Do you have the next generation of leaders you need?

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Anxiety is high among organizational leaders that as vital as a new generation of leaders is, many do not feel ready to promote talent.

In a recent survey by Korn Ferry, only 39 percent of those surveyed believed their organizations had the right talent to succeed in today’s changing global environment. One third did not feel their organization is ready to promote its talent at all.

With succession management so critical to driving a competitive advantage and securing a company’s future, what is hindering organizations from preparing for and feeling confident in their succession development efforts?

According to the same survey, based on responses from 100+ senior-level executives from 49 countries, the top issue detracting from talent management efforts is buy-in of a global talent management approach. Why global?

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About the Author

Andrés Tapia is senior partner, Leadership and Talent Consulting, Korn Ferry.

The Advisor’s Corner – Is there a right way to FIRE an employee?

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Is there a right way to FIRE an employee?Question:

Is there a right way to FIRE an employee?

StrategyDriven Response: (by Roxi Hewertson, StrategyDriven Principal Contributor)

Unfortunately, on average, we still have a 50 percent or more failure rate in hiring. This means we are as likely as not going to find ourselves in this unpleasant situation.

Aside from legal, union, or other contractual considerations that you must take into account, there are 5 KEY ACTIONS that will help keep you out of a heap of trouble:

  • Be Truthful – Employees should know exactly why they are being released from their job. Tell the truth. Most good employers have due process procedures and policies that need to be honored and communicated. Don’t leave the person to make assumptions, create more resentment than is necessary, or increase the odds of creating bad will. Remember, poor performance is poor performance, gross misconduct is gross misconduct, and a layoff is a layoff. So what is it and why?
  • Be Fair – This is a baseline rule. Fairness is a fundamental human expectation, at least in this country. It’s also a major factor in how the employee and others on your team feel when he or she exits the organization. Was the employee treated fairly? If you did everything you should have done to help this person be successful, and they didn’t cut it, then sleep easy. If you have been compassionate in your layoff package, then sleep easy. If not, then you have more work to do before you go to sleep.
  • Be Clear – Whenever possible, employees should have had a discussion with you in which they either hear 1) their job is on the line due to performance and exactly why, or 2) if it’s downsizing, be clear about that. If the termination is due to gross misconduct like stealing, tell it like it is. Get to the point, then stand up, offer your hand, wish them well, and walk them to the door. If the employee becomes despondent and is crying or is in a difficult emotional state, give them time to get themselves together; don’t fill this time with conversation about the decision. Just be kind, be human.
  • Be Respectful – Being fair is essential, as we’ve already noted. You can be fair and not be respectful. Being respectful is not only the right thing to do; it is the smart thing to do. Regardless of the circumstances leading to the termination, be professional and courteous. This is not a time to say that you told them so, or how much better things will be without them. Nor is it the time to make yourself feel better about your decision by belittling them or minimizing their contributions. Have your meeting at a time during which the employee will have little or no exposure to their colleagues and avoid having them led out of the building during business hours. Being terminated is a terrible experience, even when it is fair, done respectfully, and deserved. Always take the high road.
  • Be Smart – There are emotional aspects of the termination discussion and there are other factors to consider. Might this employee become volatile? Do you need security precautions? Should HR be present in the room? Do you have your exit checklist – e.g. keys, access, passwords, equipment, credit cards, etcetera? Your organization needs a solid termination process to follow to keep everyone out of legal and any other kind of trouble.

At the end of the day, it’s the emotions that wear you down. You should not fire someone on your own. Enlist HR, a lawyer, or other team members to help you stay clear and focused. It is important to feel what you feel and acknowledge those feelings. We’re all human. It is just as important to make sure you do not let your feelings about one person or the anticipated pain of the firing conversation get in the way of doing what is right for everyone else.

About the Author

Leadership authority Roxana (Roxi) Hewertson is a no-nonsense business veteran revered for her nuts-and-bolts, tell-it-like-it-is approach and practical, out-of-the-box insights that help both emerging and expert managers, executives and owners boost quantifiable job performance in various mission critical facets of business. Through AskRoxi.com, Roxi — “the Dear Abby of Leadership” — imparts invaluable free advice to managers and leaders at all levels, from the bullpen to the boardroom, to help them solve problems, become more effective and realize a higher measure of business and career success.

The StrategyDriven website was created to provide members of our community with insights to the actions that help create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results. We look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].

The Advisor’s Corner – Can I Afford a Bad Hire?

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Can I Afford a Bad Hire?Question:

Can I Afford a Bad Hire?

StrategyDriven Response: (by Roxi Hewertson, StrategyDriven Principal Contributor)

Fact 1: No one can afford a bad hire!
Fact 2: Nationally, about 50 percent of hires, fail. Of those that succeed only about 20 percent are top performers.
Fact 3: 90 percent of failures are UNRELATED to brains and technical skills.
Fact 4: The cost of a bad hire is up to 2x the person’s annual salary and benefits… until you fire them or they leave. How much you lose depends on how awful they are and how much time, money, and productivity is flushed away in the meantime. Then… add another 2x to 2.5x their salary costs to replace them.
Fact 5: Turnover in any position costs you real money. Turnover of good people leaving because they don’t want to work with your bad hires, costs you even more.

Do I have your attention? This is not theory – it is fact. And yet… we hire most people and positions based on shiny new degrees and/or technical skills along with perceived or tested IQ. We now KNOW, for a fact, that EQ (Emotional Quotient/Intelligence) is far more important for success in most jobs, and definitely within leadership roles.

Still, we continue to hire and promote people, including leaders, largely for IQ and technical skill sets. “The best salesperson will surely be the best leader of other salespersons,” right? WRONG!

It just gets dumber and dumber. We keep getting the same lousy results and yet we have not substantively changed the hiring practices in most organizations. It is mind-boggling! I believe Albert Einstein had something clever to say about this phenomenon being related to insanity.

Whatever methods (legal and ethical of course) you use, you need to discover at least these SIX key things about your candidates BEFORE you hire.

A. Attitude: Is theirs one of abundance and can do, or scarcity and focused on obstacles?

B. Brains: Can they do the job or learn quickly how to do the job?

C. Character: What are their core personal values?

D. Drive: Are they self-motivated to achieve their goals and yours?

E. Experience: What have they done in the past that prepares them or makes them ready for what you want them to do now?

F. FIT: Will they truly FIT into your culture, your organizational values, help you accomplish your mission, and advance your vision?

If you said “NO” or “I Can’t Tell,” to even ONE of these questions about the candidate, do not hire that person. Seriously – don’t do it!

Trust the answers to your ABCDEF questions and trust your GUT. If the person doesn’t feel right to you or others, he/she probably isn’t right. In any case, it’s rarely, if ever, worth the risk to you and your team.

About the Author

Leadership authority Roxana (Roxi) Hewertson is a no-nonsense business veteran revered for her nuts-and-bolts, tell-it-like-it-is approach and practical, out-of-the-box insights that help both emerging and expert managers, executives and owners boost quantifiable job performance in various mission critical facets of business. Through AskRoxi.com, Roxi — “the Dear Abby of Leadership” — imparts invaluable free advice to managers and leaders at all levels, from the bullpen to the boardroom, to help them solve problems, become more effective and realize a higher measure of business and career success.

The StrategyDriven website was created to provide members of our community with insights to the actions that help create the shared vision, focus, and commitment needed to improve organizational alignment and accountability for the achievement of superior results. We look forward to answering your strategic planning and tactical business execution questions. Please email your questions to [email protected].

Where your company is headquartered makes a big difference to your bottom line

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Where a business is headquartered can make a huge difference in the skill level of your employees, raising capital and attracting customers. This time of a year is an important reminder that where your company is headquartered also can have a significant impact on your bottom line.

For startups deciding where to establish roots or for growing companies looking to relocate, these factors should be top of mind when deciding on home base, since corporate taxes differ greatly by state. As the Tax Foundation notes, for example, some states have no traditional corporate income tax (like Texas, Nevada and Colorado), while Alaska collects a whopping $993 per capita.

And while taxes are not the only consideration a company should give when deciding where to locate, the significant variance can affect the bottom line by a substantial amount and has led to an influx of companies moving into lower-taxed locales.

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About the Author

Craig CasselberryCraig Casselberry is the founder and president of Austin-based Quorum Public Affairs, Inc., where he has managed more than 100 strategic communications projects for half of the Fortune 50 companies, issue coalitions, and federal, state and local public policy campaigns for corporate clients of all sizes. As a 20-year-veteran of the Texas political and business communities, Craig is a sought-after speaker and consultant, advising firms like AT&T, FedEx, Dell and Ford as well as early-stage companies on their growth strategies in Texas.

Engage your employees in the training process

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Companies invest in employee training and talent development programs for one reason: to get results. The problem is that too often they see training as an “event” rather than a process, and they earn a miserable return on investment.

See if this rings true. You hire an outside consultant to conduct a two-day training session. Your expert trainer delivers a ton of value. Trainees give the session high marks. But a few weeks later you realize your people aren’t deploying the skills they were taught. You’re frustrated. Where are the results? Where is your return on investment?

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About the Author

Steve MeyerStephen Meyer is CEO of the Rapid Learning Institute, which provides bite-size e-learning to companies, nonprofits, educational institutions and government. Prior to starting the Rapid Learning Institute and its parent company Business 21 Publishing in 2002, Meyer was the Director of Publishing at The Hay Group, a leading HR, benefits and compensation consulting firm. At RLI he developed the model for six- to 10-minute “Quick Take” rapid learning modules. Meyer received his MBA from The Wharton School at the University of Pennsylvania.