Download High Performance How do you get there?

Actionable Strategies for the
Design of a High Performing
Organization
What is a “High Performing”
Organization/Credit Union?
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Annually meets and typically, exceeds financial
targets such as: growth, net income, ROA, etc.
Staff are satisfied and enjoy working at your CU
– “willing to go the extra mile for the member”
– “willing to try new things”
Members are satisfied and many members call
you, to offer all their business
High Performance
How do you get there?
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Define Strategic Direction
Compensate Staff Fairly
Define Quality Service Standards
Define Performance Contracts for all Staff
Communicate
Train Staff
Coach Staff
Introduce Multi-source Feedback
Appraise and Reward Results
Monitor Program Effectiveness
High Performance
How do you get there?
1.
Develop a Strategic Direction
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Make a commitment at the Board and management level to
expect “high performance”
Know how much of your current membership do business
elsewhere and develop a plan that will ensure your staff gain
that business
Ensure your products and your pricing are competitive
Find out if your staff are satisfied - if not - take action
Find our if your members are satisfied - if not - take action
Know your CU’s current performance and set new targets
Define how you will measure your CU’s achievement of the
new targets
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High Performance
How do you get there?
2.
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Compensate Staff Fairly
Ensure you have internal equity – using job
evaluation and compensation management, pay
fairly internally
External equity – know whom do you compete
with for your business and your people, and set
pay levels accordingly
Balance internal and external equity
Staff who are not paid fairly will be less willing
to take on new duties, take risks, or support
your organizational change
High Performance
How do you get there?
3.
Define service quality standards
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What is quality service to your CU?
Define your version of quality service
Know how quality service is to be
demonstrated by staff
Demand quality service from those
serving your internal customers
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High Performance
How do you get there?
4.
Develop performance contracts with all staff
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“Why does this job exist?” “What is it this job is to
accomplish?” “How will the performance of this job support
our organizational direction?’
For each job, define not only “what” is expected but, “how”
the job is to be done and what is considered successful
performance
Use performance contracts as a foundation for coaching all
staff to be the best they can be
Ensure contracts are realistic, measurable and attainable
Ensure staff have the “span of control” they need to achieve
their goals
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High Performance
How do you get there?
5. Communicate
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Ensure staff understand “why” you are
implementing these new programs
Ensure staff understand both the “big picture” and
their own role in that picture
Adopt a discipline for continuous, consistent, open
communication - regular staff meetings, sales
meetings, etc.
High Performance
How do you get there?
6. Train Staff
 Train staff to understand how to build long-term
relationships with their members
 Provide technical training – lending,
investments, etc.
 Train Management to be effective coaches
 Support any other training need that arises
High Performance
How do you get there?
7.
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Coach Staff (Steps one to five are pointless unless you
are going to require managers to act as coaches)
The manager’s customer is their employee
Managers must hold their staff accountable for their
performance contracts
Managers must demonstrate support by being accessible
and listening to obstacles raised by staff and deal with
these obstacles
Give feedback informally all the time, recognize
accomplishments and when necessary re-direct
performance - document progress
High Performance
How do you get there?
8. Introduce Multi-source Feedback
 Must ensure accountability at all levels
 Management, member, peer,
High Performance
How do you get there?
9. Appraise Performance and Reward Results
 Summarize the discussions with staff regarding
performance throughout the year
 Rate the staff’s demonstration of their
performance contract
 Reward contribution – bonuses, spot rewards,
etc.
 Design reward program to support your culture
Incentive Pay
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Why are incentive pay programs used?
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communicate credit union's strategic plan
drive employee's achievement towards credit union's strategic
plan - shapes employee behaviour
make amount of rewards more motivating
supports employee involvement and communication
encourages employee "ownership" of the organization's success
more competitive pay programs
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Incentive Pay
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Individual
Performance
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Individual incentives
 Lump-sum bonuses
 Spot rewards
 Commission based
pay
Group Performance
Profit-sharing
 Gain-sharing
Incentive Pay
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Group Performance - For example what is Gain-sharing?
– Workers share a percentage of the value of increased productivity,
calculated under a prearranged formula.
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What are the characteristics?
– Based on financial measures/business goals from strategic plan
– originated in the manufacturing industry - now found in all
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industries
emphasizes and enhances small group teamwork
employees learn more about the "business"
defined term
fully funded reward
Incentive Pay
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Group Performance - For example what is Profit Sharing?
– Broad group of employees share a pool created by a share of
profits, usually under a prearranged formula.
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What are the characteristics?
– "line of sight" is typically indirect for some employees
– oldest type of group incentive
– tied to organization's strategic plan
– emphasizes and enhances organizational teamwork
– employees learn more about the "business"
– defined term
– funded reward
Incentive Pay
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Individual Performance - For example what are Individual
Incentives or lump-sum increases?
– individualized to apply to individual contributors.
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What are the characteristics?
– based on individual efforts
– tied indirectly to organization's strategic plan
– does not emphasize or enhance teamwork
– depends heavily on effective performance management programs
– defined term
– not funded directly
Incentive Pay
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Individual Performance - For example what are Spot
Rewards?
– One-time plans to reward a limited number of key players
for successful completion of a project, program or product.
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What are the characteristics?
– not necessarily cash
– improve morale
– can make work more "fun"
– motivate employees to meet a goal
– very short life-span
Incentive Pay
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Individual Performance - For example what is
Commission Based Pay?
– Pay directly based on the achievement of a goal - typically
used to compensate "sales" type jobs.
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What are the characteristics?
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can be given instead of, or with salary
high director of behaviour
high motivator
simple to understand
funded reward
does not support teamwork
Incentive Pay
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Reasons alternative reward programs fail...
– inappropriate measurements - either too high or too low
– measurements not aligned with strategic plan
– too complex for management or employees to understand
– overpayment or underpayment
– double payment or conflict with base pay
– organization is poor at employee communication
– organization is poor at performance management
– not designed for the organization's level of "readiness"
Incentive Pay
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Organizational conditions for successful variable pay
programs...
clear and well understood vision and strategic plan
 effective management/leadership
 effective employee communication
 effective performance management
 high emphasis on rewards and recognition
 clearly defined roles
 employees are empowered
 strong commitment to teamwork
High Performance
How do you get there?
10.
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Monitor Program Effectiveness
Did you achieve your Cu’s financial goals?
Did your managers/staff reach their goals?
Are your staff satisfied?
Are your members satisfied?
If not, what are you going to do about it next
year?