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Topgrad ng Topgrad ng 1 Topgrad ng Topgrad ng TopGrading TopGrading With Ron Huntington With Ron Huntington Topgrad ng Topgrad ng 2 Topgrad ng Topgrad ng How Leading Companies How Leading Companies Win by Hiring, Coaching Win by Hiring, Coaching and Keeping and Keeping the Best People the Best People

TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

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Page 1: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 1

Topgrad ngTopgrad ng 11

Topgrad ngTopgrad ng

TopGradingTopGradingWith Ron HuntingtonWith Ron Huntington

Topgrad ngTopgrad ng 22

Topgrad ngTopgrad ng

How Leading CompaniesHow Leading CompaniesWin by Hiring, Coaching Win by Hiring, Coaching

and Keeping and Keeping the Best Peoplethe Best People

Page 2: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 2

Topgrad ngTopgrad ng 33

For BuilderBooks and EMTFor BuilderBooks and EMTTopgrad ng Topgrad ng

Topgrad ngTopgrad ng 44

Topgrad ngTopgrad ng

1. 1. PeoplePeople2. Strategy2. Strategy

3. Execution 3. Execution -- andand4. Cash 4. Cash –– Financial PerformanceFinancial Performance

Four Decisions you Four Decisions you mustmust get right!get right!

At Gazelles, we help our Clients face At Gazelles, we help our Clients face 4 critical Areas of Decision Making:4 critical Areas of Decision Making:

Page 3: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 3

Topgrad ngTopgrad ng 55

““Life is tough; but Life is tough; but itit’’s tougher if yous tougher if you’’re re

stupid.stupid.””John WayneJohn Wayne

Topgrad ng Topgrad ng Notable QuotablesNotable Quotables

Topgrad ngTopgrad ng 66

Topgrad ngTopgrad ng

What is TopGrading?What is TopGrading?

Page 4: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 4

Topgrad ngTopgrad ng 77

Topgrad ngTopgrad ng

Hiring The Best:Hiring The Best:““AA”” PlayersPlayers

Separates Premier from Mediocre.Separates Premier from Mediocre.

Separates SuccessfulSeparates Successful………….. .. from Everything Less!from Everything Less!

What is Topgrading?What is Topgrading?

Topgrad ngTopgrad ng 88

Topgrad ngTopgrad ng

Packing the TeamPacking the Teamwith with ““AA”” PlayersPlayers; ; and and Clearing OutClearing Outthe the ““CC”” Players.Players.

What is Topgrading?What is Topgrading?

Page 5: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 5

Topgrad ngTopgrad ng 99

Topgrad ngTopgrad ng

GOAL:GOAL: Filling Filling EVERYEVERYPosition in the organization Position in the organization

with an with an ““AA”” Player Player --at the appropriateat the appropriate

Compensation Level.Compensation Level.

What is Topgrading?What is Topgrading?

Topgrad ngTopgrad ng 1010

Topgrad ngTopgrad ng What is Topgrading?What is Topgrading?

Offer:Offer:

New New ““AA”” Player on StaffPlayer on Staff

1.1. Sourcing & PreSourcing & Pre--Screening of Screening of ““AA”” PlayersPlayers

2.2. Screening InterviewScreening Interview

3.3. CIDS InterviewCIDS Interview

4.4. Team InterviewTeam Interview

5.5. Reference CheckReference Check

6.6. Background CheckBackground Check

Page 6: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 6

Topgrad ngTopgrad ng 1111

Topgrad ngTopgrad ng

““AA”” Players: Players: Top 10%Top 10%. . ““BB”” Players: Players: Next 25%Next 25%..““CC”” Players: Everyone Players: Everyone Else Else below the Top 35%below the Top 35%..

What are What are ““A, B and CA, B and C”” Players?Players?

Topgrad ngTopgrad ng 1212

Topgrad ngTopgrad ng

The TopGrading ClassificationsThe TopGrading Classifications

““AA’’ss”” –– ““BB’’ss”” –– ““CC--ss””::

Exhibit the

Values?

Make your Numbers?

YESYES

NoNo YESYES

NoNo

YES/NoYES/No

No/NoNo/No No/YESNo/YES

YES/YESYES/YES

“B”

“B”

“A”

“C”

Page 7: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 7

Topgrad ngTopgrad ng 1313

Topgrad ngTopgrad ng

““AA”” Players make things work; Players make things work; They press for progress and They press for progress and creative, energizing solutions, whilecreative, energizing solutions, while““CC”” Players drag their feet, resist Players drag their feet, resist change, stifle creativity, impede change, stifle creativity, impede advances, kill off good ideas, and advances, kill off good ideas, and encourage the status quo.encourage the status quo.

““AA’’ss”” and and ““CC’’ss””

Topgrad ngTopgrad ng 1414

Topgrad ngTopgrad ng

““AA”” Players are Players are Impact Impact PlayersPlayers: : The Top 10%The Top 10%of Talent Available at of Talent Available at ALL Salary Levels.ALL Salary Levels.

The The ““Best In Class!Best In Class!””

What Are What Are ““AA”” Players?Players?

Page 8: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 8

Topgrad ngTopgrad ng 1515

Topgrad ngTopgrad ng

Instead of paying Instead of paying Top Dollars for Talent,Top Dollars for Talent,get Top Talent for the get Top Talent for the

Dollars you Pay!Dollars you Pay!

What is Topgrading?What is Topgrading?

Topgrad ngTopgrad ng 1616

Topgrad ngTopgrad ng

An An ““AA”” Player, then, is Player, then, is ““Best of Class;Best of Class;””““AvailableAvailable”” means willing means willing to accept a job offer for an to accept a job offer for an open position.open position.

What is an What is an ““AA”” Player?Player?

Page 9: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 9

Topgrad ngTopgrad ng 1717

Topgrad ngTopgrad ng

At the compensation level.At the compensation level.With the Bonus and/or Benefits With the Bonus and/or Benefits prescribed.prescribed.In the specific Industry.In the specific Industry.In the designated geographic In the designated geographic location.location.With those same accountabilities.With those same accountabilities.With those same resources.With those same resources.In a specific Reporting relationship.In a specific Reporting relationship.

““AvailableAvailable”” is also:is also:

Topgrad ngTopgrad ng 1818

Topgrad ngTopgrad ng

A A ““CC”” Player is someone Player is someone chronically performing below the chronically performing below the level of expectationlevel of expectation in a given in a given Role.Role.A A ““CC”” PlayerPlayer’’s s costcost to the to the

organization organization exceeds the value exceeds the value and cost of developing, and cost of developing, redeploying or replacing themredeploying or replacing them..

What is a What is a ““CC”” Player?Player?

Page 10: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 10

Topgrad ngTopgrad ng 1919

Topgrad ngTopgrad ng

TopGrading RealitiesTopGrading Realities

Topgrad ngTopgrad ng 2020

Topgrad ngTopgrad ng

Topgrading is Topgrading is NOTNOT for:for:Those preThose pre--disposed to protecting disposed to protecting ““DeadwoodDeadwood””in an organization.in an organization.Those who, deep down, would rather see an Those who, deep down, would rather see an organization struggle or fail rather than nudge organization struggle or fail rather than nudge a hopelessly incompetent performer out of a a hopelessly incompetent performer out of a job.job.Those not willing to flexibly adapt, change and Those not willing to flexibly adapt, change and succeed in their roles and responsibilities.succeed in their roles and responsibilities.

Topgrading RealitiesTopgrading Realities

Page 11: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 11

Topgrad ngTopgrad ng 2121

Topgrad ngTopgrad ng

5%5% of of ManagersManagersare are TopgradersTopgraders..5%5% of of CompaniesCompanies

are are TopgradersTopgraders..

Topgrading RealitiesTopgrading Realities

Topgrad ngTopgrad ng 2222

Topgrad ngTopgrad ng

TopGraders do TopGraders do NOTNOTnecessarily pay necessarily pay

more than more than Competitors for Competitors for

TalentTalent

Topgrading RealitiesTopgrading Realities

Page 12: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 12

Topgrad ngTopgrad ng 2323

Topgrad ngTopgrad ng

TopgradersTopgraders::Tend to look harder to find Tend to look harder to find Talent.Talent.Screen harder and better to Screen harder and better to select the right people.select the right people.ACT more quickly to confront ACT more quickly to confront NonNon--performance.performance.

Topgrading RealitiesTopgrading Realities

Topgrad ngTopgrad ng 2424

Topgrad ngTopgrad ng

““AA”” Players exist at Players exist at ALL Salary Levels;ALL Salary Levels;

And so do And so do ““CC””Players.Players.

Topgrading RealitiesTopgrading Realities

Page 13: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 13

Topgrad ngTopgrad ng 2525

Topgrad ngTopgrad ng

TopGraders managing forwardTopGraders managing forward--looking, growing companies looking, growing companies hire forhire forthe Talent and Compensation Level the Talent and Compensation Level

required required 1 to 3 Years From Now!1 to 3 Years From Now!

Companies and Managers who Companies and Managers who TopGradeTopGrade INVESTINVEST in their in their

Employees!Employees!

Topgrading RealitiesTopgrading Realities

Topgrad ngTopgrad ng 2626

Topgrad ngTopgrad ng

TopGraders, rather than lose TopGraders, rather than lose Talent:Talent:

Provide ongoing Coaching, Training Provide ongoing Coaching, Training and Development.and Development.Help their Talent become and remain Help their Talent become and remain ““AA”” Players.Players.Assist their Talent to gain and Assist their Talent to gain and maintain cuttingmaintain cutting--edge skills.edge skills.

Topgrading RealitiesTopgrading Realities

Page 14: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 14

Topgrad ngTopgrad ng 2727

Topgrad ngTopgrad ng

Proactively searching out, identifying, Proactively searching out, identifying, persuading, hiring and retaining persuading, hiring and retaining ““AA””Players for every job.Players for every job.GOAL:GOAL: Having a growing and clear Having a growing and clear majority of majority of ““AA”” Players, Players, andand only those only those ““BB’’ss”” with potential to be with potential to be ““AA”” Players, within Players, within 18 months 18 months –– and and NO NO ““CC”” PlayersPlayers within 90within 90--120 120 Days.Days.Using advanced and rigorous Assessment Using advanced and rigorous Assessment Methods to raise your Hiring and Promotion Methods to raise your Hiring and Promotion Success Rate to 90% or better!Success Rate to 90% or better!

Topgrading Involves:Topgrading Involves:

Topgrad ngTopgrad ng 2828

Topgrad ngTopgrad ng

Improving your existing Human Capital by Improving your existing Human Capital by providing people the Coaching and providing people the Coaching and Development required to become and remain Development required to become and remain ““AA”” Players, as the scope of the job and Players, as the scope of the job and compensation grows.compensation grows.Redeploying chronic Redeploying chronic ““CC”” Players and/or Players and/or ““BB””Players Players -- where they can either become where they can either become effective and productive effective and productive ““AA”” Players Players –– or leave or leave the company in a humane and dignified the company in a humane and dignified manner.manner.

Topgrading Involves:Topgrading Involves:

Page 15: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 15

Topgrad ngTopgrad ng 2929

Topgrad ngTopgrad ng

Retaining Retaining ““AA”” PlayersPlayers

Topgrad ngTopgrad ng 3030

Topgrad ngTopgrad ng

Create a winning, highCreate a winning, high--performance performance organization and culture.organization and culture.Make work fun, exciting, and challenging.Make work fun, exciting, and challenging.Provide opportunities to grow, to gain Provide opportunities to grow, to gain confidence, to meet challenges, to rise in confidence, to meet challenges, to rise in stature and responsibility.stature and responsibility.Offer competitive pay, incentive compensation Offer competitive pay, incentive compensation and benefits and benefits -- beforebefore your Talent is your Talent is ““shoppedshopped””by your Competition.by your Competition.

Retaining Retaining ““AA”” Players:Players:

Page 16: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 16

Topgrad ngTopgrad ng 3131

Topgrad ngTopgrad ng

Anticipate External Offers being made to Anticipate External Offers being made to your your ““AA”” Players, and proactively Players, and proactively increase pay to compensate fairly for increase pay to compensate fairly for their actual current Market Value.their actual current Market Value.Take inventory and appraise your Take inventory and appraise your ““AA””Players; Communicate their value and Players; Communicate their value and worth to the organization to them worth to the organization to them directly, with validating appreciation and directly, with validating appreciation and recognition on a regular basis.recognition on a regular basis.

Retaining Retaining ““AA”” Players:Players:

Topgrad ngTopgrad ng 3232

Topgrad ngTopgrad ng

““11”” == Promotable toPromotable to Executive Executive Leadership level. Leadership level. ““22”” = Promotable 1 or 2 levels = Promotable 1 or 2 levels

above present job.above present job.““33”” = NOT promotable above = NOT promotable above

present level of responsibility.present level of responsibility.

What are What are PromotabilityPromotabilityDesignators?Designators?

Page 17: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 17

Topgrad ngTopgrad ng 3333

Topgrad ngTopgrad ng

Retaining Retaining ““AA”” PlayersPlayers

Topgrad ngTopgrad ng 3434

Topgrad ngTopgrad ng

Turn to the TopGrading Inventory Exercise Turn to the TopGrading Inventory Exercise Handout.Handout.List List ALLALL of the People now working under your of the People now working under your Direct Supervision or on your Team.Direct Supervision or on your Team.Take an InventoryTake an Inventory of your present of your present Departmental Direct Reports or Team Departmental Direct Reports or Team Members, rating them as Members, rating them as ““AA”” Players, Players, ““BB””Players, or Players, or ““CC”” Players. Then apply the Players. Then apply the ““1,2,31,2,3””PromotabilityPromotability Designators.Designators.

Quick Exercise:Quick Exercise:

Page 18: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 18

Topgrad ngTopgrad ng 3535

Topgrad ngTopgrad ng

What surprised you in terms of What surprised you in terms of awareness?awareness?What Conclusions did you What Conclusions did you reach?reach?How do you feel about your How do you feel about your Team Rating Conclusions?Team Rating Conclusions?

Exercise Exercise -- WrapWrap--up:up:

Topgrad ngTopgrad ng 3636

Topgrad ngTopgrad ng

The Cost of MisThe Cost of Mis--HiresHires

Page 19: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 19

Topgrad ngTopgrad ng 3737

Topgrad ngTopgrad ng

1989 Smart Study1989 Smart Study: The average : The average MisMis--Hire Hire Cost was Cost was 5 times5 times the personthe person’’s salary in s salary in direct and indirect costs to the company.direct and indirect costs to the company.1985 Saratoga Study1985 Saratoga Study: The average Mis: The average Mis--Hire mistake costs a company Hire mistake costs a company $15,000$15,000..1995 Smart Study1995 Smart Study: Management Mis: Management Mis--Hires cost a company Hires cost a company between $15,000 between $15,000 and and up to 24 timesup to 24 times Base Salary.Base Salary.

The Cost of MisThe Cost of Mis--Hires:Hires:

Topgrad ngTopgrad ng 3838

Topgrad ngTopgrad ng

A 40A 40--50% Hiring Success 50% Hiring Success Rate is common Rate is common –– but but wholly unacceptable!wholly unacceptable!A 90% or greater Hiring A 90% or greater Hiring Success Rate is achievable Success Rate is achievable …….and expected!.and expected!

Topgrading Mindsets:Topgrading Mindsets:

Page 20: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 20

Topgrad ngTopgrad ng 3939

Topgrad ngTopgrad ng

Coaching Coaching ““BB”” & & ““CC”” Players Players andand Releasing Releasing ““CC”” Players Players

without Tears or Fearswithout Tears or Fears

Topgrad ngTopgrad ng 4040

Topgrad ngTopgrad ng The Downward & Upward SpiralsThe Downward & Upward Spirals

Result:Result: Performance DeclinesPerformance Declines Result:Result: Performance ImprovesPerformance Improves

Leadership OptionsLeadership OptionsA.A. Counsel & CoachCounsel & Coach

Re-Direct Feelings

The Downward SpiralThe Downward Spiral The Upward SpiralThe Upward SpiralFeelings and Beliefs are:Feelings and Beliefs are: Feelings and Beliefs are:Feelings and Beliefs are:

1. Worthless or Worth Less1. Worthless or Worth Less 1. Worth More1. Worth More2. Hostile or Unsafe2. Hostile or Unsafe 2. Safe & Secure2. Safe & Secure3. Hopeless or Less Hope3. Hopeless or Less Hope 3. Hopeful3. Hopeful

Effectively Deal With Issues. Set Plans For Improvement.Effectively Deal With Issues. Set Plans For Improvement.

Page 21: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 21

Topgrad ngTopgrad ng 4141

Topgrad ngTopgrad ng The Downward & Upward SpiralsThe Downward & Upward Spirals

Result:Result: Performance DeclinesPerformance Declines Result:Result: Performance ImprovesPerformance Improves

Leadership OptionsLeadership OptionsA.A. Counsel & CoachCounsel & Coach

Re-Direct Feelings

The Downward SpiralThe Downward Spiral The Upward SpiralThe Upward SpiralFeelings and Beliefs are:Feelings and Beliefs are: Feelings and Beliefs are:Feelings and Beliefs are:

1. Worthless or Worth Less1. Worthless or Worth Less 1. Worth More1. Worth More2. Hostile or Unsafe2. Hostile or Unsafe 2. Safe & Secure2. Safe & Secure3. Hopeless or Less Hope3. Hopeless or Less Hope 3. Hopeful3. Hopeful

Effectively Deal With Issues. Set Plans For Improvement.Effectively Deal With Issues. Set Plans For Improvement.

B. B. SeparateSeparate –– Change Roles or Departments.Change Roles or Departments.C. C. TerminateTerminate –– Voluntary or Forced.Voluntary or Forced.

Topgrad ngTopgrad ng 4242

Topgrad ngTopgrad ng

Your First PriorityYour First Priority: : Removing chronic Removing chronic ““CC””Players, defined as those who are both Players, defined as those who are both unfit and ununfit and un--trainable, from the Team.trainable, from the Team.Your Second PriorityYour Second Priority: : ReRe--deploying deploying ““BB””Players and Players and ““CC”” Players, who are not fit Players, who are not fit for their present roles for their present roles -- yet are trainable; yet are trainable; Coach and Train them to be productive Coach and Train them to be productive or release them to their future career or release them to their future career path.path.

Releasing Releasing ““CC”” Players:Players:

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Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 22

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We Call It:We Call It:

““Freeing UpFreeing UpTheir Futures!Their Futures!””

Releasing Releasing ““CC”” Players:Players:

Topgrad ngTopgrad ng 4444

Topgrad ngTopgrad ng Direct Release of Direct Release of ““CC’’ss””::TopGrading TerminationsTopGrading Terminations

Realities:Realities:

1.1. When TopGrading processes are When TopGrading processes are effectively used, firing someone is rare.effectively used, firing someone is rare.

2.2. Regular Performance Feedback and Regular Performance Feedback and Informal Performance Reviews reduce Informal Performance Reviews reduce surprises and denial.surprises and denial.

Page 23: TopGrading - Builders' Show...creative, energizing solutions, while “C” Players drag their feet, resist change, stifle creativity, impede advances, kill off good ideas, and encourage

Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 23

Topgrad ngTopgrad ng 4545

Topgrad ngTopgrad ng Direct Release of Direct Release of ““CC’’ss””::TopGrading TerminationsTopGrading Terminations

When Firing is the Last Resort:When Firing is the Last Resort:

1.1. Work with HR and an Attorney.Work with HR and an Attorney.

2.2. Make sure you have documented all NonMake sure you have documented all Non--Performance against written performance Performance against written performance accountabilities.accountabilities.

3.3. Terminations are faceTerminations are face--toto--face, with three face, with three in the room. You; Employee; Observer.in the room. You; Employee; Observer.

Topgrad ngTopgrad ng 4646

Topgrad ngTopgrad ng Direct Release of Direct Release of ““CC’’ss””::TopGrading TerminationsTopGrading Terminations

When Firing is the Last Resort:When Firing is the Last Resort:

1.1. ““You had ample time to improve.You had ample time to improve.””

2.2. ““You understood it.You understood it.””

3.3. ““ItIt’’s not working out.s not working out.””

4.4. ““While we both regret it, we have to let While we both regret it, we have to let you go.you go.””

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Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 24

Topgrad ngTopgrad ng 4747

Topgrad ngTopgrad ng Direct Release of Direct Release of ““CC’’ss””::TopGrading TerminationsTopGrading Terminations

To finish the Termination Meeting:To finish the Termination Meeting:

•• Have a prepared document to outline all Have a prepared document to outline all the terms of the separation the terms of the separation –– Have them Have them review it and answer any questions. review it and answer any questions. Needs to be signed within 24 hours.Needs to be signed within 24 hours.

•• Be firm, yet humane and respectful. Keep Be firm, yet humane and respectful. Keep it as positive as possible. Be supportive.it as positive as possible. Be supportive.

Topgrad ngTopgrad ng 4848

Topgrad ngTopgrad ng

Conscientiously take your Conscientiously take your ““CC”” and and ““BB””Players through Coaching, Training and Players through Coaching, Training and looking for a better Job Fit.looking for a better Job Fit.If the desired outcomes and If the desired outcomes and improvements DO NOT occur, then the improvements DO NOT occur, then the ““CC”” Player has to go!Player has to go!Use the TWOTOF Method Use the TWOTOF Method –– And Part And Part Ways! ItWays! It’’s the Right Thing to do!s the Right Thing to do!

Releasing Releasing ““CC”” Players:Players:

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Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 25

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The GE Model:The GE Model: DifferentiationDifferentiation

To become an To become an ““AA”” PlayerPlayer

Exhibit the

Values?

Make your Numbers?

YESYES

NoNo YESYES

NoNo

YES/NoYES/No

No/NoNo/No No/YESNo/YES

YES/YESYES/YES

“B”

“B”

“A”

“C”

Topgrad ngTopgrad ng 5050

Topgrad ngTopgrad ng

In competition for either Jobs or Talent:In competition for either Jobs or Talent:ALL Candidates have flaws.ALL Candidates have flaws.Candidates Candidates with the fewest serious flawswith the fewest serious flawsGET THE JOB.GET THE JOB.Candidates with the most impressive Candidates with the most impressive Strengths GET THE JOB Strengths GET THE JOB ONLYONLY if they if they have have NO FATAL FLAWSNO FATAL FLAWS!!

Real World RealitiesReal World Realities

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Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 26

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What might FATAL Flaws include?What might FATAL Flaws include?Lacking Integrity.Lacking Integrity.Material misrepresentations during the Material misrepresentations during the Interview and/or Career History processes. Interview and/or Career History processes. Track Record of underTrack Record of under--performance.performance.Not fitting your Core Values.Not fitting your Core Values.Arrogance. NonArrogance. Non--Teamwork Behaviors.Teamwork Behaviors.Inappropriate hygiene or appearance.Inappropriate hygiene or appearance.Lacking intelligence, energy, initiative, Lacking intelligence, energy, initiative, creativity, or any significant, required creativity, or any significant, required Technical Knowledge or Skills.Technical Knowledge or Skills.

Real World RealitiesReal World Realities

Topgrad ngTopgrad ng 5252

Topgrad ngTopgrad ng

CIDSCIDS--Based Based InterviewingInterviewing

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Topgrading Workshop - April of 2003

Executive Mentors & Trainers & Gazelles International 27

Topgrad ngTopgrad ng 5353

Topgrad ngTopgrad ng Topgrading SystemTopgrading System1.1. Sourcing & PreSourcing & Pre--Screening of Screening of ““AA”” PlayersPlayers

2.2. Screening InterviewScreening Interview

3.3. CIDS InterviewCIDS Interview

4.4. Team InterviewTeam Interview

5.5. Reference CheckReference Check

6.6. Background CheckBackground CheckOffer:Offer:

New New ““AA”” Player on StaffPlayer on Staff

Topgrad ngTopgrad ng 5454

Topgrad ngTopgrad ng

The Sourcing and The Sourcing and PrePre--Screening Interview Screening Interview

ProcessProcess

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The Screening InterviewThe Screening Interview

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The Screening Interview Questions:The Screening Interview Questions:What are your career goals?What are your career goals?What are you really good or great at What are you really good or great at professionally?professionally?What are you not so good or great at, or not What are you not so good or great at, or not interested in doing professionally?interested in doing professionally?Who were your last 5 bosses and how will Who were your last 5 bosses and how will they each rate your performance if we talk they each rate your performance if we talk with them? with them? TORCTORC..

The Topgrading System:The Topgrading System:

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The CIDS InterviewThe CIDS Interview

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The CIDS Interview:The CIDS Interview:

High School: High points High School: High points and low points? (~5 Min.)and low points? (~5 Min.)College/Grad School: High College/Grad School: High points and low points? (~5 points and low points? (~5 min.)min.)

The Topgrading System:The Topgrading System:

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The CIDS Interview:The CIDS Interview:For each job in the past 15 years:For each job in the past 15 years:

1.1. What were you hired to do?What were you hired to do?2.2. Accomplishments?Accomplishments?3.3. Low points?Low points?4.4. People as References?People as References?5.5. Why did you leave?Why did you leave?

(~ 10 to 45 minutes +)(~ 10 to 45 minutes +)

The Topgrading System:The Topgrading System:

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The CIDS Interview:The CIDS Interview:Competencies Questions: Ask the Competencies Questions: Ask the Questions related to the Competencies Questions related to the Competencies you seek. (~ :20 to 1 Hour +)you seek. (~ :20 to 1 Hour +)Future Goals? (~ 5 to 15 min.)Future Goals? (~ 5 to 15 min.)Questions from Applicant? Questions from Applicant? ( ~ 3 to 10 min.)( ~ 3 to 10 min.)Conclude. Conclude.

The Topgrading System:The Topgrading System:

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The TORQ Questions:The TORQ Questions:““What was your BossWhat was your Boss’’s Name?s Name?””““What were HIS/HER strengths and What were HIS/HER strengths and areas for improvement?areas for improvement?””““What will your Boss say were What will your Boss say were YOUR strengths and areas for YOUR strengths and areas for improvement in that job?improvement in that job?””

The Topgrading System:The Topgrading System:

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Avoiding Interviewing Avoiding Interviewing Legal TrapsLegal Traps

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Questions to Avoid:Questions to Avoid:““Where were you born?Where were you born?””““How old are you?How old are you?””““Are you pregnant?Are you pregnant?””““Are you planning to have kids?Are you planning to have kids?””““What is your faith?What is your faith?””

The Topgrading System:The Topgrading System:

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Questions to Avoid:Questions to Avoid:““What is your sexual orientation?What is your sexual orientation?””““Any health or medical issues?Any health or medical issues?””““Any Life Balance Issues?Any Life Balance Issues?””

DO NOT write DO NOT write anythinganything on their on their Resume!Resume!

The Topgrading System:The Topgrading System:

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CIDSCIDS--Based CoachingBased Coaching

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Effective Coaching is:Effective Coaching is:Counseling Counseling –– Improving selfImproving self--awareness and changing awareness and changing perspective.perspective.Mentoring Mentoring –– Sharing advice to help Sharing advice to help someone grow and better navigate someone grow and better navigate life.life.

CIDSCIDS--Based CoachingBased Coaching

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Effective Coaching is:Effective Coaching is:Teaching Teaching –– Instructing and sharing Instructing and sharing knowledge and expertise to improve knowledge and expertise to improve performance.performance.Confronting Confronting –– Addressing nonAddressing non--performance or deficiencies, reperformance or deficiencies, re--directing behaviors towards directing behaviors towards improved performance & results.improved performance & results.

CIDSCIDS--Based CoachingBased Coaching

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An Effective Coach is:An Effective Coach is:A Partner.A Partner.

Promotes autonomy.Promotes autonomy.Positive.Positive.

Trustworthy.Trustworthy.Caring.Caring.

CIDSCIDS--Based CoachingBased Coaching

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An Effective Coach is:An Effective Coach is:Patient.Patient.

ResultsResults--oriented.oriented.Perceptive.Perceptive.

Authoritative.Authoritative.An Active Listener.An Active Listener.

CIDSCIDS--Based CoachingBased Coaching

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Why People Change:Why People Change:

““PeoplePeople Change when their Change when their avoidance of Painavoidance of Pain seems seems worth the risk and worth worth the risk and worth

the effort.the effort.

CIDSCIDS--Based CoachingBased Coaching

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Stages in the Change Process:Stages in the Change Process:1.1. AwarenessAwareness2.2. AcceptanceAcceptance3.3. CommitmentCommitment4.4. Program for DevelopmentProgram for Development5.5. ReinforcementReinforcement6.6. Monitor ProgressMonitor Progress7.7. Create Sustainable ChangesCreate Sustainable Changes

CIDSCIDS--Based CoachingBased Coaching

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Informal Performance Informal Performance ReviewsReviews

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Informal Quarterly Performance Reviews Informal Quarterly Performance Reviews –– 5 Q5 Q’’s:s:What did you accomplish this past Quarter?What did you accomplish this past Quarter?What will you accomplish in the new What will you accomplish in the new Quarter?Quarter?How will you improve yourself How will you improve yourself Professionally and Personally in the new Professionally and Personally in the new Quarter?Quarter?Did you achieve your Critical Results Did you achieve your Critical Results Goals?Goals?Are you embracing and Living the Core Are you embracing and Living the Core Values?Values?

CIDSCIDS--Based CoachingBased Coaching

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Building a Virtual BenchBuilding a Virtual Bench

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When the CIDS Interviews are Finished:When the CIDS Interviews are Finished:Hire for Hire for ““AA”” Player FIT Player FIT –– Skill and Skill and Experience.Experience.Hire for Absence of Weakness.Hire for Absence of Weakness.Hire for Compatibility with your Hire for Compatibility with your OrganizationOrganization’’s Core Values.s Core Values.Hire the Very Best of the Hire the Very Best of the ““AA’’ss”” –– And And keep in touch with The Rest!keep in touch with The Rest!

Make The Decision!Make The Decision!

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To build a Virtual Bench:To build a Virtual Bench:Build a Pipeline of Build a Pipeline of ““AA”” Players at Players at your fingertips!your fingertips!4 Skill Areas4 Skill Areas: Sales; Operations; : Sales; Operations; Finance; and Technology.Finance; and Technology.40 People on your Virtual Bench.40 People on your Virtual Bench.1 meaningful touch per month with 1 meaningful touch per month with each Virtual Bench Candidate.each Virtual Bench Candidate.

Build a Virtual Bench!Build a Virtual Bench!

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1. 1. PeoplePeople2. Strategy2. Strategy

3. Execution 3. Execution -- andand4. Cash 4. Cash –– Financial PerformanceFinancial Performance

Four Decisions you Four Decisions you mustmust get right!get right!

At Gazelles, we help our Clients face At Gazelles, we help our Clients face 4 critical Areas of Decision Making:4 critical Areas of Decision Making:

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THANKS!THANKS!

ThatThat’’s TopGrading!s TopGrading!

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NOW:NOW:LetLet’’s Go Pack Your s Go Pack Your

Team withTeam with““AA”” Players!Players!