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• Do you agree with the feedback given by team members and
peers for the employee? Can you help coach the employee to bet-
ter his or her performance?

• Are you willing to commit the time it will take to make a 360-
degree feedback process successful in your company?

• Have you trained employees to know how to give and receive
feedback?

• Do you know what characteristics you are looking for in top-level
employees? Does this process help you measure for them?

• Are you willing to participate in a 360-degree feedback process
yourself? Are you committed to your own development?
222 Lead with Courage



MANAGEMENT SKILLS FEEDBACK

Worksheet 7.3 is intended to give feedback to managers on their perfor-
mance, specifically their people management skills. Although managers
are required to give feedback to employees, they may be reticent to get it.
Whereas employee performance problems can hurt a company, key man-
ager problems can kill it. It is imperative that managers know that employ-
ees will have the opportunity to communicate with senior executives or
even the board of directors confidentially.

A company should not attempt to start a 360-degree review process un-
less all levels of employees are willing to participate equally. Again,
managers should know at least three to six months in advance that their
subordinates will review their performance. This kind of process can
bring to light issues”such as possible sexual harassment or favoritism”
early on.



Making It Happen

Ask all subordinates to complete these forms and return them to a sen-
ior manager. They should be tallied with an average score per question
by adding up the total of the 1 to 10 scores and dividing that number by
the number of people who answered the question. Comments should be
collected on another sheet by question number.

A senior executive should meet with the manager to discuss the feedback
results. It™s essential that all feedback be given confidentially without
references that would allow the manager to guess the identity of the
giver of a particular type of feedback. The intent is the personal and pro-
fessional growth of the manager, not an opportunity to punish subordi-
nates for their honesty.

An average total score of 7 or above should be considered excellent. The
goal of the meeting should be to select five items the manager would
like to positively impact before the next review. The company should be
willing to provide the resources necessary to make this a priority (indi-
vidual personality testing, outside coaching) and to create a plan for
development.
223
Driving Employees to Peak Performance



Worksheet 7.3
Management Sk ills Feedback
Please rate your supervisor™s/manager™s performance in the following categories (1“10, 10 = best).
Your scores and comments will be kept confidential.
Return this form to by .
1“10 Comments
Communication
Makes himself or herself available for communication.
Is able to communicate honestly.
Has given me wise suggestions about work or people.
Is able to gracefully handle my communications.
Treats everyone fairly (doesn™t have pets or favorites).
Planning
Manages time wisely.
Keeps stress level under control.
Can plan group workload effectively.
Performance
Sets appropriate goals for the group.
Distributes work fairly in our group.
Sets accountability standards fairly.
Holds people accountable consistently and fairly.
Recommends appropriate compensation.
Feedback
Gives constructive feedback.
Controls anger/is not abusive.
Recognizes outstanding achievement.
Gives credit to others.
Leadership
I respect this person.
A good example as a role model for our corporate
culture.
Doesn™t gossip or allow other behavior which
undermines morale.
Seems happy to be at this company.
Carries out company rules and supports company
policies.
Other comments you wish to make about your supervisor/manager or about his or her
leadership style?
224 Lead with Courage



Reality Check

Consider these questions about your completed worksheet:

• Are managers trained well enough to give and accept feedback?

• Are managers committed to their own development or do they
feel they must be unquestionably “right” to lead effectively?

• Do managers see this process as integral to promotional op-
portunities?

• Are sufficient resources available to employees who want to get
the most out of this process, such as outside coaches, mentors,
psychologists, personality and skills testing, and training pro-
grams for job skills and people skills?

• Is your company paying lip service to professional development,
or is it an integral part of your quality program?
225
Driving Employees to Peak Performance



EMPLOYEE RANKING SYSTEM

Worksheet 7.4 is intended for confidential use by each department man-
ager as a human resource management tool. It™s a place for each manager
to record his or her thinking about individual employee performance.
It™s important to set aside time for managers to discuss their employee-
related problems, even if they don™t share individual scores. Managers
should provide confidential support and feedback for one another in
dealing with these critical but challenging management issues.



Making It Happen

Place each employee™s initials at the top row of boxes in Worksheet 7.4.
Rank each employee from 1 to 10 on each of the dimensions down the left
column. At the bottom of each column, total each 1 to 10 score, and
divide by the number of categories for an average score. This is just a
thumbnail sketch of each of your employees, but the bottom average
should give you an indication of top performers and the weaker links in
the chain.

Look at your scoring this way: Scores of 8 to 10 indicate your strongest
employees. Make sure you are spending enough time mentoring these
employees who have the potential to become your next leaders. Most em-
ployees will probably fall in the 5 to 7 category and will need a variety of
developmental plans. Employees with overall scores of 4 or under have
come to a critical point. Can they move up within the next two to three
months to a score of 5 or better? If not, you should make the decision to
let them go or move them into jobs for which they are better suited. Once
you have made this decision, you should let these employees know as
soon as possible and do what you can to ease the transition.



Reality Check

Consider these questions about your completed worksheet:

• Are most of your employees in the 6 to 10 range? Are you pre-
pared to take action on employees with lower scores?

• Do you find more performance problems in one category than in
others? Are there people problems that could be solved by training?
226 Lead with Courage



Worksheet 7.4
Employee Rank ing System (by Department)
(1“10, 10 = best)

Employee Number
1 2 3 4 5 6 7 8 9
Quality of Work
1. Technical skills.
2. Accuracy, little supervision required.
3. Creativity/originality of work.
4. Communication skills.
5. New approaches to problems.
6. Accepts responsibility”takes initiative
for action.
7. Forward-thinking/moving in same
direction as company.
8. Continues to learn and improve.
Quantity of Work
1. Meets deadlines.
2. Consistently hard worker.
3. Planning/time management/workspace
organization.
4. Does fair share of department™s work.
5. Is in on time, on time to meetings, and
doesn™t miss a lot of work.
People Issues/ Teamwork
1. Solves people problems directly.
2. Positive influence on coworker morale.
3. Working relationships inside company.
4. Leadership in company/shares
information and suggestions with others.
5. Working relationships outside company
with customers or vendors.
6. Participates in meetings.
Total (A)
Number of Categories (B)
Overall Rank (A/B)
227
Driving Employees to Peak Performance



Are they quality or quantity problems that might be due to work
overload or inadequate resources?

• Are lower scores due to lack of skills, lack of interest, or lack of
willingness to perform up to capacity?

• Are you looking for promotional or other leadership opportuni-
ties for employees scoring in the 8 to 10 range?

• Are a few much lower scores bringing down the average for par-
ticular employees? Can you give these individuals honest feed-
back to help them improve these scores?
228 Lead with Courage



HUMAN RESOURCE KEY INDICATORS

Worksheet 7.5 allows you to gauge the morale, productivity, and effi-
ciency of the workforce. Generally, absenteeism goes up when employ-
ees take vacations in the summer. Watch for higher absenteeism in
departments as a possible trend of discontentment.

If you have staffed correctly, temporary labor and overtime should be
zero most months or reflect your seasonality. An increase two months in
a row could indicate a more regular need that should be filled. Because
overtime pay is higher than regular pay, some employees will regularly
find reasons to work extra hours. All overtime requests should be ap-
proved in advance to keep this extra premium to a minimum.

Tracking trends and asking the right questions should let employees know
that you are watching this expense carefully. I also recommend tracking
the number of suggestions in the suggestion box as a general indicator of
morale problems. If you see a sudden increase, consider it a legitimate con-
cern and take steps, such as an employee survey, to determine the reasons.



Making It Happen

List for each department the number of days missed due to the variety of
reasons listed, and get the average days missed per employee by dividing
the total days missed by the number of employees. Also determine the
amount of money spent on overtime and temporary help by entering the
number of hours worked and multiplying by the rate per hour. If you use
a suggestion box, tally the number of suggestions and attach them to this
worksheet.



Reality Check

Consider these questions about your completed worksheet:

• Are employees in certain departments taking more time off than
those in others? Does this suggest anything about the type of
work or management that goes on in different departments?

• Are some departments making up for lost time with overtime or
temporary help?
229
Driving Employees to Peak Performance



Worksheet 7.5
Human Resource Key Indicators
for (Month/ Year)
Absenteeism (# of days missed this month)
Sick Personal Number of Average/
Department Vacation Leave Leave Total Employees Employee




Overtime
Number of Overtime
Department Overtime Hours Premium Total ($)




Total:

Temporary Labor
Department Number of Hours Rate ($)/Hours Total ($)




Total:

Attached: Suggestions from Suggestion Box
Total number of suggestions this month
230 Lead with Courage



• Can efficiency be increased to reduce the need for overtime or
temporary labor?

• Are there specific, meaningful connections between fluctuations
in human resources indicators and spikes in inventory or order
backlogs? If so, what can you do to smooth out these spikes?


W H AT ™ S N E X T

In the final chapter, I discuss action-based ways for communicat-
ing your vision as a leader, as well as tactics for growing your lead-
ership abilities, including the intangibles of what makes for a
great CEO.
8
LEADING YOUR
BUSINESS FOR
MAXIMUM RESULTS
We aim above the mark to hit the mark.
”Ralph Waldo Emerson




W hen you build a company, you create something that didn™t exist
before, and it takes a special kind of person to cope with all of the
challenges creating a business will bring. It takes both foresight and in-
sight and the ability to look at the world at large and decide where your
company must fit in to survive. It also takes insight, the ability to look in-
side yourself and others, and the willingness to grow personally to meet
the ever-increasing demands of running a business. Finally, it takes
courage to consistently stay the course when those around you might
question your decisions or your actions, as well as the ability to know
when you need outside help.

There are 10 factors that help determine whether a business will succeed
or fail. In the box on page 232, these factors are not in order of impor-
tance; all are essential.

It™s no accident that the first five reasons that businesses succeed de-
pend almost exclusively on the CEO and top managers. It™s up to you to
constantly increase the skills and experience that make you an effective
CEO, but the real challenge is to continue growing in the more intangi-
ble areas that give you the ability to persist when others would not and
the energy to try something new when the last three tries didn™t work.
The key for this is maturity.


231
232 Lead with Courage




TOP 1 0 R E A SONS T H AT B US I N E SSE S S UC C E E D

1. The experience and skills of the top managers.

2. The energy, persistence, and resourcefulness (the will to make
the business succeed) of the top managers.

3. The maturity to treat employees, suppliers, and partners fairly
and respectfully.

4. Deal-making skills to sell the product at the highest possible
price given your market.

5. Deal-making skills to work with resource suppliers to keep
costs low.

6. A product that is at least a cut above the competition, and ser-
vice that doesn™t get in the way of people buying the product.

7. The ability to create a “buzz” around the product with aggres-
sive and strategic marketing.

8. The ability to keep developing new products to retain and build
a customer base.

9. Superior location and/or promotion, creating a connection be-
tween your product and where it can be obtained.

10. A steady source of business during both good economic times
and downturns.




Maturity is a quality that enables you to be willing to risk profits to
do the right thing, to have more tolerance for the differences of oth-
ers, and to be willing to wait until the time is right rather than re-
quire immediate gratification.

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