How to Turn Strategy into Great Performance

You have devised a great strategy for your company and all the indicators show that you should get a big return on investment. Yet when the year comes to end the results have brought not what the strategy suggested. What has happened? You spent so much time in getting the strategy right and now there is little to show for it. Unfortunately, this scenario is more common then you would think.

Companies only realise about 60% of their strategies potential because of defects and breakdowns in planning and execution. If you review the most common causes for the failure of strategic plans the findings are revealing and troubling.

Research into the strategy to performance gap published by the Harvard Business Review shows that virtually all companies surveyed struggled to produce the financial performance forecast in their long-range plans. Furthermore, the processes they used to develop plans and monitor performance make it difficult to determine whether the strategy to performance gap stems from poor planning, poor execution, both or neither. The biggest problems are: -

v  Companies rarely track performance against long-term plans – the research shows that less than 15% of companies compare the business results with the performance forecast, drill down to analyse why the performance was not achieved and take this information into account when making new plans.

v  Multiyear results rarely meet projections – This is demonstrated by a dynamic common to many companies. The 4 – year plan projects modest performance for the first year and a high rate of performance thereafter. Management meet its modest target for the first year and is recommended and prepares a new plan with a modest growth for the first year and a high rate of performance thereafter. The process is continued over the next years with only modest results over the projected years.

v  A lot of value is lost in translation – Given the poor quality of financial forecast in most strategic plans it is probably not surprising that most companies fail to realise the strategic potential value. What emerges from the research is sequence of events that goes something like this: strategies are approved but poorly communicated. This makes the translation of strategy into specific actions and resource plans all but impossible. The lower end of the organisation doesn’t know what they need to do and when they need to do it and as result the expected results don’t materialise. If no one is held responsible for the shortfall the cycle of under performance gets repeated over and over again.

v  Performance bottlenecks are frequently invisible to top management – When plans are realistic and performance falls short, executives have few early warning signals. They have often no way of early detection whether actions were carried out as planned, resources were deployed on schedule, competitors responded as anticipated etc.  As result it is impossible to take corrective action on time.

v  The established gap fosters a culture of under performance – If the strategy underperformance becomes the norm over the years’ then commitment cease to be binding promises with real consequences. The organisation becomes less self – critical and less honest in its shortcomings. Consequently it loses its capacity to perform.

However, there is a way out as a number of high performance companies have dealt with above described problems. They have created clear links between planning and execution and raising the standards of both of them. There are seven rules to follow and these are: -

1. Keep it simple, make it concrete – Ensure that all staff member know the strategy and how it affects their day to day performance. Make certain that all employees know what they have to have delivered at the end of the year.

2. Debate assumptions not forecast – Strategies are often based on assumptions and to make them come true staff need to know what you are thinking in order to engage in the process. When they understand the fundamentals and performance drivers they understand what exactly is required and understand better how to deliver on the performance.

3. Use a rigorous framework, speak a common language – The specific framework a company uses to ground its strategic plans isn’t that important. What is critical is that the framework establishes a common language for dialogue between the management and employees one that strategy, marketing, finance and operations all understand and use!

4. Discuss resource deployment early – Companies can create more realistic forecast and more executable plans if they discuss up front the level and timing of critical resource deployments.

5. Clearly identify priorities – To deliver any strategy successfully managers must make thousands of tactical decisions and put them into action. Companies should agree on priorities, communicate relentlessly and hold managers accountable for executing against their commitments.

6. Continuously monitor performance – Continuous monitoring of performance is particularly important and proactively monitoring the primary drivers of performance. Putting the Key Performance Indicators on the agenda of every management meeting should ensure that all keep the eye on the ball.

7. Reward and develop execution capabilities – No list can be complete without a reminder that companies have to motivate and develop their staff, as at the end of the day no process can be any better than the people who have to make it work. This also includes development of staff members who have made it work.

The prize of closing the strategy to performance gap is huge – an increase of performance from 60% to 100%. However, the true benefit for companies who create tight links between their strategy, plans and performance is that will they experience a multiplier effect, as a result of their efforts they are willing and able to take on stretch commitments that inspire and transform companies.

Dismissal

“Could you come in now direct to see us?” That is a question which I am frequently asked by managers, who are not sure what to do in the case of a dismissal and are wise enough to ask for assistance. The legislation regarding a dismissal can be tricky and difficult enough for any individual and it is more difficult when you are agitated when something has gone wrong and you are tempted to make a decision on the spur of the moment. In those cases it is always sound to get an outsider in who can look at the facts coldly and make a fair assessment about what needs to be done.

In my experience managers do not enjoy reprimanding or dismissing any of their employees lightly. The opposite is true. In most cases managers will avoid giving feedback regarding employees’ performance at all cost. They will give the employee chance after chance in the hope the problem will improve and will go away. In most cases they do improve, the employee somehow gets the message and cops on, get his act together. In other cases this doesn’t happen and then at a certain point after giving him the benefit of the doubt several times, the manager has enough and wants to end the employment there and then.

Dismissing someone in Ireland isn’t the most difficult thing to do. There are other countries where such procedures are much more complicated. However, there are certain strict rules one has to follow and I will give you now some general guidelines how to act (however, by no means complete as one could write several books on this subject). First of all employees must be issued with a copy of the company’s disciplinary procedure within 28 days of commencement of employment, failing to so could jeopardise any dismissal case.

Employees can be fairly dismissed for the following reasons: Conduct, Capability and Competence and Redundancy. In cases where the conduct, capability and competence of an employee aren’t up to the required standards the first thing a manager or supervisor needs to do is to give a verbal warning. While giving a warning you must inform the employee regarding the departure of required standards, what action of improvement is required, when will the matter be reviewed again, what time limit is on the warning and what action will be taken if the improvement is not made. As you probably have to prove as a company that the dismissal was fair you need to prove that you gave the warning by putting it in writing as well and preferably you give the warning in the presence of a fellow manager. If the agreed improvements do not take place then you should give a written warning. Again you must inform the employee regarding the departure of required standards, what action of improvement is required, when will the matter be reviewed again, what time limit is on the warning and what action will be taken if the improvement is not made. Again give the written warning in the presence of another manager, as you might have to refute any allegations of unfair behaviour made against you at a later stage.

If the necessary improvements do not materialise or other misdemeanours occur during the time limit of the warning, then the Final Written Warning comes into play which is given again in the presence of a fellow manager. You need to explain again what is required from the employee and how long the warning stands.

If the necessary improvements do not come about or other wrongdoings happen during the time limit then a disciplinary meeting, as in previous warnings, needs to be conducted in which natural justice has to take place, this means that: -

• The employee must be presented with the case against him / her;
• The employee must be allowed to be represented; 
• The employee must be permitted and allowed to state their case
• The employer must hear and be seen to hear the case being made
• The employer must only form judgement after having considered all the facts disclosed.

In coming to a final decision the manager must reflect that the sanction must be appropriate to the charge, if there is a dismissal this must be not be seen as excessive, the manager must have approached the hearings fairly and objectively.

Its sounds like an impossibility that any employee will let it come to three warnings and still hasn’t got the message, however, it has happened and will happen again tomorrow, so be prepared! 

As the employee in a dismissal case is probably going through one their worst moments in life, be always polite and respectful to the employee. This is helpful for both parties.

How to become a High Performance Organisation

Did you ever wonder why certain companies do well where as others are just surviving and keeping their heads above water? So what are the secrets of a high performance organisation? What do these organisations accomplish what others fail to achieve? There can be many reasons why companies succeed and others don’t. However, I am going to give you my secrets of a high performance organisation. I will explain how they can be used to take on today’s business challenges. These secrets give a company direction, culture, values, planning and a communication process it needs to succeed and become the best in the modern business environment.

Great companies who remain competitive in one or more areas do not sit around patting themselves on the back, for they know that there are dozens of others who want to take their place. They do, however, celebrate accomplishments and achievements. This celebration is important because it shows the employees what success looks like. When tough goals are met it is also important to celebrate - setting a difficult goal and not reaching it is far more important than meeting a mediocre goal. Difficult goals provide learning experiences that cannot be taught in training classes. They allow persons to learn through trial and error. And they provide opportunities for leaders to install new character into their employees.

Although most companies will never become the best at what they aim for, they must compete to do things better than their competitors. This not only allows their employees to grow, but also lets their customers know that they are willing to go out of their way to serve them in their area of expertise. If your employees would improve their performance with only one percent what kind of accumulative affect would this have on your company? Companies who want to strive to become the best work on the following points: -

1.    Mission and Vision – A company needs to define its mission and visions as the reasons why it exists. This mission and vision are there for the employees of the company and their customer to identify with and to understand why the organisation is undertaking the actions it has taken. The Mission and Vision needs to be shared by all people.

2.    Values – Values are important guidelines on what behaviour is expected to achieve the companies’ vision and mission. They are guiding principles on how the company and each person will act when performing a task.

3.    Planning – Successful companies have set goals what they want to achieve each year. These goals and plans need to be communicated to their staff members. Furthermore, you need to translate goals into plans for each department.

4.    Recognition and positive culture – In the modern business environment it is important to have a motivated creative workforce, who can adapt fast the ever changing business situations. Recognition is the most important reward employees can get!

5.    Communicate – all the secrets have in common that you have to be able to communicate effectively in your organisation. Managers have to explain, involve, motivate, listen, clarify, give and receive feedback and keep a positive attitude during this sometimes tiring process. Good communications skills are the key to achieving a high performance organisation.

6.    Giving and Receiving Constructive Feedback – To be able to give constructive feedback to an employee is a most important skill in any relationship. The key word is constructive. Very often feedback is expressed so vague that the other party does not get the point or is expressed too direct so that it turns them off.

7.    Coaching – Coaching is the art of facilitating the performance, learning and development of another. The essence of coaching in a work organisation is to explore and increase the potential of an employee and using this to mutual benefit of both company and employee.

These secrets of high performance organisations are self evident. It is something you already deep down know, yet you might not have acted on these points for various reasons. These points are not revolutionary; they are of universal knowledge for anyone who has studied modern management literature.

However, the real secret of a high performance organisation is the ability of management to act, to use and execute these methods and put them into practise to the benefit of the company and all involved.

How to Avoid Problems with Recruiting

Knowing your legal obligation in the recruitment and selection process is important. Many of Ireland’s reputable employers have found in themselves in difficulties for the manner in which they handled their recruitment and selection procedures. They include Ryanair, Iarnrod Eireann, Superquinn, Revenue Commissioners, Trinity College, University College Dublin, etc. etc.

Under the Equality Act, 1998 & 2004 a company cannot discriminate or be seen to be discriminating on the following grounds:

·         Gender

·         Civil (Marital) Status

·         Family Status

·         Sexual Orientation

·         Religious beliefs

·         Age

·         Disability

·         Race

·         Membership of the Travelling Community

When recruiting you should take note of the following pitfalls: -

Ø  There can be legal Pitfalls in Advertisements:

A.    Advertisements which declare a preference for a person of a particular sex or civil (marital) status are seen as unlawful.  You can not advertise a job title connoted a particular sex, such as waiter, salesgirl, or postman.

B.    Advertisements should not refer to candidates as young and dynamic as this excludes elderly people from applying for the vacancy.

Ø  There can be legal Pitfalls in Job Application forms:

Job application forms should contain a wide range of questions e.g. on education, training, experience and competence. Questions on marital status, number of children, date of birth, age, place of birth and medical history should not be on the job application form.

Ø  There can be legal Pitfalls in references:

It can be said that while compiling a reference confine yourself to a representative set of factual indisputable statements, which will be on safe ground. Never give a reference, written or orally which you cannot back up with factual evidence.

Make sure that you check up references before the candidate starts with the company. If you receive a bad reference after the candidate has started this will leave you and the candidate in a very awkward position.

Ø  There can be legal Pitfalls in interview questions:

As a result an interviewer cannot ask the following questions relating to the aforementioned points: -

·         How old are you?

·         Are you married? When did you marry?

·         Do you have children?

·         When are you planning to have a child?

·         Which religion do you belong to?

·         Do you have disabilities?

·         Which country are you from?

·         Which race do you belong to?

·         Are you by any chance a member of the travelling community?

However, if the candidates start talking of their own accord regarding the above mentioned points then it is possible to discuss this further. Be careful how you approach these points. If any of the above is mentioned in the CV then this can be discussed as well.

After a candidate has revealed one of these points you cannot dismiss the candidate based on this, unless that particular point prohibits the candidate from fulfilling the post. For instance a person who has a serious hearing problem could have genuine issues working in a call centre answering phones.

The selection should be driven by the key job analysis components and that all decisions and interviews should be held as non bias and objective as possible.