Talent and Performance Development
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Talent and Performance Development
Making sense of performance and talent development systems to create & sustain high performance in organizations. For the BEST of the BEST curated news in performance, change, agile learning, innovation, motivation, social media and careers, SUBSCRIBE to Reveln.com/Tools/
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Rescooped by Deb Nystrom, REVELN from Change Leadership Watch
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Championing Limited Metrics and Low Power Culture: Results, High Profits

Championing Limited Metrics and Low Power Culture:  Results, High Profits | Talent and Performance Development | Scoop.it

Svenska Handelsbanken has championed an entirely different way of doing business, and has the profits, loyalty and longevity to prove that it works.

Three years ago, stock market analysts at Sweden’s main business paper set about using data from the London School of Business to find the world’s best performing share since the start of the 20th century.

The answer? Handelsbanken. Ten pounds invested in the Swedish bank in 1900 would have been worth about £20m by 2009, a rise of 1.9m pc. General Electric could manage only an 843,000pc rise.
 

And if you think the fruits of this astonishing return were limited to an elite club at the bank, you would be wrong.

Handelsbanken has an almost religious devotion to Oktogonen, its profit-sharing scheme. ...Every employee receives an equal share of the bank’s profits as long as it makes a return on equity greater than the average of its peer group.

   

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..branches ....scrutinise [head office] costs. If they are not happy...they make sure the head office ups their game...

     
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The money is then used to buy Handelsbanken shares for each staff member but these can be accessed only when employees reach the age of 60. This ultra-equitable approach means the bank teller whose career is spent cashing cheques will receive the same payout from Handelsbanken on retirement as its chief executive.


Afew other differences:


- It does not pay bonuses, with the exception of a small number of staff in its investment banking arm;
 

- It has no financial plans;
 

- The bank sets no sales targets for staff;
 

- It does not set out long-term goals and has no central marketing budget;
 

- Even its largest corporate customers must still bank with it at a branch level, and it has no credit scoring system.
 

...Anders Bouvin, UK chief executive explains....branches decide the costs of the head office. They scrutinise our costs. If they are not happy with the service, they make sure the head office ups their game...[or]...go elsewhere. The branch manager is the king of the bank,” he says.


Read the full post here.   Read more about the unusual 28 year career of Anders Bouvin, here.

   

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  • Stay in touch with Best of the Best news, taken from Deb's  NINE multi-gold award winning curation streams from @Deb Nystrom, REVELN delivered once a month via email, available for free here, via REVELN Tools.
     
Deb Nystrom, REVELN's insight:

Sometimes numbers can be a trap.   This is one of two posts featuring this unique, profitable bank that has outperformed MANY competitors.  ~  Deb

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Deb Nystrom, REVELN's curator insight, February 18, 2014 7:46 PM

This is a companion article, featuring the graphic shared by Niels Pflaeging on LinkedIn who mentions that  ...."companies like Handelsbanken have ....value creation and informal structures [that] are far more well-curated and developed than in command-and-control organizations."

~  Deb 

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What's Deadly about Workplace Hierarchy, Developing Performance

What's Deadly about Workplace Hierarchy, Developing Performance | Talent and Performance Development | Scoop.it

“[Hierarchies] are not very good at mobilizing effort, at inspiring people to go above and beyond.” Gary Hamel   ...hierarchy is a relic. ...It slows communication...decision-making...input. It discriminates against new talent and advocates for the familiar. .....Fresh ideas are stifled in hierarchies.
 

Hierarchies were useful to control employees when they could be easily replaced. Today it takes more than holding a job to motivate employees. They want to unleash their strengths, apply their passions and work alongside others who do the same

In time, rigid hierarchies...controlled by personality at the top will be outdone by nimble organizations that give power to teams. This ...shift gives the competitive advantage to businesses that leverage the collective talents of their people. ...organizations cannot thrive...with outdated structures that celebrate the individual at the top of the pyramid.
    

It’s more than seeking employees’ inputs, however. Replacing hierarchy means putting employees at the table co-creating solutions with managers, if they exist, to drive business results.

Deb Nystrom, REVELN's insight:

Performance and talent management systems tend to exist now embedded in hierarchical systems.  Talent & performance development requires something quite diffferent, unhinged from industrial age systems, as the author implies. ~  D

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Hire & Fire is Different at Holacracy®-Powered Companies

Hire & Fire is Different at Holacracy®-Powered Companies | Talent and Performance Development | Scoop.it
In a typical top-down management structure, the power to hire and fire employees is generally in the hands of managers.


With the decentralization of authority, the separation of people and role, and the dynamic evolution of those roles, [its] more like free agents going about their work with no central planning.  This then begs the question: who can decide how and when to hire or fire?


Holacracy doesn’t answer that question; it simply gives you a framework and processes for your company to figure it out. 


Brian Robertson — designed a 3-Tier Partnership App to answer a different question: “How can we account for the difference between partners deeply committed to the organization, and those for whom the commitment is lesser and more temporary?”


  • It separates “partnership commitment” from financial compensation.
    
  • It defines three tiers of partners: Standard Partner, Tenured Partner, and Core Partner. Each tier requires a higher level of commitment to the organization, and in return offers a higher level of commitment from the organization.
     
  • It was designed for a relatively small organization.
    
   

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Deb Nystrom, REVELN's insight:

Social media is an artifact of a new age, choice driven, commitment oriented.  Holacracy is at the cutting edge of how this looks in adaptive organizations that thrive on flatter, open structures.   It's an open question:  Will it scale?


Comparing and contrasting holacracy used at a biggger company, Zappos, is on my companion Change Leadership Watch ScoopIt here entitled:


Zappos is going Holacratic: No Job Titles, No Managers, No Hierarchy

~  Deb 

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