Most organizations have an ultimate measure of the value they seek to influence (e.g., EBITDA, Total Return to Shareholders or Economic Value Added). Few take the time, however, to map the critical business processes and elements of work that exert the greatest influence on intended results. Mapping the value drivers that influence intended results helps clarify strategic priorities, inform resource allocation decisions, and create a blueprint for how people should be mobilized to execute the strategy.
Companies that are selective about the improvements they pursue are able to deliver and sustain outstanding results. Our research and experience reveal that, unlike those that succumb to the temptation to be world class at everything, these selective companies demonstrate dedicated focus and discipline. We also found that these companies share attributes that enable them to resist the temptation and deliver superior results consistently year after year.
Managers tend to react swiftly when the sales organization is feeling pain. The trouble is that the pain generally reflects just the symptoms of larger problems. The true root causes of the problem are not always clear. In addressing only the symptoms, sales managers may inadvertently make the large problems larger. An organization that is constantly applying short-term fixes will experience low morale, high turnover and inhibited sales performance. It is far more effective to identify and address the root causes.
Winning companies have greater success in managing turnover because they crack the code on finding and attracting great talent, and keeping it. When turnover spikes above acceptable levels they assess costs, identify causes and develop cures. They never leave their talent management practices and processes on “auto-pilot.” Instead, they constantly refine aspects of how they acquire, deploy, develop and reward people with the same precision applied to how they manage and generate return on all other aspects of their business.
In its purest application, market pricing is a “best practice” gone wrong as it assumes that what is right for other organizations is right for yours. It has become the driver in setting job values, ignoring important, business specific criteria and differences. An alternative approach has emerged that yields a noticeably higher return on compensation and satisfies recent independent commission recommendations on compensation management. The “A-Pay” approach results in pay levels that are both externally and internally competitive, aligned with business strategy and consistent with the new world of governance best practices.
Failing to invest in developing your organization’s internal potential now, guarantees leadership gaps down the road. The problem will compound as business complexity increases and highly mobile high potential employees (HiPos) expect greater and more varied opportunities earlier in their careers. Organizations that align talent development practices to the business strategy and provide the right people with the right development opportunities, secure their place in this increasingly competitive and complex talent market. d