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How to Create a Really Great Company in 2005
Why Most CEOs Fail? Building a Great Company From Within & Using Your Employees to Find and Fix problems By Chet Holmes, President of Jordan Productions Times are tough. The economy is in a constant state of upheaval. Is your company doing better...
Stop Sickies and Make People Happy At Work
Stop Sickies and Make People Happy At Work If you're an employer or a manager then work place absence is costing you money, inconvenience, and upsetting your customers. And as we all know, not all days taken off work are due to genuine sickness....
The Fastest Way to Ruin Yourself
I don’t know many people who would admit to wanting to ruin themselves, but there are a lot of people who are doing everything they can to accomplish that very goal. They certainly don’t see it that way, but if you look at the way they live, you can...
THE FOUR THINGS YOU NEED TO SUCCEED
Essentially, there are only four elements to being successful in a business, but these four are absolutely indispensable. 1. Education. You may be able to start a business without knowing much about the particular field you've entered, but you...
Win/Win Sales Negotiations - Myths and Realities
I once got a phone call from someone responsible for sales training at a large company. She said to me, “Mike, we need negotiation training for our sales force.” I said, “Great, you've come to the right place.” Then she said, “But do you teach...
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Executive Performance -- Who's to Blame for Incompetent Managers?
A recent article in the Wall Street Journal raised the question: Who’s to blame for inept managers?
The answer, of course, is the superiors who hire or promote them -- but not because they intentionally select or retain poor performers. Every leader knows that his or her own success depends on putting the right people in the right positions. It’s easy to blame a manager’s poor performance on his or her boss, but more often than not, managerial incompetence isn’t obvious to superiors. Instead, fault lies with the systems used for evaluation and the alternatives available for dealing with performance failure.
Despite their widespread popularity, standard 360 evaluations and psychometric tests are poor substitutes for informed, thorough evaluation. Standardized assessments and tests are promoted as rapid, economical alternatives for determining competence and assessing performance. Consultants and salespeople alike tout them for their objectivity and accuracy.
In reality, the typical 360 evaluation is far from objective. How can a group of very different people, with very different relationships to the subject and very different priorities, be expected to evaluate an individual professionally and objectively?
Additionally, reliance on these measures can cause you to miss crucial information about how senior executives and managers think and how they relate to others on a day-to-day basis — factors that can make or break your organization’s ability to perform. While 360s can appear relatively cheap and quick to implement, a poor evaluation system can have very expensive repercussions.
The second problem is the alternatives available for floundering executives. “Cutting poor performers loose” is a lose-lose proposition as a first-line response. If the alternative is firing, superiors may be reluctant to acknowledge a problem and even colleagues and subordinates might shrink from
responsibility for destroying a career. When alternatives, such as a different position or behavioral coaching are available, problems are much more likely to be identified early on.
Every executive has strengths in some arena. The first key to effective leadership is correct placement. If an executive doesn’t have the talent for one area, he or she should be given the opportunity to do a different job. Richard Branson, billionaire founder of the Virgin Group of companies, believes strongly that if an employee is not excelling in one area of the company, he or she should be given the opportunity to do well in a different Virgin Group job. At Virgin, firing is seldom an option.
Coaching, too, can make a difference. It’s understandable that company leaders would hesitate to throw good money after bad by investing in coaching for problem managers. However, many organizations indiscriminately assign rising managers to executive development programs regardless of the specific needs of the individual. This is clearly a waste of time and money. Highly targeted and personalized executive coaching can be far more cost-effective in developing leadership competence.
Today’s organization can’t afford to lose quality people due to managerial incompetence. But wasting time affixing blame won’t help. Greater investment in effective evaluation and coaching is a drop in the bucket compared to the expense of recruiting and training new people – not to mention the ultimate cost of employee disengagement and apathy.
About the Author
Dr. Robert Karlsberg and Dr. Jane Adler are senior leadership consultants and founders of Strategic Leadership LLC. They work with senior executives to maximize performance, facilitate transitions and accelerate major change initiatives. Contact them at 301-530-5611 or visit http://www.PsychologyofPerformance.com
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