Vital Factors: Irvine, CA Based PEO Helps its Clients Succeed through Breakthrough Program.
The modern day automobile is a great template for a business. At any given time, I know how much gas I have left in the tank, any engine or system malfunctions, or how many miles I am getting per gallon. My navigation system also will tell me how far (in miles and minutes) I am until my final destination.
Much like the digital dashboard of my daily commuter, businesses need the controls and alarms to maintain a smooth and successful ride to their respective destinations. Knowing how much fuel is left in your war chest, the temperature of your production staff, or what tires are about to blow in your risk management department-can keep you on the road to prosperity.
Who in our space is not looking for the ultimate, tool, or idea to offer their PEO or ASO clients? In search for a relevant service consistent with the theme of human capital management, we have found that most growth-oriented clients want results. They want simple and effective ways to do it better, cheaper and faster-especially when they are not there. On our search to lengthen our current client retention rate of 74 months, we found that entrepreneurs need help sorting the vital from the less important.
What is a Vital Factor?
When you boil everything that a person does down to the most critical 2-4 things they are responsible for, you have the very essence of a vital factor. Most job descriptions have an area called primary objectives or essential functions that can lead you to further defining what's essential to the person you just hired. It is important to understand that we are searching for the desired outcome as well as the critical steps to achieving that outcome in assessing what a position's vital factors are.
These key performance accountabilities help managers measure the success or failure of each individual's contribution to the organization. We are not looking to measure everything under the sun. Just the important stuff. Vital factors should meet the SMART requirements-
- Specific - general descriptions do not work (i.e. happy customers, top sales)
- Measurable - Put a number on it.
- Attainable - Is the benchmark or quota realistic?
- Relevant: What significance does it have on the company's mission or vision?
- Time-specific: Annually, Quarterly, Monthly, Weekly, Daily, Hourly.
Focusing on vital factors requires discipline to avoid the hot potato. It takes a concerted effort and every drop of integrity that you have to push non-important asideÉespecially when its burning a hole in your hand. Furthermore, plan on repeating yourself till your blue in the face. And then some more. Successful managers tend to focus on the goal and repeat themselves a lot.
Ultimately, each person's vital factors should contribute towards the vital factors of the entire organization. For example if your client's medical office has a vital factor to improving patient quality of life, then you will probably see nurses, administrators, doctors and medical assistants with vital factors that highlight their patient recovery and follow up results. Although the bookkeeper and the sales manager are going to have different performance accountabilities, everyone's effort should have a meaningful impact on the company's top vitals.
Getting Clients To Buy-In.
Like any effectiveness or self-improvement plan, a good client starts when he identifies and feels the pain. Is your client not getting break-through results? Are they lacking job satisfaction and facing corporate failure? Chances are that most customers are cruising just fine without you meddling into their personal space and would rather not be bothered by another self-improvement course.
At Emplicity, we have found that engaged clients ask for help. When there is a relationship based on trust and confidence with one of our HR Coaches, clients are more likely to open up-and get help. The resulting dialogue is a conversation on the need for performance measures and the coaching and accountability to boot. Even Michael Jordan had 5 coaches at the top of his game. Your client needs one too.
Having difficulty with non-productive employees? According to Tom O'brien, senior managing partner at Management Action Programs in Irvine,CA, "Most organizations do not have a performance management system in place that: 1) puts the spotlight on these "on board terrorists" and 2) documents their poor performance month after month. The missing piece is usually a disciplined, methodical way of holding them accountable for their performance. That is what the MAP System of Management accomplishes. With the rigorous documenting of performance shortfalls, the entrepreneur is now well armed maybe even emboldened to make that tough decision."
Adding Accountability to the Team Dynamic
Although identifying and making decisions on what vital factors go where and who's liable, the client commits to a plan of performance measurement that benchmarks, time commitments and lots and lots of meetings. In his highly acclaimed book, The Five Temptations of a CEO, Patrick Lencioni advocates that entrepreneurs need to be better at accountability to results. To hold people accountable, vital factor teams are created. These peer-to-peer groups provide a form of accountability that managers alone cannot achieve. When managed accordingly, they can foster teamwork, interdependence and independence at the same time. Team members also help each other in processing critical problems and overcoming obstacles to success.
At Emplicity, each department meets on a daily huddle, a virtual conference call at 8:08 am or 2:02 pm when each team member rattles off their results from the prior workday. The team loves it as it helps keep them on the ball - and engaged in their personal mission. Providing a forum of achievement as well as group accountability, these quick-and-dirty dailys help to establish a tempo and rhythm in the organization. Clients who have implemented daily calls have seen immediate results and increased teamwork.
To initially indoctrinate executives and middle managers in the vital factors program, a three-day management training program is offered by Management Action Programs. Working with real life team-management situations as well as getting training on the rudimentary basics helps to educate and get buy-in to vital factors. Follow-up consulting and training is provided to ensure the rubber meets the road.
Vital factors, when trained on and aligned with a company's vision and mission, can have a significant impact on results.
The PEO's Commitment
In the pursuit of our guiding motto, "employee management made simpleTM," we decided to invest a great deal of intellectual capital and time in Emplicity's human resources services. The result was a one on one relationship with an HR Coach that reports to our clients directly. Each client gets a seasoned HR expert to help guide them through the twists and turns of managing a productive and successful staff.
Having HR Coaches that are well versed in performance management to guide clients through the process is key. Without someone to hand-hold the program through and keep in constant contact on on-going progress, the program is bound to fail. As with any new program, developing consistency to the point it's a habit is key. It has taken us years of constant training, awareness programs and reaching out to clients to get buy in, and at best we have just scratched the surface. Ultimately, providing high-level support promotes client engagement, which in turn fuels Emplicity's most cherished vital factor-client retention. Staying focused on the the average Emplicity stays of 74 months.
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