Topgrading

 

ERE.net is a popular networking and learning site for recruiters.  The site publishes Excellence Awards annually; there were seven award winners and seven runners up for 2010.  A description of the awards, winners, and what they did in 2009 is in a four-part article on their site.  Links to the article: Part 1   Part 2   Part 3   Part 4.

 

Winners were divided into seven categories - Employee Referral Programs, Employer Branding, Corporate Careers Website, College Recruiting, Excellence in Retention, Strategic Use of Technology, and Overall Award Winner

The list of winners and the best practices they have implemented are great resources for those of you in Human Resources and business leaders who have HR people reporting to them.  It is  a nearly comprehensive list of the things a great HR Department could and should be doing…but one metric is conspicuously missing from the criteria upon which companies were judged.  The missing metric is Quality of Hire.  In other words, when someone was hired, did that person turn out to be an A player or not? Read more »

(Note:  In this article is a chart with 50 competencies color coded by Easy to Change, Hard to Change, and In-Between.)

Managers have told us that one of their most recurring frustrations, a daily challenge, is trying to figure out if an employee can improve in one or more competencies – if training or coaching will actually make a difference.  Or, if the person is “hard-wired” and simply not capable of changing, even if they are a super coach.

Ditto for hiring.  After conducting tandem Topgrading interviews, there is almost always a conversation that goes something like this:  “We agree, candidate X has a lot of strengths, but like all candidates, she has some weaker points.  She is no better than average in several competencies, such as political savvy, personal organization, and public speaking.  Do you suppose that training events and coaching can significantly improve her in these three competencies?”

We Topgraders have what should be a very clean, definitive answer.  I’ve interviewed over 6,000 executives, each with an average of 10 jobs, and I heard for each and every job their description of successes, failures, boss appraisals of their competencies and whether those competencies were strengths or weaker points.  That’s over 60,000 “case studies” that shed light on whether or not competencies can be improved upon.  Multiply that times 40 Topgrading professionals, and we really should know if competencies can be changed and if so, how managers can coach people to change.  (The “how” is a future Topgrading Tips.)

For now, let’s make some generalizations.  As Topgrading professionals, we’ll share our experience with you, categorizing 50 competencies according to whether those competencies are Easy to Change, Hard to Change, or In-Between.

Are there exceptions?  Of course.  Integrity, intelligence, and passion are hard-wired, but occasionally someone does “re-wire” their brain.  For example I worked with a man who truly authored his own “integrity transplant.”  He was fired from a brokerage firm for dishonesty, and prohibited from selling stocks and bonds, ever!  He characterized himself as a “slimeball,” and a few years later compared himself, or rather his FORMER self to the wheeler-dealer in the movie Wall Street (‘greed is good’).  He was so shattered at how he had disappointed his parents, wife, kids, and friends, that he did in fact transform himself.  Ten years later I interviewed him and he insisted that my client call all bosses he’d had since the debacle, for he said, “They will rate me a 10 on a 10-point scale of honesty, and describe my ethics as rock solid.”

Indeed the references were that positive.  Flash forward 20 years and the man retired as CEO of a famous company, and his reputation was (and is) stellar.

Another example:  I’ve seen many “obviously” C player managers, lacking in resourcefulness, drive, energy, passion, and initiative, “come alive” and perform at the A player level when something crucial happened:  the company Topgraded, fired C player bosses and replaced them with A players.  In most of those cases the Topgrading Interview showed that the “C players” had been As in the past, and when they again reported to A players who encouraged their ideas and inspired them, they returned to A player status.

But generally don’t expect dramatic improvements in people who are intellectually limited, lazy, dishonest, or uninspiring.  Or, to say it more accurately, only bet on people improving competencies when they have a history of improving competencies.

People who, in job after job, overcome weaker points are usually high potential people with accurate self-awareness, self-objectivity, and a high level of ambition and energy.  They show a pattern of soliciting feedback, welcoming coaching, and actually turning weaker points into strong points.  Aah – these are the A players you want, the high performers who will welcome your coaching and actually improve!

RECOMMENDED RESOURCE: The new Topgrading Workbook, the one used in all our workshops, is organized around the Topgrading Vision.  Each of the 12 steps is explained, the problem it solves is clarified, and then fun exercises teach the Topgrading skill.  You have to actually use it to get the favorable results!  For more information and to invest in the Topgrading Workbook, click here.

Talent Management Magazine interviewed Sarah Hibberson, SVP of Human Resources for L’Oréal USA in the April issue.  Ms. Hibberson describes how putting significant focus on people has helped the company weather the economic storm over the past 18 months.   (L’Oréal’s profits were down 8% in 2009…but the company still earned $2.44B!)

 

Here is the full article, where Ms. Hibberson describes how L’Oréal:

1.      Tends to promote from within

2.      Aligns individual goals and accountabilities with overall business goals

3.      Adjusts goals and accountabilities at least yearly

4.      Conducts talent reviews and succession planning meetings twice per year

5.      Reduces the risk of hiring new college graduates with internship programs

6.      Ties management bonuses to business objectives and leadership behaviors

 

It is no surprise that given the time and energy L’Oréal gives to attracting, promoting, developing, and retaining the best people they have faired relatively well even in a poor economy.

 

 

 

 

After numerous requests from Topgraders to provide a method for them to link up with each other, we’ve launched the official Topgrading LinkedIn group!

 

Why join?  Topgraders want to bounce ideas off of each other, get advice, offer tips, and build relationships.  Until now the blog has provided a limited forum, but mostly it has been us offering the Topgrading Tips newsletters and other articles and commentary, without encouraging much dialog among Topgraders.  As much as we like to share our thoughts, you can learn as much or more from people who are actually doing it!

Our role will be minimal.  This group is for you to get to know and communicate with other Topgraders.  We specifically don’t intend to over-moderate and we won’t dominate discussions.  We will try to answer questions where appropriate, encourage successful Topgraders to contribute, and from time to time announce a new book release, workshop, or product (maybe…as long as it’s a very important announcement!).  

 

How to Join:  If you already have a LinkedIn profile, follow this link, sign in, and join the group.  

 

If you aren’t yet on LinkedIn, joining is simple – just click (here). After you create your free account and profile, follow this link and join the group.

 

 

 

 

Do you have difficulty figuring out whether someone in the company, or a candidate for selection, is an A, B, or C player?  If so, you’re in good company, for frankly only the companies with the most sophisticated human resources methods have it “nailed.”  But this article should help, since it shares the experience of Topgrading professionals who are constantly helping clients accurately put people in the right categories.

Actually, Topgraders have three slightly different categories – A Player, A Potential, and Non-A.  We define A player as someone in the top 10% of talent for the pay, in your location, in the industry, and reporting to you.

When companies are Topgrading and more than 75% of the people they hire turn out to be A players, they don’t care if someone is a B without A potential or a C without A potential, for both are not good enough.  The only good categories are those who are already the high performers, the A players, and those with the potential to become the high performers, within a reasonable amount of time.

Okay, but when people are just learning Topgrading, it’s easiest to use the A, B, and C categories, to show the dramatic differences.  Following are 5 of the best ways I know of to judge people in a fair, objective, legally defensible way:

1.  How A, B, and C players differ on key competencies. The following chart is a bit simplistic because not all A players are that great on all competencies and not all C players are that bad on all the competencies. Indeed, in real life C players usually are A players on some competencies.

2.  Look for patterns of success. The “magic” of Topgrading comes from understanding, bottom line, how successful a person was in job 1, job 2, job 3, etc., with the greatest weight given to the most recent jobs.

Last year I interviewed a smooth talking executive who had clearly been a superstar in the industry, but the guy had not worked hard for years.  He had peaked years ago, was on a decline and frankly the pattern showed he was “over the hill,” someone who had lost his energy, drive, resourcefulness, and passion.

3.  Recruit a replacement. This really is the best way to see if your employee is truly among the top 10% of talent available.

After you have argued with your employee, complained about unsatisfactory performance, and heard 1,000 excuses, the simplest way to see if there are better people is to actively recruit them.  This can be done secretly, but go through all the Topgrading hiring steps including talking with former bosses.

Over the years I’ve heard it hundreds of times: “It became very easy to replace my employee after going through the Topgrading hiring steps, because I became absolutely certain my excuse-making employee was a C player, and I had three A players very willing to join me at exactly the same salary as my C player.”

4.  Never stop building your recruitment networks. As a Topgrader, you know the best way to recruit is by staying in touch with 40 A players you’ve worked with and also stay in touch with 20 “connectors,” people who know a lot of A players.

But in addition to using your networks to recruit, staying in touch helps you figure out if your team consists of A, B, or C players. As you chat from time to time with A players you’ve worked with in the past you hear about their accomplishments, what they pay people, the standards they set, and when you share your frustrations with a certain employee, your network will give you feedback that your expectations are too high or too low.

5.  Assess employees using Topgrading methods. You might already know that my first consulting engagement with General Electric was to improve their success promoting people.  They improved from 25% to well over 90% success, and the internal assessment methods are almost identical to Topgrading hiring methods.  Two trained interviewers conduct the tandem Topgrading interview and instead of talking with outside references (for hiring) they talk with bosses, peers, and subordinates in the company.

Summary: Use all of these methods to, as Jack Welch calls it, “differentiate” among high and low performers.  Needless to say, when you have concluded you have one or more Non-As, it’s time to coach them to get into the A player category or find another job, and it’s time for you to use the 12 Topgrading hiring steps to replace them.

RECOMMENDED RESOURCE: The new Topgrading Workbook, the one used in all our workshops, is organized around the Topgrading Vision.  Each of the 12 steps is explained, the problem it solves is clarified, and then fun exercises teach the Topgrading skill.  You have to actually use it to get the favorable results!  For more information and to invest in the Topgrading Workbook, click here.