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Why New Ventures Fail
• How many fail?* – 20% within one year– 66% within 7 years
• Why? – Exaggerated sense of optimism– Vacillation over funding options
• Who or what is to blame?
* Chiganti and Chiganti, Proceedings of the Small Business Institute, 2008
Why CEOs Fail
“More than any other way, by failure to put the right people in the right jobs – and the related failure to fix people problems in time.”
– Ram Charon & Geoffrey Colvin, Fortune magazine 6/21/99
What about the Team?
• CEO’s bet their vision on the team
• VC’s bet their funding on the team
• What are they really betting on?
What do you really know?
• Personality (how applicable?)• Knowledge/Skill (how well performed?)• Previous experience (how relevant?)• Resume (how accurate?)• Recommendations (how biased?)• Interviews (how objective?)
VCs & entrepreneurs demand a new way to know who will contribute productively, and who won’t
Assessment Origins - Who did what?
1900 1920 1940 1960 1980 2000 2010
From Intellect, to Personality, to Behavior
Behavior
Woodworth (U.S. Army)
Stanford-Binet IQ
Cattell 16PF
Personality
TGI Role-Based
Assessment
Gerber Mosaic Figures
Personality
Intellect
Performance
Components
Raw Material
Rorschach Lowenfield Mosaic
Gerber-PresserExec. Behavior
Gerber-PresserEnhanced EBA
Caliper
Myers-Briggs
Binet-Simon
IQU.S. Army
Alpha-Beta
Wechsler WAIS
AllportValues
Hartman Axiology/EQ
MMPI Patholog
y
5-FactorTheory
DiSC
Predictive Index
What you measure is what you get.
What you measure is what you get.
What is Role-Based Assessment™?
• Both Theory and Method focus on the way a person will tend to work in a group (their Role), rather than on his/her individual characteristics
• Roles do predict how people will behave: collaboration, motivation and engagement
• Role-Based Assessment is very different from other assessments
RBA Measures Coherence
• A Coherent person has a well-developed sense of self and others; seeks to contribute• A Rigid person is self-involved; is motivated to self-protect by dominating/manipulating others• A Diffuse person is self-involved; is motivated to self-protect by misdirecting attention
Coherent RigidDiffuse
Roles are not Jobs
• Your Role is not your Personality; very different kinds of people may have the same Role
• Roles serve the group’s universal needs:
– Envisioning (or inventing) the future
– Turning ‘the Vision’ into strategies and plans
– Overseeing and guiding the group
– Making detailed schedules and assignments
– Following plans and getting things done quickly
Roles are not Jobs
• Roles serve the group’s universal needs:– Creating and building ‘community’ (team spirit)– Identifying and solving tough problems– Preserving/providing knowledge and group history– Tending to the needs of others– Searching for new possibilities, resources, and
information
Most people have a distinct preference or drive to fulfill one of these needs. That's their Role.
Roles are not Jobs
• Envisioning the future - - - - - - - - - - - -• From Vision to Strategy - - - - - - - - - -• Big-picture Guidance - - - - - - - - - - -• Getting it done! - - - - - - - - - - - - - - - -• Planning, scheduling, tracking - - - - • Creating ‘community’- - - - - - - - - - - • Solving thorny problems - - - - - - - - - • Preserving knowledge - - - - - - - - - - • Tending to immediate needs - - - - -• Searching for ‘treasure’ - - - - - - - - - -
> Founder> Vision Mover> Vision Former> Action Mover> Action Former> Communicator> Conductor> Curator> Watchdog> Explorer
Some Roles are a natural ‘fit’ to specific kinds of jobs
How Bad Hires Happen
HIRED!
Finalist Candidates
Career Path
References
Knowledge/Skill
Resume
Interviews
Personality
1 2 3
How Bad Hires Happen
Uh-oh!Put first things first: Coherence, Role-fit, Teaming!
Finalist Candidates
Career Path
References
Knowledge/Skill
Resume
Interviews
Personality
Role-Based Assessment
1 2 3Rigid; wrong Role; teaming = poor
Coherent; right Role; teaming = excellent
Coherent; wrong Role; teaming = fair
?
Candidate #1: Operations Manager
• She has little interest in finding or fixing other people's problems or of actually doing things that other people want her to do.
• She has little interest in organizational tasks, which is going to keep her disorganized in both her approach and her work.
• In general, this candidate is so burdened with problems that she is likely to be a high maintenance employee.
From the actual RBA report of Candidate #1.If you had known, would you have hired her?
Select from the Best of the Best
HIRED!RBA screening adds value to other assessment methods!
Finalist Candidates
Career Path
References
Knowledge/Skill
Resume
Interviews
Personality
Role-Based Assessment
4 5 6Coherent; right Role; teaming = excellent
Coherent; right Role; teaming = excellent
Coherent; right Role; teaming = excellent
Candidate #6: Administrative Support
• This candidate is the type of support person who can be found in the front of the group with marker in hand, developing a list of things that need to be done or important points or project benchmarks.
• He is the consummate organizer. The key is that he does not organize for the present but as a way of getting things ready for the future. His style is one of handling many things simultaneously.
Key information in plain English, identifying strong performers and future leaders
The Team Starts with the Founder
First on your timeline Has the Vision and writes the paper - not
a statement – before the business plan Gets people to want to be part of it Keeps one eye inside and the other
outside, connects the organization with the world
Vision balanced by Grounding
Vision Mover Vision Former
Drive balanced by Organization
Action Mover Action Former
Obtain and Provide the Essentials
Explorer Watchdog
Create Community, Culture, and Coordination
Communicator
Fix Problems, Bank the Solutions
Conductor Curator
Finding & Keeping Good People
• Effective people are ‘Coherent’; use Role-Based Assessment to identify and develop them
• Align Roles to job responsibilities to strengthen team performance
• Give people goals that require constructive and challenging interaction, and reward them as a team
People don’t leave companies, they leave managers!
What Diffuse Managers Do…
At Best: Inconsistent, Unpredictable Performance
Plans
Confuse & Frustrate
Rewards
Objectives
Goals
Create Rivalry & Conflict
Achievement
Engagement
Vision
Blame & Victimize
Misdirect & Deprive
Synergy
Schedules
What Rigid Managers Do…
DiscourageDemean
What Rigid Managers Do…
MicromanageManipulate
DiscourageDemean
What Rigid Managers Do…
Micromanage
Inhibit or Compartmentalize Team Synergy
Manipulate
DiscourageDemean
What Rigid Managers Do…
At best: High Performance -- but at High Cost
Micromanage
Inhibit or Compartmentalize Team Synergy
Manipulate
DiscourageDemean
What Coherent Managers Do…EmpowerOrganize
RespectAcknowledge
Lead,
Inspire,
Engage, Integrate,
Motivate
What Coherent Managers Do…
At Best: Build Teams, Resolve Problems, Improve Productivity, Exceed Expectations
EmpowerOrganize
RespectAcknowledge
Lead,
Inspire,
Engage, Integrate,
Motivate
Building a Coherent Human Infrastructure
• The keys to strategic intervention:– Analyzing teams– Role-fit, Coherence, and team
structure – Diagnosis and repair of
organizational performance problems
• CHI Indicators provide global metrics
What makes a great team great?
You Can Do This Now
• Mine your current workforce for ‘hidden treasure’
• Create a Coherent workplace and improve performance across-the-board
• Develop Leaders and Teams• Get a simple, accurate, actionable agenda for
solving organizational problems
DrJ’s Rules of Entrepreneurship
• You can’t do it alone• No one gets it right the first time, so don’t hesitate to re-
evaluate • Cash is king, but the team determines how effectively it will be
utilized• The marketplace rules, but you and your team can create and
control perceived value • What you do + how you do it = who you are
Make your workplace a place that works better!
Dr. Janice Presser, CEO The Gabriel Institute
1515 Market Street, Suite 825Philadelphia, PA 19102
215-825-2500
[email protected] Dr. Janice Blog: http://drjanice.wordpress.com/
CEO2CEO Blog: http://ceo2ceo.wordpress.comTwitter: http://twitter.com/DrJanice
LinkedIn Group: www.linkedin.com/groups?gid=1855357