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FIGURE 9-2.
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CEO must be evaluated for the quality of his or her team and its performance. The policies include the guidelines and mandatory requirements that the leadership must meet, such as government and trade regulations, internal procedures for various tasks the CEO performs, or the goal-setting process that allows for dramatic improvement. The leadership tools may include mechanical tools, informational tools, and training tools to enhance the leadership s performance. Stakeholders feedback must be received and taken into account in the leadership compensation plan. Leadership must seek employees feedback on how well the leadership demonstrates the same characteristics expected of employees. Similar feedback must also be solicited from other stakeholders, such as shareholders, suppliers, and the board of directors. The leadership must be bold enough to accept and make use of the critical feedback for improving its own performance. This can be accomplished through a standard set of questions that address various aspects of the leadership. Figure 9-3 provides a sample Leadership Performance Review that can be customized as appropriate. Leadership evaluation is critical in sustaining the success of a company. A company will only be as successful as its leader. Leadership is an evolving process that requires monumental onthe-job training. Many workplaces perpetuate the misunderstanding that the leader is the smartest and most successful person in the company. That may have been true in the past. However, in each new assignment, the leadership process must be adjusted to fit the company s goals, and that adjustment requires a lot of input because the leadership s action may affect
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Leadership Performance Review Envisioning Always thinking; analyzing competitors, new business strategies, new work methods, and the future Not afraid of experimenting, striking out in new directions Buoyant and building a sense of excitement and adventure in employees Takes risks and pursues novel approaches and encourages creativity in others Demonstrates mastery over crucial skills and is eager to share the knowledge Ever-present willingness to learn new things, to explore new areas, to test concepts, and is not afraid of failure An excellent reader and builds on others ideas Inspiring Candid, honest, and objective Quick to recognize and thank others Understands his or her success is a team effort and a result of good fortune Listens well in order to learn from others Cooperative and enjoys working with others Perceptive of thoughts and fears of others Shows exuberance a childlike curiosity inspiring others Planning Keeps his desk, agenda, and mind open and clear Prioritizes tasks and devotes necessary effort Establishes his own best-in-class benchmarks A good strategist who systematically deploys available resources for best results Action-oriented and plans to make things happen Plans to continually do better and expects others to follow Plans to get involved as needed to achieve results Practicing (Exemplary) Demonstrates exemplary dedication Looks at all aspects of an issue before making a decision Practices and encourages fairness Tenacious and keeps moving forward toward goal that appears elusive to others Lets others bask in limelight Builds and maintains comfortable, goal-oriented atmosphere at work Strives for excellence in all things. Does the best job possible and inspires others to do the same.
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FIGURE 9-3.
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everyone in the company as well as those whom the company does business with. That s why the people who will be affected by the leadership process must be enlisted in achieving common goals. Leadership responsibility is given; however, the authority is earned. In the absence of proper leadership evaluation, many successful leaders fail in their assignments.
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EMPLOYEES PERFORMANCE REVIEW
Unlike the leadership performance review, the employees performance review process is more robust and measurable. Because the number of employees can be magnitudes larger than the number in the leadership, a standardized performance evaluation process is critical to achieving the leadership vision. Without an effective employee performance review process, consistently achieving the business objectives is a daunting task. Deming has challenged rating employees based on a performance review. According to Deming, variation in employees performance is mainly due to the system of which they are a part. Employees perform what they are expected to perform. The perception among employees is that employee ratings are used unfairly in tough times to justify eliminating positions and in good times for providing growth opportunities. The employee performance review is not necessarily a human resources management issue; instead, it is a process that must be aligned strategically to achieve the business objectives. It must be used dynamically to achieve business goals. Figure 9-4
Employee Performance Review Excellence Expectations Leadership Practices Value Added (including Six Sigma projects) Innovation Demonstrated Excellence (Measurable Value Added) Innovation (including breakthrough solutions) Direct Value-Added Leadership Practices Areas for Improvement Behaviors Skills Growth Plans Training New Assignments Incentives for Extraordinary Performance Value Plans (Including Six Sigma Projects) Plans for Innovation Thought Leadership New Areas of Interest
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