A Very Keyne Way to Set Goals Continued

Last week we defined goals according to the Keyne Method.  This week we continue to outline the process. Tension often exists between setting realistic goals and stretch goals. The Keyne Method creates a breakthrough solution for this issue; when outlining goals, define the criteria for meeting the goal, exceeding the goal, and missing the goal. The exceeded criterion allows you to create a realistic stretch goal. Almost everyone likes to produce results beyond their set goals. I noticed that my clients who follow this process focus on exceeding the goals. This method also forces you to really think about your goal. It is such a simple concept. It works quite elegantly. Of course, each target of meeting, exceeding, and missing needs to be quantifiable. Here is an example: Goal: Attain $10 million in new sales revenue for 2019 Score   Definition   Missed   Attain $9 million or less in new sales revenue for 2019   Met   Attain $9-11 million in new sales revenue for 2019   Exceeded   Attain $11 million or more in new sales revenue for 2019 We encourage our clients to set goals in partnership with their manager. Employees that set goals with their managers really create alignment. It allows employees to define what they are actually committing to and allows managers to understand and agree to those commitments. I love this aspect; it is very powerful and positive.  As I said previously, all goals have clear measurable results with a target date. Target dates ensure achievement of goals. Can you imagine a goal that said Company X will attain $250 Million Net Profit...

A Very Keyne Way To Set Goals

Goals are where the rubber meets the road. Goals create high performance organizations. Goals create accountability. Goals have clear measurable results with a target date. A side note; much of the philosophy of this article is taken from the Keyne Method which was created by recovering strategic planning consultants Wayne and Kelly Nelson. They are also the developers of KeyneLink; a cutting edge execution management system that is used by many companies globally. The Keyne Method categorizes goals into four types: individual, departmental, developmental and team. In today’s post we will look at each of these in more detail.  Next week we will continue discussing the Keyne Method of goal setting. Individual Productivity Goals • Represent how each individual will be involved in meeting the corporate initiatives • Are totally within your power; nobody else is involved • Example:  An individual sales goal Department/Management Goals • The department’s or group’s contribution to a corporate initiative • The manager’s productivity goals for the department • Example:  Keeping the sales motif in mind: the sales department will attain 10 million in new sales revenue for 2019 Professional Development Goals • Goals that advance an employee in his or her professional development • May be related to leadership skills, technical skills, specific job-related skills, or the like. • Examples: Graduating with an MBA by 2019, completing a course/seminar by 2019, attending a conference in 2019, etc. Developmental goals are really positive; knowledgeable employees are more valuable to the company and better suited to drive the corporate initiatives forward. All of our clients mandate that every employee including the CEO have at least one developmental...

A, B, C Quick Summary

Over the past few weeks,  I’ve outlined a methodology guaranteed to drive mediocrity out of your organization from the bottom up.  Below is a quick summary. 1. Whenever you engage with this process, it is very important that you hum Michael Jackson’s “ABC” song. That really is the secret to success. 2. Introduce the process to your organization by asking Managers to read the recommended articles: “ABCs” by Bruce Hodes or “A New Game Plan for C Players” by Beth Axelrod, Helen Hadfield-Jones, and Ed Michaels. 3. In a scheduled group session with your Managers, rank your employees as an A, B or C. 4. Deal with any C Players you may have. Remember the options: Put them in a new role, coach them, or ethically and honorably move on to better options. 5. Treat your B Players as a resource. 6. Identify the A Players on your team.  A Players need plans that develop and train them so they are indeed ready to be promoted; I advise incorporating A Players as full partners in developing those plans. 7. Follow up with the Leadership group in two months to ensure that issues are actually being addressed. Watch me talk about A, B, C Players at a conference...

The Next Steps for A, B, and C Players

What’s good about CMI’s A, B, C system of ranking employees is that the issues are on the table, and managers can act accordingly. A Plan for C Players Once an employee has been identified as a C Player, there can be three resolutions: 1. He/She can be put into a new role, where his/her skill set might allow him/her to become a B Player. For example, the Engineering Manager for a company I worked with was, at best, marginal in his position. He was moved from having direct reports into being part of the sales team. Since then, company sales grew dramatically, and new customers are better cared for. With an open mind and strong knowledge of an employee’s strengths, placing an employee in a new role can greatly improve outcomes. 2. The Manager can take the employee on for development and coach him/her into becoming a B Player. At this point, the employee understands that his/her job is on the line, and the Manager clearly outlines the required behavioral changes. For the next few months, the Manager coaches and supports the employee. Turnarounds can happen. 3. It might be decided that the only alternative is to move on and replace the employee. The decision then is how to proceed in an ethical and honorable manner. A question I ask is: “Does the employee know that his or her job is on the line?” Managers often hem and haw and say they “think so” or that the employee “should know.” The standard I set is higher: “Did you say to the employee that these performance issues need to be addressed...

Defining the Players

The following is what I mean by A, B, or C Players What were you thinking? If you are a CEO or Manager with direct reports who would come up with D’s and F’s in a school grading system, I cannot help you. Tolerating employees of this quality in your company does not allow you to respond appropriately to — let alone thrive in our current business environment. These low-grade employees (and the Managers who tolerate them) are impacting the rest of your organization. Not only do low-grade employees drag down the company, but they also negatively impact your great and superstar employees. In short, if you have more than a few D and F employees, sell the firm and do something to save yourself. Your prognosis (and that of your company) is — at the very best — grim. In the next minute, you will be falling off a high cliff. Good luck and start to pray! Out with Mediocrity From now on, I’ll refer to mediocre employees as “C Players.” These employees are marginal in their performance and unremarkable in any positive attribute they bring to the workplace. They exist, take up space, and just get their jobs done, sort of. A test for “C-ness” is putting yourself in this scenario: If one of these employees came up to you and said they were quitting, would you be relieved? Would your relief be because you’re certain you could do better by recruiting a new employee from the open marketplace? If so, you have a classic C Player on your hands. Know anyone like this? Grab a piece of...

Open Assessments

The “ABC” process I’m going to tell you about is designed to give your company both a people and a performance edge. During my clients’ strategic planning meetings, I have each manager stand in front of the room. The managers are then asked to rank—one at a time—their direct reports as an A, B, or C Player.  The group has to be mature, sophisticated, and responsible enough for this type of activity. I ask managers to read several articles about the process in advance, so everyone already understands the process. Once the manager ranks employees and has explained his/her rationale, others at the table can give their views. Only those who have real work-related experience with that person state their rankings and justifications. I’ve seen very positive results from the dialogue that managers hold with the leadership team about key employees. Managers realize how others perceive their direct reports. Below the surface issues are brought to light. The team can then design actions to deal with those issues. Another disclaimer: This exercise is not about hearsay and gossip. Participants must have adult sophistication. For example, absolute confidentiality is a must. What goes on in the meeting room stays in the meeting room; all participants need to understand and honor this. To take the discussion out of context and share with anyone outside of the room is a fireable offense. Next week I’ll define what each type of player...

ABC’s Oh Baby Now

A lot of factors impact the long-term success of a business entity, and achieving success is complex. As businesspeople, we cannot control the economy, our competition, taxes, healthcare plans, or national events. However, I think we can agree that the quality of employees within an organization directly affects that organization’s performance. Even with unions, executives and managers do ultimately control who works in the company. Leveraging the “people piece” is essential to enhance a company’s performance advantage. People are one of your most important business assets. By calling people “assets,” I do not mean to objectify them — but maximizing resources is one of the responsibilities of business leadership. The “ABC” process I’m going to tell you about is designed to give your company both a people and a performance edge. An article called “A New Game Plan for C Players,” by Beth Axelrod, Helen Hadfield-Jones, and Ed Michaels helped crystallize my ideas about working with management teams. The article also reinforced solutions that I am successfully implementing with my clients — namely, improving companies by driving out mediocrity. By raising the bottom of a company, you automatically raise the top. Before we go on, let me make a disclaimer. Management’s ranking of employees is controversial. Forced ranking is something that many large, publicly traded companies do. I am not endorsing this methodology or that of Jack Welch, who supposedly advocated culling the bottom 10 percent of the GE herd each year. What I am endorsing, and heartily proposing, is that you only have truly outstanding and incredible employees in your company. Now there is a radical thought!  If...

Let’s Take the Family Out of Business – Part 6

Rules for Relatives Business Leaders and Executives will slow and potentially destroy the growth and development of their companies if they have lower standards or different rules for family members than they have for their other employees. If you have family members in your business, and you truly love and support them, do the following: 1. Set the highest possible standards for family member behavior. Make sure they know their responsibility is to exemplify the company values beyond what any other employee does. Make it clear to family members that because they are family, more will be expected from them. For family members to remain at the company, they will be expected to work harder and longer hours. 2. Only place family members in roles where it is obvious they have the essential abilities and talent to excel and bring real results to the company. 3. Actively encourage family members not to work at the company; if they decide to do so, reinforce that it is a choice they are making. 4. If you have any unresolved issues with your siblings, cousins, children, spouse, etc., and you hope to figure them out by working together, forget about it. Go see a therapist and leave the business completely out of the equation. Taking the “family” out of “family business” is a rich topic. Not managing family relationships in a business can have disastrous results, not just for the business but also—especially—for the family. In my view, the destruction of family relationships is tragic. Use the principles within this article to stay within the light to promote family and business harmony...

Let’s Take the Family Out of Business – Part 5

Why You may not be the best choice… Often the best move for family business owners is to replace themselves as President. They need to bring in someone else with more leadership skills, ability, and talent who can build and develop their biggest, most important asset:  the company. Family membership is not a necessary qualification. Johnny is a case in point. For years, he complained of the burden of running the $250 million company that he had grown from scratch with his dad. He did not like having to teach and support everybody. Finally, he made Laura—his Operations VP and a very talented woman who was not a family member—the President. She proceeded to work with the company’s great leadership group and grow the organization despite a poor economy. The company achieved all their financial targets and opened a new plant. Johnny is still Chairman of the Board and is semi-retired. “I exercise and do a lot of fishing,” he recently told me. “I like the Green River, but sometimes I go fishing in Colorado.” I spent several days with him on a trip overseas and had never seen him so relaxed and emotionally available; all because he recognized he was not the right person for the job and replaced himself in the role. For more information about family business coaching click...

Let’s Take the Family out of Business – Part 4

Choosing your work Whenever possible, parents owe their children food, shelter, love, medical care, education, guidance, and coaching to become independent adults. However, they do not owe their children a job. Families and businesses have distinct and very different dynamics. When these different systems compete with each other, prepare for catastrophe. Ernest, the Chairman of the Board for a Manufacturing company, died. He left a series of directives in his will dictating how the company should be run: one son would be CEO and one daughter would be Senior Vice President of Manufacturing. However the directives were not fulfilled. Instead, elderly Mom, who historically had little to do with the business, was now the majority owner and the one in charge. Mom as business owner turned into a disaster. She made wrong business decisions in a changing environment and put the company at financial risk. Meanwhile, the son and daughter did not get control or ownership of the company they have spent their lives building. Turning this company around would be a lot easier if it were not so encumbered with family issues. The point is that the leadership in your company should be based on talent and ability. If it turns out that family members actually qualify, consider it a dividend and karmic reward. For more information about family business coaching click...