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This webinar was hosted by Pierre Verstraeten, CEO of People-Growth, whose mission is to support leaders and scale-ups to become their better version through Executive Coaching, Management Training and HR Operating Partnering. He was Global Head of Talent Development at Criteo, VP Talent at TravelPerk and CHRO of Spendesk.You can reach him at pierre@people-growth.com
Identify the need for a Re-Org
As a leader, it is important to monitor your organization’s health. You will find below the 9-box matrix to help you understand talent dynamics in your organization and support top performers.
The 9-box is a matrix that helps you evaluate talent based on performance and potential, categorizing people who are high performers, those who are potential high performers and the low performers.
The matrix help you identify the individuals who are worth retaining, those who might stay for a shorter period and those whose will need a performance/improvement plan. There's also a category for those who you might need to manage out.
“In absolute terms, tenure alone isn't a significant indicator. A 10-year tenure combined with high performance and potential is very valuable for profitability.” Pierre Verstraeten
The 9-box matrix
KPIs to keep on your dashboard
KPIs | Description | Main use for the KPI | Ideal Target |
% of Voluntary Attrition | The rate at which employees leave a company on their own accord. | Assess the level of employee satisfaction and engagement. | Not Relevant |
% of Attrition in less than 12 months | The rate at which employees leave an organization within their first year of employment. | Track the efficiency of your onboarding process: issues with the hiring process, onboarding experience, or initial job expectations. | - |
% of support functions | The number of people on functions like HR, Finance & Legal. | Search for an optimal balance between core operational staff and support staff to maintain efficiency and cost-effectiveness. | 7% for HR + Finance |
Span of Control | The number of direct employees that a manager or supervisor oversees within your organization. | Track the organizational efficiency. | 1 manager for 7 employees |
Current Headcount cost on OTE (On-Target Earnings) | The total cost of the company's workforce, calculated based on their on-target earnings. | Assess the compensation structure. It helps budget employee compensation and make decision about bonuses, commissions, and other incentives. | Sales OTE benchmarks
|
eNPS | Measure your employee’s engagement with Employee Net Promoter Score. | Being aware of your employee engagement will help you determine their motivation and their willingness to put in extra effort to achieve organizational goals.
| Not Relevant |
% of Low Performers with a Performance Improvement Plan | Identify the low performers and the % of employees they represent within the company.
Your improvement plan is here to outline specific areas where the employee needs to improve, sets clear performance goals, and provides a timeline for achieving these improvements. | Keep track of the low performers and work on the organization’s commitment to employee development and improvement. | Not Relevant |
% of Top Talents with an Individual Development Plan
| Identify the top performers and the % of employees they represent within the company. | Increase the impact of your key leaders on the organization. | Make your leaders work on project and transversal initiatives. |
Time to market | Less people oriented metric: The time between the idea and the delivery to the customer. | Tracks the efficiency of your processes. | Not Relevant |
Building your Re-org Plan
Step 1: Define the vision
Stakeholders: Founders or Leadership Team
Actions:
- Define the importance and urgency of the matter.
- Define the end goal for your re-organisation.
Later, this alignment will help you empower impacted leaders within the organization to actively contribute to the reorganization's design and provide you with valuable input.
Step 2: Identify & involve your management team in the design process
Stakeholders: Leadership Team and impacted Head of/Managers
Actions:
- Map out the stakeholders to identify key leaders and determine how to best support them throughout the change.
- Have the “Head of” construct a response to the problem to help you craft directives.
- Make sure managers are engaged and aligned with the overall vision.
“Engaging your managers in the reorganization process is essential for its success. You are looking for the Bottom Up response to Top Down directives.” Pierre Verstraeten
Step 3: Equip your Managers & Create a steering committee
Stakeholders: Steering Committee - identified key leaders.
Actions:
- Provide your managers with the right tools to gather insights from each of their teams
- Construct the aggregated vision of “to be” and the steps to get there. The Re-org template
Your managers need to be aware of the resistance to change that will come from the teams.
“Changes in an organization can encounter resistance. As illustrated by the curves, everyone in the organization will start from a different bases, and most importantly, at a different time. Some will move through the curve quickly and accept the change. Others are slower in accepting the change. It is important to note: we all go through the curve, but at different speeds and times. “ Pierre Verstraeten
How to read the curve: When you, as a founder, start to be on the curve, this is when you need to inform your managers, so they are able to start their own curve. When they do, they will be the own to inform their own team and those teams will start their own curve. Have in mind that you will need to
- The mindset: you want your team to be aware that it is okay for employees to go through resistance, it is to be expected.
- The behavior: Softness and clarity; empathy and expectations. If we want people to follow a leader, leaders need to connect on a human level. This makes it easier for people to connect with. Then, work on the future vision.
Step 4: Roll-out your Re-Org plan
Stakeholders: All impacted stakeholders
Actions:
- Have a clear communication & execution of Plan.
- Measure the impact of the re-org.
“Having clarity about how you want to navigate the reorganization and the timeline for achieving results will allow managers to communicate the vision to their teams and actively participate in the reorganization process.” Pierre Verstraeten
Key Takeways
- Align and engage leadership teams before & during the re-organization.
- Involve managers & team during the process.
- Communicate clearly and foster a unified vision.
- Expect resistance to change.