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Great People Decisions: Why They Matter So Much, Why They are So Hard, and How You Can Master Them |  |
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Great People Decisions: Why They Matter So Much, Why They are So Hard, and How You Can Master Them | |
Great People Decisions is an expert's guide to helping managers and human resources professionals improve their competence and success at finding, assessing, attracting, and integrating great people, whether through external hiring or internal promotion. Anyone can fill a position; the real trick is to find the right person to fill that position, do an excellent job, and go on to achieve the kind of personal and professional success that helps the organization as well as the individual. Great People Decisions argues that filling every position with the perfect person for the job leads to organization-wide success. Executive search consultant Claudio Fern ndez-Ar oz offers his expert insight into every aspect of the search for great people from casting a wide net when searching for candidates (inside and outside of the organization) to avoiding emotional traps when interviewing candidates.
Claudio Fern ndez-Ar oz is a partner and member of the global executive committee of one of the world's largest executive search firms, Egon Zehnder International. His articles have appeared in the MIT Sloan Management Review, Global Agenda, and the Harvard Business Review, for whom he wrote the bestselling "Hiring Without Firing."
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Lesson 1: People Decisions Are Vitally Important to You and Your Organization
"If you prove to be skilled at solving "people puzzles," your career prospects will almost certainly get brighter. Conversely, if you repeatedly fail to get the right person in the job your career will suffer(...)Mastering great people decisions will do both. It will enhance and improve your personal relationships, and increase your professional satisfaction."
Lesson 2: The Success Formula
"...The formula for career success includes at least four other factors (besides luck). They are: 1) Genetics, 2) Development, 3) Career decisions, and 4) People decisions. I am convinced that these factors reinforce and build upon each other, and create a multiplier effect. I also believe these different factors have different weights in our life."
Lesson 3: People Decisions Are Hard
"Collectively, these factors help explain why making people decisions is so damnably difficult: 1) Statistical Odds 2) Difficult Assessments a) Impact of assessment errors b) Unique jobs c) Changing jobs d) Intangible traits e) Inaccessible candidates 3) Psychological Biases a) Procrastination b) Overrating capability c) Snap judgement d) branding e) Evaluating people in absolute terms f) Seeking confirmatory information g) Saving face h) Sticking with the familiar i) Emotional anchoring j) Herding 4) Wrong Incentives a) Candidate circumstances b) Political pressures."
Lesson 4: The Great Paradox
The majority of us are not equipped with the right tools to make great people decisions - "...we get little formal training in making the right people choices, both because of a lack of initial awareness about its importance and because of the false belief that this skill is not learnable. Then, when we're in a position to learn from experience, we often can't learn from experience. And to top it all off, we think we're far better at people choices than we really are(...) And great people decisions need active management. They are less like a physical infrastructure, and more like money: They achieve their true potential only if you figure out how to deploy them effectively."
Lesson 5: Knowing When a Change Is Needed
"In order to successfully implement a strategy, not only do the right leaders need to be chosen, but those leaders need to be aligned across the different hierarchical levels of an organization(...)Even when people changes are justified, it's usually very difficult to implement them...your goal should be to define your decision-making process in advance, so that it will be as disciplined and objective as possible."
Lesson 6: What to Look For
"1) Knowing what to look for is important because a) Some characteristics are better predictors of success. b) You need to focus youefforts. c) You will avoid discrimination. d) You will be faced with difficult tradeoffs among real candidates. 2) All of the following characteristics are important a) IQ (although most candidates for senior positions already have high levels b) Relevant experience, particularly for senior positions c) Emotional intelligence-based competencies, particularly for senior positions d) Potential, particularly for junior to middle-management levels e) Values, in all cases 3) A highly disciplined process must be followed a) Confirming the managerial priorities b) Identifying the key competencies required c) Clearly defining them in behavioral terms d) Agreeing on the required levels and relative weight for each key competence."
Lesson 7: Where to Look: Inside and Out
"Large companies should continually invest in succession plans and inventories of talent and key competencies. In addition, special internal and external efforts should be made for specific needs, particularly at the top. Despite the proliferation of advertising options and the promise of the Internet, direct contacts continue to be extremely powerful. Clever sourcing is both an extremely effective and efficient way to identify highly qualified real candidates. In many cases you can generate most candidates on your own. Professional help can be useful for senior positions, new jobs, when you need to cast a wide net, or for confidentiality reasons."
Lesson 8: How to Appraise People
"You can significantly increase your organizational capability in this critical area by: a) Selecting the right assessors b) Training them following proven practices c) Reviewing assessments before confirming the hiring or promotion decision d) Following up over time the results of these decisions, for individual as well as organizational feedback purposes."
Lesson 9: How to Attract and Motivate the Best People
"Best practices for attracting and motivating the best people include a) First, understanding the candidate's motivation, concerns, and alternatives b) Sharing your passion about the opportunity c) Paying competitively for the relevant market, without overdoing it d) Setting up the right incentives, with great care in their design e) Properly dealing with any special risks f) Having enough courage to do exceptional things in exceptional cases."
Lesson 10: How to Integrate the Best People
" a) Companies can do several things to support integration: 1) Being proactive at internal communication and candidate preparation 2) Properly preparing the ground within the organization 3) Closely following up the process at regular intervals, monitoring the level of organizational support, relationship building, working of the business model, and setting the stage for early wins. b) Candidates should also take charge of their successful integration: 1) Ensuring the right sponsor 2) Realizing that the integration work is harder than expected 3) Asking up front for the type of organizational support required 4) Focusing on a few key areas 5) Properly managing expectations 6) Confirming the new team 7) Spending enough personal time with all relevant stakeholders."
This book was referenced in one of the HBR articles that I read. After reading it, there is no doubt the author is the expert in this area. His writing follows a logic flow. His ideas were backed up by verified research results or personal experience and sometimes both.
The references section is a gold mine. I am reading several books cited in this book. I am very glad that I bought it!
There were a number of things that impressed me about this book. Starting with the author: He is one of the top executives at one of the best worldwide executive search firms, an in demand lecturer, and an accomplished writer with famous articles in Harvard Business Review and MIT Sloan Management Review (directly on the subject of people decisions). So he has an impressive resume, but the book makes clear that he has spent the last 20 years dedicated to becoming a world-class expert in this area. The book is backed up with many references and summaries to the best academic and industry studies, this is not just one man's war stories (although there are interesting stories to back up points) but it is instead a carefully thought out and researched framework utilizing his own extensive expertise but also that of other experts in the field. He is successful at taking a very fuzzy subject and organizing it, simplifying it, making it understandable and actionable, and even providing key "watch outs" based on his experience.
It is interesting reading with a number of interesting points made along the way. Some of my favorites include a description of how dramatic an impact a good vs. bad CEO can make on a company's performance, and as a side note he remarks that this may justify relatively high CEO pay (although he is careful to point out that it does not justify some of the outlandish packages that have been in the press in recent years). My other personal favorite was a comparison of the disciplines of personnel decisions and advertising, the later of which decades ago was also thought of as purely an "art" but over time has become more and more based on "science", and his prediction that personnel decisions will also bend to science over time. Certainly this book helps push that process along significantly.
It's hard to find any significant faults with the book. It is mostly illustrated with examples from upper management and the discussion is also focused on upper management but the author acknowledges this focus and suggests that many of the same principles apply to lower level management. The author lets slip that English is not his first language, but there is no way to tell that from his writing, which is fluent, clear, and very well organized.
As someone who has worked in the executive search industry for over a decade for one of the top international firms as well as managing executive hiring for 2 multi-billion dollar international companies I have read lots of books on this subject. I found this book to be one of the best I have come across.
Unlike most books written by search consultants this isn't a slap-together product of interviews from a bunch of his placements or clients. It is clear from the start that the author is a student of this subject and has dedicated quite a bit of his time, energy and resources to it. That he is an x-strategy consultant is clear. This book has some weight. He has done his homework. This is not a bunch of platitudes or pages filled with lots of bullet points (though there are some). For serious students of this subject his bibliography and chapter note citations for further reading are worth the price of the book.
His views on emotional intelligence I found particularly interesting. While anyone who has been involved in executive search either from the vendor or client side won't necessarily find a lot of ah-hah moments, there still is plenty of good information on competencies, emotional intelligence, interviewing, and on-boarding to make this worth reading.
One of the best book for hire I ever read. The author explain the concepts clearly and in a languague that every one can get it. Recomended 100% for Human Resourses specialist...
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