People Management Practices:: Displays To Accompany Survey Findings

READERSHIP INSTITUTE
Media Management Center, Northwestern University
PEOPLE MANAGEMENT PRACTICES:

Displays to Accompany Survey Findings
July, 2000
Todays Objectives
Understand the business case for people management Examine newspaper survey results 3
- 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
1
2001 Readership Institute
The Mega-Study
Premise
Our employees are our most valuable resource and therefore, the management of people makes a significant difference to company performance.
Challenge
Prove it, or else stop talking about it!
2
Overall Business Impact
Economic Factors
Relative market share Company size Industry profitability
People Factors
Core drivers High-impact practices Specific actions Constructive culture
33%
67%
3
Business Case Was Built in Two Ways
Correlational Studies
Real World Applications

Describe what world-class companies do and how they do it
Determine what organizations should do
4
Empirical Validity
Very Strong
Customer Satisfaction & Retention Leadership Change Management
Selection Compensation Creativity & Innovation Development Performance Management
Strength of PracticePerformance Relationship*
Culture
Employee Satisfaction & Retention
Strong 500 1,000
Total number of organizational units: 21,304

1,500 2,000 2,500 3,000
Number of Organizational Units Included in Research

5
2001 2001Readership ReadershipInstitute Institute
People Management Model

Returns to Shareholders Profitability Growth Productivity
READERSHIP?
Customer Satisfaction and Retention 3 Employee Satisfaction and Retention
CULTURE
Change Management Creativity & Innovation
Selection
CULTURE
2
Compensation Performance Management Development
CULTURE
1
Knowledge Management
Leadership
CULTURE
6
Five Strata Examined

Strata I II III Circulation Ranges 0 25,000 25,001 50,000 50,001 100,000
IV
V
100,001 200,000
200,001+
7
Three Levels of Analysis

Level 1
DRIVERS
(4 + 1 sections of the survey) Level 2
What to focus on
HIGH IMPACT PRACTICES

(17 Best Practices Derived from Mega-Study) Level 3
What you should strive to achieve
SPECIFIC ACTIONS
(90 Survey Questions)
What you can do
8
Overview Level 1 and Level 2

Drivers (Level 1) Selection High-Impact Practices (Level 2)
Selection criteria and processes have consistent structure Selection skills are a key leadership attribute Seek to fill positions internally Promote integration and corporate glue Significant leadership responsibility Commitment is balanced between organization and individual Effective succession planning and talent pool processes
Pre-Reading Pages 18-20
Development
22-25
Performance Management Compensation
Clear mutual expectations Stretch objectives with meaningful measures Ongoing coaching and feedback Market-based compensation Performance-driven rewards and recognition Alignment of employee and shareholder interests Latitude and authority for determining how best to execute job accountabilities, particularly to meet customer needs Quality and sustainability of highly effective leadership, particularly employees 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 the numbersplusrewards are provided for contributions
26-27
28-30
Employee Retention*
33
* Note: Employee Retention is an Intermediate Outcome.
9
Newspaper ResultsEmerging Themes

Very low scores! Performance management highest
Development lowest
Amazingly flat!
More effective at and inclined to manage vertically versus horizontally
10
Emerging Theme #1: Very Low Scores!

All Newspaper RespondentsBest Practices Are in Effect LEVEL 1 ANALYSIS
100%
Strongly Agree plus Agree
80% 60% 40% 20% 0%
Strongly Agree Agree Disagree Strongly Disagree 29% 18% 13% 9% 31%
Disagree plus Strongly Disagree
-20% 20%
40% -40%
-60% 60% -80% 80%
71% 82% 87% 91%
69%
-100% 100%
Selection
Development
Performance Management
11
Compensation
Employee Retention
Emerging Theme #1: Very Low Scores!

All Newspaper RespondentsBest Practices Are in Effect LEVEL 2 ANALYSIS
100% 80% 60% 40% 20% 0%
Strongly Agree plus Agree
Strongly Agree Agree

61 59
X1 denotes the Drivers High-Impact Practice Disagree in the order it appears in your reports Strongly Disagree
64 44 31 27 10 14 18 18 45 23 49 55
24
12
17
-20% 20% -40% 40% -60% 60% -80% 80%
39
41 56 55 65 51
35
45
69
88 83
73 90 85
P1 P2 P3
81
C1
82
C2
76
-100% 100% S1 S2 S3 D1 D2 D3
D4
C3
R1
R2
R3
R4
Selection
Relevant Page in Consolidated Report
Development
17
28
Compensation
37
Employee Retention
46
12
Emerging Theme #1: Very Low Scores Why?

May reflect the newspaper industrys historical oligopolistic structure and behavior of the industry Newspaper industry might be inwardly not externally focused Newspaper industry, on average, is likely stuck in the Ingredients Era of people management practices
13
Eras of People Management Practices

Cogs
People were thought of as part of the machinery
Ingredients
Enablers
Differentiators
People management activities are:

Discrete Inconsistent Contradictory Not aligned

Systematic Consistent Aligned Integrated

Core to business strategy Key to differentiation Source of competitive advantage
14
Newspaper Results
Findings
Insights & Implications Typically the most advanced Driver in stable or static industries that have undergone little change
Performance Management is highest!
Other Drivers are characteristically brought into play more strongly as companies and industries are confronted by major change
Development is lowest!*
Typically viewed to be the softest Driver

Is the most complex Driver of all
*Assuming we ignore Compensation
15
Emerging Theme #4: Amazingly Flat Results

LEVEL 1 ANALYSIS
3.0
2.9
2.8
2.7
2.6
2.5
2.4
2.3
2.2
Selection
Development
16
Compensation
Employee Retention

LEVEL 2 ANALYSISBy Department
17

LEVEL 2 ANALYSISBy Circulation Strata
18

LEVEL 2 ANALYSISBy Strata by Department
19

LEVEL 3 ANALYSISSelection
Relative Strength Relative Weakness

20
Emerging Theme #4: Amazingly Flat Results! Why?

Industry has very homogeneous practices May be implied or accepted standards External changes may not have yet stimulated aggressive adoption Newspaper industry may be currently trapped in transformational no mans land
21
Industry Transformation
High
Successful Change
Today
Performance
Newspapers? Triggers: Competitors Changing needs Technology Economics Demographics
Change unrecognized or not acted upon
Low Time
22
Emerging Theme #5: Newspapers are more effective at and inclined to manage vertically versus horizontally
Driver Top Strengths
The standards we use for selecting internal candidates for open positions are set at relatively high levels The selection standards we use for outside hires are set at relatively high levels Selection of qualified people for position vacancies is a top priority of our newspaper's leaders We encourage self-nomination to open positions
Greatest Weaknesses
Our selection process is efficient (i.e. provides us with qualified people quickly) When we consider candidates from outside the newspaper to fill job openings, the size and quality of our external applicant pool is strong (i.e., we consistently choose among many qualified candidates) Our leaders are held accountable for attracting and selecting high-caliber candidates from outside the industry Our newspaper possesses and continuously updates a newspaper-wide database that keeps track of competencies and skills individuals need to succeed in their positions Attending training programs for at least 35 hours a year is strongly encouraged by our newspaper
Selection
Development
Our newspaper's leaders place a high priority on developing people Managers generally help their subordinates meet their career aspirations Qualified employees generally demonstrate sufficient initiative in developing their own skills
Our organization systematically and regularly reviews its talent pools frequently (i.e. at least twice a year)
We believe that one of the primary purposes of performance management in our newspaper is to support the execution of our business strategy Performance evaluations entail a discussion of an employee's performance, including the manager's own perspective on the employee's performance Performance evaluation discussions focus both on recent performance and identifying development needs
Our strategies and strategic plans are regularly communicated so that all employees understand how their performance expectations are linked to them Each person's performance evaluation incorporates input from people within the company who are impacted by their work Performance evaluations incorporate input from the employee's peers/ team
23
Emerging Theme #5: Newspapers are more effective at and inclined to manage vertically versus horizontally
Driver Top Strengths
Performance is the key determinant in establishing variable compensation (i.e., incentive) levels Our newspaper effectively recognizes (formally and informally) performance that supports our goal Change in overall job accountabilities is a key determinant in reviewing fixed (i.e., base salary) levels
Greatest Weaknesses
Our newspaper's compensation programs enable us to attract and retain required talent Change in external market pay levels is a key determinant in reviewing fixed ( base salary) levels Our compensation programs support the philosophy of providing superior rewards for superior performance Share-based compensation (e.g., employee share ownership plans, profit-sharing) for employees is a means of providing a single shared objective that binds together the various entities across our newspaper Employee share ownership is encouraged in our newspaper through our compensation plans
Compensation
Employee Retention
On average, our employees exhibit a high level of attendance on the job
Employees are energized by the newspaper's culture and work environment
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 they personally contribute to meeting customer needs
Our managers spend unusually large amounts of time coaching and developing their subordinates
Employees receive appropriate recognition and rewards for their contributions
24
Why Should I Really Care About This People Stuff?

High Levels of Employee Satisfaction & Retention Are Associated with Greater Customer Satisfaction & Retention... which create a powerful way to move the needle
The Zone of Affection The Royalty of Loyalty

100%
Customer Retention
High
Customer Satisfaction & Retention
Low
3.0 Low
80%
48% defected! Satisfied Loyal
60%
40%
20%
4.0 Employee Satisfaction & Retention High 1 Extremely Dissatisfied 2 Somewhat Dissatisfied 3 Slightly Dissatisfied 4 Satisfied 5 Very Satisfied
Customer Satisfaction Measure
Source: RNW Research
25
Source: Harvard Business School; Heskett, et. al.
Four Key Factors of Employee Retention

100% 90 80
98.0% 84.4% 70.4% 55.8%
13.6%
14.0%
70
Explanatory Power*
60 50 40 30 20 10 0
14.6%
36.6%
Authority 19.2%
Latitude 36.6%
Leadership and Culture
Capability and Development
Recognition, Rewards and Focus on Customer Satisfaction
*Represents the proportion of the total R2 explained by each determinant.
26
Real Effect of Employee Retention

Company Employee Satisfaction & Retention Customer Satisfaction & Retention
State Farm
Agent tenure 200% longer than industry average Agent productivity 150% higher than industry average
93% customer retention
USAA
7% employee turnover rate Two-thirds lower than industry average
98% customer retention in auto
Northwestern Mutual Life
Most productive organization reflected by home office cost per $1,000 of face value premiums sold
95% customer retention
27
So, what can/should you...

Do Not do
when you return home?

28
Between Now and Our Next Meeting

Ready, aim, fire! Dont jump in and fix itgo slow to go fast For now, ask more questions than give answers Guiding Principles Take the time to really create understanding and insight Thencreate strong alignment in terms of your desired end state
Set expectations carefully

This is a technical and a political challenge; i.e., a formidable change management challenge
Objectives
Get under the survey to gain clarity and commitment to the real issue(s) and their root causes Come back in October with the issues and their root causes the data that is ready then will help you set priorities and begin to act
29
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 want them to produce
What specific factors have resulted in our current situation? Why? Build understanding through focus groups and one-on-one interviews.
Strive for insight and understanding
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 we expect 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 on expertise, political considerations and the need for the change?
30

People Management Practices:: Displays To Accompany Survey Findings

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

People Management Practices:: Displays To Accompany Survey Findings

Uploaded by

Copyright:

Available Formats

READERSHIP INSTITUTE

Media Management Center, Northwestern University

PEOPLE MANAGEMENT PRACTICES:

- Inform (findings and patterns) - Insight - Implications

Prove it, or else stop talking about it!

Overall Business Impact

Business Case Was Built in Two Ways

Real World Applications

Determine what organizations should do

Customer Satisfaction & Retention Leadership Change Management

Selection Compensation Creativity & Innovation Development Performance Management

Strength of PracticePerformance Relationship*

Strong 500 1,000

Total number of organizational units: 21,304

Number of Organizational Units Included in Research

People Management Model

Five Strata Examined

Three Levels of Analysis

HIGH IMPACT PRACTICES

What you should strive to achieve

What you can do

Overview Level 1 and Level 2

Pre-Reading Pages 18-20

Performance Management Compensation

* Note: Employee Retention is an Intermediate Outcome.

Newspaper ResultsEmerging Themes

More effective at and inclined to manage vertically versus horizontally

Emerging Theme #1: Very Low Scores!

Strongly Agree plus Agree

80% 60% 40% 20% 0%

Disagree plus Strongly Disagree

71% 82% 87% 91%

2001 2001Readership ReadershipInstitute Institute

Emerging Theme #1: Very Low Scores!

Strongly Agree plus Agree

Strongly Agree Agree

Disagree plus Strongly Disagree

-20% 20% -40% 40% -60% 60% -80% 80%

Emerging Theme #1: Very Low Scores Why?

Eras of People Management Practices

People management activities are:

People management activities are:

People management activities are:

Performance Management is highest!

Typically viewed to be the softest Driver

*Assuming we ignore Compensation

Emerging Theme #4: Amazingly Flat Results

Disagree plus Strongly Disagree

2001 2001Readership ReadershipInstitute Institute

Emerging Theme #4: Amazingly Flat Results

Emerging Theme #4: Amazingly Flat Results

Emerging Theme #4: Amazingly Flat Results

Emerging Theme #4: Amazingly Flat Results

Relative Strength Relative Weakness

Emerging Theme #4: Amazingly Flat Results! Why?

Change unrecognized or not acted upon

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

Employees are energized by the newspaper's culture and work environment

Why Should I Really Care About This People Stuff?

The Zone of Affection The Royalty of Loyalty

Customer Satisfaction & Retention

48% defected! Satisfied Loyal

Customer Satisfaction Measure