Posts tagged as:

Tough Economic Times

Bad times can make you bitter or better

July 23, 2009 · 2 comments by Terry Lauter Comp

in Business Strategies, Economy, Leadership, Management, Performance Management

I have long been a fan of the “Wizard of Westwood”, Coach John Wooden. The legendary UCLA basketball coach’s phenomenal achievements in basketball probably pale in comparison to his contributions as a teacher and developer of young mens’ character. Wooden still to this day uses maxims or “Woodenisms” to teach important principles of life. One seems particularly fitting for the current economic condition in our society:

“Bad times can make you bitter or better.”

NCAA CONVENTION Doesn’t this capture one of the inherent truths and ultimate “silver linings” that will likely spring up from the downturn of 2008 – 2009? In simple terms, we are personally and as leaders challenged to get better – to improve organizational performance by creating and leveraging improved individual performance. As individuals, we are challenged to make some tough choices and take actions that may have been easier to avoid or ignore in the past. The easy fixes haven’t worked. Giving employees an “E” for effort is simply not effective. Apathy is no way to retain good customers. Low performers are not being helped by allowing them to do and be less than they are capable of.

It’s 2009 and America is in the midst of a recession that has created an unemployment rate nearing double digits. We have two choices: Get bitter or get better. As leaders, we are called to dig deeper, tackle our fears, and do the hard work that others won’t or can’t do. To survive now, and thrive after the recession is over, the choice has essentially narrowed to this: Get better.

Recession or no recession, every day that we’re alive, we must improve, grow, advance. Bitterness and defeat is not a viable choice, is it?

{ 2 comments }

In a Recession: Recognize & Retain Your Star Performers, Part V

July 13, 2009 · 0 comments by Terry Lauter Comp

in Compensation, Economy, Management, Performance Appraisal

By now, it’s a foregone conclusion: Top performers should not be taken for granted or lumped into the mix, and then rewarded like the many “average” performers each organization has on the payroll roster. This truism applies even for continuing or enhancing cash compensation components, when many businesses have limited financial resources.

Therefore, savvy leaders are focusing on new and creative means of tweaking their total rewards to keep the super stars motivated to take their personal performance to new heights. In the last few posts, we’ve been offering up some ideas to jump-start your movement in this direction. Ideally, you’ll consider new and different low or no cost rewards, as well as modifications to your salary and incentive programs. But here’s a thought, as you’re trying to make sense of the total plan and its inherent out-of-pocket cost:

Don’t worry about the fact that you may be paying above market for your super stars. If they are truly delivering more for less, your payroll efficiency will be high. In other words if you have 4 or 5 higher-compensated stars doing the work of 7 or 8 average performers, it is still a win for the individual and the organization.

Under more normal business conditions, we tend to place great emphasis on market competitiveness and benchmarking jobs in the external world. In today’s environment, it may well make sense to worry less about that data, and think more about your total outlay for getting the job done. In other words, your increased dollars might be allocated to fewer people, but that’s okay as long as the results are there. In our brave new world, getting more with less is not just “allowable”, it makes good business sense.

What do you think? Is payroll efficiency a good way to measure your compensation effectiveness in a recession?

{ 0 comments }

In a Recession: Recognize & Retain Your Star Performers, Part IV

July 10, 2009

Research tells us consistently that top performers outperform average team members by a ratio of at least 3 or 4 to one. If you take a moment to do the math, the implications are simply staggering. How could a prudent leader allow his or her super stars to languish among the troops at a time [...]

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In a Recession: Recognize & Retain Your Star Performers, Part III

July 8, 2009

As the economy continues to slowly churn, many organizations have made their cuts, and are now turning their attention to the survivors. While these folks may be glad to have a job, some of the star performers may be waiting for the turn-around to make their get-away. If they haven’t been recognized for their extra [...]

In a Recession: Recognize & Retain Your Star Performers, Part II

July 6, 2009

Last post, we discussed the fact that “pay for performance” or “rewards for results” is still a myth in many segments of corporate America today. While most companies have a vital few who are achieving most of the goals, we are realistically not recognizing and rewarding these individuals in a way that will ensure their [...]

In a Recession: Recognize & Retain Your Star Performers, Part I

July 1, 2009

Most every organization has a group (made up of about 20% of the total population) who delivers 80% of the results. In other words, a few folks make a tremendous difference for the overall success of most every business. But here’s the rub: all too often there is no significant difference in the way we [...]

“Getting Real” in Today’s Economy

June 24, 2009

We’ve all seen the headlines, and heard the very real reports of salary freezes, forced time-off, and 401(k) matching “vacations”, not to mention lay-offs and closures. Clearly, many companies and their employees have been significantly impacted by this current recession. While we are beginning to see light at the end of the tunnel, experts say [...]

Are Your Benefits Still Beneficial?

May 25, 2009

The recession has taken its toll on many components of employers’ total rewards packages in recent months. While some of our client organizations have implemented minor benefit tweaks, others have implemented hefty increases in employee contributions for benefits and cancelled 401(k) matching. There is no one simple solution or pat answer, to be sure. But [...]

What is Your Unmatched Customer Value Proposition?

May 21, 2009

Have you noticed that it is getting harder and harder to compete in today’s marketplace? As customers demand and expect more, we must ensure that we offer an unmatched value proposition to our target customers. In the book, “The Discipline of Market Leaders,” the authors explain that there are 3 key value proposition models and [...]

Peter Drucker Nailed It!

May 13, 2009

Several years ago, I had the privilege of hearing Peter Drucker, the “Father of Modern Management,” speak. At the time, he was already very old and nearly deaf, and didn’t seem to realize he was almost speaking in a whisper. The audience, however, was in total awe…and you could have heard a pin drop. I’ve [...]

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Tough Economic Times

Bad times can make you bitter or better

In a Recession: Recognize & Retain Your Star Performers, Part V

In a Recession: Recognize & Retain Your Star Performers, Part IV

In a Recession: Recognize & Retain Your Star Performers, Part III

In a Recession: Recognize & Retain Your Star Performers, Part II

In a Recession: Recognize & Retain Your Star Performers, Part I

Are Your Benefits Still Beneficial?

What is Your Unmatched Customer Value Proposition?

Peter Drucker Nailed It!

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