organisations



A Word About Employee Engagement

12% employees actively engaged

70% neither engaged or disengaged

18% actively disengaged

Cost to business €260 billion



Characteristics of an Engaged Workforce

 Pride in the company
 Belief in the organisations objectives
 Trust in colleagues, direct boss and senior leadership
 Desire to work to make things better
 U d rtn i o b s e sc net n te‘g e p tr’
n esa d g f ui s o tx a d h b g r iue
n n i c
 Respectful of, and helpful to, colleagues
 Win n s t ‘ teet mi’
l g e s og h x a l
l
i o r e
 Keeping up to date with developments across the business
 Feeling valued
 Belief in their ability to do their best every day
But employee engagement is not the same as employee satisfaction


Diagnosing the Performance Culture
Performance Bearing Mechanisms

 Strategic Focus
 Performance Management
 Leadership
 Structure

Results / Outcomes

 Business Performance
 Satisfaction
 Change
 People Outputs

Overall
Effectiveness
1st 10th 25th 50th 75th 90th 99th
%ile %ile %ile %ile %ile %ile %ile
48
95

© Verax International Ltd. All Rights Reserved.030908 10
© Performance Equations Ltd. All Rights Reserved.

Relationship Matrix
RESULTS/OUTCOMES

Business Performance Satisfaction Change People Outputs.
Understanding the drivers
of performance outcomes Client specific strategic
is critical in knowing which outcomes can be
levels to pull.
added

STRATEGIC FOCUS

PERFORMANCE
MANAGEMENT

LEADERSHIP

STRUCTURE

PRICING/VALUE FOR MONEY + +
PRODUCT/SERVICE PERFORMANCE +
BRAND IMAGE/TRUST + +
EASE OF DOING BUSINESS - - COMPETITIVE
RESPONSIVENESS TO CUSTOMERS - STRATEGIES
TOTAL SUPPORT PACKAGE +
EMPATHY/COMPATIBILITY -



High Performance Leadership
and
Developing Talent



Leadership Bench Strength

 Business challenges are becoming more complex and more difficult
to solve
 60% of leaders say they face challenges that go beyond their
individual capabilities
 84 % of executives and senior managers believe the definition of
effective leadership has changed in the last 5 years
 Only 7% of executives believe their companies have enough
talented managers to pursue the most promising growth
opportunities
 Only 36% of companies rate their overall leadership capacity to
ee uesrtg a “o d o “xee t
xct t e y s g o ” rec ln”
a l
 40% of externally hired senior managers fail within 18 months



The Way Ahead

 Leadership today needs to be about creating adaptive performance
cultures that provide the conditions for innovation to flourish in
today's much more challenging and highly complex business
environments

 In order to do that leadership capability and talent needs to be
developed as a journey at critical career transition points

 The leadership capability requirements at each point need to
address the contextual setting of the business challenges faced and
the requirements of the role



Developing talent through the leadership pipeline

Leadership
Pipeline:
Passage
A long-term, Six

systemic Passage
Five
approach to Passage
Four
developing a Passage
sustainable Three

Passage
supply of leaders Two

ready to execute Passage
One
your strategy
now and in the
future
—Charan, Drotter, Noel, The Leadership Pipeline, 2001



Question ?

 Is your talent management strategy meant to satisfy a tactical
performance requirement?

 Or does it have to satisfy a strategic organisational requirement?

It could be both



Different Approaches

 Everyone is talented in some area, to some degree (Inclusive)

 Only some people have the innate qualities to lead the company into
aftr ta c n q i b d sr e (Exclusive)
uue h t a ’ ue e e ci d
t t b



Categories of Talent
 Well Placed
– Well suited for their current role or a lateral position
– Unlikely to move to the next level or expanded responsibilities within the next 2
years—particularly considering the expected growth of the business
– May require development in order to scale and grow in their current role
 Expandable
– Seen as being capable of contributing to the organisation in a role with greater
complexity, impact, scope and scale than their current role
– D mo s ae t th yc nsa a dgo wt t og n ain b s e s
e nt td h t
r a e a c l n rw i h ra i t ’ ui s
e h e s os n
 Talent Pool
– An employee who has demonstrated top performance in increasingly challenging
roles and have the differentiating attributes to rise to and succeed in more
senior and/or more complex positions through expansion of current
responsibilities, lateral movement to different area of responsibility or promotion to
the next level
– Talent demonstrates what it will take to lead and grow the organisation beyond the
current strategy



Performance Does Not (Always) Predict Potential

Current performance is a necessary condition for potential but does
not guarantee success at the next level

High Potential Staff by Performance Status High Performance Staff by Potential Status

7%
29%

93% 71%

BUT

Most high
Only 7% of performers are
high potentials not high
are not high potential
performers



What Determines Talent

High Applied Capability
experience
Performance
Talent Talent
+ + Differentiators
= Pool

High
Potential Knowledge Capacity
& skills



Connecting Business Capability to Business Strategy

Organisational Vision
Business Strategy
Strategic Cultural
priorities Business priorities
drivers

Organisational values and behaviour
Team capabilities
Individual capabilities



How to build organisational performance



How to build organisational performance

 Recognise that organisational performance development is a
journey not an event



How to Build Organisational Performance

 Diagnose and measure accurately performance gaps and drivers




 Build a learning system that addresses the development needs of
each level
 Bridge the gap between learning and real work with action learning
 Design and implement a support infrastructure




 Involve leaders at all levels as champions, teachers, mentors, and in
linking learning and feedback to goals
 Engage heads, hearts and hands by providing a flexible mix of
learning methods and approaches



To discover more
contact us at
info@performance-equations.co.uk
01252 545 171


Performance Equations

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