Slide 1

The Building Blocks of HPOAtlanta Regional Commission Norcross, GA November 16, 2010

1Who are These People?

Cheryl Hilvert

City ManagerPaul Wright

Fire Chief

Wayne Davis

AssistantCity ManagerWhere are They From?

Is Your Organization Like Ours Was?

4Increased DemandsConstrained ResourcesMaximized WorkloadsTop-Down Management PhilosophyStove-piped OrganizationDisengaged Workers

TAG TEAM1- Montgomery faces the same issues as everyone else in local government. We were experiencing2- Increased stakeholder demands:Citizen demands - We felt the pressure of citizen demands and expectations and it seemed that better we became, the higher the pressure. For example, the changes in technology that we have all aggressively pursued and implemented have created the expectation of Instantaneousness. The resident who e-mails a complaint on Sunday night expects a response by Monday morning. While the rest of the work didnt change, we added time to the day answering e-mail. Think about the number of e-mails you get today compared with five years ago. We need to appreciate that the same expectations for high product quality, speed of service, low cost, and customer service that we all have for the private sector apply equally, if not more so, for the public sector.

3- Constrained resources: These demands all required resourcesfunding, time management, people. So when somethings gotta give, what is it? Do you look at cutback management, lay-offs, eliminating investments in human capital or tax increases? Or do you look to work smarter in the face of these challenges?

Maximized Workloads: Our human resources were also under stress. Employees were showing signs of stress from working harder, but not necessarily smarter. They appeared to be wearing down and feeling unappreciated.

Top-Down Management--Non-management employees were removed from decision-making. Some appeared to be passing the buck, often to the supervisor, Department Head, and the City Manager. From their experience and perspective, decision-making was reserved for management.

Stove Piped OrganizationVery departmentally focused. Territorialism and turf battles periodically erupted.

Disengaged Workers--It was viewed as acceptable to just turn the crank.

You Really are Like Us!

$*!What do I do now?What is HPO?TAG TEAM5

If you are like us, or like we were?

Where do you go from here?

What challenges exist to implementing HPO in your organization?6High productand servicequality OutstandingcustomervalueSoundfinancialperformanceHPO

The simultaneous delivery of Source: Commonwealth Center for High Performance Organizations, Inc.What is High Performance?One of the ways we have found to combat some of the issues related to employee disengagement and delivery of quality service is the utilization of the HPO model.

High performance organizations do not compromise or trade-off service quality, customer value or financial performance.

HPO is defined as the simultaneous delivered of high product and service quality, outstanding customer value and sound financial performance.

It is critical that all of these variables are delivered and delivered at the same time.

Organizations often zero in on one or two of these variables at the expense of the third. When budgets are tight, service quality and customer value are often unwittingly sacrificed, for example by reducing staffing levels or hours of service. When service demand is high, the temptation can be to throw resources into addressing the demand at the expense of sound financial performance.

High performance organizations do not compromise or trade-off service quality, customer value or financial performance.

7Recognize that Work has Changed Over Time

Develop the Culture of Your Organization

Build Organizational Capacity Through the Parallel Organization

Three Simple Building Blocks for Achieving HPO in Your OrganizationWhile the HPO Model features many parts, there are three that can really help to enhance employee engagement. This includes:

Recognizing the work has changed over time

Doing work to develop the culture of your organization

Building organizational capacity through the use of employee teams8

Recognize that Work has Changed Over Time

Photo from Daniel Pinks A Whole New MindStep OneCheryl

First, we need to recognize the work has changed over time.

Just think about your career. Is the workplace the same today as it was the first day you joined the work force?

I know when I started in my career there were no cell phones, email, facebook. Even computers were only housed in very technical facilities and one computer filled an entire room.

Think how you have had to change your work methods just moving from a typewriter to a word processor, to a fax machine to a desk top computer, a PDA and onto a Blackberry. We have had to change in moving aspects of our jobs as technology and outside expectations have changed due to many reasons.

Lets take a closer look into the evolution of the nature of work.

9The Evolution of the Nature of Work

LMMMTForemanOwner/ExecutivesLaborManagersTTTTT

ManagementTeamTaskTeamLeadershipTeamBefore 1800Subsistence FarmingCRAFTS PHASEWork is holistic1900INDUSTRIAL PHASEDivision of laborVertical Horizontal2000+NETWORKEDTALENTMODELSource: Commonwealth Center for High Performance Organizations, Inc.102BTony

HPO theory speaks to the evolution of work and outlines 3 distinct phases:Craft Phase- before 1800- characterized by farmers/craftsmen- responsible for all aspects of their business- management- technical- leadershipbottom line work was holistic.

Industrial Phase- 1900- arrived with machines and automation- rather than holistic, work was simple and piecemeal- owner was the leader and only one who knew where the organization was headed- managers responsible for their department with no organizational view- workers did repetitive tasks with no real idea of their contribution to the organization. If they didnt like it, too bad, plentiful labor market, easily replaced.

While organizations have changed positively our structures still look like this. Ask yourself:1) Are you perceived as the leader?2) Do your departments have an organizational focus or is it more limited to their technical functions?3) Do your employees use more than their technical skills when they come to work?

Networked Talent Model is the goal of todays higher performing organization.- Assumes work is done by teams of employees who demonstrate LMT, team skills- They all understand the direction and message of the organization and contribute to its success through collaboration and joint efforts to achieve goals

Management Skills, Abilities, and Behaviors- Causal Modeling/Systems Analysis- Performance Planning- Project Management and Execution- People Development- Plan Implementation, - Monitoring, and Adjustment- Outcome/Results Variance Analysis- Open Communication Task/Technical Skills, Abilities, and Behaviors

Continuously broaden and deepen task/technical abilitiesTeam SkillsAbilities, and Behaviors Leadership Skills, Abilities, & BehaviorsStrategic Customer Value Analysis- Vision/Values to Strategy/Structure/ Systems- Suprasystems Integration/ Stewardship- Learning/Thinking/Changing/ Renewing- Enabling/Empowering/EnergizingSource: Commonwealth Center for High Performance Organizations, Inc.Work is Holistic in theNetworked Talent Model11Tony

An important component of the networked talent model is the assumption that work is more holistic with employees demonstrating leadership, management, technical and team skills.

Often we emphasize an employees ability to perform technical tasks. The HPO Model talks about developing the leadership, management and team skills necessary to make the employee more well rounded and holistic in their work for you.

Now, we will talk about some tools that can be used to develop an employee under the networked talent model

Montgomerys Plan for Retooling Its Employees

Cheryl

Job DescriptionsPerformance Appraisals360 degree Peer FeedbackPay for Performance Hiring Processes

Cant expect your employees to reflect a holistic work style without taking a hard look at your HR systems and processes.Traditional HR systems do not really support the HPO conceptsJust like you, we are all union too.

Need to develop skills and talents beyond the traditional technical skills

Job Descriptions We added to the traditional model of these by adding the other components of the Network Talent Model Leadership, Management, as well as Team Skills for all positions.

Performance Appraisals We developed these to mirror the expectations defined in the Job Descriptions and provided examples and/or behaviors to measure the performance more consistently throughout the organization.

360 Peer Feedback This process allows for co-workers the opportunity to discuss an employees performance in a face-to-face setting with the emphasis on how the employee performs from a peers point of view and it provides direction on areas of improvement.

Pay For Performance This pay system is utilized to reward high performers while showing low performers the direction that they need to move towards in order to increase their pay based on improved performance.

Hiring Processes We utilize hiring teams and incorporate non-traditional methods that works to hire individuals that meet the intent of the Job Description and not just hire someone based on their technical skills.

12Clear employee expectations

Definition of acceptable and unacceptable behaviors

Thanks!

Motivation!

Good match vs. good technical skills

OutcomesCheryl

13HR systems in sync with HPO

Some will resist...a few will leave (thats okay!)

Involve them

Education and training

Lessons LearnedCheryl

HR systems have to mirror this culture change in order to direct and support the direction of the organization.

As with any change, you will be challenged by some in the group that dont want to move out of their protected empire and will question what right do you have in doing so.

With the involvement with employees throughout the organization you will see a better HR system develop since one person can not have all the answers. You will get a better product by involving others. This does work in the union environment when you have the right people involved.

Educating and training are on-going as you will need to continually relate back to how these HR systems support the philosophy of the organization . Just because you understand it doesnt mean everyone gets-it.14

Develop the Culture of Your Organization

Step Two

Tony1617DO WE HAVE THE RIGHT __________ ?

Customers Key Products & Services Business Strategy Org. Structure Work Processes Support Processes Equipment, Facilities, Technology, Information, etc.

PEOPLE Right competencies Development process Feedback/Coaching (360o) Resolution Process (Performance Appraisal)WORK CULTUREVISIONVALUESLeadership PhilosophyIndividual Behavioral ValuesOperating Systems ValuesPERFORMANCEFeedback / Coaching (360o)Resolution Process (Discipline System)Strategic Thinking:

Mission/Niche Theory of the Business(strategy/structure/systems)

Prepare Business Case+~~~~~~~~~-~~~~~~~~~BehaviorsPM (Outcomes)PM (Input/Thro- ughput/Output)Strategic Planning:

Set Direction Capacity Building

Prepare Business PlanPM = Performance MeasuresPM (Strategic Goals and Objectives)PMPMPMEnd Values/Higher Moral Purpose/Desired Future State{Means ValuesTactical/Operational Plan Action Plan Resources PlanMonitoring & Corrective ActionSource: Commonwealth Center for High Performance Organizations, Inc.Vision/Values to Strategy/Structure/Systems(moving from vision to performance and values to work culture)17TonyMontgomery Vision SpiralEnvironmental ScanCitizen Survey and FeedbackFocus GroupsCouncil and Staff Retreat Organizational Mission & VisionCity Strategic PlanPerformance MeasuresDepartmental Operational PlansEmployee GoalsEmployee Feedback

Strategic ThinkingStrategic PlanningTactical &Operational PlansPerformancePMPMPM

18Cheryl

This is what Montgomerys Vision Spiral looks like.As a reminder, this type of work focuses on performing strategic thinking and developing city strategic plans and department operating plans to achieve those goals. It is designed to get us all on the same page and headed in the right direction. You will also note that those little PMs out there are performance measures. It is critical in all our work that we measure our successes in knowing if we reached our goals.

For Strategic Thinking, we did and

Environmental ScanCitizen Survey to gauge their satisfaction with city services and what they see as important for the City.Focus Groups

Once we had all of those completed we:Conducted a retreat for Council and staff to formulate our strategic plan.One of the outcomes of the retreat was a new, more cohesive mission and vision and a strategic plan to set the direction to the future.

Once we had our strategic plan, mission and vision developed, we:Developed Department operation plans to address the overall strategic plan andHad employees set personal goals on how they will address their department plans. These goals are part of the their annual performance appraisal.

We quickly noticed that we were missing a big piece ad that was on performance measures.

How do we know if we are meeting our goals? How efficient and effective are we?

To address this, we created a team of employees to develop performance measures based on our strategic plan. We did not have expertise in this area so we did hire a consultant to educate and point us in the right direction.

Montgomery Values SpiralEmployee DevelopmentPerformance Appraisals3600 AppraisalsCoaching

Employee/Manager ExpectationsOrganizational ValuesLeadershipWork Culture

Leadership PhilosophyIndividual Behavioral ValuesOperating Systems ValuesBehaviorsFeedbackWork CulturePMPMPM

19CherylThis graphic represents the work our city has done in the values spiral under the HPO model.

This work includes establishing organizational and behavioral values, a leadership philosophy, and employee expectations. It also includes developing appropriate employee training programs, appraisal instruments that actually provide useful feedback, 360 peer feedback as well as coaching and mentoring.

This work is all about how you treat each other and ultimately your citizens.

While we all believe this is important work, we often dont take the time to fully develop our organization in the type of values work discussed.

Montgomery Values Spiral

Leadership PhilosophyIndividual Behavioral ValuesOperating Systems ValuesBehaviorsFeedbackP MP MP MHigh Performance

Montgomery Vision SpiralStrategic ThinkingStrategic PlanningTactical &Operational Plans

P MP MP MCheryl

The HPO Model assumes simultaneous work in both the vision and values spirals and when work is accomplished in both these areas, the result is higher performance.

20Moving in the same direction

Defined values

Better decisions

Engaged work environment

Builds organizational capacity

OutcomesCheryl

With this understanding of how the values and vision are linked to the performance, a common direction of all goals and plans are in sync with the overall organizational plan. This model assists you in getting all departments and teams headed in the same direction.

Values are defined, whereas before, values were assumed. In the latter system there is a natural conflict when we each assume that we all value the same things as I do..who is right and who is wrong? Sitting down and defining the organizational values sets the expectations for all the employees in how we treat each other and our customers.

Decisions are made in an environment where the employees understand the direction of the organization and he/she sees where the vision, plan and/or goals are established. This allows for better decision making when everyone is on the same page.

Employees are engaged in their work environment by being involved in goal setting, developing department plans, developing organizational plans, working in a team environment, etc.basically, through involvement, they become engaged.

With everyone involved in setting the direction of the organization and understanding where it is heading, capacity is further developed due to the larger sharing of information. No more does one person have the answer to where the organization is headed but it is shared with many and communication, in all formats, is consistent.

21Performance Measures

Communications/Training/Education

Culture needs to prevail in teamsdepartment, and the individual

Lessons LearnedCheryl

There are measures that need to be looked at in all levels of this model. They need to be defined and translated into an understanding of their value and purpose in providing higher performance. This is an area where we have started this late in the implementation and continue to struggle.

This vision and values spiral thing is a difficult model to understand at first. Keep up the education and training on it and realize that each person will understand this at different times and at different levels. Communications on how the organizations actions relate back to the spirals helps in the educational process and understanding.

The expected behavior can not just be turned on and turned off..it has to be translated into all aspects of an individuals work. The values of the organization must be lived on a daily basis.

22

Build Organizational Capacity Through the Parallel Organization

Step Three

Tony24The Traditional HierarchyThe Parallel OrganizationSource: Commonwealth Center for High Performance Organizations, Inc. and The Ends of the Earth Learning GroupThe Parallel OrganizationThe HPO Model refers to teams as the parallel organization because it operates alongside the traditional hierarchy.

As you can see from the arrows that go back and forth, there is a relationship between the mission of the hierarchy and the leadership work that gets accomplished in the teams of the parallel organization. For example a team may be charged with developing a new way to accomplish a task, but has to report back or receive approval from the hierarchy on its recommendation25Normal rules are suspended. solutions possible Reaching the best solutions for the wholeVision for the futureEveryone gets a promotionA regenerative culture is critical.Trust, respect, courtesy and dignity Tools, resources, latitude to propose suggestions/changes.Test assumptions, concerns, and inferencesThese guidelines are everyones responsibility

Source: Commonwealth Center for High Performance Organizations, Inc. and The Ends of the Earth Learning GroupGuidelines for Operating in the Team-Based Environment26Tony

Normal Hierarchical Organization Rules Are Suspended. All team members are equal inside the parallel organization; decisions are by consensus, but note that decisions inside the parallel organization must also fly in the hierarchy a key role of team members is identifying, consulting with, and marketing to major stakeholders inside and outside of the hierarchy.Focus Is on Reaching The Best Solutions Possible for the Whole. Members of teams must be committed to a shared vision and values for the organization; a members worth is determined by his/her contribution (e.g.., ideas, conflict resolution, consensus building, problem-solving) to helping the team reach the best solution possible.Everyone Gets a Promotion. To eliminate turf and reach solutions that are best for the whole, members of teams must promote themselves at least two levels in the organization so they can see themselves and their units as parts of a larger, integrated whole; members must view themselves as part of a board of joint owners of the whole.A Regenerative Culture Is Critical. Trust-Based Relationships: while operating in the parallel organization, all interactions must be based on complete trust; Honesty: members are expected to level with each other and to have no hidden agendas; Mutual Respect: we can disagree without being disagreeable; no personal attacks; each team member must take personal responsibility for the success of every other team member.Confidentiality. It is often necessary, in order to achieve an open, innovative, and candid discussion of difficult or sensitive issues, for teams to establish a confidentiality rule -- i.e., what is said and decided and why decisions are reached is on the record; but who said what is not. No Retribution for Following These Guidelines. Because a low threat, high trust climate is critical in getting candidness and promote creative problem-solving, no retribution for following these guidelines can be permitted; however, if members do not follow the guidelines, there must be consequences.Enforcing These Guidelines Is Everyones Responsibility. Because everyone is equal inside the parallel organization, everyone is responsible for making the process work.

Montgomerys Plan for BuildingCapacity through the Parallel Organization

Team ChartersClear GoalsTrainingCheryl

Training for employees on working in teamsDevelopment of team charters and participant expectationsClear definition of how decisions are madeCreation of TeamsCross departmental teamsDepartment/work unit teamsNaturally Occurring Groups/NOGs

We might think we know how to operate in teams, however everyone has a different definition of the role of a facilitator, the role of a team member, what happens with decisions that the team arrives at, etc. Training defines what the teams look like and the expectations of people who participate in them.

Charters and participant expectations set the parameters of the team and ground rules so everyone knows the purpose and expectation for the members and what the teams success should look like. We probably havent done this as well as we could have and the teams that have been successful are the ones that have the charters and monitor behaviors.

Lastly, we have focused on both cross departmental and departmental/work unit teams. Lets talk a little about each of these.

Today

27Health Insurance Benefits CommitteeEmployee Wellness CommitteeEfficiencies and Effectiveness TeamMasters of DisastersLEAN Process Improvement TeamSpace Cadets

Cross DepartmentalTeam ExamplesCheryl

This list shows some of our cross departmental teams in Montgomery. These teams include representation from most if not all departments and have a broader organizational focus.

As you can see, some get creative with their team names like Space Cadets (team to review storage and space usage in our buildings) and Masters of Disasters (disaster preparedness team.)

28Outcomes

Health Insurance Team

Annual Percentage Increase in Health Care PremiumsFor Public Sector Employers

$50,000 SavingsCheryl

The Health Benefits Team is a cross departmental team and has responsibility for selecting the health plan for the City.

It works within cost caps established by the City and its unions and selects plans and coverages that best meet the employees needs within available dollars.

This team works hard to negotiate coverage and has become quite savvy in health insurance issues. As you can see from the graph, Montgomery has beat the average for Greater Cincinnati public employers consistently in the average cost of health insurance premiums.

In 2008 in the City, our expenses for health insurance coverage totaled $656,805. If the City realized an increase of 13.29%, consistent with that of the greater Cincinnati public sector market, our costs would have risen to $744,094 for 2009, or almost $50,000 ($49,589)more than what we would have experiencedat the City in 2009 with an average increase of only 5.74%.

29Public Works, Fire and Police DepartmentsEquipment Replacement Team

Public Works DepartmentSnow Removal TeamSpecial Event Planning and Logistics Team

Police DepartmentInkless Fingerprint TeamRadio Communications Team

Administration/FinancePolicy and Process Review TeamsCustomer Service Team

Departmental/Work UnitTeam ExamplesCherylThis list shows some of our department or work unit teams. These typically include members from a single department or work unit and a more departmental focus in their work.

Now I will share with you some outcomes of a few of these teams.

30Outcomes

$40,000 Saved

Cheryl

Snow Removal Team- Half of all contacts received were compliments; previously nearly 100% were complaints- Number of calls received declined from previous years due to other sources of information being available (Snow Hotline, web updates.)- Reduction in salt use of 300 tons or a savings of $40,000- Developed a model for future crisis management- Developed confidence and core abilities in key staff members

The snow removal team is a work unit team in the Public Works Department. It was created in late 2008 when we faced a road salt shortage in the midwest. If you could get salt, it cost three times as much. We had to look at doing things differently.

This team came together, redesigned how we treated snow and devised a communications strategy to advise citizens of the salt shortage and our efforts to continue to provide great service.

Even though we radically changed how we worked, our calls declined due to lots of available information and we actually received compliments.

This process also developed a lot of confidence in our staff to work outside their comfort zone and has served as a model for other teams.

31Columbia Oldsmobile Accident AreaCar Carrier Unloading GroupProject Plan ReviewKitchen Decontamination GroupEmployee Walking/Exercise Groups

Naturally Occurring Groups/NOGs ExamplesOutcomes

$90,000 savingsLives and property saved!Columbia Oldsmobile Accident Area Group

Accident history in area was 4 accidents per week with 3 injury accidents per month

Group came together on its own to develop creative solutions32 man hours (at $38 per hour average or $1216) to develop solutionState of Ohio DOT paid for restriping and minor improvements

Results$14,744 savings in police and fire runs in first yearNo accidents in this location in over five yearsSavings of $90,514 since improvements made, yielding a 75-1 ROIMore importantly, no loss of life or personal property damage

Accident history in area was 4 accidents per week with 3 injury accidents per month

Group came together on its own to develop creative solutions32 man hours (at $38 per hour average or $1216) to develop solutionState of Ohio DOT paid for restriping and minor improvements

Results$14,744 savings in police and fire runs in first yearNo accidents in this location in over five yearsSavings of $90,514 since improvements made, yielding a 75-1 ROIMore importantly, no loss of life or personal property damage33

Costs $3,000 per Employee for LEAD/SEI $5,000 Annually for HPO Tune-UpInternal/External Training

Internal/External Training - Montgomery Rap, Managers Forum, T3 Team, Sir Vival (and Customer Service), AFI, ICMA, OCMA, SEI Reunion presentations. Work within Parallel OrganizationHR Tools Mission, Vision, Values and Leadership PhilosophyEnvironmental Scan

Savings Realized

There are hard cost savings ($40,000 fro Salt Shortage, Health Insurance - $50,000 and Environmental Scan - $40,000 and Performance Appraisals - $75,000 and Job Descriptions - $50,000 and Flip Book - $30,000. The Costs of Not Doing This !

There are hard cost savings and there are soft costs Holiday Lighting one FTE; and $90,000 from Columbia Oldsmobile Example.

Jim LaCalameto

Paul and Don in Car together

Develop Leadership Philosophywhatever it is!

Leaders throughout the organization at all levels!

Use the Networked Talent Model

HR systems support culture

SuggestionsTAG TEAM

In Montgomery, we have truly engaged the talents and skills of our staff at all levels through the use of teams and by retooling our staff for work beyond their technical tasks. We have some suggestions for you based not only on the theory of a more holistic employee but in lessons we have learned in our work.

There are leaders everywhere, not just at the top of the organization.Develop employees with leadership, management, technical and team skillsHave to make sure your HR systems support this new philosophy. If they just focus on technical you arent going to accomplish muchNeed to provide training and do it regularly.38Continuous education and training

Focus on work within the departments/work units too

Team charters and behavioral expectations

Teams will function differently

Culture needs to prevail

Suggestions

Tag Team

In Montgomery, we probably focused too much on our cross departmental teams. Look to what department/work unit teams can do for you. Probably also less intimating for staff and allows them to get their feet wet in familiar territory.Team charters and behavior expectations are criticalYour organizational values need to be demonstrated by all in your day to day work and on teams39Take risks, but require accountability

Behead the culture of nice

Managers still need to manage!!!!

Have Fun!!

Suggestions

TAG Team

Encourage people to be risk takers but require accountability. Here, we ask employees to ask themselves 5 questions before they or a team make a decision:Is it right for the community?Is it right for the city government organization?Is it ethical and legal?Is it consistent with our values and policies?Is it something for which Im willing to be accountable?

2. We have a culture of nice and people will walk a mile to avoid a conflict with someone else. While our moms always told us to be nice, it does allow for behaviors inconsistent with your values. Be nice, but also be open and honest with others and hold people responsible for their behaviors and contributions

3. While it doesnt always sound like it, HPO really requires stronger managers. While sometimes it is hard, just remember that our jobs are to manage our organizations and give people the tools, resources and feedback to unleash their potential. Then deliver results.

In closing, in an era where we are doing more and more with less resources, the answers to many of our issues are often right there beside you a person that you would least expect can help you. With the proper resources, tools and expectations, our employees really can be a great part of the teambeyond their technical tasks.Jerry turn it back over to Regan.40

41Chart10.1340.030.1390.01450.140.10830.1170.03130.13510.06540.1320.09480.132850.0573833333

Greater Cincinnati Public Sector AverageMontgomery Premium Increase

Sheet1Greater Cincinnati Public Sector AverageMontgomery Premium Increase200313.40%3%200413.90%1.45%200514%10.83%200611.70%3.13%200713.51%6.54%200813.20%9.48%Average13.29%5.74%To resize chart data range, drag lower right corner of range.