Keynote Speaker: Cy Wakeman • Presented by SpeakInc • The New Employee Value Equation
Summary
TLDRThe 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
📈 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.
🌟 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.
Mindmap
Keywords
💡Value
💡Stakeholders
💡Performance
💡Alignment
💡Return on Investment (ROI)
💡Customer Satisfaction
💡Market Share
💡Sustainability
💡Potential
💡Change Management
💡Readiness
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
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