2
Managing and Leading People
Purpose
To ensure a Leadership and Team Based Culture exists to capitalize on agile organizational changes in alignment to changing market and customer dynamics. To develop the capabilities and competencies required to optimize plans through the development of analytics and drive the business to Class A levels of performance.
Positioning
Managing and Leading People includes all aspects of People Operations from Strategic Planning to establishing a team-based environment to support Business Excellence and Class A levels of performance. It includes Knowledge Management, analytics, education, training, innovation, organization design, leadership style, teamwork, empowerment, appraisals, mentoring, measurement, communication, health, safety, the environment, transformation, and decision making. The chapter supports all processes of the business and ensures the leadership and people needs are identified and deployed to support and drive roadmaps.
Process maturity improves over time through education, committed leadership, expert guidance, and focused effort to attain key business milestones.
Done well, a Class A Milestone is achieved at the top of Phase 1 of Business Maturity (see Foundation, Figure I.1). At this stage, good functional team working has been established with two-way communication. Soft management techniques are being used to complement the hard. Trust, honesty, openness, and humor lubricate the organization.
From this Class A Milestone vantage point, we introduce the next level of maturity in the seventh edition of The Oliver Wight Class A Standard for Business Excellence.
Chapter Content
- Driven by Strategy
- Integration
- Leadership
- People in Teams
- Talent Development and People Retention
- Communication
- Organization Design Development and Planning
- Business Improvement and Learning
- Consistent Working Practices
- Management of Health, Safety, Environment, and Community Relations
- Performance Measurement
Driven by Strategy
1. The Value Statement and Guiding Principles Identify How the Company Culture Will be Lived. They are Evidenced in All Roadmaps and Govern Behaviors.
a. Values and Guiding Principles Documented and Visible
The Values and Guiding Principles are both documented and visible for all employees. They are well publicized throughout the company. This is a proactive process that seeks to refresh the presentation regularly to ensure their ongoing use.
b. Live Them
Leadership lives the Values and Guiding Principles by best role model behavior. Similar demonstrations from managers, supervisors, team leaders, and all employees are evident.
c. Culture Aligned to Values and Guiding Principles
The Values are the glue that binds the organization together, and the culture is continuously checked for alignment with the Values. The employee engagement survey is part of this process.
d. Linkage to Company Roadmaps
The Value Statements and Guiding Principles can be seen throughout the company's roadmaps as a thread linking them together. The owners can articulate that linkage.
e. Trust
Trust is highly valued throughout the organization. Key behaviors are widely recognized as there is a broad appreciation of the trust equation.
Integration
2. The People Operations Roadmap is Integrated with the Driving and Supporting Roadmaps and Demonstrates the Commitment to Aligning All Employees with the Strategic Plan.
a. Create and Document
The People Operations Roadmap is drawn up and owned by the Leadership Team. It is documented and reviewed at least annually to ensure it remains aligned to the driving roadmaps.
b. Integrated and Aligned
The People Operations Roadmap is aligned and integrated with all roadmaps and drives the development of a team-based organization.
c. Awareness
Leadership formally and informally receives feedback from all employees on both the relevance and effectiveness of the People Operations Roadmap. Employee engagement surveys are conducted annually; outcomes and actions are recommunicated to all.
d. Coordination
People Operations activities are coordinated via the Integrated Business Planning process to ensure alignment with all other plans.
Leadership
3. The Leadership Team Articulate and Demonstrate Leadership, Individually and Collectively. They are Widely Recognized as a Team.
a. Understanding of Leadership versus Management
The Leadership Team know and understand leadership qualities. They can demonstrate the difference and balance between management and leadership through a shared understanding and application of Situational Leadership.
b. Demonstration Role Model
The Leadership Team, individually and collectively, are seen by the rest of the organization as role models for leadership. They constantly drive the organization to improve, and set and live up to high business standards.
c. Leadership Capabilities for the Future
The Leadership Team recognize that leadership styles, skills, and abilities will change over time. Plans are in place to ensure the right mix for future team requirements.
4. Leadership is Encouraged and Rewarded Throughout the Organization.
a. Identification of Leaders
Employees at all levels of the organization who demonstrate leadership qualities are empowered to take on challenging assignments.
b. Education and Training
Employees with leadership potential are educated and trained to nurture the required future skills and behaviors.
c. Encouragement, Reward, Recognition, and Visibility
Employees who demonstrate and meet leadership challenges receive appropriate recognition and rewards. Successes are celebrated and made visible to all.
d. Leadership Culture
The culture supports the development of potential future leaders. Mentors are assigned. Mutual trust and accountability are visible. Mistakes made while learning are tolerated. The rules are clear, and credit is shared.
People in Teams
5. Teams are Utilized as the Primary Means to Direct, Organize, and Carry Out Work.
a. Team Selection and Charter
Consistent criteria are used to select team members. Teams develop and work to an agreed charter to satisfy the scope of their tasks.
b. Team Training and Team Building
Teamwork is sustained using training and team-building activities.
c. Team Performance, Results, and Recognition
The company rewards team performance, not just that of individuals. Team results are maintained and displayed by the team.
d. Teams Aligned to Business Processes
Teams enable business processes that drive business goals before functional or personal needs.
6. An empowerment Culture Exists to Support Decision Making and Enable Teams and Employees to Achieve Their Goals and Responsibilities.
a. Team Based
When selected for teams, people understand their roles, their responsibilities, and the scope of their empowerment.
b. Empowerment Increases with Maturity
As the company's environment matures toward self-managed teams, a boundary-less mind-set develops, increasing the effectiveness of empowerment.
c. People Accept Empowerment and Are Accountable for their Actions
People openly and readily state their accountabilities and responsibilities. The environment supports learning which is naturally shared team to team. Individuals recognize and embrace their team roles.
Talent Development and People Retention
7. The Development of the People is Strategically Important and Actively Deployed, Building a Database to Support the Development and Retention of People.
a. Resources Fully Committed
The company commits resources, time, and finances to drive talent, skills, and knowledge.
b. Development Planning and Measurement of Success
Education and training are aligned with the Strategic Plan to ensure the right education and training are done and that they are cost-effective. Education and training include the principles of process and behavior change in an organization rather than just fact transfer tied to specific technology.
c. Performance Appraisal (Individual and Team)
Performance appraisals provide employee and team feedback on key performance indicators that are linked to the roadmaps, programs, projects, business processes, and goals. The performance appraisal process includes individual goal setting and personal development plans. They ensure the application of talent, skills, and knowledge gained. The process can provide 360-degree feedback at all levels.
d. Equal Opportunities for Personal Growth
The company maintains the opportunity for advancement of all individuals within the organization equally with other applicants, both inside and outside the company.
8. The People Operations Roadmap Assures the Talent, Competencies, and Skills Required for the Future.
a. Talent, Competencies, and Skills Defined and Linked to Roles
Talent, competencies, and skills that are critical to successfully implement the Strategic Plan have been identified in each business process. These talents, competencies, and skills may vary but should include satisfying customer requirements, process knowledge, teamwork, innovation, mentoring, financial competency, analytics, modeling, and governance.
b. Succession Planning
Career paths are clearly identified and communicated. Succession planning includes external recruitment. Measures are in place to monitor and improve the deployment of succession plans.
c. Improving the Employee Life Cycle
There is an established process to improve the Employee Life Cycle, focusing on every part, from recruitment and selection to career development, coaching, mentoring, and retention.
d. Developing and Retaining the Right People
The People Operations Roadmap ensures that the Employee Life Cycle takes into account all needs, both team and individual, to ensure employees fully value the benefits of expanding their contributions and actively extending their life in the organization. Employees own their personal development with funding available through the roadmap.
e. Employee Departures Used to Improve Talent Management
Regretful employee departures are viewed as process failures and as opportunities to improve Talent Management.
Communication
9. Good Communication is Up and Down the Organization and between All Functions, Driving and Supporting Business Processes.
a. Natural Communication
The organization encourages natural communication between people. People at every level automatically give and look to receive information to help them in their jobs.
b. Communication Etiquette
The organization has educated people at all levels on how to communicate effectively. These skills are two-way, and positive communication behaviors are required from all employees.
c. Meeting Skills and Behaviors
There is a focus on the importance of meeting skills and behaviors. Training has been given. Positive meeting skills and behaviors are consistently reinforced.
10. The Company Has an Effective Communications Framework.
a. Definition
There is a comprehensive Communications Framework laying out the frequency, content, purpose, level of detail, venues, and importance of listening skills, for communication in the organization. Communication covers all levels and it is regularly audited for structure and effectiveness.
b. Closed-Loop Feedback (Perception Is Reality)
The communication process actively seeks feedback from employees at all levels. There is recognition that perception of the message is reality.
c. Face-to-Face Team Briefs
Face-to-face team briefing is practiced monthly throughout the organization and cascades through all levels with feedback of all answered questions to all.
Organization Design Development and Planning
11. The Organization is Planned and Designed to Ensure Achievement of Strategic Business Objectives.
a. Alignment with Strategy
The organization is aligned with the Strategic Plan such that the organization is optimally structured and staffed.
b. Simplification and Adaptability
The levels in the organization structure have been minimized. The organization is flexible and adaptable to changing business conditions.
c. Balancing Function and Process
The organization balances function and process. Functional depth is provided while recognizing business process characteristics. Business Excellence is fostered by design to meet internal and external customer needs.
d. Effective Planning
The company adapts the organization with an agile capability in response to changes in the market and customers. The expectations for roles, tasks, and business objectives are concurrently aligned.
e. Compensation
Compensation structure attracts and retains competent employees. Team-based rewards are important.
12. Employee Policies and Procedures are Consistent with the Organizational Design and Plans. They Reflect a Thought-Through Approach for Employees and are Seen to be Followed.
a. People Operations Procedures
People Operations policies and procedures are available and are reviewed at least annually. Important policies and procedures are visibly posted in the workplace.
b. Staffing and Resource Planning
Staffing and resource planning, including the use of temporary workers and outsourcing as well as selection and redeployment, are driven by the Strategic Plan and People Operations Roadmap.
c. Employee Relations and Recognition
Excellent employee relations are established, and leadership actions reinforce this. Recognition of individuals and teams is widespread.
d. Employee Welfare and Quality of Life
The company concerns itself with quality of life and the welfare of employees, actively improving the human side of work. The need for workâlife balance is considered in job design.
Business Improvement and Learning
13. The Management of Change is an Ongoing Requirement and is a Way of Life for the Entire Organization.
a. Education
Leadership and management embrace change and demonstrate this to all through the application of resources to business improvement.
b. Advocates and Change Agents
Advocates and change agents ensure that individuals and teams provide a welcoming atmosphere for new ideas and implement business improvement projects supported by their behaviors and actions.
c. Implementation
Change is planned and managed effectively, using proven methodologies.
14. A Learning Organization Has Been Established with Active Education and Training Reflecting Current and Future Business Needs.
a. The Need for Continuous Learning
In an environment of dynamic change, continuous shared learning and the application of shared knowledge support business improvement.
b. Knowledge Management
Knowledge is captured and built into processes and procedures. There is a routine capture and retention of comprehensive knowledge about the business.
c. Learning Benefits Individual Employees and the Organization
Employee development emphasizes learning that increases employee competencies and creative potential to support innovation and analytics.
Consistent Working Practices
15. Policies, Procedures, and Practices are Applied Consistently and Effectively.
a. Formal and Visible
Policies, procedures, and work practices are documented and visible throughout.
b. Educated and Owned
All employees own the working practices that apply to them.
c. Traceable and Auditable
In line with best practices, all policies, procedures, and practices are easily traceable and auditable by internal or external auditors.
d. Compliant with Widely Recognized Standards
Policies, procedures, and practices are universally compliant with applicable standards recognized to apply to their business.
Management of Health, Safety, Environment, and Community Relations
16. Managing Safety, Health, and the Environment is Embraced Throughout.
a. People
Employees view their own, their colleagues', and visitors' safety as their number one priority. The company understands the people and business benefits of a healthy workforce and supports employee well-being. Safety, health, and environmental awareness education and training are ongoing requirements for all and are part of the induction program.
b. Compliance with Regulation and Legislation
Current health, safety, and environmental regulations and legislative requirements are fully applied. Any changes are communicated promptly, and employees are educated and trained accordingly.
c. Tools, Auditing, and Measurement
All employees have sufficient knowledge and the proper materials and equipment to do their jobs safely and with minimum impact on the environment. Performance measures are included in the portfolio of key business measures for the company. Regular audits are conducted in the workplace.
d. Continuous Improvement and Elimination of Failure and Waste
All employees are committed to reducing the company's impact on the environment through the promotion of best practices and the continuous elimination of failure and waste. Opportunities for process improvements, recycling, and the reduction of waste output are constantly being identified and implemented.
e. Prevention
The company recognizes the importance of prevention in terms of health, safety, and environmental problems.
17. The Company Demonstrates a Continuous, Positive Commitment to the Local Community.
a. Proactive Commitment to Community Relations
There is a demonstrable, proactive commitment from the Leadership Team to strengthen relations with the local community. Continuous efforts are made to earn the trust and goodwill of the community. Two-way communication with the community is in place.
b. Community Validation
The company is respected by the local community. The benefits the company brings to the community are recognized. The company is a good neighbor.
c. Leadership
Leadership ensures that everyone in the organization understands the importance and value of good community relations.
d. Wide Range of Community Activities
There is widespread employee involvement in communications and activities with the local community.
e. Integration of Business Activity and Community Activity
Where possible, business activities are supportive of community needs, and community issues are considered part of the strategic and tactical implementation plans.
Performance Measurement
18. There is a Balanced Hierarchy of People Measures that are Fair and Effective. They Support the Cultural Environment for Business Excellence. Measures are Integrated as Part of a Business Scorecard.
a. Business Excellence
A balance of people measures is designed to support Business Excellence and is integrated with Strategic Business Objectives by a Measurement Hierarchy.
b. Reviewed
The key measures are regularly reviewed to align People Management activities to the People Operations Roadmap and achievement of Critical Success Factors. Key Performance Indicators and targets are changed to maintain visibility and prioritize improvement.
c. Hierarchical Linkage
There is a clear hierarchical link between the suite of key measures for each business process and the Business Scorecard. Once process proficiency has been established, the measures will be delegated or redefined or the targets revised.
d. Competitive Advantage
Key measures and associated Key Performance Indicators are a competitive advantage rather than a goal and drive individual and team-based behaviors.
e. Natural Feedback Mechanisms
Giving and receiving feedback has become natural. Feedback mechanisms and tools, such as surveys, social media, and virtual interaction, in addition to face-to-face interaction, are used to gain information to gauge employee satisfaction and organizational climate.
f. Measured Results Are Acted Upon
Leadership owns the analyzed gaps between desired and actual performance in all areas. The measure demonstrates business improvement and are benchmarked against Class A Business Excellence.
19. Process Measures are Used to Ensure Effective and Efficient People Management Activities. Performance is Monitored Relative to Established Targets, and Corrective Action is Taken to Close Gaps.
a. Recruiting and Retention
The cost of employee acquisition is monitored and continuously optimized. Employee retention measures, such as service longevity and turnover, are used to manage the workforce effectively.
b. Employee Development
Education and training spending per employee is linked to business improvement and Business Excellence measures.
c. High-Performance Work Environment
Team and individual results are measured versus required deliverables. Reliability and time to delivery are improving.
20. Business Performance Measures are Used to Ensure Efficient People Management Activities. Performance is Monitored Relative to Established Targets, and Corrective Action is Taken to Close Gaps.
a. Education and Training
Education and training spending per employee is linked to business improvement and Business Excellence measures.
b. Training Programs Strategically Focused
Training programs are used to develop skills required to deliver results effectively in support of strategy and appropriate roadmaps.
c. Capability Development Consistent with Roadmaps
Capabilities and associated competencies required to deliver the strategy are actively developed. Measures are in place to help assess organizational capability and individual competency gaps and effectiveness of resulting development initiatives.