You Can’t Send a Duck to Eagle School

Recently I saw an Interesting video. Many lessons for HR Professionals.

If you’re going to climb a tree, would you rather hire a squirrel or train a horse? Enjoy these clever and insightful leadership lessons.

 

"FIRST WHO THEN WHAT" - Getting 'right people' in 'right seat'

In the above video Mr. Jim Collins (Author - Good to Great 2001) highlights the importance of "who" before "what".

If we think about this in line with strategic management perspective, we may have to amend the typical strategy development process. It usually begins with defining or re-defining Vision & Mission statement of an organization - precisely 'where to go' - the "what".

Now, in case we have to begin with "who", an organization may have to opt for Resource Based View (RBV) of available human capital for 'Internal Analysis'. And make sure that we have right people on the bus. Normally this process (RBV) involves defining various resources the organization possesses and examine them to gauge which resources truly have strategic value. It is important for two reasons, 1) to know whether we have right people on the bus & 2) to remove wrong people from the bus. However, make sure not to throw out the baby with the bath water.

Dick Cooley and David Maxwell both exemplified a classic Level 5 style when they said, “I don’t know where we should take this company, but I do know that if I start with the right people, ask them the right questions, and engage them in vigorous debate, we will find a way to make this company great.” However, it’s not an easy task to get right people at the right time, very well said by Richard Florida, "Access to talented and creative people is to modern business what access to coal and iron ore was to steel-making."

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(Image Source: Google Images)

What is "RIGHT PEOPLE”?

Let’s see what Jim Collins say about right people.  He says, "In determining 'the right people', the Good to Great companies placed greater weight on character attributes than on the specific educational background, practical skills, specialized knowledge or work experience. Not that specific knowledge or skills are unimportant, but they viewed these traits as more teachable (or at least Learnable) Whereas they believed dimensions like character, work ethic, basic intelligence, dedication to fulfilling commitments, and values are more ingrained".

Now the question for HR Professionals is how do we know we have right people on the bus? And which tools HR professionals can use to get such right people? I must mention an important quote from Robert Half, that "There is something that is much more scarce, something rarer than ability. It is the ability to recognize ability."

There has been a lot of research carried out so far on this, and now we are turning to Analytics, Big data & algorithms for it. (In Hiring, Algorithms Beat Instinct by Kuncel, Klieger, and Ones - HBR - May 2014) The history of talent spotting is very well narrated in four different eras by Claudio Fernández-Aráoz in the article 'The Big Idea: 21st-Century Talent Spotting' HBR June 2014.

Claudio says, "I am convinced that organizations and their leaders must transition to what I think of as a new era of talent spotting—one in which our evaluations of one another are based not on brawn, brains, experience, or competencies, but on potential."

These are very pragmatic views, however, we will see which options, tools, & methods can be used for employee assessment and finding “right people” and get rid of ‘wrong people’.

Tools available to HR Professionals:

Ability Tests: 

Many companies use cognitive ability tests for selecting employees. Using these tests we can match skills to job requirements in a way that is objective and fair to all candidates. These are paper and pencil tests, however, nowadays they are also available on a smartphone, tablet, and web-based format. We may use them to test Verbal ability, Numerical Ability, Inductive Reasoning, Critical Reasoning, Mechanical Reasoning, Problem Solving, Managerial Judgment, Idea Generation etc. Example: SHL - CEB Ability Tests, Talent Q (Element) - Hay group.

Personality Tests: 

Many companies use personality tests along with other options. Such tests normally require an applicant to answer 200 or more (yes/no) questions. These questions attempt to get to the core of the personality, values and the things that make one successful. Unlike a job interview, everyone gets the same questions since they are standardized. These tests assist HR professionals to accurately predict whether a candidate will be successful, instead of solely relying on a face-to-face interview. Usually, candidates can't charm a personality test. Examples: Hogan Personality Inventory (HPI); California Psychological Inventory.

Interviews:

An Interview is one of the most widely used methods for recruiting employees. Typically these interviews are ‘Unstructured’, however, experts suggest using ‘Structured’ interviews for better results.

Behavioral Event Interview:

It was developed by David McClelland and frequently used by many organizations to recruit employees based on specific competencies relevant to the organization. In such interviews, the candidates are questioned to think of various job-related experiences that turned out well or poorly and then describe these situations in extensive detail. (White paper "Competency-Based Pay" by Tucker and Cofsky – ACA Journal 1994 [pdf]) Hence, such information gathered from the candidate is more predictive of their behavior and performance for specific competencies. As a result we find out:

1. Whether candidate possess the required competency.

2. His / Her level on specific competency.    

3. Concrete basis for predicting future success for that competency.

The Assessment Center:

It facilitates gathering critical data on an individual's competencies and his / her potential match for the executive position. It measures the required attributes that enable the candidate to succeed in the specific position. The candidates are expected to complete a series of activities and instruments designed to elicit the demonstration of executive behaviors. The Assessment Center includes simulations such as In-basket Exercises, Group Discussions, Management Games, and Analysis Exercises. Since more than one assessment instrument used for measuring particular competency, it provides robust, consistent and more reliable results. Consultancies: DDI, Haygroup, Kornferry

360 - Degree Competency Feedback: 

Many organizations now use 360 - degree competency feedback surveys, primarily for providing development feedback to individuals, although there is still debate going on among professionals around using these tools for development only versus using them for selection decision making.  It provides potentially accurate and diverse information on where employees stand in relation to where they should be in terms of skills and behaviors.

Although many consulting firms have their own well - established frameworks,  the best approach for using 360 - feedback ratings for internal development  of high potentials is for organizations to develop their own customized  leadership competency model that is carefully developed and specific to the organization’s culture and strategies. These models should be built to incorporate the organization’s values, reflect the business strategy, and either reinforce the current culture or outline through behavioral examples what the new culture should look like. ("Strategy-driven Talent Management" by Silzer and Dowell - 2010) Consultancies: CCL, Haygroup ,Lominger

Workforce Intelligence: 

In the advent of Big-data & HR Analytics many organizations are now equipped with vast amount of data which they leverage for taking important people decisions. As claimed by the vendors; it gives organizations the ability to predict the success and tenure of potential candidates before they even walk through the door. Predict which high performers were at risk of leaving six months before they walked out of the door. Workforce Intelligence assists various HR processes such as: Workforce Planning & Optimization; Workforce Transitions; Recruitment Analytics; Retention Risk Analytics; and Leadership Development. Examples: Smarter Workforce (Kenexa) & Workforce Intelligence (Deloitte)

Assessment Trends for – 2014:

According to the - 2014 Global Assessment Trends Report (pdf) by Tracy M. Kantrowitz  (CEB) following image reflect the important trends.

(Image Source: Taken from 2014 Global Assessment Trends Report)

These assessments are used for a variety of HR Functions, led by External Hiring (76%), Internal Hiring (65%), Leadership Development (56%) and Career Development (44%).  There are numerous options available to HR Professionals; hence selecting appropriate assessment is important. However, according to the report it’s essential to consider following factors before taking this decision.

- How well the test measures critical competencies?

- Duration of the assessment.

- Legal issues surrounding the job relevance of the assessment.

- Assessment delivery mode - onsite, remotely or via mobile devices.

- We cannot assume that all assessments are equally effective.

- Assessment that is well-designed.

- Assessment proven to be valid.

- And its direct link to job and organizational performance.

Other relevant findings in the report are as follows:

• Identifying high-potential (HiPo) talent is a new global top priority and use of assessments.

• Only half use talent metrics to prove ROI or to inform business decisions.

• Integration of assessment data with HRIS seen as critical, but integration capabilities fall short.

• 61% of respondents use HRIS for external hiring but only 34% report integrating assessments into that process.

•  Use assessments for hiring 73%, for development and promotion decisions 40%.

• Pre-hire 62% & Post-hire 34%

• Social media searches are top future hiring tool, despite only a quarter of respondents having formal policies on its use.

• Companies allow recruiters to use social media information for hiring decision – 24%

• Using information on professional networking sites – 42%

• There is growing interest in mobile assessment for recruitment, with clear geographic differences.

• When in doubt, don’t hire – keep looking.

• When you know you need to make people change, act.

• Put your best people on your biggest opportunities, not your biggest problems. 

The research carried out by Jim Collins was based on concrete data and hence cannot be ignored.  He outlined three practical disciplines:

Hence selecting appropriate assessment tool is significantly important for hiring ‘Right People’. If we use these tools, which are validated and are reliable according to industry experts, it will certainly assist in developing robust hiring processes in the organization to get ‘Right People’. It will obviously increase the probability of success and our decisions are supported by proven methods. However retaining employees and subsequently developing them using appropriate T&D strategies would remain an important task for HR Professionals. Please provide your valuable suggestions and recommendations (including options not covered above) in the comments.

In conclusion Jim Collins says it’s possible to build a great company and also build a great life. He says, “Adherence to the idea of “first who” might be the closest link between a great company and a great life. …If we spend the vast majority of our time with the people we love and respect - people we really enjoy being on the bus with and who will never disappoint us – then we will almost certainly have a great life, no matter where the bus goes.”  

IBM Leadership Competencies

I had referred to 11 IBM Leadership Competencies in my previous posts. Fortunately I had managed to get more details (below) of these competencies in Management and Organisational  Behaviour by Laurie J. Mullins – (2005)(Page 319-320). Hope this would give us additional insights to understand efforts taken by Mr. Louis Gerstner for the transformation of IBM during his tenure. [ IBM - List of Competencies page 210, Who Says Elephants Can't Dance? (2002) ]. This post will give us a complete picture of the significant role of competencies in organizational transformation. 

Focus to Win

Customer Insight

Outstanding IBM managers and senior professionals put themselves in the minds of the customer, and see customers’ needs and businesses, from the customers’ point of view. They focus on the unexpressed or future needs of the customer. Managers and senior professionals having Customers’ Insight go beyond IBM’s exemplary responsiveness to customer complaints or problems. They don’t just try to sell IBM products or services. They spend time with customers and others in the marketplace to understand the underlying, unmet needs that technology can address. On the basis of this understanding, they focus on new business opportunities for their area by finding a product or service that is quickly recognised as valuable to the customer. In support functions, outstanding IBM managers and senior professionals focus on understanding the real needs of their internal customers and on providing solutions that meet them.

Breakthrough Thinking

Outstanding IBM managers and senior professionals use their abstraction capabilities on focus on what is really important and to provide new insights on how IBM can win in the market-place. They are able to face complex issues in a quick and innovative way (they adequately process information and provide the right support to reach the prospected goals). They identify and develop new solutions. They explore the market, recognise trends, look for new ways to capture even the smallest segments or niches in which to concentrate their efforts and actions. They are interested in understanding how other areas of business interact with their own in order to exploit and develop new market opportunities or new ways of doing things.

Drive to achieve

Outstanding IBM managers and senior professionals are constantly looking for ways to make things better (e.g. do things faster, at lower costs, or higher quality). They set improvement and challenging goals for themselves and their areas and evaluate results to see how they (and their businesses) are performing. They act on their own initiative and take on responsibilities. They take calculated business risks to pursue challenging goals and to improve performance on the basis of an explicit cost/benefit analysis.

Mobilize to Execute

Team Leadership

Outstanding IBM managers and senior professionals create and focus on the sense of urgency to meet a challenge or to implement a strategy to reach their goals. They provide a sense of direction and purpose to their team and use ongoing and influential actions to encourage people to pursue that direction. Team leadership is critical to execution.

Straight Talk

Outstanding IBM managers and senior professionals candidly tell the truth and openly share relevant information with peers, managers and subordinates. They ensure the ‘whole’ story is told, not just their position. They act with integrity that is consistent with their beliefs, e.g. telling the truth when it is difficult or when such truth will be unwelcome. This leadership capability is essential to energise a team to quickly execute a new direction.

Teamwork

Outstanding IBM managers and senior professionals work collaboratively and co-operatively across organisational lines and with their own teams to serve the customer and win over competition. They can be relied on to actively support and enact team decisions or commitments to the team. They accurately and objectively represent their managers’ and peers’ perspectives to the team members. They foster teamwork by treating their own teams with respect and empowering them to make decisions without second guessing. They celebrate their team’s successes and encourage all team members to be accountable to each other, and to work in collaboration across organisational lines.

Decisiveness

Outstanding IBM managers and senior professionals make and act on tough decisions with the speed and sense of urgency needed to stay with or ahead of the market, competition and customer needs, or to improve the organisation.

Sustain Momentum

Building Organisational Capability

Outstanding IBM managers and senior professionals act to build the organisation’s longer-term ability to produce and sustain excellent results. They take control of the situation to improve it, and follow through in an influential manner. They proactively and quickly re-align the systems or processes of their own area. They ensure that the right people are in place and that effective networks across the organisation, correct measures and information are implemented and supplied to support the business strategy, not just for the sake of change.

Coaching

Outstanding IBM managers and senior professionals actively mentor or coach others in an individualised, one-to-one manner to build a strong team now and for the future. They take on responsibility to identify and to support the development of talented people and have a positive impact on the professional growth of IBM’s people. They enjoy seeing other people grow and move on.

Personal Dedication

Outstanding IBM managers and senior professionals act in ways that promote organisational goals and strategies. They align their personal needs, priorities and activities with IBM needs and goals – not with their own individual organisation. They support tough decisions made for the overall benefit of IBM.

The Core

Passion for the Business

Outstanding IBM managers and senior professionals are passionate about their business and winning in the marketplace. They are excited about what IBM technologies and services can do for the world. They are enthusiastic about how IBM serves its customers and wins over competitors. They embrace IBM’s purposes to move with the speed customers are expecting, providing them with leading-edge networks and technologies. And they want to ‘get it right’. Passion for the Business is at the ‘heart and soul’ of the model. It fuels Customer Insight, Breakthrough Thinking and Drive to Achieve, which energise them.