Tag Archives: People Strategy

Man Down, Who’s Up Next:  Succession Planning Tools

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Succession Planning is a critical part to any business’s People Plan to assure that the right person is in the right job at the right time for the right reason especially when something unexpected happens and there is a gap for a critical role.

Succession planning pays off for Apple

When Steve Jobs, former CEO at Apple, was diagnosed with pancreatic cancer in 2004 and had surgery to remove the tumor, he was hoping that he would “still be around for a few more decades”. Unfortunately, that was not the case. Steve Jobs thought ahead and embraced Tim Cook, Apple’s COO, and began grooming him to be his successor. When Jobs’ health deteriorated and he succumbed to the perils of the disease, Cook was favorably positioned and prepared to take on the CEO role.

In this situation, Jobs had the element of time on his side as it related to being able to develop his successor. Unfortunately, many companies, without a well defined succession planning process in place, find themselves in disarray when one of its critical people can no longer perform their duties because of an unexpected and acute situation.

Evaluating your people for potential

The succession planning process looks at a company’s current workforce and develops a talent pool of candidates for critical or important positions within the organization.

To ensure a company’s survival and continuity the first step is to identify the critical people and positions that could put the company in jeopardy.  Once you have that list, you will be ready to start looking at your current situation.

The succession planning process consists of three components; the 9-Block People Matrix, the Succession Planning or Future State Business Model, and the Individual Succession Plan Profile.  In this blog, we will be using the Succession Planning 9-Block People Matrix.

The Succession Planning 9-Block People Matrix

I have found the 9-Block People Matrix the fairest, consistent tool to use when evaluating individuals for future roles.  The Matrix is used to plot an employee’s present-day performance with that same employee’s potential. As the name suggests, there are nine boxes contained in the Matrix (Figure 1).

Figure 1. 9-Block Matrix

The process normally starts at the top with the senior leadership organization chart and cascades down as necessary. Typically, the senior leader in a functional area would be responsible for the succession chart of his/her function.  He/she should identify people in the organization who could potentially fill each critical role.  Each person should be assessed individually using the performance and potential descriptors in each box and placed in one of the boxes.  You may find it important to add some criteria specific to your business or the critical role.

Calibrate your leadership team’s evaluations

Like most things related to people any assessment can be subjective and based on an evaluator’s definition of performance and potential.  I always recommend a calibration meeting with departmental or company management team members be conducted following any evaluation. The calibration is a good opportunity to get additional input or have the evaluation verified. It’s also an opportunity for other managers to better understand the potential of employees they may/may not know.

You will likely find that there will be people (usually hired less than 12 months ago) that are too new to evaluate rigorously.  These individuals should remain on the radar for future discussions and placed in the “Not Classified” box.

As the business is in a constant state of change, so are its people with promotions, retirement and exits from the organization.  To keep on top of the changes the Succession planning process should occur twice a year. The first round is best done in early June (before individual vacations are taken and before any requirements for closing 2nd quarter financial books), and then again in either late November or early December. During this second meeting, it’s important to discuss individual development plans and gain alignment on performance before year-end reviews are completed.

Facilitators can challenge bias and further discussions

Finally, all discussions regarding succession planning should be facilitated by a bias-neutral individual in order to see alternate sides of situations or opportunities. It is for this reason that many companies engage the assistance of an outside facilitator to conduct and manage these meetings.

The other two components used in the Succession Planning process—the Succession Planning Business Model and the Individual Succession Plan Profile will be highlighted in the next couple of Blogs.

Contact me if you have questions or would like to receive a full-size copy of the 9-Block Matrix.

Paradise Workplace Solutions, LLC works with business owners to improve productivity and profitable growth by aligning people strategies to the company’s business plan.

The People Plan: Tomorrow Comes Faster Than You Might Think

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You’re all set with the people you need in your business today.  You’re feeling good.  It may feel like a relief and time to take a break so you can focus on other issues.  But now is the time to think ahead and put together your People Plan.

If you’ve been following my posts on People Strategy, you identified in your people schematic that you will need 3 sales reps instead of 2, a higher-level technician to support customer service, or even a new office manager within the next year. Where are these people going to come from? How are you going to assure that you have the right person, for the right job, for the right reason tomorrow?

Following three best practices for a People Plan is your answer.  A Succession Plan, Individual Development Plans for your employees and a Recruiting Plan will have you in good shape when you’re ready to expand your employee base or have to unexpectedly replace a high performer.

Is someone in your business ready now?

The Succession Plan is a company/management driven process that looks at all current positions and employees for the importance and criticality of each position.  The team responsible for the plan discuss the vulnerability of the employee currently performing the role, possible internal candidates identified as back-fills for the position, and finally the need to consider external hiring for positions where a viable internal candidate has not been identified. The outcome of a succession plan is a document that the management team can revisit or pull out in case of an emergency loss.  It goes without saying that the succession plan should be reviewed at least yearly or when a major change has occurred.

Will you develop employees so they’re ready for a bigger role?

The Individual Development Plan is a manager supported and employee owned process for the acquisition of new skills that will both assist the business and enhance the employee’s self-worth and career progression. Individual development plans should drive an employee towards additional skills, knowledge and abilities required for a higher-level position in the business, thus feeding the succession planning pipeline.

There are many avenues for training and skill development to consider.

  • Traditional (technical) Skills Training, also known as On-The-Job Training, are skills usually shared by a co-worker that has, or still is, performing the task or skill that the employee is acquiring.
  • Professional Training typically is gained through external sources and is usually technically or functionally important; like application development for an IT professional, or advanced plumbing techniques for a trades position, or new accounting requirements under GAAP for a CPA. Many of these types of training come with CEU’s (Continuing Education Units) for the profession in which the employee is employed.
  • Formal Educational Training comes from the traditional secondary, 2 or 4 year college or a technical institute and focuses on specific educational required material necessary to be successful in the position.
  • Soft-Skills Training, including Leadership Development, are those traditional non-technical skills that, when acquired, should enhance the ability of the employee to do their job.
  • Professional Networking. While networking may seem out of place for Individual Development, it is most definitely a way for employees to develop their soft skills in a non-threatening environment that could also lead to additional business.

How are you going to fill the competency gap?

Finally, when you must look outside your company for the skills that you do not have internally, is the Recruiting Plan.

  • A company first needs to be able to Attract candidates for existing openings or for possible future openings.
  • Actively Recruit candidates through traditional recruiting methods, which include posting on the company’s website, paid websites such as Glassdoor, and the use of external recruiters or staffing agencies.
  • To Passively Recruit candidates engages future prospective employees you meet at networking or customers events. Attending and participating in Job Fairs is an excellent way to engage potential job candidates for both present and future company opportunities. Attending college job fairs is also an excellent way to secure interns or prospective future full-time employees.
  • The use of Social Media is no longer a nice-to-have, but a requirement to attract potential employees, recruit employees, and recruit passive candidates. The use of social media is also a necessary tactic to market the business, connect with existing and future customers, and to maintain a visible and active role in the on-line community.

I’ll be covering each section of the People Plan in more detail in future blogs.  Look for my next blog on Succession Planning and the 9-Block Matrix.

Contact me if you have any questions on the People Plan.

Paradise Workplace Solutions, LLC works with business owners to improve productivity and profitable growth by aligning people strategies to the company’s business plan.

What Motivates You To Go The Extra Mile?

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Motivation can be energizing.  Do you remember a time when you were inspired or you motivated someone?  Do you remember what it felt like?  The thrill of the spark igniting within you, or helping a child, friend or employee help themselves and seeing the ember catch fire.  The energy is contagious.

That same energy is in your organization, namely your people.  You know you’re likely to put in more effort and care when you are motivated and feeling good about what you’re doing.  Your employees are the same.  They will put in extra effort if they are engaged and feel appreciated.

Increase engagement, increase profitability

In a recent global Gallup poll on employee engagement with 82,000 teams, the results showed 21% higher profitability for those organizations in the top quarter compared with those at the bottom.  Shockingly, 85% of employees are disengaged or actively disengaged.1 That’s a lot of people who need motivation and a good deal of profit that never makes it to the table.  Obviously, there’s a great deal of work to be done globally.  Yet, it’s your business we’re focusing on now.

You probably think about motivating your employees with salary, benefits and a nice work environment.  Those incentives are a given in the current labor market.  You need to do more.  The good news is that you can and it doesn’t have to cost you much.

Start motivating your employees today

  • Be authentic when you praise a job well done. Acknowledge good work but don’t dilute your compliments by praising all the time.
  • Find out what motivates your employees individually. People are inspired by many different factors.  Observe and ask what motivates each person.  Then, acknowledge them in the way they prefer.
  • Work with employees who are causing problems or not meeting expectations. Your employees are watching how you handle someone who is not performing.  Don’t ignore or downplay the problem.  Your employees are impacted and want you to step in to handle the situation. Be honest and helpful to the person who is struggling.  Find out what he/she needs to be successful.  If you don’t see improvement after making a good effort to support them, you will likely have to let them go.  Sometimes, an employee doesn’t fit with a company’s culture or have the skills to do the job.  Be supportive and fair so your employees know that you treat everyone fairly.
  • Talk to your employees about their development. What work fuels their passion?  Is there an area they want to explore?  Providing a safe environment for employees to discover new talents can keep them inspired and engaged.  Share in their discovery.  Acknowledge their abilities and support them in strengthening their weaknesses.
  • Hear what your employees are saying. Listening to your employees is the most cost-effective way of acknowledging and engaging them.  And you could learn something you didn’t realize about your business and the people who keep your business running.

Uncover what motivates your employees

Here’s a simple way to get specifics about what motivates your employees.  Ask them! Let them compile a list of options for recognition for a job well done.  Some examples of both monetary and non-monetary items could be

  • Time off work to participate in a community or non-profit event; like Habitat for Humanity
  • Opportunity to take on additional responsibility
  • Breakfast or lunch with a more senior employee or company executive
  • Development class, seminar or conference that is of interest to the employee and the company
  • Time off; an extra vacation day or a few hours on a Friday afternoon
  • Gift card or small cash award
  • Public recognition among peers; like at a department meeting
  • Trophy or award certificate
  • Tickets to a sporting or cultural event of the employee’s choice
  • A small token of appreciation, like a food gift basket, sent to the employee’s home so that his/her loved ones can see the company’s appreciation.

Talking with employees about how they like to be recognized and motivated is an opportunity to communicate about performance, expectations and the value of your employees.  Always connect any recognition with performance and the value an employee brings to the business.  Reinforce the behaviors and skills needed to make your business successful.

Below, share some ways a company has actively engaged you?

1 Building a High-Development Culture Through Your Employee Engagement Strategy, Gallup, Inc. Washington, DC, 2019.

Paradise Workplace Solutions, LLC works with business owners to improve productivity and profitable growth by aligning people strategies to the company’s business plan.

What the heck is a “People Schematic”?

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Many business owners aren’t in a position to hire full-time human resource expertise and your business may not need it, yet.  But you do need a people strategy to be confident you’re evolving the structure of your business and hiring at the right time.  That’s why we’d like to share a concept that HR experts use with leaders to diagram business needs and milestones with future employee requirements–the People Schematic.

People schematic defined

The people schematic is the first part of a successful people strategy that also includes a People Plan and People Metrics.  Just like a successful people strategy, the schematic helps to assure that a business has the right people, in the right jobs, at the right time, for the right reasons. Also like the people strategy, a people schematic is a living, developing diagram that gets reviewed regularly alongside the people strategy and the company’s business plan.

The people schematic is one element of a broader strategic workforce planning process.

Components of a people schematic

The people schematic uses information from the business plan that includes

  • the current state (number and types of employees vs. the business plan)
  • the desired future state (number and types of employees vs. the business plan)
  • business markers that indicate when key actions need to be taken.

The schematic is the plan used to close the gap between the current and desired future state.  For those familiar with the traditional human resources lingo, this could be considered an extension or means to the development of a headcount or recruiting plan.

The people schematic is a graphed representation that shows the number and type of employees that will be needed over time against the business metrics that are used. The business metrics are different for each business. It could be the number of widgets necessary to be produced or the revenue needed to be generated. The metric could be the number of patients that need to be reached. It could be anything that the business deems to be its goal. However, two things are consistent regardless of the company’s product or service: the companies financials linked to the business plan, and the use of any and all metrics that measure key human resource information, such as turnover, time-to-hire, etc. The key point is that the schematic uses information derived from the business plan.

Drawbacks of not creating a people schematic

Is your business at risk if you don’t have a people strategy?  Maybe not…initially.  But it can catch up to you.

  • Under-hiring can lead to excessive workloads on current staff, missing customer deadlines, and the inability to react to business needs or changes.
  • Over-hiring can lead to financial stresses on the company, inefficiencies of the workforce, or put the organization in jeopardy that could result in layoffs or staff reductions.
  • Not having the right people ready for the position at the right time for the business.

“Just-in-time” hiring is not easy and takes diligence. Factors such as manager input, recruiting ‘lead-time’, employee turnover and ‘lost time or opportunity’ need to be considered.

Evolve your people schematic along with your business

Naturally, as the business advances or encounters difficulties, you need to modify the people schematic and business plan.  Actively review both documents regularly at the leadership level.  Also critical is that your managers understand both plans because they hold knowledge and experience of your business that is critical to implementing an accurate business plan.

Important to note:  Before determining your demand for external talent, identify gaps in skills and capabilities in your current workforce. Fill these gaps through internal mobility and ‘upskilling’ first. We’ll cover these topics as part of the People Plan in an upcoming blog.

Contact us if you have questions on a People Schematic.

Paradise Workplace Solutions, LLC works with business owners to improve productivity and profitable growth by aligning people strategies to the company’s business plan.

Racecar Drivers Have A People Strategy. Do you?

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Imagine if Martin Truex, Jr. or Kevin Harvick had the fastest race car in NASCAR and a map of the course at Talladega Raceway but didn’t have a finely tuned, experienced pit crew. The time Martin or Kevin would lose on pit stops could cost them the race.

Or even worse, imagine if the crew chief of one of their pit crews had an emergency and couldn’t perform his/her duties and there was no alternate plan to put in place. The only person available to step into the role would be one of the tire catchers. What happens then? The driver may continue the race but what would the results be?  Disastrous.

Now picture yourself as a business owner with a great product and a well thought out business plan but no people strategy that maps to the growth of your company.  As your business grows, it needs some higher skilled employees or those with entirely different experience. Employees currently in positions may be high performing but not exactly what’s best for your business or ultimately your customers if they don’t have the appropriate experience or skills for future growth.  A People Strategy helps your employee base evolve as your company grows.

What is a People Strategy?
A People Strategy is a plan to assure that a business has “the right people, in the right jobs, at the right time, for the right reasons.” It’s a plan that is reviewed regularly alongside the business plan and has action items after each review. The plan has short, mid and long-term goals that may change or need to be adjusted as the business evolves. The management team is involved in the development and review of the strategy and committed to the resulting action plans that will ultimately help attract, develop and retain the right people for the business.

Just as important to defining a people strategy, is to identify what it isn’t; it is not a human resources department solution. Every supervisor or manager in an organization is responsible for owning the people strategy because they are closest to the needs of the business in their areas.

Elements of a People Strategy
A good People Strategy consists of three major components. I’ll call the first one a “People Schematic”. The second factor is the People Planning and the third one is the People Metrics and Performance.

  1. The People Schematic is a graphed representation that shows the number and type of employees that will be needed over time against the business metrics that are used. The business metrics are different for each business. It could be the number of widgets necessary to be produced or the revenue needed to be generated. The metric could be the number of patients that need to be reached. It could be anything that the business deems to be its goal. The key point is that the People Schematic uses information derived from the business plan.
  2. The People Planning process uses information from the People Schematic to answer the question of how the business will achieve the numbers and types of employees identified. This answers the question of how the business will be able to adequately assure that the number and types of positions are filled in the time frame identified in the People Schematic.
  3. Finally, the People Metrics and Performance encompasses those measurements and actions required in the first two processes to ensure a successfully integrated people strategy process and allow you the opportunity to make modifications as other dynamics change.

Continued success of your business
Most successful companies, new or well-established, have a strategic or business plan that has helped guide the direction of the business’s actions and activities. Often overlooked, the People Strategy is one of the most important derivatives of a company’s Business Plan.

Just as an experienced NASCAR pit crew and back up plan is vital to the success of the driver and the rest of the team, your People Strategy is crucial to the continued success of your business.

In future articles, I will be breaking down each of these three key elements to show how and what needs to be done to assure a successful People Strategy.

Contact Paradise Workplace Solutions to get more information on People Strategy.

It’s Personal: An Employee In Crisis Can Build Up Or Tear Down Your Company’s Culture

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I didn’t have any intention of writing this article until I woke up this morning. After seeing all the news and reminders about breast cancer month I was compelled to talk about how a health scare created an employee/employer bond that can’t be broken.

It’s time for me to own up. Not many people know that I went through breast cancer and Non-Hodgkin’s lymphoma treatment two years ago. Or, maybe it’s more accurate to say that I didn’t talk much about it.

I pride myself on helping others and was surprised by my reaction to the diagnoses. I didn’t let many people help me. I was overwrought with emotions. I put a cocoon around myself and went deep within to deal with the cancers. I told only those who absolutely needed to know and I asked them not to discuss it with me or anyone else unless I brought it up. I realize, without a doubt, that was very difficult for family, friends and co-workers who love and care for me. Yet, everyone respected my wishes.

What does this have to do with company culture? How employees are treated every day is part of your company culture. An employee in crisis can magnify aspects of the culture either good or bad.

Build your culture and help an employee at the same time
I was working for a large corporation at the time and was naturally nervous about what cancer would mean for my life and career. I was worried that I wouldn’t be considered for a promotion or plumb assignment if they thought I couldn’t handle it physically or if my future was uncertain.

Fortunately, I had a manager and employer who respected my wishes and helped me through my treatment. Their handling of my diagnoses also demonstrates the culture they want for the company. They value their employees; plain and simple. Here is how my situation was handled and how helping employees when they’re “down” can help build a culture of mutual admiration.

Six actions to take to help an employee through a crisis

  1. Listen, listen, listen.  This is the single most important action any manager can take during a difficult situation.  Listen for what your employee is saying and not saying.
  2. Ask how you can help.  Find out what they would like you to do or not do.
  3. Respect the employee’s wishes.  If the employee wants support from his/her team, help them get it.  If they want to keep it on the down low, abide by their decision.
  4. Look out for ways you can alleviate their stress.  This can be in the form of easing their workload, setting up a system that will allow your employee to attend to any necessary appointments without having to ask, or providing them with additional resources.
  5. Check in.  Their needs may change from the initial discussion and you want to make sure you’re helping them throughout the process.
  6. Give them time to adjust to their new reality. Continue to view this employee as an active contributor who will come through their situation to be the same or better employee.  Other employees are watching closely to see how you’re handling the situation.

My outcome
I am healthy and free of cancer. I was loyal to my employer and co-workers before my health scare. Their approach to my situation made me double down on my commitment and demonstrated to those closest to me at work how a compassionate manager and employer can make a difference.

Since my treatment, many aspects of my life have changed. I was promoted to a position I always wanted two months after returning from a short medical leave. Six months later, I made some difficult and dramatic changes because I realized that I didn’t want to put off dreams I had for my future. My husband and I moved to Florida from New Jersey and started our own business, Paradise Workplace Solutions.

I made sure before leaving that someone was in place, up to speed on leading my group and that there was a smooth transition. I wanted the company to know that I appreciated everything they did for me and that I had no intention of leaving them in a lurch.

After my leaving the company, the manner in which I was treated remains a part of the culture they are building every day. My commitment to my former manager and employer is still strong. I cheer for my former co-workers and company from the sidelines and advocate for the work they are doing. I am a staunch supporter and make sure I refer only the very best potential employees because I want their culture to be the best it can be. That’s the least I can do for the co-workers, manager and company who helped me through the most difficult time of my life.

Click here to talk with us about people strategies.

Paradise Workplace Solutions, LLC works with business owners dealing with disappointing business results get on a path to improved productivity and profitable growth by aligning people strategies to the company’s business plan.

Grow Your Talent, Create Value For Your Company

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Your employees are your number one investment. Their actions, skills and knowledge are going to help your grow your business or sink the ship. Assuming you would choose the former, now is a good time to take a look at how your people match up with the future growth of your company.

Most likely, your employees’ performance can be bucketed into three categories. Some are still not up to speed in their current role, others are comfortably meeting your expectations and some may be outperforming. It’s important to know where your employees are in their development because you and they need to come up with a plan for their growth to keep them energized and engaged in supporting your business.

Various stages of performance
The new or struggling employee
Obviously, employees not performing up to standards in their current work need to focus on the skills to do their job, enhance their knowledge or change behaviors. It’s their manager’s responsibility to identify those undeveloped skills and get them the training they need. They will need a development plan to get them on track. Make sure your expectations fit the development need. Sending someone to outside training that has a skills deficiency is like trying to row a battleship with an oar; it’s not going to happen. The real development of the skill or ability comes with combining the outside training with perfecting the skill on-the-job. Repetition, coaching and feedback are the real ways that employees enhance skills.

Your consistent, dependable employee
Employees who are meeting your expectations are golden because they are helping to sustain your business. This is a good time to find out their development goals. Do they want to stay in their current role or do they want to learn a different part of the business? Take the time to point out other positions or work they can do to contribute to growing your business. Match them up where you expect to need strong consistent team members in the near future. This group of employees can be your strong core. They can move through various positions to get a solid understanding of your business and customers. They need a plan that encourages them to grow through being successful and satisfied with their work.

The overachiever, high performer
The outperformers have likely already told you their development goals and are actively pursuing them. High performers need to be challenged to keep them engaged. Look at these employees to see if they have the skills for higher level roles in the organization either now or in the future. If you believe an employee can meet the requirements with some additional training, come up with a development plan that aligns with your business plan. High performers’ plans may include going elsewhere to achieve goals or gain experience but at least you’re aware of the person’s desires and can plan for it so your business is not disrupted.

It’s most important to have development plans for everyone, including yourself, so you know that your employees are working toward goals that will improve and increase your business growth.

People development plans
No matter which level of development is needed, a plan contains relatively the same components below.

• Identified skills, knowledge or behavior that will be the focus
• Actions the employee will take to learn
• Opportunities to apply the learning (practical application with repetition, coaching and feedback)
• Success measures

Each area for improvement should have a SMART Goal. SMART stands for Specific, Measurable, Attainable, Relevant and Time-bound. Many organizations make SMART goals mandatory because they clarify the goals and get everyone on the same page. Peter Drucker is known for coming up with the criteria for SMART goals and George T. Doran for formalizing it back in the early 80s and still universally used today. You can find an abundance of information by looking up “SMART goals” on the web.

Hold your employees accountable
One of the most important points of a development plan is that the employee owns the plan and their development. You can help identify areas for improvement, fund training programs and provide opportunities for development but ultimately, the employee is responsible for their growth. As the business owner, you are responsible for opening pathways for them to meet their growth goals and provide feedback along the way.

Developing your people is just one aspect of a people strategy that aligns with your business plan and goals. A people strategy will benefit your business because your people are going to propel you to meeting your business goals.

Next up: People strategy