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Role in Emmis Individual Middle Senior Behavioral Attributes Contributor Manager Executive Why Needed? High-Priority Core Exhibit 4.7. Competency Linkage to Culture 1. Innovation and flexibility 2. Passion to reach a higher standard 3. Personal integrity 4. Informed decision making X X X X X X X X X X X X • To keep up with pace of change in industry and outmaneuver the giants/gorillas • A new innovation standard for all aspects of business (not just product/content) • Consistent with “out of the box” element of Emmis culture • To help Emmis compete and get to the next level • Consistent with “never get smug”—“be passionate about what you do” values • Consistent with theme “Sets a new standard for performance and innovation” • Maintain and strengthen a fundamental Emmis principle/commandment • Differentiates Emmis with employees/ customers (quality people and service) • Consistent with Emmis research expertise • Needed to discipline decisions more broadly KEY ATTRIBUTES FOR EMMIS cart_14399_ch04.qxd 10/19/04 12:01 PM Page 110 5. Accountability for performance 6. Teamwork and collaboration 7. Turns vision into action 8. Delivers the Emmis customer experience X X X X X X X X X X X X • To improve overall results and deliver for shareholders • To be fair to those who really deliver/add value and attract/retain top performers • To support sharing of ideas, practices, people across organizational lines • Consistent with value for treating others with respect/having fun while working • Builds on current value of buy-in to shared Emmis vision • Takes it the next step to ensuring it translates into aligned action/execution • Responsive to felt need for sharper focus in the business • Create the Emmis customer experience— partner to deliver results/success • Quality service and people —differentiates Emmis from competition Role in Emmis Individual Middle Senior Behavioral Attributes Contributor Manager Executive Why Needed? Exhibit 4.7. ( Continued ) KEY ATTRIBUTES FOR EMMIS (Continued ) cart_14399_ch04.qxd 10/19/04 12:01 PM Page 111 9. Motivates and manages individuals 10. Builds and leads teams 11. Recruits, develops, and retains talent 12. Manages resources effectively 13. Strategic perspective X X X X X X X X X X • Consistent with values/commandments— “have fun, get people in the game” • Maintain the personal touch emphasis within Emmis culture • Be the employer of choice • Creates climate of teamwork and interaction in unit/across units • Leverages people resources effectively— working together vs. lone rangers • Required for better results and executing allied strategy • Reinforce/strengthen quality people —a differentiator for Emmis • Contribute to financial vitality of the business • To prioritize and focus use of key resources • Business-unit heads need to understand their own challenges/opportunities and chart a course for success • Jeff can’t be the only visionary Managerial/Executive Role in Emmis Individual Middle Senior Behavioral Attributes Contributor Manager Executive Why Needed? Exhibit 4.7. Competency Linkage to Culture ( Continued ) KEY ATTRIBUTES FOR EMMIS cart_14399_ch04.qxd 10/19/04 12:01 PM Page 112 ATTRIBUTE LINKAGE TO EMMIS COMMANDMENTS/RULES F OR MANAGERS Attribute Emmis Commandments Emmis Manager Rules • Is flexible and keeps an open mind (Commandment #10) • Believes in self and ability to make things happen (Commandment #5) • Is passionate about what he or she does (Commandment #2) • Never gets smug or complacent (Commandment #7) • Never jeopardizes integrity; insists on winning the right way or not at all. (Commandment #4) • Is able to identify and admit own mistakes (Commandment #11) • Is rational and looks at all the options (Commandment #9) • Values relationships and treats others with dignity and compassion (Commandment #2) • Thinks out of the box and fosters creativity in others (Manager Rule #8) • Has a passion for everything he or she does (Manager Rule #6) • Has a good sense of balance and perspective about what’s important in life (Manager Rule #5) • Focuses on doing what it takes to add value to the overall organization, not on protecting turf or playing politics (Manager Rule #7) • Models personal buy-in and commitment to the Emmis vision/strategy (Manager Rule #1) • Focuses on the work to be managed— leaves politics to the politicians (Manager Rule #7) Innovation and agility Drive to excel Personal integrity Fact-based decision making Accountability for results Fosters alignment and collaboration Turns vision to focused action Exhibit 4.7. ( Continued ) (Continued ) cart_14399_ch04.qxd 10/19/04 12:01 PM Page 113 Attribute Emmis Commandments Emmis Manager Rules • Knows who his or her customers are, thinks about, and takes personal responsibility for taking care of them (Commandment #1) • Doesn’t underprice self or medium; builds up the industry in dealing with others (Commandment #6) • Is good to his or her people—gets them “into the game” and ensures they have a piece of the pie (Commandment #3) • Is able to have fun, laugh at self, (Commandment #8) • Believes everyday that he/she and Emmis can make a difference (Manager Rule #11) • Is willing to “go the extra mile” for others (Manager Rule #9) • Is able to have fun, laugh at self (Manager Rule #10) • Hires energetic people who believe in the Emmis vision and are smarter than himself or herself (Manager Rules #2, 3, and 4) Delivers the Emmis customer experience Motivates individuals and teams Recruits, develops, and retains talent Manages resources effectively Strategic Perspective ATTRIBUTE LINKAGE TO EMMIS COMMANDMENTS/RULES F OR MANAGERS Exhibit 4.7. Competency Linkage to Culture ( Continued ) cart_14399_ch04.qxd 10/19/04 12:01 PM Page 114 Attribute Employee Organization Customer Investor Sets Direction 1. Strategic perspective X 2. Turns vision into focused action X Mobilizes Individual Commitment 3. Motivates individuals and teams X 4. Recruits, develops, and retains talent X Engenders Organizational Capability 5. Holds self and others accountable X 6. Manages resources effectively X 7. Delivers the Emmis customer experience X 8. Fosters alignment and collaboration X 9. Innovation and agility X Demonstrates Personal Character 10. Personal integrity X X X X 11. Drive to excel X X X X 12. Fact-based decision making X X X X ATTRIBUTE LINKAGE TO KEY RESULT CATEGORIES Exhibit 4.7. ( Continued ) cart_14399_ch04.qxd 10/19/04 12:01 PM Page 115 116 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Core Competencies for All 1. Informed decision making. Approaching situations objectively, gathering the facts and information necessary for clear understanding, and using logic and common-sense to make informed decisions 2. Innovation and agility. Working to develop innovative ideas, search for creative approaches and solutions, and adapt to change quickly so that Emmis can continue to excel and be distinctive within the industry 3. Passion to reach a higher standard. Being passionate about one’s work, never having or accepting an “entitlement” mentality, and consistently expecting more of self, others, and Emmis 4. Personal integrity. Demonstrating the fundamental beliefs and values of Emmis in all of one’s actions, decisions, and dealings with others 5. Teamwork and collaboration. Taking initiative to communicate actively and share resources, ideas, and best practices across organizational boundaries so that Emmis overall benefits 6. Delivering of the Emmis customer experience. Knowing who one’s customers are, being clear about what they expect and value most, and delivering it 7. Vision into action. Being responsible for understanding not only the overall Emmis vision but also what specific actions one individually needs to take to make it a reality 8. Accountability for performance. Taking personal responsibility for meeting all commitments, delivering results that meet or exceed one’s goals, and identifying and resolving performance issues in a timely manner Additional Leadership Competencies 1. Strategic perspective. Being able to take a broad, long-term view of the business and its future and acting in ways that contribute to Emmis’s long- as well as short-term success 2. Motivation and management of individuals. Managing people in a positive way that “gets them into the game” by sharing responsibility and authority for accomplishing meaningful work and credit for success 3. Building and leadership of teams. Assembling teams of individuals with strong and complementary skills and leading them in ways that help them work effectively as a unit 4. Recruiting, development, and retaining of talent. Identifying and recruiting only the highest-quality talent for Emmis, coaching people so that they get the most out of their potential, and rewarding people in a way that reflects their level of contribution 5. Effective resource management. Planning and organizing work, managing resources efficiently, and understanding what is most important in contributing to growing the revenues and profitability of Emmis. Exhibit 4.8. Emmis Competency Model cart_14399_ch04.qxd 10/19/04 12:01 PM Page 116 Leadership Brand Insights Design and Control Principles Planning Performance Improving Performance Rewarding Performance 10.0 5.45 25 7.3 20.9 8.6 18.2 3.2 14.5 0 20.0 30.0 Low process and content ownership for corpor ate and for divisions. Minimal systems integration and virtually no accountabilit y for execution. Absence of explicit criteria for process excellence. Low correlation betw een business results and performance evaluation outcomes. No enterprise guidanc e/knowledge management system capabilities. Performance and Reward Management Individual performance plans generally not created, thus absent specific measur es, attributes, or key projects that link well to business priorities . Very limited training capabilities. No way to differentiate performers via r esults-based documentation. Performance coaching occurring more frequently in real time . No dedicated methods for evaluating and developing attribut es. Leadership program provides basic training. Extensive multi-rater feeback program; albeit without c onnections to performance management system. No automat ed knowledge management capabilities. Performancce reviews generally do not occur at least onc e a year. Decisive, constructive action is perceived not to be taken to addr ess problem performance. Low linkages between appraisal outcomes and emplo yment-related actions. Solid use of direct cash variable pay systems with linkages to C orporate/SBU results (vs. individual), and without tight connections to per formance management system. Some use of non-cash reward programs for both gr oup and individual performance and reward management. Stage 3 Avg Emmis Scores Exhibit 4.9. Performance Management Insights cart_14399_ch04.qxd 10/19/04 12:01 PM Page 117 118 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Roll out Train the Trainer November December January February March April Letter from Jeff Smulyan LFR workshops Final FY2003 performance plans with objectives, attributes, and projects Scorecard measures attribute architecture Special edition of Newsletter Special edition of Newsletter Special edition of Newsletter Managers' meeting Special edition of Newsletter Emmis Announcements, Smulyan e-mails, and “blurbs” in weekly/biweekly conference calls Implementation Communication Ongoing executive team follow-up during regular meetings Manager alignment briefings Manager workshops Roll out Train the Trainer Employee workshops Reviewed with FY2002 actuals Top down- bottom up review of comprehensive measures, attributes, and strategic projects Validation and refinement of executive and LFR • Work group scorecards • Corollary attributes Performance and Reward management task forces Exhibit 4.11. Performance and Reward Management Implementation Plan FY 2003 Operating Plan Q1 Results and Recognition Programs Q3 Results and Recognition Programs December Q2 Results, Mid-Year Performance Reviews and Job Market Pricing Research June March September FY 2004 Strategic Plan Organization Development and Talent Forecasting November December Q4 Results, Annual Performance Reviews and Cash/Stock Reward Programs FY 2003 Performance Plans March March March FY 2004 Operating Plan Exhibit 4.10. Performance and Reward Management Overview cart_14399_ch04.qxd 10/19/04 12:01 PM Page 118 EMMIS COMMUNICATIONS 119 ABOUT THE CONTRIBUTOR John S. Nelson (jnelson@od-source.com) is president of OD Source Consult- ing, Inc., which specializes in business and human resource strategy develop- ment, culture and change management, performance improvement strategies, and human resource excellence. Prior to this, Nelson was a company officer and vice president of human resources for Emmis Communications, where he was brought in to build strategy and infrastructure, and professionalize the human resource function to manage the significant growth of the corporation and drive the unique culture companywide. Nelson has experience in a variety of entre- preneurial, general management, consulting, and strategic human resource and organizational development roles. He has been a key contributor and a sought out advisor with some of the most respected companies in their industries, such as InterContinental Hotels Group, Honeywell (AlliedSignal), Apple Computer, ARAMARK Business Services, Ceridian Employer Services, Hallmark Cards, HarvestMap Systems, Medtronic, PeopleStrategy, 1.0 & Company, and Results- Based Leadership. Nelson received his bachelor of science degree at Iowa State University in industrial relations and completed graduate studies with honors in industrial relations from the University of Minnesota’s Carlson School of Management. For more information visit www.od-source.com. cart_14399_ch04.qxd 10/19/04 12:01 PM Page 119 . Management Insights cart_14399_ch04.qxd 10/19/04 12:01 PM Page 117 118 BEST PRACTICES IN LEADERSHIP DEVELOPMENT AND ORGANIZATION CHANGE Roll out Train the Trainer November. DEVELOPMENT AND ORGANIZATION CHANGE Core Competencies for All 1. Informed decision making. Approaching situations objectively, gathering the facts and information

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