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	<title>Business Execution Blog &#187; Bell Curve</title>
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	<link>http://www.successfactors.com/blogs/business-execution</link>
	<description>Execution is the Difference.</description>
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		<title>Moving Mountains</title>
		<link>http://www.successfactors.com/blogs/business-execution/moving-mountains/</link>
		<comments>http://www.successfactors.com/blogs/business-execution/moving-mountains/#comments</comments>
		<pubDate>Thu, 11 Sep 2008 18:28:48 +0000</pubDate>
		<dc:creator>Erik Berggren</dc:creator>
				<category><![CDATA[From Our Research]]></category>
		<category><![CDATA[Bell Curve]]></category>
		<category><![CDATA[Compensation]]></category>
		<category><![CDATA[HCM]]></category>
		<category><![CDATA[Talent Management]]></category>

		<guid isPermaLink="false">http://www.successfactors.com/blogs/workforce-performance/?p=308</guid>
		<description><![CDATA[Well, it has been said that man cannot move mountains. Technically, this is true – fortunately  people are more flexible than their geography. In fact, with great human capital management, you most definitely can move mountains, and should. Let’s talk&#8230;]]></description>
			<content:encoded><![CDATA[<p>Well, it has been said that man cannot move mountains. Technically, this is true – fortunately  people are more flexible than their geography. In fact, with great human capital management, you most definitely can move mountains, and should. Let’s talk about the mountain facing managers in most companies, the performance Bell curve.</p>
<p><img src="http://www.racerocks.com/racerock/education/curricula/projects/normalcurve.jpg" alt="" width="190" height="120" /></p>
<p>Looking at low, medium, and high performers, it’s obvious that the lion’s share of people in a company will be middle-performers (particularly a company with many employees). They are the mountain.</p>
<p>A lot of companies unintentionally focus on their top and bottom performers – the very worst are let go or disciplined and retrained, while the best performers are recognized and rewarded – but what about everyone in between? More often than not, they are ignored because they are doing “okay” and because fixing performance problems in the middle of the curve requires more effort and greater understanding of the individuals.</p>
<p>Managing the high and low performers is important, but rarely matches the impact of moving the mountain in the middle of the curve. If the bulk of your workforce is in the middle performing, logically the most of your people costs are there, and therein lay your greatest potential for improvement. Think about it numerically, if your company has 35 slackers, 200 middle performers, and 35 rock stars, increasing the performance of those 200 middle performers would have a far greater impact than say, firing or retraining the 35 slackers!</p>
<p>Moving that mountain, shifting that bell curve to the right, increases the performance of everyone, including the heart of most workforces – the middle performers.</p>
<p>Companies should focus on moving the entire curve to the right, elevating the performance of everyone. Pulling that curve to the right takes some effort, but the potential payoff is tremendous. To start, you can lure some of your middle performers to the right with a transparent, and strong pay for performance system. If it is clear that higher performers are getting a lot more than the middle performers, real impetus to perform can be created – in fact an <a href="http://www.talentmgt.com/compensation_benefits/2008/September/722/index.php?pt=a&amp;aid=722&amp;start=0&amp;page=1">article highlighting our research on the spread of pay was recently published in Talent Management magazine</a>, which clearly shows companies with a larger spread of pay between performance levels do better!</p>
<p>Of course pay for performance is just a start. Giving your middle performers clear career paths, opportunities to advance their skills, and managing their competencies can help you to pull the performance curve at your company to the right. Maybe a person needs training, would fit better in another department, or has an issue with his or her manager, etc. With great HCM, you can get to the heart of the problem and move mountains in your organization.</p>
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