PICKING WINNERS KEVIN C EICHNER Picking Winners There

PICKING WINNERS KEVIN C. EICHNER

Picking Winners… �There is nothing more important to your success than hiring (and developing) great people. �You can either hire smart or manage tough… but I’ve never met anyone who can manage tough enough. No matter how hard you try, you can never atone for a weak hiring decision. �Hiring can represent as much as 95% of a manager’s success

Strong & Weak Interviewers Strong Interviewers: Recognize two aspects of interviewing 1. Info gathering – analytical, fact finding method 2. Hiring decision – intuitive component reinforced by 8 -10 factors of success Weak Interviewers: ◦ Too emotional – 1 st impression/personality ◦ Overly intuitive – short cut the process (use a few factors/traits) ◦ Too technical – good at info gathering but weak with decisions (analysis paralysis)

� 95% made bad hiring decisions � 95% said hiring is #1 or #2 in importance � 95% don’t like the hiring process � Everyone felt the interview process was inaccurate (57% accuracy in actuality) � No decisions are made in 30 minutes or less (interviewers are confident, but not always accurate) � Confident yes decisions are made in 1 – 3 hours � # of different assessments = # of interviews � 3 wks to 3 months to assess new hire competency Hiring Attitude Survey

�“Companies spend hundreds of thousands of dollars to reengineer a flawed process with error rates of 5 – 10%. One with a 20% error rate would be considered out of control and shut down! Yet the one process that is considered most important (staffing) has a 40+% error rate and we persist. Process Reengineering & 6 Sigma

Hiring Accuracy

Hiring Accuracy

Hiring Accuracy � The accuracy of the hiring decision depends directly on whether a candidate is being measured on their ability to get the job or on their ability to do the job… Get the Job Personality 1 st impression Handshake Affability Confidence Assertiveness Appearance Extroversion Boss match Do the Job Initiative Team skills Competence Management Org skills Intellect Leadership Staffing Accomplishments

Type I & II Errors in Hiring Very Good Not Very Good Hired Great Decision Error I – Falls Short Not Hired Error II – Good Performer Not Hired Great Decision

�Think of your last hires both internal and external. �Was there a difference in the process used? �In general, what process do you follow for external hires? �Are decisions made on a candidate’s ability to do the job or get the job? Exercise #1 – Reflect on Your Hiring Practices

�Objective – to develop a method for outside hiring that closely approaches the accuracy of internal hiring decisions. �Internal decisions – “doing” oriented; past performance dominates the decision �External decisions – “having” oriented; based largely on the candidates background �Some “have” but can’t “do”; others can “do”, but don’t “have” Picking Winners

Having vs. Doing Predictability Primary Hiring Decision Criteria Outside Hire 55 – 70 % Internal Move 80 – 90 % Past Experience Past Performance Skills & Academics Talent, Energy, Team Skills, Leadership, Potential Personality & 1 st Impressions Underlying Difference Heavy Experience Globalize S&W Light Experience Balance of S&W Having of Skills Doing of Activities

�“We must redefine job descriptions and postings to reflect what needs to get done rather than what a candidate needs to have. ” �Outcome-oriented �Better rather than input- predictor of future performance Having vs. Doing

�More hiring mistakes are made in the first half-hour of an interview than at any other time. (delaying decisions by 30 minutes can eliminate 50% of hiring mistakes) �First impressions are based on emotions, biases, chemistry, personality and stereotyping. �Staying objective is hard work! Emotional Control

1 st Impressions

�When you think you’re going to enjoy the interview, you’re in trouble…. �The relaxation response causes us to ignore negative data, globalize strengths, begin selling, and stop listening �If we like someone, we don’t push hard enough. Positive “Yes” Response

�Some start. candidates bother you from the �You must fight through this initial characterization. Recognition is the first step to emotional control. �Keeping the emotional switch open is the key to an accurate, unbiased assessment. The Negative Response

�YES – we become relaxed & comfortable ◦ ◦ ◦ Ignore negatives Maximize positives Globalize strengths Stop listening Start selling �NO – we are bored, uncomfortable, uptight ◦ ◦ ◦ Emotional Switch Ignore positives Maximize negatives Globalize weaknesses Stop listening Undersell the job

Performance (Doing the Job) + Character (Doing the Job Right) Initiative, drive, talent, leadership, management, team skills, decision making, focus, results, intelligence, skills, vision Honesty, commitment, integrity, responsibility, goal orientation + Personality (Working with the Team) Attitude, warmth, style, pace, affability, poise, social confidence, presence, dress Basic Hiring Formula

The Top Down Approach

�Reflect on your interviewing style. What emotional behaviors do you demonstrate? �How do you feel those behaviors are functional or disfunctional (how does being emotional work for you? ) �What are some ways that you could keep yourself more objective? Exercise #2 – Staying Objective

�Recognize your emotional state � 20 minute phone interview �Don’t start the interview right away �Use a preplanned structured interview �Measure 1 st impressions after 30 minutes �Change your frame of reference �Listen 4 x more than you talk �Treat the candidate as a consultant �Talk about real work �Use panel interviews 10 Ways to Stay Objective

�Assessing past performance & job competency… � Performance = Talent x Energy (squared) + Team Leadership + Comparable Past Performance +Job-Specific Problem Solving Performance-Based Interviewing

◦ Getting at the Performance Equation… Q 1: Motivation (talent x energy) – Please think of the most significant accomplishment of your career Q 2: Team Leadership – Please think of the most significant team accomplishment of your career Q 3: Past Performance – Please think of the most significant accomplishment of your career Q 4: Job-specificity – If you were to get this job, how would you solve this job-specific problem? Performance-Based Interviewing

�Assessing Past Performance: ◦ Develop a trend analysis to judge increases in performance and responsibility Performance-Based Interviewing

�Determine Job Competency ◦ Anchor Objectives: “We would like to accomplish {objective} during the next year. Tell me about your most significant related accomplishment” ◦ Visualize Objectives: “As we’ve discussed, {objective} is an important aspect of this position. If you were to get the job, what additional information would you need to know and how would you accomplish this objective? Performance-Based Interviewing

Funnel Your Questions

�Observing good visualization: �Job-specific problem-solving �Verbal communications �Reasoning and thinking skills �Adaptability and flexibility �Self-confidence �Insight and job knowledge �Creativity �Organizational skills �Logic and intellect Performance-Based Interviewing

�Unlock Character/Values ◦ “Tell me about a time that you were totally committed to a task. ” �The ability to persevere under difficult conditions is an essential characteristic of top performers. It’s the character component of energy. ◦ Determine if commitment is to an individual, team or company. ◦ Much of this is revealed in the other portions of the interview Performance-Based Interviewing

�Personality and Cultural Fit ◦ Personality is, in an absolute sense, unimportant. How candidates used their personality in achieving results is what’s really important. ◦ “What three adjectives best describe your personality? Give me examples of when these traits have aided you in performing your job. When have they hurt? ” (Sizzle alert!) ◦ Look for change, growth, and candor. Performance-Based Interviewing

�Think of an important position in your organization that needs to be filled. �What are the specific competencies that drive performance for that position? �Develop some specific questions that can be asked to determine a candidate’s job competencies for that position. �Now funnel to the next level. Exercise # 3 – Selecting Performance Objectives

�Hiring is not at the top of the list of fun things to do…so there is a natural tendency to “short-cut” the process. �Completing the 10 -Factor assessment doesn’t take any extra time, especially if you become familiar with it and integrate it with the interview. �All 10 are important…don’t make a decision without considering each factor. 10 -Factor Candidate Assessment

�Energy, Drive, and Initiative ◦ Don’t compromise here…. universal trait of success. ◦ Key to personal success is to do more than required. ◦ Low-key candidates do not necessarily lack energy and enthusiasm. ◦ Look for special projects and extra effort in those with little experience 10 -Factor Candidate Assessment

�Trend of performance over time ◦ Examples of major accomplishments and org changes for the past 5 -10 years ◦ Excellent candidate has had comparable jobs and is showing upward growth ◦ Also look at staff size, complexity of issues, standards of performance, rate of company growth and level of sophistication 10 -Factor Candidate Assessment

�Comparability of past accomplishments ◦ Anchor the SMART objectives ◦ Use work-type profiling to ensure a good match ◦ Make sure each interviewer has a copy of the SMART objectives with them during the interview 10 -Factor Candidate Assessment

�Experience, Background Education, Industry ◦ Strong experience and education can sometimes offset a weaker accomplishments rating ◦ Examine experience in the context of the environment ◦ Direct industry experience and education deserve some extra credit 10 -Factor Candidate Assessment

�Problem solving and thinking skills ◦ Understanding the work, solving job-related problems, anticipating needs ◦ Ability to use previous knowledge and experience in solving problems ◦ Quality of questions asked ◦ Use the visualization approach 10 -Factor Candidate Assessment

�Problem (cont. . ) solving & thinking skills ◦ Candidates should exhibit high intelligence. . �Technical intelligence: strong analytical skills, processing of detailed info and systematic thinking �Tactical intelligence: marshalling resources, getting team results, practical solutions, bottomline focused �Strategic/Creative intelligence: thinking/planning future, understanding long-range consequences, conceptualizing ideas, big picture, out-of-the-box. 10 -Factor Candidate Assessment

�Overall talent, technical competency and potential ◦ Represents candidate’s ability to grow, develop and take on bigger roles. �Thinking skills: job specific problem-solving �Business understanding: holistic view of organization �Technical skills: ability to apply or learn job specific skills 10 -Factor Candidate Assessment

�Management and Organization ◦ Managed, built and developed groups of similar size (to job) and achieved similar results ◦ Use project to get at organizational skills ◦ Use org charts to find a pattern of building, developing and managing strong teams ◦ Beware of candidates who complain about team, talk about management success in general terms, or who have lots of team turnover 10 -Factor Candidate Assessment

�Team leadership – persuasion & motivation ◦ Ability to tap and harness the energy of others. ◦ Two dimensions �The subordinate team �Peers/subordinates in other departments/outside ◦ Extroversion vs. introversion ◦ Attitude and confidence 10 -Factor Candidate Assessment

�Character goals – values, commitment, ◦ Summarizes a persons integrity, honesty, responsibility, openness, fairness in dealing with others and personal values ◦ Adler recommends saving for last �Ask basis of personal values system �Ask why they want to change jobs �Look for goal setting/achievement pattern �Ask how candidate is getting ready for promotion �Look for frank and open responses 10 -Factor Candidate Assessment

�Personality and cultural fit ◦ Look for accomplishments and flexibility in a variety of contexts ◦ Use ABC to determine the preferred relationship pattern ◦ Personality should be used for disqualification (ie: conflict, ego, inability to work with others) 10 -Factor Candidate Assessment

�Fatal Flaws… ◦ Management role doesn’t seem to be growing ◦ Too assertive ◦ Dominant or stern personality ◦ Extremes in behavior –too analytical, too friendly, too persuasive ◦ Answers that are too general (sizzle) ◦ Too many I’s or we’s (balance) 10 -Factor Candidate Assessment

Interviewer Professionalism �Weak assessments can be a result of a bad interviewer rather than a bad candidate �Candidates judge the quality of the company and the quality of their potential supervisor by the quality of the interview and interview process �Be prepared, be aware of emotions, train and assess interviewers, get written assessments of candidates, use at least an hour of discussion

Benefits of Strong Staffing To the Company � Short Term ◦ Reduced turnover ◦ Increased Productivity ◦ Efficiency ◦ Legal � Long Term ◦ More responsive ◦ More innovative ◦ Competitive advantage ◦ Flexible workforce To the Manager � Short ◦ ◦ Save time Natural transition Clarify expectation Basis of PM � Long ◦ ◦ Term Become better mgr Stronger staff More promotable More effective team

�Everyone involved in the hiring process needs to build competencies in staffing. How will you embed the skills and processes for “picking winners” into your organizational culture? Final Exercise – Picking Winners