Better me than you: Six mistakes I’ve made and how you can avoid them Paul Bly October 21, 2014

1. REUTERS/Mike Blake Better me than you: Six mistakes I’ve made and how you can avoid them Paul Bly October 21, 2014

2. A man climbs up an artificially made wall of ice near the Swiss mountain resort of Pontresina Employee engagement REUTERS/ArndWiegmann

3. Employee engagement It seemed like a good idea at the time! But actually… • The projects took a tremendous amount of time and effort, became bogged down • The organization made key changes affecting employee raises, benefits. • Another round of layoffs • Slow business growth, high cost pressure What I’m doing now • Continue to monitor engagement • Be aware of “gravity” issues • Involve executives in decisions about what we can and cannot genuinely influence • Act in concert across the business segments “Don’t be a slave to engagement” Created project teams within each business segment Involved promotable and high performing employees from across functions Conducted focus groups to further understand the results Prioritized projects based on value and effort

4. Selection assessments A skier makes his way down from top of the mountain at the plateau of Rosa Khutor, a venue for the Sochi 2014 Winter Olympics near Sochi REUTERS/Kai Pfaffenbach

5. Selection assessments It seemed like a good idea at the time! But actually… • Hiring volumes shifted to other sales roles • Managers were wed to the other elements of their selection process • Regardless of performance on the assessment, all selected employees performed well What I’m doing now • Letting the contract expire • Rapid Results to address hiring challenges • Identified a group with a challenge in picking sales people who will hit the quota • Working with another vendor with broader role categories Selection assessments work best when you have a selection problem Wanted to introduce selection assessments to the business Started with Sales, a group with high volume, a pain point, interest and a clear criterion Chose a selection firm with a strong track record Created a profile for the target role

6. Performance management A pregnant woman, suspected of contracting Ebola, is lifted into an ambulance in Freetown. REUTERS/AkintundeAkinleye

7. Performance management A sand storm erupts on the Turkish-Syrian border as a Kurdish Syrian refugee waits for transport, clutching her child in her arms. REUTERS/MuradSezer

8. Performance management It seemed like a good idea at the time! But actually… • The recommended guidelines were interpreted as requirements anyway • Managers were unwilling to own the ratings they gave employees • Created an even greater perception of performance management as a process What I’m doing now • Going into our third year, advocating for calling our curve what it is: do we require it or not? • Rolling out 90-minute performance management, tough feedback, and coaching sessions for managers • Envying organizations that have eliminated performance ratings Work within your culture, but be straightforward unless you want more cynicism The vast majority of our performance ratings were in the middle “Achieved” category Created anexpected distribution curve to enable greater pay for performance and to drive more realistic ratings Loathe to require a forced distribution, so it was described as “recommended guidelines”

9. Experience-based development A boy jumps into the Llanos del Cortes waterfall in Bagaces, Guanacaste city Costa Rica. REUTERS/Juan Carlos Ulate

10. Experience-based development It seemed like a good idea at the time! But actually… • Two-day program was much grander than the need • Not scalable • Too much for employees to absorb at once What I’m doing now • One- and two-page documents • 90-minute sessions with HiPos • Point people to mp3s Teach enough, then stop Maximize the 70 in 70/20/10 Which experiences? Read my book! Teach employees how to learn from their experiences Great resources at my disposal, developed a program

11. Rating scales A runner falls to the ground as Miura fighting bulls speed past. A runner falls to the ground as Miura fighting bulls speed past. REUTERS/Eloy Alonso

12. Rating scales It seemed like a good idea at the time! But actually… • Changed the performance and potential scales…multiple times • Changing the ratings and supporting documents became a cottage industry • We still get complaints What I’m doing now • Six years later, we have ended up nearly back where we started • Citing the company’s push for simplicity and removing unnecessary work • Pleading to avoid changes for 2015 Pick something and stick with it Reuters integration led to an updating of everything HR-related Received negative manager and HR feedback Reviewed best practices, publications, and examples from other companies

13. Culture change Swiss acrobat Freddy Nock balances down on the cable of a funicular on the Mount Corvatsch (3,303 m / 9,908 ft) near the Swiss mountain resort of St. Moritz. REUTERS/ArndWiegmann

14. Culture change It seemed like a good idea at the time! But actually… • Permafrost • Affected too few • Deep skepticism remained • Forgot about the primary levers What I’m doing now • Top-down… • …and bottom-up • Keeping the faith Bottom’s up! Unless bigger issues are in the way. “To Change the Culture, Stop Trying to ‘Change the Culture’” Bottom’s up approach Schein’s levers of culture change Address root problems Leaders were on board with the approach

15. In conclusion A young surfer sails his board off a wave as large swells hit the California coastline at dusk in Cardiff, California REUTERS/Mike Blake