Keynote Speaker: Cy Wakeman • Presented by SpeakInc • The New Employee Value Equation

Summary

The speaker emphasizes the importance of delivering value over mere performance in organizations, especially in healthcare where payers prioritize outcomes over procedures. They argue that traditional performance metrics often misalign with value, leading to misguided rewards and a lack of focus on what truly benefits stakeholders. The talk introduces a formula for assessing value based on performance and potential, urging organizations to align employee contributions with strategic goals for sustainable success.

Takeaways

• 🎯 Organizations are shifting their focus from merely delivering services to delivering value to their stakeholders, including customers, clients, and patients.
• 💸 In healthcare, third-party payers are increasingly valuing outcomes over procedures, meaning they will only pay for services that provide proven value to the patient.
• 🔍 The correlation between performance and value is not always direct, and high performance does not necessarily equate to high value.
• 📉 Traditional performance metrics, such as按时交付和预算内完成, do not always align with the value an organization seeks to provide.
• 📈 Value is determined by an item's ability to perform as promised, its sustainability, and its total cost of ownership, which should also be considered when evaluating employee value.
• 📊 Performance ratings should be dynamic and reflect an individual's ability to meet the organization's strategic requirements, not just their personal capabilities.
• 🌟 High performers are not just those who consistently meet expectations but those who exceed them and contribute to the organization's strategic goals.
• 🚀 Potential is about an individual's readiness and ability to adapt to future challenges, continuing education, and personal evolution.
• 🌱 Change management should not be about resisting change but about preparing for it, as readiness for change is key to an individual's potential and value.
• 🏆 The speaker emphasizes the importance of self-awareness and calibration in assessing one's own performance and potential, using examples like bestseller lists and industry benchmarks.

Q & A

What is the primary focus of organizational strategies according to the speaker?

The primary focus of organizational strategies is on delivering value to stakeholders, customers, clients, and patients, rather than just delivering a lot of services or products cheaply.

Why do third-party payers in healthcare only pay for value and not just for performance?

Third-party payers in healthcare only pay for value because they want to ensure that the services provided are effective and beneficial, such as successful surgeries that prevent readmission, rather than just paying for the act of performing a surgery.

How does the speaker suggest aligning employee performance with organizational value?

The speaker suggests that each employee should deliver value in their work, and that the value they deliver collectively contributes to the overall value experienced by the customer. This alignment is crucial for the organization's success.

What is the issue the speaker identifies with current performance measurement systems?

The speaker identifies that current performance measurement systems often have no alignment with value, leading to situations where high performers are not necessarily delivering value and vice versa.

What does the speaker mean by 'performance has very little correlation to value'?

The speaker means that simply being a high performer or achieving high performance ratings does not necessarily equate to delivering value to the organization or its customers.

Why does the speaker argue that traditional performance metrics are no longer sufficient?

The speaker argues that traditional performance metrics are no longer sufficient because they focus on effort and tasks completed rather than the actual value created for the organization and its stakeholders.

What does the speaker propose as a better way to measure employee value?

The speaker proposes measuring employee value by looking at the value of their work, which includes performance, potential, and the total cost of their employment, rather than just their performance ratings.

How does the speaker define a 'five' on the performance scale?

A 'five' on the performance scale is someone who is breaking the curve, delivering exceptional results that exceed the organization's requirements and often setting new standards for others to follow.

What is the speaker's perspective on change and readiness in the context of potential?

The speaker views change as an opportunity for those who are ready and suggests that potential is about being prepared for what's next, staying relevant, and continuously learning and evolving.

Why does the speaker believe that being ready for change is crucial for employees?

The speaker believes that being ready for change is crucial because it allows employees to adapt and thrive in a dynamic work environment, which is essential for personal growth and organizational success.

What does the speaker suggest as a measure of an employee's potential?

The speaker suggests that an employee's potential can be measured by their readiness for future challenges, their eagerness to learn, and their ability to stay current with industry trends and changes.

Outlines

00:00

📈 Aligning Organizational Strategies with Value Delivery

This paragraph emphasizes the importance of organizational strategies that focus on delivering value to stakeholders, customers, and clients. It points out that many organizations aim for value addition rather than just delivering cheaply. In the healthcare sector, payers prioritize value over mere performance, paying for successful outcomes rather than just procedures performed. The speaker argues that while organizations want to deliver value, their performance metrics often do not align with this goal. They give examples of how performance ratings can be misleading and how they can differ significantly from the actual value delivered, as measured by customer satisfaction, market share, and sustainability. The speaker suggests that value should be assessed based on performance, cost, and sustainability, and that employees' value should be measured by the value they add to the organization, not just their personal qualities or efforts.

05:02

🌟 Understanding Performance and Potential in Value Creation

The second paragraph delves into the concepts of performance and potential as they relate to value creation within an organization. The speaker discusses the rating system on a scale of one to five, where a 'one' indicates a need for improvement and a 'five' signifies exceptional performance that exceeds expectations. They share personal anecdotes to illustrate how self-assessment can sometimes be inflated compared to external benchmarks. The speaker also addresses the idea of potential, defining it as the readiness and ability to perform in the future. They describe different levels of potential, from a 'one' who shows little interest in learning to a 'five' who is a visionary leading the way in their field. The speaker challenges the audience to consider their own performance and potential in the context of value creation and to strive for continuous learning and adaptation to remain relevant and valuable in a changing world.

Keywords

💡Value

Value in the context of the video refers to the worth or usefulness that an organization, product, or service provides to its stakeholders. It is not just about the cost but also about the outcomes and benefits delivered. The speaker emphasizes that organizations are shifting their focus from merely delivering products or services to ensuring that these offerings provide real value to customers, such as in healthcare where payers will only pay for treatments that are effective and do not result in unnecessary readmissions.

💡Stakeholders

Stakeholders are individuals or groups who have an interest or stake in an organization's actions and outcomes. In the video, the speaker mentions that organizations should focus on delivering value to all their stakeholders, which could include customers, clients, and patients. The concept is integral to understanding the broader impact of an organization's strategies and how they align with the expectations and needs of different parties.

💡Performance

Performance in the video is discussed as a measure of how well an individual or organization is doing in terms of achieving their goals. However, the speaker points out that performance does not always correlate with value, suggesting that high performance ratings do not necessarily equate to delivering value. For example, a project manager might be considered a top performer but if they consistently fail to deliver projects on time or on budget, their performance does not align with the value they should be providing.

💡Alignment

Alignment in this context refers to the consistency between an organization's strategies and the value it aims to deliver. The speaker argues that while many organizations claim to want to deliver value, their performance measures often do not align with this goal. True alignment would mean that the organization's strategies, employee performance evaluations, and the value delivered to customers are all in harmony.

💡Return on Investment (ROI)

Return on Investment is a financial metric used to evaluate the efficiency of an investment or to compare the efficiency of different investments. In the video, the speaker extends this concept to 'talent assets,' suggesting that organizations should seek a return on their investment in their employees, which is not just financial but also includes the value that employees add through their work.

💡Customer Satisfaction

Customer satisfaction is a key component of delivering value, as mentioned in the video. It reflects the degree to which a customer's expectations are met or exceeded. The speaker uses this as one of the 10 key items to define value, indicating that an organization's success in delivering value is partly measured by how satisfied its customers are with the products or services provided.

💡Market Share

Market share represents the portion of the total available market that a company or product captures. In the video, it is listed as one of the key items that define value, suggesting that an organization's value is also determined by its ability to capture and maintain a significant portion of its target market.

💡Sustainability

Sustainability in the video is discussed in the context of an organization's ability to maintain its operations and deliver value over the long term. It implies that the organization's practices, products, or services should be able to continue into the future without depleting resources or causing harm to the environment or society.

💡Potential

Potential in the video refers to an individual's capacity for future growth and achievement. It is assessed on a scale where a 'one' indicates low potential and a 'five' indicates genius-level capabilities. The speaker uses this concept to discuss how organizations should evaluate and develop the potential of their employees to ensure they are ready for future challenges and opportunities.

💡Change Management

Change management is the process of overseeing and facilitating the transition from one state to another in an organization. The speaker critiques traditional change management practices that allow for grieving over changes, arguing instead for an approach that emphasizes readiness and adaptability. The video suggests that those who are 'unready' for change are at risk of being left behind.

💡Readiness

Readiness, as discussed in the video, is the state of being prepared for what is to come. It is a measure of an individual's or organization's ability to adapt and thrive in a changing environment. The speaker suggests that readiness is crucial for delivering value and that those who are not ready for change are at a disadvantage.

Highlights

Organizations focus on delivering value to stakeholders rather than just providing cheap services.

In healthcare, third-party payers pay for value, not just for performance like surgeries, but for successful outcomes that avoid readmissions.

Organizations aim to align employee performance with delivering value, which is crucial for customer satisfaction and market share.

There's a disconnect between performance measures and value delivery in many organizations.

High performers are sometimes misaligned with value, receiving high ratings despite not delivering projects on time or on budget.

Financial performance doesn't always reflect the value delivered, as seen in cases where high performer ratings don't align with poor financial years.

Value is determined by an item's ability to perform as promised, sustainably, and at what cost, including total cost of ownership.

Employee value should be assessed based on the value of their work, not their worth as individuals.

Performance should be rated on a scale, with '1' indicating a need for a performance plan and '5' being a curve-breaker.

An individual's performance rating should change over time, reflecting their adaptability and growth.

Potential is about an employee's readiness for future challenges and their zeal for learning and evolving.

Change management programs often give employees time to grieve change, but the speaker argues for being fluent and not attached to the old ways.

Unemployment can be a measure of unreadiness, as there are jobs available for those who are ready and adaptable.

Potential is rated on a scale, with '1' being low potential and resistance to learning, and '5' being genius level and inventing the future.

The example of a genius-level employee at the National Institute of Health who is growing livers in Petri dishes.

Transcripts

how many of you have in your

organization strategies focused on

delivering value to your stakeholders to

your customers to your clients to your

patients most of you aren't putting

strategies in place that say we want to

deliver a lot of stuff

cheaply your strategies are we want to

be value added if you're in healthc care

the payers the third party payers will

only pay for value they won't pay you

for performance whether you admitted and

did surgery they pay you for Value

whether your surgery worked and you

didn't have to readmit a patient in fact

depending on the diagnosis readmitting a

patient within a certain amount of time

is actually not

reimbursable because it wasn't valuable

so all of our organizations are wanting

to deliver value

therefore to align with our

organizations we would need each of our

employees to deliver value our hard

assets we want return on investment our

talent assets we want value the value

that employees deliver adds up to the

value the customer

experiences and yet we still measure

performance performance has very little

correlation to

value I have gone into major

organizations and I've looked at their

performance ratings I've looked at their

value defined by 10 key items not all of

which are Financial things like patient

and customer satisfaction market share

longevity

sustainability um attractiveness to

higher looked at the value proposition

and what I found out is those folks that

had bell-shaped curves and their

performance were closely aligned with

value but not completely most of you

your performance measures have no

alignment with

value here's what's crazy about that

you've got high performers that you are

telling them they're a five and they're

unfit for human

consumption you've got team members

project managers who you'd say are top

performers and they've never delivered a

project on time or on budget

ever and we give them a five I've sat in

the sea Suite when you've come in and

said we need more money for bonuses and

raises cuz our people have done so well

we have so many top performers when our

financials said we had the worst year

ever and when I said what's up you go

well the economy is down it's not really

they worked hard the economy is down I

said I'm not going to pay somebody who

hasn't figured out how to achieve value

in a down

economy it's not about effort see

measuring performance is like measuring

some of these cholesterol level to see

if they have diabetes

it's no longer a relative metric so when

we looked at this and we said what makes

up value if you look at the value of a

consumable item value is does it do what

it says it's going to do right does it

even perform it's like past fail is it

sustainable will it perform well into

the

future and in order to know what value

we have to look at at what cost what

total cost even cost of

ownership and we need to do that with

our employees as well now when you look

at employee value this is the value of

their work not them as a human being

everyone has value as a human being I'm

just asking you to make sure you're

clear on the value of their work so if

you want to really understand your value

and the value of the people you work

with if you want to know what boosts

your value and kills your chances let's

run through this formula first of all

you look at your performance on scale of

1 to five one you're on performance plan

that's low three you are consistently

delivering what the organization

requires now that's a Twist you should

look at strategy and what you deliver

Cascades down see what the organization

requires is that you increase sales 10%

even in a down

economy it doesn't give you extra bonus

points for

circumstances so a three is somebody who

delivers what the organization requires

not what's easy not what's doable not

what they

like not what's always in their

strengths wheelhouse but what the

organization requires a five is somebody

who's breaking the curve and these

numbers aren't ego numbers how I know

that you're accurately rating is that an

individual's rating over a course of

five years should change consistently by

a

point I've been a five in my life curve

breaker they rewarded me then they came

and studied me they made that the new

standardized process and just to get it

three those were the results you

produced I've been a two in my life I

had two babies in one year they were not

twins I was a two because I had great

leaders who were honest with me my goal

became get to work with no puke on my

shirt and their goals were were a little

different right now on a scale of one to

five if I had to rate myself I would

give myself a my performance at three

and some of you are so gracious you're

like s you're better than that you're

awesome I go thank you and you're

delusional because see my competition

isn't speakers you've seen before my

competition is thought leaders

worldwide at the national shm I can

apply for a keynote but if Hillary

Clinton applies guess what I get

breakout

session see she's a five and I'm a three

Oprah 5 S 3 when my new book came out it

hit the New York Times bestseller list I

started thinking I'm at least a four

and then my staff calibrated with me

they saids come here they go

congratulations on hitting the New York

Times And The Wall Street Journal that's

great stuff um and and let's be very

clear you've been in the business 20

years the fact that you wrote a book

that's called write on

Target and the fact that was a

bestseller is fairly expected that if

you've been in the market this long and

what you write should actually be good

and then they said you're not a

foresight Daniel pink he has 17

bestsellers you have one Daniel's four

you're

one I go oh I got it again see a lot of

us go but I was a four-point student and

I go good job in

college it's not the same but I work

really hard S I do more than my fair

share I go thank you seriously S I do

more than my fair share I go seriously

thank

you performance should be ra leing the

work not the person now let's look at

potential potential is whether you have

any odds of Performing far into the

future potential is how ready you are

for what's next are you keeping up with

the times faster than your Market's

changing are you staying

relevant see a lot of people we've LED

them to believe that change is hard how

many of you have change management uh

programs that you give people time to

grieve yeah and see I think that makes

sense if you lose your partner your

spouse a child your long you know loved

pet you probably do need time to grieve

but your

software really see what I tell people

is get fluent but not

attached I'm going to be back for it

here's your software don't fall in love

I'm getting it in P two years I just

want you fluent are you ready for what's

next see people think change is hard but

you know what change is only hard for

the unready

in fact I'll be so controversial as to

rename unemployment a measure of

unready if you're unemployed for a year

or

more that's about unreadiness because

all of us have jobs we're dying to

fill we just can't find canidates

successful does that make sense if I'm

ready for

change I just move into it freely so

let's talk potential a one and potential

on scale of one to five a one is low

potential not could they do more not

like your talent

assessments it's it's how zealous they

are for learning like a one when you go

to them you see you have training

tomorrow they go do I have to is it

mandatory what will happen if I don't go

actually one guy say I know yall are

moving to Outlook but can't we just do

Courier for me I'm only going to be here

like three more

years anybody have a few of those folks

yeah a three in potential is somebody

keeping up with the times somebody who

is continuing their education they're

involved in their industry they're

involved in professional organizations

they're personally evolving themselves

health and and spirit and mind they love

to teach they are great Learners they're

multi-generational they're

Multicultural they are citizens of the

universe and they're responsible

citizens of the universe a five is

genius level stuff people inv ing the

future I know a guy at National

Institute of Health he's growing livers

and Petri dishes he's a five he's

figured out how to grow livers and pach

dishes he says that in 20 years you'll

be able to go into Walmart and pick up a

case of beer and a

liver I am so impressed with this man