FAQ about Next Generation Companies

[Note: these FAQ’s are offered in tandem with the press release “Lean and Mean Management Flawed” dated 10-29-2003]

Q: You say that “lean and mean” management is flawed. How do you explain the success of Jack Welch’s talent management practices at GE? He used “Rack-N-Stack” forced ranking system to eliminate the bottom ten percent of GE’s workforce each year. Many companies are tearing a page from this playbook.

A. GE’s talent management system included far more than just Rack N Stack. In fact, if you ask GE employees about their company, they give very high responses in what we call the Enrichment index. The key mistake many leaders make is taking ONE practice – like Rack N Stack – and implementing it at their company. Companies must take a holistic approach to how they manage people at every stage of the Talent Lifecycle, from hiring to retiring.

Q: What about companies that succeed with industrial “top down” management? Why should they change their ways?

A. Top-down management leaves a lot of value on the table, because it doesn’t tap into the passions of employees. Product success does not equal talent success.

Q: Next Generation Companies sound like “warm, fuzzy” places to work. Do you really expect bottom line driven corporate execs to buy this framework?

A. Being a great place to work and achieving great bottom line results are not mutually exclusive, and smart execs are coming to this realization in droves. Today, every corporate leader wants their company to be the “best place to work” and kick but in the market. This framework shows them how.

Q: If talent wants a “new deal” as your report states, why aren’t more of them leaving their employers?

A. Everyone stays put – not out of satisfaction but out of hesitancy – in a market downturn. Our recruiting colleagues tell us that employees are now starting to move again – leaving employers who don’t tap into their passions. The most recent statistic we’ve seen shows that employee dissatisfaction rates range from 30-75 percent. It’s highest among top performers.

Q: Even with the layoffs companies are making, can you still predict the worker shortage you state in your report?

A. We’re not predicting, just pointing out data that exists. Outsourcing and off-shoring may play roles in how serious the worker shortage really is. Performance is the key issue in this report – how to succeed in the new era of work where knowledge, creativity, and innovation must be widely used and valued.

Q: Your report identifies six drivers of employee fulfillment and performance. What are they?

A: They are: Meaning, Enrichment, Harmony; Appreciation; Voice; Membership.

Q: How did you determine the six indexes?

A. NGC did 3 international studies on how to attract and retain talent; and on how to attain high performance workplaces that have strong people practices.

Q: Where and how did you obtain the information for this report? What kinds of companies did you study?

A. Cross industry, international, small medium and large companies; those that are high performance and those that are not

Q: How do you identify whether a company is a “Next Generation Company” or not.

A. First, we ask employees 64 questions related to the 6 drivers. It takes about 12 minutes to complete the survey. Then we rank each driver based on their responses. We use a four-step measurement scale for each driver: (1) Failing; (2) Basic; (3) Advanced; and (4) Leading. To be a “Next Generation Company” a company cannot be failing in any of the six drivers and must be leading in at least one.

Q: What does the typical Next Gen Company brandprint look like?

A. There is no “typical” Next Generation Company. There are infinite combinations of the six drivers, so it’s possible – for example – to have two companies in the same industry that are both Next Generation Companies AND they have different Brandprints.

Q: Are the six indexes equally important or do some indexes weigh more than others?

A: Companies need to ask their talent what is important to them.

Q: What should a company do to become a Next Generation Company?

A. First, they should measure their people’s engagement drivers. We have a 64 question survey that takes about 12 minutes to complete that can quickly tell a company what its true status is as a Next Generation Company.

Q: Is it harder to be a Next Generation Company if it’s publicly traded?

A. So far, our research shows that public OR private companies can be Next Generation Companies.

Q: Can non-profit or government agencies be “Next Generation” workplaces, or does it only work in the for-profit world?

A. That’s an interesting question. We have not studied those organizations. It would make a very interesting study.

For more information contact Michelle Racich at 888-922-9596 or “media@nextgenerationconsulting.com”