The Challenge: Aligning HR with a New Business Vision
In 2004, a leading global marketing communications firm embarked on a new five-year strategic vision. This vision centered on a new approach to client account planning, a more client-centric structure, and greater operational interdependence between its globally dispersed offices. The primary goal was to enhance the firm's ability to win and grow large, multi-national client accounts.
The senior management team recognized that achieving this vision required a significant upgrade and alignment of its human resources management processes. The existing performance management system was complex, process-heavy, based on generic competencies, and lacked a unifying leadership model. The various HR processes were not well-aligned, leading to missed opportunities for reinforcement.
The Strategic Solution: A Results-Based Performance System
The firm hired a Chief Talent Officer (CTO) to spearhead the design and implementation of a more systematic, business-focused HR management process. The CTO determined that driving employee engagement was critical for success. This required providing every employee with clear, specific answers to four fundamental questions:
- What specifically do you expect of me?
- How will you define success (and measure me)?
- What’s in it for me if I deliver the results you expect?
- Will you provide me with the resources I need and eliminate barriers to success?
To address these needs, the firm adopted Stephen Drotter’s Leadership Pipeline approach.
Implementing the Drotter Leadership Pipeline Framework
The Drotter approach was tailored to the professional services firm’s structure. It focuses on creating detailed, results-based performance definitions for each distinct leadership level. These definitions provided the specific, measurable outcomes required for success in each role, directly addressing the need for clarity and accountability.
This new framework became the "source code" for a new, organization-wide performance management application. By defining what full performance looked like at every level, the model provided a solid foundation for aligning selection, talent management, and training planning.
Supporting the "Vision 2004" Process
The implementation was part of the broader "Vision 2004" initiative, which had several key outcomes:
- Agreement on a new core client account planning methodology.
- Management training in this new methodology.
- A confirmed emphasis on acquiring and growing large, complex client relationships.
- Commitment to a closely coordinated, "interdependent" operating approach across the global network.
Measuring Success
The effectiveness of the new performance management system and the broader strategic initiatives were to be assessed through two key metrics:
- Business Growth: The company aimed for sustainable revenue and margin growth, with a higher bar set for performance based on the new strategic focus.
- Climate Measurement: The company planned to use its biannual staff climate survey, which measures 13 dimensions of operating culture, to track improvements in employee sentiment and organizational health. Management aimed to improve these scores on both a trend and relative basis against parent organization averages.