Monday, January 4, 2010

The Performance Optimization Paradigm

Last week I introduced you to the The Performance Optimization Paradigm, a concept that gives guidance to the requirements of optimizing the performance of any business, dealership or department. Its elements include:

· The right person

· Properly trained

· Using the right process

· Held accountable to performing the right process

· On a motivational compensation plan

· Selling the right products

· Provided with the right system support

· Doing business in a compliant and ethical way

· With management support

This week I want to begin to break down each element and discuss in some detail. Let’s begin with The Right Person.

We run the employment ads or we do the recruiting. We now have the candidates sitting in front of us for an interview. How do we know we are meeting with the right person for the job?

It starts with an effective interview system. An effective interview system includes the following elements:

· Behavioral based interview

· Defined competencies for the job

· Use of an interview guide

· Work simulation exercise

· Formal evaluation system

· Consensus on the hiring decision

· Personality aptitude test

A behavioral interview is one that requires the candidate to demonstrate competencies by giving specific examples from their past experience. This requires the interviewer to know the competencies and also how to ask the questions during the interview in a way that helps determine whether or not the candidate possesses the competency.

Competencies are defined as characteristics, traits or features that enable success for that position. They: 1) generally can be taught or absorbed through training and practice and 2) generally refer to personality characteristics, behavioral tendencies and interpersonal types of capabilities.

A structured interview guide already has the questions listed for the interviewer to use. Research has shown that the structured interview is positively received by candidates because it is not perceived as being biased against any group. The structured interview keeps the interviewer focused on behaviorally based, job relevant and legally defensible questions. A structured interview will help to:

Reduce misunderstanding of information

Discourage candidates from lying or bluffing

Increase the accuracy of questioning

Provide a clear picture of a candidate’s strength and weaknesses

Allow you to focus on job-related information

Help eliminate common interviewer errors and illegal questions

A work simulation exercise is designed to assess candidate's performance by placing them in a situation that mirrors what they will do on the job. The exercise presents a relatively simple situation with which with the candidate must deal, and provides the candidate an opportunity to display specific aptitudes and skills that are related to success on the job.

A formal evaluation system involves all managers who interviewed the candidate to assign a numeric value to the candidates “fit” with the competencies and to the candidate’s performance of the work simulation exercise. A meeting among all interviewers should be held and a final “consensus” number should be given to the candidates “fit” with each competency and performance of the work simulation.

Finally, a personality aptitude survey should be administered. This survey measures the candidate’s personality traits (e.g. dominance, extroversion, patience and formality). It also provides model profiles for various positions. The candidate’s personality profile is then compared to the model profile for the position for which the candidate is interviewing. It should be noted that candidates not fitting the model profile can perform well, but fitting model profile increases likelihood of success on job. The personality aptitude should be used in conjunction with a good behavioral interview

No single measure should determine an applicant’s fate. Employing all of the above should increase the likelihood of finding “The Right Person”

David Worrall

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