Last summer, while working on a strategic planning engagement, one of the client’s key employees up and quit – and headed for greener pastures.  His departure was a surprise and shock, and particularly painful given his technical and leadership abilities.  Frankly, the client firm had high expectations – and an important future – planned for this individual.

Unfortunately, this sort of thing happens all too commonly in professional AEC firms. Good people, with lots of potential, get away and pursue their dreams elsewhere. Meanwhile, staff with (let’s say) ‘less potential’ hang on, comfortable with the status quo, and uncertain of their prospects outside.  There are many reasons for this, but two stand out. First, because of weak, inconsistent, and poorly executed performance appraisal systems, many employees simple don’t know what we think of them, or where they stand in the company.  Second, many firms have not established a clear organizational direction and strategic objectives, and as a result have staffs (of talented and capable individuals) exhibiting very little alignment together.  Employees want to be a part of an organization that matters (mission), one headed somewhere important (vision). Success then is largely a product of these two inputs: performance and alignment.

Additionally, we can consider the correlation between these inputs.  Assuming that the firm has set a clear purpose and direction, and has objectively assessed the performance of individual employees, we utilize the following grid to evaluate appropriate actions for each of four major employee groups:

AEC Team Alignment

Zombies– Given a compelling vision and objective performance assessment, it’s a natural outcome that some are just not going to get there.  Roughly 10% of the firm’s staff will not have the skills and alignment with plans, necessary for success. It’s not a matter of good or bad – just a lack of fit. Though severing long-term relationships is rarely easy, holding on is no good – either for the firm or the employee. It’s time now to make decisions, take action, and ease these folks out – and into a place where they belong.

Projects– Employees who are aligned with the firm’s mission and vision, but who haven’t yet performed to expectations are improvement “projects.” These folks need a goal-specific, action-focused, and quantitatively-measurable performance improvement plan – and in a hurry. Perhaps these individuals need additional training, mentoring, or coaching – or maybe more clearly defined expectations.  Still, leaders must be more objective and realistic. An employee who has not responded to coaching/counseling in the past requires a different approach today. Timetables should be specific and finite. Change is hard. Not all make it.  This group often makes up about 20% of the firm’s staff.

Partners– Professional services firms are frankly notorious – even defined – as organizations composed of alliances or confederations of loosely organized, partially aligned employees – many of which are themselves high performing individuals and teams.  Within small groups (discipline or services teams, project or client teams, studios, departments, offices) alignment is often quite high.  It’s alignment at the enterprise level that is weak – or missing all together. Partial alignment has worked in the past, but it won’t in the future.  Leaders must drive a much stronger alignment across the entire organization, uniting the whole team in common purpose and direction.  With outside partners (sub-consultants, expert specialists, field or construction services, or alliance partners) this is expected.  Inside, as many as 50% of staff may be only partially (or barely) aligned with the rest of the firm. It’s time to expect and demand strong core alignment from all employees.  The bottom line truth is this: even very high performing individuals who are poorly aligned with the firm’s important objectives will in the future do more harm than good – so they too must change and grow, or pack and go.

Stars – The top 20% exhibit both high performance and high alignment with the firm.  These are the company’s true leaders – the doers, movers and shakers, achievers.  And still (would you believe it) these folks are in many companies themselves in the dark concerning their own status and firm value!  So they decide to leave, and they move on – even though perhaps they shouldn’t.  But it’s not the star’s responsibility to figure this out; it’s the organization’s and its leaders. And this is job one for this group – communicating to top performers both the firm’s assessment (and appreciation) of their value, and the important future potential that they have within the organization.  This communication, along with a good deal of personal attention, care, and nurturing along the way, further nurtures these individuals into truly bright stars.

In the professional services firm, it’s insufficient to believe that “people are our greatest asset.” People – individuals, teams, and the organization as a whole – are the only assets of the professional firm. Halfhearted attempts at investing, developing, and leading people worked (to a degree) in the past, but that time has gone.   In the Fast Future that lies ahead (and is really already here) – professional firms must get serious about building and developing the human talent of the organization. Performance assessment, ranking and rating, personal improvement plans, enterprise strategic business planning, leadership development training and mentoring, transition and exit planning – it’s all now much more necessary – and critically valuable – than ever before.

What will it be for your firm this year:  unfinished projects, misfit toys, the walking undead?  Or strongly aligned employee partners, teams, and superstar leadership?  It’s 2012, and time to choose. But, keep in mind that, as Chinese philosopher Lao Tzu said long ago, “a journey of a thousand miles must begin with a single step.”

Put your shoes on.

Happy New Year,

John

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