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Introduction to Effective People Management 2008 Purpose & Objectives • Purpose: – Clarify performance expectations of an Enodis manager and provide an overview of skills necessary to be effective • Objectives – Describe the impact you as a manager have on the employees performance. – List the top drivers for employees and how a manager directly affects those drivers – Describe the role of an effective manager within the organization – Effectively use communication skills when interacting with other employees of Enodis – Understand the tools and methods used within Performance Management – Describe the role you have as a manager in effecting change – Identify areas of opportunity based on your management style Agenda • Business Impacts of Management • Top Drivers for Employees • Roles of a Manager • Skills Needed to be a Better Manager – Communication – Performance Management – Change Management • Assessment and Action Plan Message from a Senior Leader Hello, Welcome to the KPS Leadership Training program. This session will provide you with insight and clarification of the key competencies and characteristics necessary to be an effective leader at KPS. As a growing organization, it is essential our leaders have the understanding and capacity to drive and support that growth through a wide variety of welldeveloped leadership abilities. We at KPS believe in and are committed to valuing learning in our culture. Our success is a direct result of associate development in which an environment of workplace learning and continuous improvement initiatives are key. We look forward to your participation in this and future learning opportunities presented to you over the next couple of months. It is our intent to continue to provide opportunities for growth as we partner to provide world class solutions to our customers. Thank you. David Frase President Effective Management • What does it mean to be an effective manager within KPS? Good and Bad Managers • What makes a good or bad manager? Manager Expectations • What do you expect from your manager? • What do your employees expect of you? • What does your manager/company expect of you? Top Drivers of Attraction & Commitment Compensation Organization Stability Location Work Life Balance Top Drivers: Attraction Developmental Opportunities Future Career Opportunities Respect Meritocracy Ethics Manager Quality Collegial Work Environment People Management Top Drivers: Commitment Line Managers Directly Control Factors Contributing To Employee Commitment, which Leads to Retention Corporate Leadership Council 2006 Study on Employment Value Proposition Manager Impacts Performance & Retention Line Managers Directly Control a Majority of the Most Effective Drivers of Employee Performance and Retention Corporate Leadership Council 2005 Study on Performance and Retention Employee Performance Results from numerous studies have determined that a manager's actions (or inactions) can influence individual performance from as high as 39% to as low as -28%! Fair and Accurate Informal Feedback Emphasis on Performance Strengths Clarifying Performance Expectations Leverage "Employee Fit" for a Job Provide Solutions to Day-to-Day Challenges Emphasis on Performance Weakness Make frequent changes to Projects 39.1% 36.4% 36.1% 28.8% 19.0% -26.8% -27.8% Cost of Retention/Turnover • Cost of Turnover = up to 150%* of annual salary * Cascio, Costing Human Resources; Saratoga Institute & Hewitt & Assoc., www..taleo.com/research – separation cost + replacement cost + training cost + lost productivity • 3 year annual average at one OC: + + + + 1 Executive at 6 Exempt Positions at 6 Non-Exempt Positions at 19 Regular Hourly Positions at 150% of Salary 100% of Salary 75% of Salary 50% Annualized Wages $966,358/ year or $2,902/ee • Enodis Cost of Turnover would be • $2,902 X 6,000 = $17,412,000 • Reducing turnover by just 10% would deliver Enodis $1,741,200 to the bottom line Kysor Panel Cost of Turnover • 3 year annual average at Kysor Panel: + + + + + 0 Executive at 3 Exempt Positions at 19 Non-Exempt Positions at 79 Regular Hourly Positions at 93 Temporary Hourly Positions at 150% of Salary 100% of Salary 75% of Salary 50% Annualized Wages 25% of Annualized Wages $2,140,833/ year or $5,352/ee • Reducing turnover by just 10% would deliver $214,083 to your bottom line Two Roles of a Manager Manage Employee Work and Performance Manage the Employee’s Relationship with the Organization • Assign Projects/Tasks to Leverage Employee Fit • Amplify the Good – Filter the Bad • Clarify Performance Expectations • Provide Solutions to Day-to-Day Challenges • Provide Regular, Fair and Accurate Informal Feedback • Execute Formal Performance Management Process • Connect Employees with the Organization and it’s Success • Instill a Performance Culture • Connect Employees with Talented Co-Workers • Demonstrate “Credible Commitment” to Employee Development Fulfill the Employee Bill of Rights Corporate Leadership Council 2005 Study on High Performance and Retention Employee Bill of Rights Every employee of this company, has the right to KNOW… WHAT their job is WHY their job is important HOW to do their job incredibly well Employee Bill of Rights (con’t) • WHAT their job is – Give clear understanding of performance expectations – State desired results and how they’re measured – Know what good and bad performance looks like • WHY their job is important – Where I fit in the grand scheme of the organization – How do I contribute • HOW to do their job incredibly well – – – – Produced results Through development of knowledge, skills and abilities By levering resources and our business environment Through motivation Skills Needed to Do Your Job Incredibly Well Skills Needed to be a Great Manager • Skills included in this program: – Communication – Performance Management – Change Management • Other skills not covered in this program which will help you “Get Work Done With and Through Others” – – – – – Team Effectiveness Delegation Training Others Managing Conflict Influence and Negotiation Effective Communication Communication Definitions • Communication – The exchange of thoughts, messages, or information, as by speech, signals, writing, or behavior. • Effective Communication – When all parties involved in the process have a common understanding of those thoughts, messages or information. • Effective Communicator – A person who is able to ensure that a message is clearly communicated. Barriers to Effective Communication Barriers to Communication (con’t) • Different status of the sender and the receiver • Use of jargon • Selective reporting • Poor timing • Conflict • Ourselves • Perception • Message • Environmental • Smothering • Stress It’s usually not the “what” of the message… it’s the “how” of those involved. A Communication Effectiveness Model The five dimensions of social intelligence ("S.P.A.C.E.") include: • Situational Awareness: – The ability to read situations and to interpret the behaviors of people in those situations. • Presence: – Often called "bearing," it's a whole range of verbal and nonverbal behaviors that define you in the minds of others. • Authenticity: – The behaviors that cause others to judge you as honest, open, and "real." • Clarity: – The ability to explain your ideas and articulate your views. • Empathy: – The ability to "connect" with others. S P A C E *Excerpt from Social Intelligence written by Karl Albrecht Effective Communication • Identifying who needs what information and communicating that information in a specific and timely fashion • Using the most effective communication vehicle to distribute the information • Listening effectively • Assisting others in communicating effectively Listening Skills • What is the difference between Listening and Hearing? Non-Verbal Communication UCLA Study • 93% of communication is expressed non-verbally Other Studies • 55 % by the nonverbal communication • 38 % by voice quality • 7 % by the words used Tips to Non-Verbal Communication • Watch facial expressions, eye contact, posture, hand and feet movements, body movement and placement, and appearance and passage as they walk toward you. • If a person’s words say one thing and their nonverbal communication says another, you want to listen to the nonverbal communication • Probe nonverbal communication during a situation in which you need facts and believable statements. • When leading a meeting or speaking to a group, recognize that nonverbal cues can tell you: – when you’ve talked long enough, – when someone else wants to speak, and – the mood of the crowd and their reaction to your remarks. Be aware of the messages you are sending with your Non-Verbal signals Being an Active Listener • Probe • Question • Acknowledge • Respond Questioning • Closed ended questions are typically looking for one word or short answers. – Provides the ability for closure to rambling participants and inclusion for quiet participants. • Open ended questions leave an opening for the speaker to answer completely about the subject matter. “Seek first to understand… then to be understood.” - Steven Covey Seven Habits of Highly Effective People Acknowledge and Respond • Paraphrasing • Perception Checking • Summarize Action Items • Limit your talking • Ask questions/paraphrase • Focus on the speaker • Use positive body language • Understand that perception is reality Means of Communication • Verbal (Interpersonal) – One-on-One – Small Group – Large Group • Written – Memo – Bulletin Board – Newsletter • Electronic – E-mail – Intranet/Internet – Video What are the benefits and risks/problems with each? Performance Management Performance Management • Introduction into the tools and techniques that any successful manager uses with their employees • The tools and techniques that will not make you successful. • How you employ them to develop employees into consistently high performers will define your ability to be viewed as a successful manager within the organization. Two Roles of a Manager Manage Employee Work and Performance Manage the Employee’s Relationship with the Organization • Assign Projects/Tasks – “Leverage Employee Fit” • Amplify the Good – Filter the Bad • Clarify Performance Expectations • Provide Solutions to Day-to-Day Challenges • Provide Regular, Fair and Accurate Informal Feedback • Execute Formal Performance Management Process • Connect Employees with Organization and it’s Success • Instill a Performance Culture • Connect Employees with Talented Co-Workers • Demonstrate “Credible Commitment” to Employee Development Assign Projects/ Tasks to Leverage Employee Fit • What does this mean to you? Assign Projects/ Tasks to Leverage Employee Fit • Managers should carefully match employee to jobs within the organization. – – – – Hiring Work Assignments Team Projects Promotions • Employees that understand and enjoy their work significantly outperform those who do not. • Give people work assignments where they can succeed – “Set them up to succeed.” Clarify Performance Expectations • How do you as a manager “clarify performance expectations”? Clarify Performance Expectations (con’t) • Job descriptions • Performance objectives • PMP forms • Work Instructions Do we do this well? • Training • Disciplinary Actions • E-mail communications • Daily/Weekly Meetings • Performance Metrics • Bulletin Boards/ “Birdhouses” • Employee Recognition Consistently? If Not, Why Not? Provide Solutions to Day to Day Challenges • One of the most important day to day impacts a manager has on performance is through helping employees find tangible, immediate solutions to specific work challenges. • How do you provide solutions to your employees day to day challenges? Provide Solutions to Day to Day Challenges • How do you provide solutions to your employees day to day challenges? – – – – – – – – – Answer their questions Point them in the right direction Provide training Facilitate Problem Solving Meetings Manage Conflict Assign mentors, coaches or “buddies” Ensure you use a structure approach in providing solutions Have that person research the solution to problem Have that person lead a problem solving team Doing the work for them does not help them grow. Provide Regular, Fair & Accurate Informal Feedback Fair and accurate informal feedback from a knowledgeable source is the most effective performance management strategy available to the organization. Fair and Accurate Informal Feedback Emphasis on Performance Strengths Clarifying Performance Expectations Leverage "Employee Fit" for a Job Provide Solutions to Day-to-Day Challenges Emphasis on Performance Weakness Make frequent changes to Projects 39.1% 36.4% 36.1% 28.8% 19.0% -26.8% -27.8% Four Step Feedback Model • Just the Facts – Give a clear behavior description • Your Reaction – How does the behavior make you feel as the manager? • Impact – What is the impact of the behavior on the larger picture? • Request – What do you want to see happen? Execute Formal Performance Mgmt Process Enodis PMP is a Formal Process of • Setting Expectations Clear, Measurable Objectives – Organizational – Personal • Measuring Results • Providing Formal Feedback – Documenting Results • Developing People – Current Job – Future Job How Well Do You Think You Do This? Emphasis During Formal Review Meeting Remember that during a formal review meeting • emphasis on performance strengths can increase performance by 36%, • emphasis on performance weakness can actually decrease performance by 27%! Fair and Accurate Informal Feedback Emphasis on Performance Strengths Clarifying Performance Expectations Leverage "Employee Fit" for a Job Provide Solutions to Dayto-Day Challenges Emphasis on Performance Weakness Make frequent changes to Projects 39.1% 36.4% 36.1% 28.8% 19.0% -26.8% -27.8% Managing Change Change Opportunity • Think of a change as problem solving. – Managing change is seen as a matter of moving from a problem state to a solution state. • The word problem carries with it connotations that some people prefer to avoid. • A problem is nothing more than a situation requiring action but the required action is not known. • The search for the solution is known as problem solving. Your job is to facilitate the problem solving and guide people through the change. The 10 Principles of Change Management 1. Address the “human side” systematically 2. Start at the top 3. Involve every layer 4. Make the formal case 5. Create ownership 6. Communicate the message 7. Assess the cultural landscape 8. Address culture explicitly 9. Prepare for the unexpected 10. Speak to the individual Source: strategy + business, Summer 2004 How Employees Experience Change 1. Shock and Denial 2. Resistance 3. Explore 4. Acceptance Why Employees Resist Change • Why do you think employees resist change Why Employees Resist Change (con’t) • They don’t see the need to change • They are threatened by the prospect of change • They feel that the changes are being imposed upon them and they are not involved in the change process • The don’t share the goals of the organization • Risks to job, status, income, esteem, respect The #1 Reason for Resistance to Change is the Fear of Losing Something Probability of Change Acceptance • Need to create a “burning platform” – sense of urgency • Need to focus on critical mass – Who’s walking forward and who’s standing still? – Figure out how many people fall into each category • Give Feedback – Approach issues from different perspectives – To convince people, you must come at them from their perspective High Acceptance of Change Change Unnecessary (Inertia) Change Acceptance Zone Change Unattainable (Stress) Low Narrow Size of Identify Gap Wide Change Gap • For employees to cross the change gap you need to: – Understand current state of the organization and associated issues with making the changes – Paint future state for your employees so people know what they are changing “to”, not just where they are changing “from” – Put in place activities, systems, interventions and rewards for Change to occur Future State Current State Acknowledge Awareness of Issues / Reason to Change Acknowledgement/ Ownership of Need Willingness to Change / Buy-In Celebrate Success Fear Discomfort Sense of Loss Sadness/Grief Longing for the Past Communicate Progress Replace Old Habits With New Habits New Measurements Refocus on Mission & Objectives Process Improvement/Problem Solving Communicate, Educate & Train Conclusion Self-Assessment Action Planning Self Assessment • Rate your self On a Scale of 1 to 5 – 1 being a development need – 5 being a strength • Connect the dots – The area on the left is who you are – The area on the right is who you can be! What Are You Going to Do Differently? • • • • • Manage Employee Work and Performance Assign Projects/Tasks – “Leverage Employee Fit” Clarify Performance Expectations Provide Solutions to Day-to-Day Challenges Provide Regular, Fair and Accurate Informal Feedback Execute Formal PMP Communication Ask Questions Listen Be Aware of Non-Verbal Cues Paraphrase to Confirm Understanding Means of Communicating Situational Awareness Presence Authenticity Clarity Empathy` Fulfill Employee Bill of Rights What their job is Why their job is important How to do it incredibly well Manage the Employee’s Relationship with the Organization • Amplify the Good – Filter the Bad • Connect Employees with Organization and it’s Success • Instill a Performance Culture • Connect Employees with Talented Co-Workers • Demonstrate “Credible Commitment” to Employee Development` Managing Change Communicate Vision Develop Action Plans Respect and Address Resistance Ensure People Have Required Info Give Feedback Reinforcing Change Celebrate Success Upcoming Training? • Communication Skills • Performance Management • Change Management • Getting Work Done With and Through Others – – – – – Team Effectiveness Influencing Others/Negotiation Delegation Conflict Resolution Training Others Introduction to Effective People Management 2008