Organizational Strategy Mapping: Part Deaux
















Last week we discussed starting with organizational strategy when creating HR metrics that matter to your organization. That blog received the most feedback, I have ever received since writing Profitability Through Human Capital.

I had many requests for a larger version of the strategy map and many questions about definitions that we use when mapping strategy.

So, I thought I would do a follow up due to all the feedback.

First, I would like to clear up a few definitions we use:

1) Strategic Goals-An organizational statement that communicates where your organization is going. It is directional. It can be called different names.

2) Business Results-These are clear directions & measures of success in achieving the strategic goals.

3) Performance Objectives-Think of these as business KPI’s or what needs to be done to achieve the business results. People begin to see what needs to be done & how they can fit in.

4) Performance Metrics-Metrics are designed solely to drive improvement & track progress for the Performance Objectives. They are specific & quantifiable goals.

5) Performance Outcomes-These are definitions of your desired outcomes that force the organization to be clear about what will improve. Also helps people plan specific actions & projects to achieve the goals.

6) Actions-These are the "what" you need to do to execute on the strategy.

Let's try and walk through an example.

Strategic Goal: Your organization wants to grow sales in 2011

Business Results: Increase sales to new customers by 5% and Increase sales to existing customers by 10%

Performance Objectives: Increase speaking events by 20% and increase sales calls by 15%

Performance Metrics: % sales increased new customers and Customer sat scores existing customers

Performance Outcomes: Increase sales skills and increase customer service skills

Actions: (potential) Provide training to sales staff on selling skills and customer service, provide rewards and recognition program geared at increasing customer sat and closing new business

This is a very simplified example to show a process. If this was a "real time" mapping exercise we would have all functions i.e. sales, ,marketing, HR, finance, operations, etc. present to walk through the strategy to make sure:

1) All scenarios are accounted for and identified.

2) Everyone is on the same page and understands the interdependencies between departments.

3) Serves as a communication devise to each department so they understand how what they do fits into the overall organizational strategy,

4) Serves as a strategy execution tool as each department has uncovered what they need to do to move the strategy forward.

5) Uncovers all actions that should be considered and ANALYZED to determine which are the BEST alternatives depending on budgets and AHA's found from data analysis process.

This process is critical for strategic execution and it is a perfect exercise for HR to own and manage. HR has been screaming for strategic work....here is your opportunity!

Google, Newspaper Archives, and the Business of Cultural Heritage

Google announced this month that it is ending its ambitious project to digitally archive newspapers. The project to scan the archives of the nation’s newspapers and make them available online as a searchable historical record was announced in 2008 with the level of hubris only found in online enterprises.

"Our objective is to bring all the world's historical newspaper information online,” said Adam Smith, director of product management at Google, announcing the project. Those lofty aims were echoed by Punit Soni, manager of the newspaper initiative: “As we work with more and more publishers, we'll move closer towards our goal of making those billions of pages of newsprint from around the world searchable, discoverable, and accessible online…."Over time, as we scan more articles and our index grows, we'll also start blending these archives into our main search results so that when you search Google.com, you'll be searching the full text of these newspapers as well.”

After scanning about 60 million pages and beginning to make them available as full page shots--because costs of disaggregating and indexing were too high and copyright clearances were difficult to obtain for older material—the company announced that it will quit scanning pages, but continue offering the existing pages available on it Google News Archive site. It said it would not invest any new effort to improve indexing or add tools to better search and manage the archive.

The project may have been well-intentioned, but it was not well thought out. It was a free service designed to use the search traffic at the site to raise revenue through advertising Google would put on the site. The scale of the project was enormous and requiring finding, scanning, and indexing thousands of daily and weekly newspapers--many no longer in existence. It would require a long-term commitment of funds, personnel and server capacity to catalogue and scan the material and provide and maintain search functions. The project ultimately incorporated on a fraction of the papers it had hoped to scan, did so spottily in many cases, and its usability was poor because it never mastered the problems of handling so much content. Worse yet, it discovered that history was not a money making business.

The exit announcement is not a surprise and is another sign that players the virtual world are stopping deluding themselves that they are replacing the entire world and that the laws of economics and finance to not apply to them.

As laudable the preservation of newspaper archives might be, expecting it to be completed and maintained by a commercial firm defied sense and historical experience. For centuries, the most important historical records, books, art have been maintain in governmentally and charitably funded collections because commercial enterprises were either unwilling to bear the costs or to allow the large scale efforts required to preserve, catalogue, index, and make available cultural heritage materials distract them from their business activities.

Why would anyone expect Google to act otherwise?

As Google increasingly acts as a mature business it will increasingly shed activities that were launched as goodwill gestures because the costs of their operations reduces the company’s financial performance and will diminish the value of its stock compared to other tech firms. Over time it will be harder for the firm to maintain the stance that it is not self-interested and motivated only by the opportunities to improve the lives of the public by providing access to all the world’s information.

The tentacles of its operations that have reached out into to many fields will increasingly be pulled back if they do not yield financial results. And fears that Google will rule the world will diminish. Google, Microsoft, Amazon and other big players of the digital world all have limits, just as did the handful of firms that once controlled steel, oil, and shipping through cartels. At some point even mammoth, wealthy companies do not have the resources and capabilities to keep expanding endlessly and their performance declines, leading shareholders to rein them in and competitors to find opportunities.

Ready, Set, Measure?

So, you have decided you need HR metrics. You know it's important. You know your CEO is craving data to see how the investment in people is paying off.

You then begin to develop metrics. What is your first step?

So many times I hear the following answers to the above question:

1) I start with turnover and cost per hire
2) I google "HR Metrics" and pick some that look good
3) I ask another HR colleague
4) I go to a conference
5) I just measure anything and everything

"NOT!" to all of the above. The key to determining your HR Metrics that matter to your organization is to start with your organization's strategy. A company that is in growth mode has very different metrics than a company that is in survival mode. The growth oriented company is going to focus on goal attainment and revenue growth and the company trying to survive is going to be more cost conscience.

So the proper game plan would be: READY, SET, MAP YOUR STRATEGY and then MEASURE.

A strategy map is an invaluable tool that enables you to understand your business results, your performance outcomes, your performance measures, and the actions needed to execute the strategy. Then and only then are you ready to create metrics.
















The cool thing about a strategy map is that it gives every department a visual communications tool to understand how the organizational strategy comes to life. Think about your organizational strategy, when it was announced. Did it hit like a thud or did everyone stay energized and focused because they knew what to do and how they would be measured?

What an opportunity for HR to be strategic...you can assist with strategy execution AND develop HR metrics that really mean something to the organization. Brilliant...


In the Midst of Change, What Needs to Stay the Same

Everywhere we hear re-occurring descriptions about how the workplace has changed to keep up with continuously changing business conditions and business strategy. Examples include throwing out job descriptions and the old org charts, and rapid deployment onto multi-disciplinary teams who learn through real-time collaboration about how to solve emerging challenges and problems. 

A new report from Booz Allen Hamilton and the Center for Creative Leadership, "Leading for Employee Motivation, Implications for Leaders in Turbulent Times," discusses changes in how people see their roles at work, from being "mission-focused" (aligned with the mission and strategy) or alternatively, "career focused" (staying for developmental opportunities that will be good for one's career) and a third group of people who stay feeling they are "out of options." Clearly the latter group are those people who quit but still show up most days, and they will follow a process even when it is deemed to be ineffective. People who are mission and career focused often identify systems and processes that inhibit their effectiveness, and quickly move on to color outside the lines. This is a challenge for scalable operations. As leaders, how often do we collect feedback on the effectiveness of systems and processes?

The leadership competencies that may not have changed, even in turbulent times, can be a good thing: "…sharing information, providing help, encouraging collaborative behavior among team members, and having the ability to inspire commitment to values or to a mission," according to the BAH CCL researchers, who go on to say,"a common thread among these competencies that are critical to leader effectiveness is the emphasis on the interpersonal nature of leadership that enables leaders to adapt their styles to the employees' different orientations. Leaders who bring charisma, humane and team orientation, and participative approaches that enable them to adapt to the employees' different orientations will be better able to motivate and retain employees."

Noel Tichy says that leaders whose calendars commit to investing 20% of their time with people are more effective. Scheduling time to talk with people helps both leaders and followers learn what they might not have guessed, adapt the conversation to be mission-focused or career–focused, and revisit processes and systems that need to be refreshed or revised. When we don't do that, an "air sandwich" develops between the strategy and those who implement it.

BLOG: Author: Joy Kosta

A Word to Those Looking - FUTURE VIEW

In the past 2 years I have had many friends lose jobs through reductions in force, forced retirements, and other methods of exiting those in the older age brackets. This has made way for more workers who have a longer corporate life span in a job and also freed up fixed expenses to invest in other areas. 


I have said this over and over even in the best of business climates that you always have to look forward and think that today could be your last day at your work. Why would I think that way well here are a couple of reasons you should really think about:

  • it keeps you focused on the future, not the past; 
  • you are never comfortable in your job, which makes you anxious;
  • you continue to keep up with the times that way .
In a recent presentation to a WIND community group I heard people talking about the past; I was going to retire there and look what happened to me;  I didn't keep up with my network;  I missed a great opportunity; and lastly technology passed me by. All valid and all sad because of comfort. 

My feeling is this for those who are looking for work, and this is what I have told them in interviews over the years: 
  • always keep energized, look to the future and see where you fit;
  • keep up with the times (technology) and always read as much as you can on the latest and greatest, then test out technology at your closest electronics store or download test versions of new software;
  • look young and think young, never think you are too old or out of an opportunity because the company seems young;
  • always enhance your current skill sets, take night courses, read, read, and read
  • dress for today and tomorrow, not yesterday;
  • keep in shape, always question your appearance, because most of your friends won't;
  • be contemporary.
I have heard it all too many times before, they did not choose me because of my age, and an article in the AJC reminded me today how important this is!!! They did not choose you because either you did not have the skills or your presentation was stuck in the past. You don't want to be the brides maid or best man you want to be the bride or groom. Think that way. 

High Potentials vs. High Performers















Recently, I went to the Performance Conference in Chicago, where I had many interesting discussions regarding HIPO's. In HR slang HIPO's are defined as an organization's high performers. But as I delivered a presentation with my colleague Sue Bond from Halogen Software, it became crystal clear that high performers and high potentials are two very different types of employees. I am a fan of segmenting employee populations just like we do consumers as I think you can really gain insights on employee behavior and employee needs by analyzing segments versus all employees.

So what about high performers and high potentials?

According to me, (for what it's worth) a high performer has a track record of delivering results to the organization.

A high potential has the ABILITY to deliver results (at a future date) to the organization minus the track record. The high potential just needs to gain more experience and possibly skills to become a high performer.

So, how do we move a high potential to a high performer? Good question. I think this is both an art and a science as the tipping point, is motivation. Motivation is a tricky thing as it has many drivers. In my experience you can move a potential to a performer in the following ways:

1) Make sure the potential employee has a clear set of expectations for his current role.
2) Make sure rewards and recognition are given in a timely fashion.
3) Make sure the manager understands this person has potential. The manager is the key in this transition from potential performer to high performer. The manager is the coach in this relationship.
4) Sometimes the high potential employee doesn't recognize his own potential. See #3 above. Manager needs to communicate the traits that he sees that will make the employee a high performer.
5) Make sure the high potential employee knows what you are planning for him. If he is on a succession plan, make that explicit to the employee.

Can you have a high potential that is not performing? YES, I see that combination all of the time.
What can you do about that high potential that is not performing? To me, this is the trickiest scenario and a common one at that. Remember you need motivation for a person to perform. And sometimes, no matter what we do as managers we can't drive the employee to perform. It could be a matter of personal issues or just a bad job fit. This situation is also one of the most frustrating as managers often feel responsible for the non-performance.

So, let me hear from you, what have you done in a similar situation? Please comment below and give me your scenario and advice!

LinkedIn IPO Now To Raise $274M


Date: Monday, May 9, 2011, 7:15am PDT



Linkedin has been a great social business and professional site for many years. Having been one of the first 100 people to sign up way back when I am sure that you have heard the news on its' impending IPO. Here is the latest.


LinkedIn Corp. on Monday said it now plans to sell 7.84 million shares in its initial public offering at between $32 and $35 each.



The IPO could raise proceeds of up to $274 million.

Mountain View-based LinkedIn is offering 4.8 million shares, while selling stockholders are offering 3 million shares.
The company expects to receive net proceeds of approximately $146.6 million from the shares it is offering in the IPO.

LinkedIn in January filed for an IPO to issue up to $175 million of public stock.

The company's website, which launched in 2003, now boasts more than 100 million members in more than 200 countries.

Read more: LinkedIn IPO now to raise $274M | San Francisco Business Times 




It's All About Performance





















I am sitting here at a Performance Conference hosted by ASMI and I can't help but to think about performance and the importance it plays in our organizations. After all, after the Great Recession isn't performance on top of everyone's list? CEO's want to outperform their competition. Managers want their departments to out perform other departments. And HR? Well...what is HR's relationship with performance?

Isn't performance the desired outcome of everything we do in HR? Compensation is designed to motivate higher performance. Our performance management systems are designed to measure, track and develop performance. Training programs are designed to increase skills thus increasing performance. So why in the world do I hear a statement like the following from several attendees at this conference: (I have not ran into 1 HR person yet, FYI)
"Our HR department won't share their performance metrics with the rest of the organization. I can't get performance data from HR, they guard it like it were gold."
Those comments make me cringe. How in the heck are we supposed to optimize our workforce and get the most we can out of our people if HR is not in the game? I don't get it.

By the way, the individuals I heard the comments above from were from large well known companies. Are you kidding me?

Yesterday, I picked up the latest edition (April 2011) of HR Magazine and found an interesting article on Integration and Talent Management. (membership required to view). I agree with Adrienne Fox it is critical to integrate compensation, recruiting, succession planning, performance management, compensation and learning. Here is why:
  1. All 5 components have to be linked to strategy for optimal outcomes (i.e. performance)
  2. All 5 have data that we NEED for analytics to understand where we are weak and strong.
  3. You can't impact performance with siloed programs, it just doesn't work. You can have a compensation strategy that you think is world class, but if it does not reflect the goals and objectives of your organization then it is useless.
I mention the article because the idea behind integration is that a good talent management infrastructure enables the end goal...increased performance. According to Sue Bond, of Halogen Software, a presenter at the Performance Conference, "Performance Management is the core of any effective Talent Management Strategy. I believe that performance is a great place for HR to start as I found this quote from the article very interesting:
Organizations with integrated talent management systems can shift to accommodate changing business strategies more seamlessly. These organizations experience a return on equity that is, on the average 38% higher per year during a five year period than those without an integrated system, according to the researchers.
What are your thoughts, is performance where HR should focus? Should HR systems be integrated? Please comment and keep the conversation going!

SuccessFactors Buys Enterprise Learning Management Software Plateau For $290M

April 26, 2011 from Venture Loop
On the heels of buying enterprise learning startup Jambok,the company has acquired another learning management software developer-Plateau Systems. SuccessFactors will pay $145 million in cash plus $145 million in stock for Plateau, for a total of $290 million.
Plateau Systems’ Learning Management Systems is generally usually used by Human Resources departments for the management and delivery of learning and training across organizations. Plateau Systems’s Talent Management Suite includes applications for learning management, performance management, career and succession planning and compensation management.
Plateau currently brings more than 350 customers to SuccessFactors, including General Electric, the U.S. Air Force and Capital One. Based on initial estimates, the combined companies will have more than 15 million users. After the deal closes, Plateau’s SaaS based LMS will be integrated directly into SuccessFactors’ BizX suite.
The acquisition price is fairly high for SuccessFactors, whose largest acquisition to date has been social enterprise software company CubeTree for $50 million. But clearly, SuccessFactors sees tremendous potential in aligning its business with human capital management.
Plateau Systems is a provider of Talent Management Systems that provides SaaS solutions that allow organizations to develop, analyze and manage organizational talent, one of the key factors that affect workforce productivity and operating performance. Plateau is headquartered in Arlington, Virginia with offices across the United States, Europe and Asia Pacific.
Plateau Systems was founded in 1996 by Paul Sparta, Chairman and CEO, and Brad Cooper, Senior Vice President, Product Strategy – both of whom still serve as Plateau executives. Plateau Systems developed one of the industry’s first Learning Management Systems (LMS), systems usually used by Human Resources departments for the management and delivery of learning and training across organizations. Plateau’s customers include major global organizations and government agencies. In early 2000, Plateau Systems delivered an integrated J2EE-based talent management platform, which allowed organizations to link learning and training with employee performance to measure whether employee goals were aligned with corporate objectives. In 2007, Plateau acquired Nuvosoft, a provider of Web-based compensation management software and integrated Nuvosoft’s functionality into its talent management platform.

Tasking Out of Control

I am sure a lot of HR practicioners have had the issue of having too much on their plate at one time. I know over the years I had. What a sinking feeling wanting to excel at each task and wondering how you would balance them. Most HR VP's would task out specific elements of a task or the whole task to a subordinate. That is the practical thing to do. But, what about the things that that person has on his or her plate? Did you think of that? 


Well, I know that people have a tendency to task out projects and the like and then manage them from afar. The micro managers of course manage the projects and really hinder the subordinates ability to manage and complete the task feeling like he or she really did contribute. I call that managing out of control and it is a problem when you have a micro manager managing a task that you have been assigned to complete. So what do you do? 


Here are a couple of ideas and they helped me over the years:

  1. make sure you understand the task and ask questions immediately if you don't
  2. tell the manager that you have everything under control
  3. provide the micro manager with a daily or semi-weekly update(s) so he/she understands you are on track to complete the task on time (and in some cases when budgets are in play, under or on budget)
  4. ask for assistance immediately if you are stuck on an issue or hindered by the supply side of the project be it a vendor or another manager that is throwing up roadblocks
  5. volunteer to be the best practice person in your department for your project or element of the project
Many managers have the tendency to stay on top of a project that hinders completion or complicates the  project, it is the subordinates responsibility to help the manager understand that it is in good hands. 

What has been your experience in being the lead person on a project and experiencing "tasking out of control"?

HRevolution 2011: Why You Should Go










I had the pleasure of attending HRevolution this weekend in Atlanta. It was the third time the "unconference" took place and my first time to attend. "I will be back." I attend many conferences every year, and they are basically the same. There is a Keynote, then workshops, with PowerPoints. I feel very thrown up on when I leave. I am guilty as I usually am doing some of the throwing up.

I didn't feel that way late Saturday when I left HRevolution. I felt like I was a part of the conference. I did not attend workshops. I attended live discussions on interesting topics. Here is a sample of the discussions I participated in:

1) Pop Culture, Politics, and HR – Laurie Ruettimann and Matt Stollak-We discussed if bringing a discussion of pop culture and politics into the work environment is a positive or negative. We also talked about "that guy" that is the top seller but is a huge asshole. What do you do with that guy? And to finish up the chat, we discussed organizational values vs. opinions. As you can see interesting and stimulating. To see more, check out the twitter hashtag #pophr.

2) Connecting in a Non-creepy Way – Shauna Moerke, and Dwane Lay-Shauna and Dwane discussed the different online personals a person can have online including a lurker, a social butterfly, a pimp, a robot and others. Understanding what makes an interaction "feel creepy" was also discussed by the individuals in the room. Again, interesting and relevant. Check out the twitter hashtag #noncreepy

3) The HR Slam – Mary Ellen Slayter and Charlie Judy-This session was very interesting. The attendees in the room actually got to solve a real live HR problem. We were given a scenario from a real company and acted as a team of consultants to come up with the best solution. Yes, there were prizes for the winning team. There were some heated moments...all good though. Check out hashtag #hrslam on twitter.

Besides the content examples above, you should attend because:

1) Be a part of the evolution of HR...have a voice
2) Connect with other individuals who are passionate about #1 and also have influence. (Another great discussion on influence was lead by China Gorman and Paul Smith)
3) It makes you THINK...
4) You can understand what is NEXT in HR, not just what is RIGHT NOW
5) It is fun and you can say swear words if you want to!
6) There is an emphasis on bacon; from chocolate cupcakes with bacon to prizes including bacon

Hope to see you at the next one! I hear it is in Vegas baby...how appropriate!