Give Me Greatnessdot.alaska.gov/nreg/projects/SPREE_2015/... · BHAG BHAG = Big Hairy Audacious Goal “Good to Great” Permission to present this information in Power Point format

Give Me Greatness HOWARD S. RIXIE SR.

CHIEF, MANPOWER & PERSONNEL EIELSON AIR FORCE BASE

OWNER/CONSULTANT QUALITY INVENTING FUTURES

Your legacy is in

the hands of your

employees?

I am in control and the destiny, success, and ultimate legacy of the company is solely in my hands

• Every business transaction is about a relationship.

• The strength of the relationship between the customer and front-line employees will either lead to a successful exchange or prevent it.

• How strong are your employees?

• Are they equipped and, even more so, willing to build a sustaining relationship with every customer that comes through the door?

Employees need

to be just as

committed to

your product or

service as you

are.

• They need to be knowledgeable about not just

what the product line is, but, more importantly,

how it can fit a customer’s needs.

• Employees should share and live the business’

core values, so that they can understand how

to make the best business transaction possible.

• These qualities are not fully present in a trainee,

or an employee who is disgruntled, unhappy,

underappreciated, or disinterested –

• For that reason, your business is at risk!

Employee

turnover is a

normal part of

the business

cycle.

• Regardless of how happy you make

your workers and how enjoyable your

company may be to work for, from

time to time employees will leave,

whether it is due to retirement or

relocation, or self-improvement.

• Excessive turnover, however, can

exist.

When it comes to

turnover, the

fewer employees

you lose - the

better

New hires present associated challenges for the company.

• Zero percent employee turnover rate may be

ideal, it is not likely.

• As Bernadette Kenny reports in Forbes

magazine, an annual turnover rate below 15

percent is considered healthy and no cause

for alarm.

• This means that a company of 200 workers

can lose 30 individuals within a calendar year

without it becoming a problem.

The reason most

employers are eager

to hold on to their

workers is that losing a

worker costs money.

• Whenever a worker leaves, the employer

must hire and train a replacement.

• The costs associated with these required

steps in acquiring a new employee can be

substantial.

• In 2006 the average cost of replacing an

employee was calculated as $17,000

• The cost of replacing high-level workers are

well above this average.

Every employee

is like a portfolio

of skills with an

expected return

on investment.

Investments require nurturing and management.

• How do you nurture your employees?

• Your leadership is indicative of this process.

• To maintain a healthy turnover rate, you must

find ways to retain your best workers.

• To accomplish this, aim to create satisfied

employees by responding to their needs and

making company morale a prime concern.

Every employee

is like a portfolio

of skills with an

expected return

on investment.

Investments require nurturing and management.

Continued:

• Before hiring an employee, deliberately

screen and vet the candidates

• Try to ensure that the employee you

ultimately select is the best one for the job.

• How will you know this?

• Find the people who are likely to stick with

you into the future and who are concerned

about the legacy of the company.

Calculating employee

turnover cost Departing employee annual base salary:

$ 42,000.00 Enter salary here

Calculated annual benefits cost:

$ 15,120.00 Estimated at 36% of base salary

Calculated monthly salary + benefits:

$ 4,760.00

Calculated daily salary + benefits:

$ 219.69 Based on 260 (8hr) working days

Cost of 'covering' a

vacant position

(Calculated costs of other employees 'filling in' while the position is vacant)

Number of days until the vacant position is filled:

120 Enter number of working days

Calculated daily cost of 'covering' a vacant position:

$ 72.50 33% of departing employee's daily salary + benefits

Total cost to 'cover' vacant position:

$8,699.82

Cost of 'covering' a vacant position (Calculated costs of other employees 'filling in' while the position is vacant)

Cost to fill a vacant

position

HR/Hiring manager's annual salary:

$ 60,000.00 Enter salary

Calculated HR/Hiring manager's hourly rate:

$ 39.23 Based on 260 (8hr) working days and 36% fringe rate

Cost of advertising (online and/or print):

$ 100.00 Enter cost

Cost of resume screening: 3

Enter No. of hours $ 117.69

Cost of interviews (telephone screening, 1st and 2nd):

8 Enter No. of hours

$ 313.85

Cost of behavioral and skills assessments:

$ 300.00 Enter cost

Cost of background checks (criminal, credit, reference, education):

$ 1200.00 Enter cost

Cost of travel/moving expenses (if applicable):

$ - Enter cost

Total cost to fill a vacant position:

$ 2,031.54

Onboarding & Orientation

cost

Trainer/Manager annual salary: $ 50,000 Enter salary here

Calculated trainer/manager daily rate:

$ 262.00 Based on 260 (8hr) working days and 36% fringe rate

Total training days: 10 Enter number of days

Total onboarding and orientation cost:

$ 2,615

Cost of productivity

ramp-up

During the first 3 months, an average new employee performs at 50% productivity of a tenured top performing employee)

Daily employee cost (salary + benefits):

$ 219.69

Number of working days during first 3 months:

60 Enter number of days (avg. 58 days)

Cost of productivity ramp-up: $6,590.77

Cost of 'covering' a vacant position (Calculated costs of other employees 'filling in' while the position is

vacant)

Total Turn Over Costs

Total cost of turnover (per employee):

$ 19,938

Number of employees lost (in the last 12 months):

25

Estimated annual turnover cost: $ 498,438

Cost of 'covering' a vacant position (Calculated costs of other employees 'filling in' while the

position is vacant)

Group Exercise Supervisors spend 80% of the time tending to issues on 20% of their employees

• What are the key contributors to DOT’s

turnover?

• What are the top opportunities DOT should

capitalize on?

• 3 Minute Brief

“Good to Great”

Permission to present this information in Power Point format received from the author – Jim Collins 16

An Approach to Everyday

Leadership/Management

“Good to Great”


OVERVIEW

• Level 5 Leadership

• First Who … Then What

• Confront the Brutal Facts

• Hedgehog Concept

• A Culture of Discipline

“Good to Great”


Level 5 Leadership Level Type Characteristics

5 Executive

Building enduring greatness through a

paradoxical blend of personal humility and

professional will

4 Effective Leader

Catalyzes commitment to vigorous pursuit of a clear and

compelling vision, stimulating higher performance

standard

3 Competent

Manager

Organizes people and resources toward the effective and

efficient pursuit of predetermined objectives

2 Contributing

Team Member

Contributes individual capabilities to achievement of

group objectives and works effectively with others in a

group setting

1 Highly Capable

Individual

Makes productive contributions through talent,

knowledge, skills, and good work habits

“Good to Great”


Professional Will Personal Humility

• Creates superb results • Modest, never boastful

• Strong resolve to produce

best long term results

• Quiet, Calm, Relies on

inspired standards not

inspiring charisma

• Sets standards for building an

enduring great company

• Channels ambition into

company not self

• Takes responsibility for poor

results

• Credit of the success to

others, external factors, good

luck

• Looks into the mirror, not out

the window

• Looks out the window, not in

the mirror

Two Sides of Level 5 Leadership

“Good to Great”


First Who … Then What

“The executives who ignited the transformations

from good to great did not first figure out where

to drive the bus and then get people to take it

there.

No, they first got the right people on the bus

(and the wrong people off the bus) and then

figured out where to drive it.”

“Good to Great”


Level 5+

Management Team (Good-to-Great Companies)

Level 5 Leader

First Who Get the right people on the bus.

Build a superior executive team.

Then What Once you have the right people in place, figure out the best path to greatness

A “Genius with a

Thousand Helpers” (Comparison Companies)

Level 4 Leader

First What Set a vision for where to drive the bus. Develop a roadmap for driving the bus.

Then Who Enlist a crew of highly capable “helpers” to make the vision happen.

“Good to Great”


Three Simple Truths

1. The right “who,” rather than “what” =

easily adapts to change

2. The right people self-manage themselves

3. With the wrong people, the right direction

doesn’t matter; you still won’t have a great

company/organization

“Good to Great”


Rigorous, not Ruthless

• Practical Discipline (Rule) #1: When in doubt,

don’t hire – Keep looking

• PD #2: When you know you need to make a

people change; Act.

• PD #3: Put your best people on your biggest

opportunity, not your biggest problems

“Good to Great”


Confront the Brutal Facts

“Good to Great”


Hedgehog Concept

“Good to Great”


Intersection =

Good to Great

Companies What you are deeply

Passionate about

What you can

be the best in

the world at

What drives

your

economic

engine

BHAG

BHAG =

Big Hairy Audacious Goal

“Good to Great”


Fanatical adherence to the Hedgehog Concept

Grasp a Simple Paradox:

•The more an organization stays within its three circles,

the more it will attract opportunities for growth

Build a reputation as the “Go To Gang”

What you are deeply

Passionate about

What you can be

the best in the

world at

What drives

your

economic

engine

BHAG

“Good to Great”


Follow a Simple Mantra:

•Anything that does not fit our Hedgehog

Concept we will not do.

•We will not launch unrelated activity

•We will not make unrelated acquisitions

•We will not do unrelated joint ventures

“Good to Great”


A Culture of Discipline

“Good to Great”


“Culture of Discipline” - central idea:

WHAT

Build a culture of people

…. who take disciplined action.

“Good to Great”


Matrix of Creative Discipline

Hierarchical

Organization

Can succeed but will have

wilder Mission Effect. swings

Great

Organization

Best of Both Worlds

Bureaucratic

Organization

Doomed to failure

Start-up

Organization

Survivable but …

needs discipline

Low

Low

High

High

Ethic of Entrepreneurship

Culture of

Discipline

“Good to Great”


A Culture of Discipline – Key Points:

• Sustained great results depends on a culture of self-disciplined

people who take disciplined action

• Bureaucratic cultures compensate for incompetence/lack of

discipline, wrong people

• Culture of discipline involves a duality: people adhere to a

consistent system; yet have freedom/responsibility within system

framework

• Culture of discipline = disciplined people, disciplined thought,

disciplined action

“Good to Great”


A Culture of Discipline – Key Points: (Con’t)

• Good-to-Great companies appear boring/pedestrian from

outside - closer inspection reveals people who display

extreme diligence and stunning intensity

• Culture of discipline is NOT a tyrant who disciplines

(= dysfunctional)

• Sustained results = adherence to three circles … shun

opportunity outside circles

“Good to Great”


Start a “Stop Doing” List

HOW ??? – Follow the money trail …

In Good-to-Great transformation, budgeting is:

“a discipline to decide which arenas should be fully funded and

which should not be funded at all.”

Determine which activities support the hedgehog …

•Those that do – fully fund,

•Those that don’t – eliminate (stop doing) entirely.

“Good to Great”


Unexpected Findings

•“Stop doing” lists more important than “to do” lists

• Discipline to remain in three circles will yield more growth

opportunities

• Great companies will have many “once in a lifetime”

opportunities

“Good to Great”


“Good to Great”


I am in control and the destiny, success,

and ultimate legacy of the company is

solely in my hands

Your legacy is in the hands of your employees?

Give Me Greatnessdot.alaska.gov/nreg/projects/SPREE_2015/... · BHAG BHAG = Big Hairy Audacious Goal “Good to Great” Permission to present this information in Power Point format

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