Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement.

Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.



Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management's interest in the progress of the employees.


Objectives Of Performance appraisal:

To review the performance of the employees over a given period of time.


To judge the gap between the actual and the desired performance.


To help the management in exercising organizational control.


Helps to strengthen the relationship and communication between superior – subordinates and management – employees.


To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.


To provide feedback to the employees regarding their past performance.


Provide information to assist in the other personal decisions in the organization.


Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.



To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.


To reduce the grievances of the employees.


PERFORMANCE APPRAISAL PROCESS


ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.



MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.

DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Five Outsourcing Contract Areas to Consider

When considering a partnership to outsource one or more of a company’s functions, it is important to design and analyze the contract to meet multiple business requirements. All contract points should be synergized to guide the desired outcome based on their collective outcomes.
1. Service level agreements (SLAs):
An SLA is an official document included in the master contract for an outsourcing agreement that includes a detailed description of services required and level of performance needed. When preparing an SLA, design it to meet the needs for project success in deliverables as well as financials. Set a standard when reviewing potential outsourcing partners’ capabilities and making a provider selection. Outsourcing requires a high level of trust, and only with careful planning, monitoring and execution of the SLA will success be obtained.
2. Legalities:
Hire a legal firm, or use an in-house legal expert to take advantage of his or her experience designing outsourcing contracts. Look for specific verbiage on the contract that covers risk mitigation, change orders, regional compliance issues, delegation of tasks, partial or total delegation, ownership of IP and future retention after the contract term, contract termination measures, transition of tasks, and other items that may be necessary.
3. Expertise:
The goal is to make the outsourcing process seamless – new assets are just like talent. Whether it’s an outsourcing provider’s technical proficiency, specific industry niche experience or ability to perform at the expected level, on time and budget, draw on that provider’s expertise. If the project will require ongoing compliance to changing laws and obtaining various certifications, engage an outsourcer with a proven track record. The outsourcing partner must be knowledgeable of requirements for initial project phases and have the capabilities and be forward-thinking enough to obtain what the organization needs to remain compliant and on target.
4. Milestones:
Setting milestone achievements is key in the outsourcing contract. Milestones should involve any and all actions toward specific needs. Product delivery phases, personnel deployment, fee allocations, acquiring specialized permits or certifications, obtaining government approvals and creating valuable training programs are just a few items to include when expecting milestones to be met during contract duration.
5. Backup plans:
Even after completing due diligence in selecting an outsourcing partner, an organization needs a plan B, or backup plan, as a contingency. In some cases, it may help to have a plan C. Outsourcing partners may be acquired or suffer an unexpected financial decline, even though their past financials reflect a strong position. Unexpected acts of nature, wars, embargoes, natural and man-made disasters, sudden passing of key management figures, and many other factors can contribute to a sudden change of contract plans.
Outsourcing is a necessity today. Enhancing company value to shareholders while focusing on core competencies is a daily challenge. If talent leaders monitor and balance talent assignments, equipment allocation and other assets while performing within financial constraints, with the right preparation, attention to detail and ongoing oversight, outsourcing contracts can become a key business asset.
by Richard G. Shulman | Talent Management
[About the Author: Richard G. Shulman is a director at The Training Associates.]

Managing Staffing Management

Daniel Margolis

Staffing agency Kelly Services places top talent in employment opportunities across the globe — all while developing its own internal talent.

As a staffing agency, Kelly Services operates in a space unique to its industry; its product is people. According to Nina Ramsey, senior vice president of human resources for Kelly Services, the overall company strategy as well as the company’s individual employee development plans are built around an understanding that Kelly deals in human capital.

“We ask people to connect their goals to the three strategic objectives of the company, which are all centered [on] people, profit and customers,” Ramsey said.

Kelly provides staffing services and employment opportunities globally. As with any international endeavor, it requires a fair amount of manpower to do so, boasting a workforce of 7,500 full-time employees. Ramsey spoke with Talent Management about the challenges involved in managing staff who manage staff.

TM: Describe Kelly Services’ approach to talent management.

Ramsey: As a company, strategically we made a commitment over the last couple of years toward creating a high engagement culture and [being] an employer of choice. We believe in a connection between employee engagement, customer engagement and then profitability — that whole equation. We know we need to focus on having the right leaders in place and additionally that we need to make it possible for people to grow and develop in their careers, not only for their current jobs but also for future roles. So our approach to talent management really touches every step of the employee’s life cycle while they’re with us, from the point in time that you’re sourcing and recruiting all the way to the point in time when they’re transitioning to other employment or to retirement, whatever the case might be.

TM: What processes or programs have you established to improve the performance of Kelly’s entire workforce?

Ramsey: First of all, we’ve built multiple competency models for all levels of the organization. Whether you’re an individual performer or you’re a leader of people, we have competency models that really cover all positions within the company. We developed an assessment methodology that we use for all our leadership roles. We have an extensive on-boarding program that was designed to establish an early connection to the employee as well as to reduce time to productivity. We’ve had great success with it because it’s allowed us to see an improvement in turnover for the people who go through this on-boarding program, and we’ve also seen a decrease in the time to productivity.

Right now, we’re in the process of developing career maps for every position in the organization so that people can see what their options are across the company — so not just in the group that they work with now, but in other groups down the road. We’re hoping to have a good number of those finished by the end of the year.

TM: How is performance management linked to Kelly’s strategic objectives?

Ramsey: Over the last few years, we’ve been sharing what the plan of the company is across the world through our intranet. And so our employees get a chance to see what the strategy of the company is in a concise fashion; we’ve got what we refer to as “the strategic plan on a page.” Department plans are linked to people, profit [and] customer strategy, and then we ask folks to fill out their performance plans to correspond with those three strategic objectives. And those plans are developed early in the year and reviewed at various points throughout the year — minimally at midyear, at which point we do an extensive check in on their development progress — as well as at the end of the year to evaluate overall performance for the year.

TM: What challenges impact talent management at Kelly?

Ramsey: From a technology standpoint, we’re a bit challenged in that we don’t have a single HRIM [human resource information management] tool across the world, and while we’re pleased with all of the capability that we have across the U.S., we are a global company, and we are finding it a challenge to connect all the dots across the world from an HRIM perspective. We are making progress in that manner, but we’re definitely challenged on the technology front from an HRIM standpoint.

The whole role of the leader as the most significant career coach the person will have in their journey — just establishing the role of the leader as coach — is new. So getting our leaders up to speed fast enough on what it means to be a career development coach is another challenge. We’ve had in the last couple of years, particularly with the economic challenges around the world, some limited resources in terms of rewarding developing people, and so that’s been a challenge. I don’t think we’re alone in that. Getting beyond the view that compensation is the answer to retention of top talent has been another challenge as well. Many of our leaders now understand and embrace that it’s more than just paying people enough, it’s everything you do for them from an environment standpoint and culture, as well as from a development perspective.

TM: How does Kelly work to change or create leadership and management behaviors that lead to optimal workforce performance?

Ramsey: We’re really privileged to have a talent leadership advisory board at Kelly that’s comprised of senior leaders across the company, so their prime focus is to ensure that we’re building the bench strength needed for the company.

We’ve created and launched a leadership blueprint for the company, and the blueprint is really an aspirational competency model for what it means to be a leader at Kelly today and our vision for what the leaders of the future will look like. That’s really the basis from which we’re developing selection tools [and] development opportunities and we’re making succession and transition moves for the company.

TM: How does Kelly develop organizational culture and employee attitudes to optimize workforce performance?

Ramsey: There’s been an intentional focus over the last few years on executive messaging around the strategic direction of the company and the expectations of leaders and the progress that we’re making against the strategy. We are committed to engagement surveying and action planning, and we’re open about the results and the actions that we’re taking. [We have] an increased focus on acknowledging and celebrating success where we see it happening around the company.

TM: How does Kelly use learning and development to manage talent?

Ramsey: Every employee is encouraged to have a professional development plan to begin with. In our performance management technology, we’ve got a skills assessment that’s mapped to the learning available to them. It has recommendations in it that balance out traditional ways in which one can learn via classroom and online to even on the job. We also [offer] more experience-based learning recommendations, providing development opportunities for people that we view as top talent to prepare them for future roles that we’ve identified they’d be capable of performing.

TM:
What processes or programs have you established to attract, recruit and retain top talent?

Ramsey: The on-boarding program that we implemented has been one of our most extensive efforts with regard to engagement and retention. We’ve seen a decrease by 85 percent in turnover and a 27 percent improvement in productivity with the folks who have been through that program, so it’s been very encouraging. We also launched a pivotal talent initiative a little over a year ago where we’re beginning to look more carefully at revenue-generating roles, honing in on what the customers require of those roles; what skills and capabilities are needed to perform them; [and] what do we need to do to make sure that we have the right reward strategy in place for those roles.

TM:
How do you measure workforce performance?

Ramsey: We do it through looking at individual accomplishments against one’s goals on their performance plans. We look at unit and organizational measures as well, largely either key projects that have been accomplished, whether the financial measures have been achieved, both on an individual unit or organizational level. We measure turnover and hold leaders accountable for [it, and] we measure engagement and hold leaders accountable for their engagement scores.

TM: How do you use assessments to manage Kelly’s talent?

Ramsey: Beginning a couple of years ago, we installed a leadership assessment approach for the company, and we’ve thus far looked at the top 200 folks primarily in our operational roles in the company. We’ve not gotten to all of the support staff yet, but [we have done it] in the operations area. That assessment process is comprised of some self-assessment, but also 360-degree assessment, looking at one’s current performance as well as potential. So we’ve done that across the organization, and the result of that has really told us where the common development needs are. We’re able to use that information as a basis for which we develop curriculum and implement programs around the world that will support those more common development needs.

TM: What’s next for your organization in terms of talent management and workforce performance development?

Ramsey: We intend to continue using the pivotal talent approach that we’re taking to look at revenue-generating roles and developing the right approach for selecting, developing and rewarding [talent]. We will be doing some targeted workforce planning to correspond with the strategy of the company. We’re going to do some targeted succession and development of folks that are working on key business initiatives, some folks that have been identified as top talent for successor roles. And we’re adding some additional leadership curriculum over the next several months to correspond with what we learned through our assessment pro

Daniel Margolis is a managing editor for Talent Management magazine.

Competency model for 360 degree feedback

COMPETENCY MODELS FOR 360 FEEDBACK SURVEYS

The first thing to decide is whether you want to work from an existing competency model or develop your own. Resist the temptation to re-invent the wheel. Many companies spend a great deal of time and effort creating a "unique" competency model for their 360 degree feedback program which ends up looking quite similar to our existing competency model.

If you will use 360 feedback surveys on a limited basis in your organization, consider using an existing competency model, perhaps with some minor adjustments to the evaluation form as needed.

For a company-wide 360 degree feedback program, you may want to spend some time developing a more unique competency model that incorporates your organization's leadership model and core values as well as the behaviors and performance standards that are expected of all employees.



Establishing the Core of your 360 Competency Model

Some aspects of your competency model will be the same for all employees, regardless of function or level within the organization. Call this your "core". The core of your 360 survey will include the following:

Items related to company values, mission, and vision

Competencies and expectations that apply to all employees, from the CEO down to the individual contributor.

Many competencies or behavioral categories will apply to employees at all levels, but the specific behaviors in each area will often differ. For example, "Interpersonal Skills" are important for everybody, but the expectations and requirements related to "Interpersonal Skills" will be quite different at different levels in the organization.

Other competencies will only be relevant at certain levels. For example, "Building Talent" is an important area for mid-level management and above, but not at all relevant to non-managers.

Beyond the Core

It is less important to distinguish between functional area, especially for mid-level management and above. Focus on identifying 3 or 4 distinct vertical levels within your organization. For example:

1. Senior Leaders
2. Mid-upper Managers
3. Lower-level / First-line Managers
4. Individual Contributors (Non-managers)

For each of the 3-4 levels, the competency model will start with the "core", but also include the specific behaviors needed to succeed at each level.

Remember - don't reinvent the wheel. As you develop your competency models, reference our standard competency model as it will help you fill in the gaps as you create your own. The top-level categories will be based on statistical analyses and field experience. They are:

- Knowledge/Strategic
- Character
- Interpersonal
- Innovation/Change
- Building Talent
- Leadership/Motivation
- Execution

Different Competencies for People at Different Levels

If you are developing a 360 survey that will be used by people at different levels within your organization, the mix of categories and items will vary quite a lot across the various levels. It might help to think about the different levels in terms of the requirements for success in the following three areas:

Vision, Strategy, Inspiration

- Upper levels should include a lot of detail in this area.

- Middle levels should include some items in this area, but not too many. This is an opportunity to help people see what they will need to succeed at the next level, and also an opportunity for you to identify high potentials for promotions. Some degree of inspiring and motivating is relevant for anybody in a management role.

- Lower levels, especially individual contributors, should not include items in this area.



Teambuilding and Relationship Building

Upper levels should include a lot in this area, but some of the things that are included for mid-level might be excluded here. You do not have to be as thorough with regard to basic skills. Instead, focus more on support and relationship building at a higher conceptual level, and creating strategic alliances with other parts of the organization.

Middle levels should include a lot of detail in this area with regard to people-skills, team management, and fostering team effectiveness.

Lower levels should include a reasonable amount here, but look for areas that don't include things that are only relevant for higher levels. Include things related to working with others, cooperating, listening, and supporting team efforts.


Task Management and Execution

Upper levels should include items that are more focused on achieving results - they would not have reached the upper level if they had not been successful at the basic skills when they were at a lower level.

Middle levels should include quite a lot here, but some of the most basic items could be excluded.

Lower levels should include a lot in this area, focusing on the basic, fundamental skills of task management and job performance.

When you are finished, you will have 3-4 competency models along with a list of survey categories and items for each one. By following these steps, you will have a vertically integrated approach that uses a common core across all levels, but that also maps out a progression from the bottom of the organization to the top.


Here is an example of how a specific category might apply across all levels of the organization, but vary in its nature, depending on level:

Teamwork

Upper Levels

Encourages cooperation and collaboration between business units
Establishes partnerships at all levels to achieve results

Middle Levels

Resolves conflicts among team members
Sets clear, achievable goals for all team members to follow

Lower Levels

Works effectively to achieve team goals
Cooperates effectively with team members

What Engagement Means for learning leaders

What Engagement Means for Learning Leaders
by Daniel Margolis | Chief Learning Officer
 
Employee engagement is often thought of as more of a talent management issue than a learning and development one, a variable ultimately facilitating productivity and retention. But according to Gershon Mader, who, with co-authors Josh Leibner and Alan Weiss, wrote the book The Power of Strategic Commitment: Achieving Extraordinary Results Through Total Alignment and Engagement, engagement has a crucial takeaway for organizational learning and development, as it allows learning programs to thrive via a environment where innovation is encouraged and workforce buy-in is more total.
 
To develop this sort of environment, Mader stressed the importance of not just bringing about an open organizational culture but also tearing down hierarchical divisions that may exist in companies.
 
"Making sure that you're creating an environment that does cultivate innovative thinking, where people do feel that no matter where they are in the organization chart - the hierarchy of things - that if they've got some brilliant thoughts and ideas they are able to voice them, be considered, and even influence things through them, that becomes even more critical in a learning organization where the ability to think freely and innovatively is quite often key to success and the quality of programs," Mader said.
 
"There is a lot of frustration as you go further down in an organization," he said. "There is a frustration among the lower ranks that their value is based on their rank and that [for] someone who is on a lower level but has some really brilliant ideas, it's more difficult to be heard, to make a difference, to contribute. And when people are in that kind of environment, after a while, they quite quickly become resigned about all that stuff and they go into [a mode of] going through the motions - doing the minimum that's required - and it definitely has an effect of lower-quality learning programs."
 
Mader also stressed the importance of leading by doing with respect to engagement. "Any learning organization needs to be a demonstration of whatever it's teaching," he said. "And often there's a dissonance there. Organizations are widely criticized [for] not doing some of the stuff that they are preaching down to organizations, and therefore they lose their credibility and ability to make a difference."
 
Mader, Leibner and Weiss have developed the following employee engagement dos and don'ts:
 
Do:
 
a) Actively ask for input from all departments and levels.
b) Promote and incorporate others' ideas.
c) Ask your staff what they would start, stop or continue doing in your position.
d) Routinely balance out your meetings by discussing both strategic and tactical issues.
 
Mader spoke to the learning benefits of this kind of inclusiveness. "The products and the services that learning organizations produce need to make a difference with different customer bases," Mader said. "The more the organization really engages its stakeholders and customers upfront to make sure that what they're designing and doing is really in sync with the needs, priorities and commitments of other departments, the more powerful what they're creating will be."
 
Don't:
 
a) Make strategic development an exclusive club limited to the higher-ups.
b) Stifle strategic thinking by not being open to and acting on others' feedback.
c) Try to maintain control by micromanaging.
d) Solely focus on an encourage tactical thinking in meetings.
 
According to Mader, such missteps mean a great deal of missed opportunities. "A lot of experience, expertise [and] ideas don't get invited to these conversations, even though [the employees] and their superiors know that that's probably a wise thing to do," he said. "It produces resentment [and] frustration [and] goes into people going through the motions, getting more in a mode of compliance."
 
This, Mader cautioned, is the ultimate result of neglecting employee engagement: people mentally "checking out."
 
"Then you've got highly skilled, knowledgeable and passionate people who don't bring their heart to the game; they don't bring the passion," he said. "They'll sit in meetings and pick their battles, not bring up innovative thoughts, definitely not stuff that they would think may not be accepted, would be outside the box or outside of the common way of thinking - outside the way they access or evaluate what their boss or boss' boss likes or doesn't like. So there will be no productive, constructive conflict in the organization, creative conflict. It'll be more like a yes-man kind of mentality, where people follow [and] say the right things, what they know will be accepted. In essence, it weakens the organization."
 
 
[About the Author: Daniel Margolis is a managing editor for Chief Learning Officer magazine.]

Lessons From 'Outsources'

by Deanna Hartley | Talent Management
The global nature of business today oftentimes entails overseeing teams comprised of foreign nationalities – a reality that has spawned “Outsourced,” an NBC sitcom that documents the journey of a manager whose department gets outsourced to India.
“I worry about people seeing the show. Because it’s in India, they somehow would think there are different rules in India about managing human behavior – and there aren’t,” said Aubrey Daniels, author of Oops! 13 Management Practices That Waste Time and Money.
The core management principles that enable employees to perform effectively are the same, regardless of geography, he explained. Bosses on shows such as “The Office” and “Outsourced” amuse audiences because they are often clueless as to why they can’t influence their direct reports to behave in certain ways. According to Daniels, this is because they take a one-size-fits-all approach to workforces.
“Any time you try to reinforce everybody with the same thing – whether it’s something you say or something you give them – you’re going to be in trouble, because what’s positive to one may be negative to another,” he said. “In ‘Outsourced,’ there are going to be lots of occasions like that, where the American is going to try to reinforce everybody with ‘steaks [are] on me’ – and that may not go over very well.”
Here are a few tips for managers of global – or even local – teams to improve performance.
1. Learn employees’ positive reinforcers.
“You could pat somebody on the back and not increase whatever they’re doing, so that would tell you that’s not a reinforcer,” Daniels said. “We need to look at behavior to see the impact of what we do. If I’m going to have a good relationship with you, then I’m going to have to pay attention to you; I’ve got to watch your behavior and how you respond to things I do.”
In an organization, this may entail setting up candid one-on-one meetings with direct reports.
“We sit down with [the employee] and say, ‘Tell me what’s important to you, what you’re trying to accomplish here. Why did you come to work here? What do you want to accomplish for yourself short term and long term?’” he said.
Doing so not only empowers the individual to contribute his or her best to the organization, but also helps managers develop a good working relationship with direct reports.
2. Pinpoint behaviors that add value.
Throwing out ambiguous statements, such as ‘We want you to take more initiative,’ doesn’t serve to improve employee performance, Daniels explained.
“We want to determine what drives the result we’re trying to accomplish, and we find over and over again that managers don’t know what it is, as basic as that seems,” he said.
For this reason, it would behoove managers to pinpoint behaviors that add value and be specific when communicating them to their direct reports. In a sales situation, it may be setting up meetings with prospective customers, writing proposals, etc.
3. Graph employee progress.
Graphic feedback – or feedback plotted on a graph or chart of some sort – allows managers to track the progress of individuals or groups, Daniels explained.
“The value of a graph is you can see small changes in behavior, which allows you many more opportunities to reinforce them than if you’re not tracking it,” he said. “Other people seeing that can comment on how well you’re doing, so you can get social reinforcement as well as reinforcement from the boss.
For example, graphically tracking the frequency of customer contact in a given week may help a bank strengthen its relationship-banking efforts.
4. Reinforce behaviors that contribute to progress.
Tangible business results aren’t immediately obvious. For example, it may take the aforementioned bank a month to begin to detect an increase in sales.
“The problem is, if you didn’t get some form of recognition for the effort you were making in contacting the customers, then in four weeks your effort would diminish because the results are lagging the behavior,” Daniels said. “If you know that contact with customers is going to increase sales, then your job as a manager or supervisor is to make behaviors get enough reinforcement to keep them going until such time as they begin to see [an] increase in sales.”
5. Celebrate results.
Managers typically commend their teams for a job well done by calling them together, telling them how well they performed and providing something tangible, such as cash incentives or time off.
“We talk about a celebration as an opportunity to relive an accomplishment,” he said. “The celebration should be employees talking about what they did to create that result. That’s their reinforcement because it allows management to see how smart they are, how hard they worked, how difficult it was, etc.”

Ready Set Innovate

Innovation sits at the top of most corporate priority lists today. Faced with a challenging business environment, bosses want more creative products, ideas and solutions to remain competitive. But when it comes to making innovation happen, most simply don't have a clue.
 
Many employees simply shut down and eventually stop trying to come up with new ideas and products, said Josh Bernoff, co-author of Empowered: Unleash Your Employees, Energize Your Customers and Transform Your Business. The cause for their lethargy? A lack of tools to make innovation happen and managers who, often despite good intentions, obstruct their ability to develop new ideas.
 
"Then the CEO says, 'How come nobody in our company comes up with any ideas?' You've trained them that's a bad idea," Bernoff said. "That's a bad thing if they come up with an idea. If they ever did, they certainly wouldn't tell you."
 
The key to making innovation happen isn't setting the direction or making sure that innovation is a priority, it's ensuring that all employees, especially those on the front line, are empowered to solve customer problems. So why aren't companies doing it? It strikes right at the heart of how companies are run, he said.
 
"You can build a strategy around empowering employees to solve customers' problems - but it will challenge your organization from the inside," Bernoff said. "Freeing employees to experiment with new technologies, to make high-profile decisions on the fly, to build systems that customers see, and to effectively speak to the organization in public is not something most corporations or government agencies are accustomed to doing."
 
Open Up Management and Technology
 
Idea generation and innovation are simply not aligned with most employees' goals and daily responsibilities. Traditionally, most strategy comes down from above and managers spend their time telling workers what their jobs are and, in many cases, how to do them. IT departments don't help, either. According to Bernoff, more than one-third of workers are using technology that is not sanctioned by their company for their job, such as downloaded software or online social networking sites.
 
"Consumers these days are so empowered with technology, they move so rapidly, change the technologies they're using - whether it's mobile, video, social - that you really can't serve their needs with a top-down organization anymore," Bernoff said. "The same technologies that are empowering consumers are also empowering employees. It's really easy and cheap now to sign up for Twitter, to start a customer community, even build a mobile site."
 
"You can't succeed unless you encourage them, support them and manage that as opposed to squash it, shut it down and tell them it's not permitted."
 
Find and Celebrate HEROs
 
It's a common misconception that organizational change needs to start at the top in the lofty reaches of the corporate C-suite.
 
"Change actually starts from the bottom," Bernoff said. "You just need to find one of these projects and do what's necessary to clear the obstacles out of the way."
 
Talent managers play an important role by locating what Bernoff calls HEROs - highly empowered and resourceful operatives. When they find them, managers should elevate their visibility by giving them awards and recognition and communicating the results of their innovations so the rest of the workforce understands the company supports their initiative.
 
"That goes a long way," Bernoff said. "People look at that and say, 'You know what, if he can do that, maybe I can do that, too.'"
 
Companies can begin to break down the barriers to innovation by starting small. It's a bad idea to start with the company's biggest product or biggest customer group. Bernoff recommended starting with something that is not so risky.
 
"So just like anything, these things can pick up speed," he said. "The people who build these projects - these HEROs - they become important in identifying how to change the company. You want to put in processes that support innovation in a more deliberate way. If I have an idea, what should I do? You can put a process in place where that can go through and get evaluated."
 
Bernoff points to power tool maker Black & Decker as an example of how empowered employees with the right tools can make a difference. Rob Sharp, head of sales training for Black & Decker, gave Flip video cameras to salespeople and asked them to record ideas from the field. This simple idea quickly generated sales tips and helped the sales team work more efficiently.
 
"They have cut the amount of training down from two weeks to just a few days in the office because they say to trainees, 'Before you come in here, go over here and look at these videos, and then when you come in, we'll be ready to go,'" Bernoff said.
 
While empowering employees is key, it's important to get managers to understand how to do it.
 
"You have to tolerate some failures," Bernoff said. "You need to look at your job as being to clear away obstacles. These things typically reach across boundaries and raise all sorts of questions that a person doesn't typically come up with. That sort of discipline and management is a little different.
 
"If your problem is that you don't trust the customer service people to do their jobs and that if you give them access to these tools, they'll be fooling around all day long, that's management problem. That's not a technology problem."
 
 
[About the Author: Mike Prokopeak is editorial director for Talent Management magazine.]