Team Covenant: An Award-Winning Employee and Organizational “Contract” to Build Trust, Relationships and Continuous Performance Improvement

By Randy Hopkins

LEARN HOW TO ... Build a Culture of Self-motivated Employees Willing to own Their Piece of the Business, and to be Held Accountable for Results

Profit from understanding the difference between apathy and futility and how it can greatly benefit your company.

Transform your environment by making performance management work.

How knowing this Kool-Aid isnt for everyone, can uniquely position your enterprise.

Identify your company as the one to work for by following and implementing the step-by-step business model.

Ingeniously get employees and organizations to hold each other accountable.

Get everyone in your organization to embrace the trend of real teamwork.

• Language: English
• Publisher: Xlibris US
• Release date: Nov 16, 2012
• ISBN: 9781479731541

Randy Hopkins

Randy Hopkins is president and CEO of Team Excellence, Inc., a Houston-based organizational development and management consulting firm specializing in performance management and leadership development. Team Excellence provides its clients with proprietary systems for personality and behavioral assessment, employee performance appraisal, strategic organizational assess¬ment and various other organizational feedback processes. Team Excellence has received two human resource industry awards for its unique metrics-driven system of organizational performance accountability called The Team Development Strategy. Founded in 1980, Team Excellence’s clients have represented a wide-variety of businesses and industries and have included IBM, Xerox, Tenneco, Nabisco, NL Industries, Bechtel, CompleteRx, Merrill Lynch, Bank of America, Kraft Foods, BMC Software, Dyn¬egy, Memorial Hospital System, Aker Kvaerner, Procter & Gamble, Hunt Oil, New Process Steel, Sterling Bank, Catholic Extension, MD Anderson Cancer Center, and Patriot Bank among others. Prior to founding Team Excellence, Randy began his career as the training and development manager for an operating division of Tenneco, Inc. He later served as training manager for the Amerada Hess refinery on St. Croix in the U.S. Virgin Islands and then joined the staff of an international psychological testing and consulting firm, where he served as a senior associate and vice president.

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Copyright © 2012 by Randy Hopkins.

All rights reserved. The materials in this book are provided for the personal use of the purchaser of this book. No redesign, editing, reproduction, or creations of a derivative work from these materials are permitted without the written permission from Team Excellence Inc. No part of this book may be used or reproduced in any manner whatsoever, including but not limited to, electronic, mechanical, photocopying, recording, or otherwise, without written permission except for the inclusion of quotations in a review.

The instructions and advice in this book are not intended as a substitute for psychological counseling. The author and publisher disclaim any responsibility or liability resulting from actions advocated or discussed in this book.

In the interest of preserving client confidentiality, some client names and, in some cases, identifying characteristics have been changed. The scenarios, situations, and results are real.

The Team Covenant™ and Team Development Strategy™ are trademarks of Team Excellence Inc.

http://www.teamexcellence.com

ATTENTION: For information regarding the use of the Team Development Strategy within your organization, or interest in having Mr. Hopkins speak to your organization, please contact: Team Excellence Inc., 1700 Post Oak Boulevard, 2 BLVD Place, Suite 600, Houston, Texas 77056 or send e-mail to [e-mail].

Rev. date: 07/31/2014

Xlibris LLC

1-888-795-4274

www.Xlibris.com

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Contents

ACKNOWLEDGMENTS

INTRODUCTION

CHAPTER 1.   WHO CARES?

APATHY VS. FUTILITY

TODAY’S EMPLOYEES HAVE HIGHER EXPECTATIONS

THE FUTURE DEMANDS MORE EMPLOYEE ENGAGEMENT

WHAT DO YOU REALLY BELIEVE?

THE TEAM COVENANT IN ACTION: A CASE HISTORY

CHAPTER 2.   THIS ISN’T TOUCHY-FEELY

THE PROBLEMS WITH CONVENTIONAL PERFORMANCE MANAGEMENT

WHAT’S NEEDED TO MAKE PERFORMANCE MANAGEMENT WORK

AZ-TECH MEETS THE TDS

CHAPTER 3.   THE TEAM COVENANT SOLUTION

WHY THE TDS IS DIFFERENT

THIS KOOL-AID ISN’T FOR EVERYONE

CHAPTER 4.   THE BUSINESS MODEL

WHY INDIVIDUALS DO WHAT THEY DO

INITIAL IMPLEMENTATION STEPS AT AZ-TECH

CHAPTER 5.   EMPLOYEES HOLD THEMSELVES ACCOUNTABLE

THE HIPPOCRATIC MODEL

THE CAREER & WORK-LIFE GRID

WORKING WITH OTHERS

DEALING WITH CHANGE

YOUR PREFERRED PACE

YOUR PERSONAL IDENTITY

ASSERTING YOURSELF

EXPRESSING YOUR FEELINGS

ATTENTION TO DETAIL

IMPLEMENTING THE TDS

CHAPTER 6.   ORGANIZATIONS HOLD EMPLOYEES ACCOUNTABLE

PARS: PERFORMANCE ASSESSMENT & REVIEW SYSTEM

DON’T CHOKE THE HORSE

PERFORMANCE COACHING AND MENTORING

CONTINUOUS IMPROVEMENT

BUILDING THE RIGHT PERFORMANCE COMPETENCIES

SETTING INDIVIDUAL GOALS

USING A 360° ASSESSMENT APPROACH

WHO DOES THE EVALUATING?

SELECTING THE RATING SCALE

IMPLEMENTING PARS AT AZ-TECH

CHAPTER 7.   EMPLOYEES HOLD THE ORGANIZATION ACCOUNTABLE

EMPLOYEES DON’T EXPECT TO BE THE BOSS

ESS: AN ANNUAL ORGANIZATION-WIDE SURVEY

THE ORGANIZATION’S REPORT CARD

THE IMPORTANCE OF EXIT INTERVIEWS

HONORING THE CONTRACT

CHAPTER 8.   MOVING FORWARD

THE LEARNING ARC OF THE COVENANT

SERVANT LEADERSHIP

BEYOND PERFORMANCE MANAGEMENT

CONSEQUENCES, NOT PUNISHMENT

TEAMWORK VS. INDIVIDUALITY

BE MORE THAN A BOSS!

THE OUTCOMES AT AZ-TECH

CHAPTER 9.    TWENTY-FIRST-CENTURY SKILLS

REAL TEAMWORK IS THE TREND

ADDENDUM   AN EPIPHANY ON OUR VALUE PROPOSTION

THE TEAM COVENANT™

BIBLIOGRAPHY

ABOUT THE AUTHOR

To my friend, Ian, who brought his family to America to chase the

dream. This book is dedicated to him and to his extraordinary passion

for self-reliance and individual responsibility.

He continues to inspire me.

ACKNOWLEDGMENTS

Thanks first of all to my wife, Carolyn, who has helped me, supported me, and encouraged me throughout the long developing journey of the Team Covenant. Her love, understanding, and generous caring nature have taught me the true meaning and importance of relationships.

I also want to thank staff and colleagues who have contributed so much to the clarity in presenting the Team Covenant story and, by doing so, ensuring that the book is true to our experiences. I particularly want to thank Karen Masullo for her intelligent and experienced insight and suggestions and to Eileen Hempel for her years of dedicated assistance to me. Also, my genuine appreciation goes to Pete Gerardo for his creative editing and transitional help that at times got me off dead center.

For his consistent commitment and programming brilliance, I can never thank Tom Allison enough for the lead role he has played in building the web-based systems that make the Team Development Strategy work.

I would be remiss to not thank Trent Walton, Reagan Ray, and Dave Rupert, at Paravel, for their imaginative design in helping to package and present the Team Development Strategy on the Internet. I am also grateful to John Nugent, Tom Gordon, Carolyn Greco, and Charles Kraft for their advice and for nudging me in the right directions when needed.

For their help and professional guidance in the first printing of this book, I am very grateful to Marvin D. Cloud at sopherim.com (layout and design), Russ Wright (graphics), and Joel Turner at Americas Press (printing). Their knowledge, experience, and capabilities turned a manuscript into a reality.

For the reprinting of Team Covenant, I sincerely thank and have great appreciation for all the talented professionals at Xlibris Corporation who have made a complex job easy, even fun at times. They include: Grace Vasquez, Publishing Consultant; Joy Daniels, Submissions Representative; Kay Benavides, Manuscript Services Representative; Vanessa Marzo, Publishing Services Supervisor; Kate Austria, Production Specialist; Michael Green, Submissions Representative; Tim Fitch, Author Services Representative; and Michael Gibson, post publications associate. Thanks to all of you, especially anyone that I inadvertently omitted. You do your jobs well!

And finally, I want to express my sincere respect and appreciation to our clients who have given us the privilege and opportunity to develop and implement the Team Covenant and the Team Development Strategy within their organizations, and to share this exciting and meaningful journey together.

INTRODUCTION

The new company had an unusual request. CompleteRx, a Houston-based hospital pharmacy management company, asked us to help develop a strategic plan for their human resources function—a rarity from an established firm, much less from a start-up. But then, CompleteRx is an unusual organization.

Led by an ambitious (some might say foolhardy) team of visionaries, the company’s goal was to become the employer of choice in an industry dominated by three international giants with nearly unlimited resources. To keep from being squashed by these multinational Goliaths, CompleteRx’s management knew they had to bring something more than a me too slingshot to the competitive arena.

So they decided to arm themselves with a bold new company culture and HR management model that would attract, motivate, and reward the most talented professionals from throughout their industry.

Most new companies don’t think this way. Most place their initial focus on the widget they’re going to make or the service they’re going to deliver. The human resources function usually morphs into being, later. In the early stages, human resource management tends to focus on Defensive HR. The HR team merely ensures that employees get paid, benefits administered, and as few laws broken as possible. But a new company wanting a proactive HR strategy—an organizational development plan whose long-term goal was to become the employer of choice? To some, it seemed they were putting the cart before the horse!

In fact, it was a stroke of brilliance. From Day One, management realized that people are the horse that pulls the cart. Therefore, it makes perfect sense to craft a strategy for attracting, motivating, and retaining the horse best suited to pulling the company cart. The motto people are our most valuable asset, was much more than wall-plaque platitude to the leadership of CompleteRx. It was their game-changer.

We accepted management’s challenge, knowing it would be critical to learn—if possible—what it would take to become the employer of choice in that industry. For one thing, what kind of company would they need to become to attract and retain a highly skilled workforce in an industry notorious for its high turnover rate? What kind of culture would they need to build? What kind of leadership and management style would work best? What kind of internal communication systems would they have to create? What would all this take?

To answer these (and other) questions, we launched a large psychometric assessment (psychological research) project. We collected and studied the psychological profiles of approximately six hundred randomly selected, licensed healthcare professionals in the hospital pharmacy management industry. To the best of our knowledge, such a research project has never been done for a brand-new company—before or since.

We studied hundreds of individual profiles to find both differences and similarities. We looked at composite data to spot other trends. We studied patterns of thinking, and the ways in which these professionals expressed logic, empathy, interpersonal respect, group interaction, individualism and personal independence. We also explored how trust is expressed and developed, where structure and attention to detail fit into individual needs and expectations, and where motivation and personal identity played a role in people’s sense of achievement and lasting job satisfaction.

There were more, but this gives you a sense of what the project entailed. With the results in hand, we created an abstract of what the organization’s philosophy and belief system would have to look like to create a work environment and culture that would respond to these workers’ most critical needs and desires. Then, we took the abstract to our client and asked two key questions:

Could these entrepreneurs build and lead their business by applying this philosophy and belief system? Did they personally buy into this philosophical abstract?

Would they let us hold them accountable in their leadership performance by listening openly and objectively to constructive feedback as the process began?

The client responded with a resounding Yes to both questions, and with that, we began designing their strategic HR vision. Out of that study and plan was born the Team Covenant—the foundation for the type of culture, management style, and employee involvement needed to attract, motivate, and sustain/maintain the commitment of this company’s professionals.

Since then, we have validated again and again that these Team Covenant principles and the Team Development Strategy are necessary ingredients for attracting and retaining the best talent in today’s emerging workforce. And since then, CompleteRx has enjoyed meteoric success. By their fifth year, they had achieved more than $105 million in annual sales—a miraculous feat in their industry. That year, the company also won the Ernst & Young Entrepreneur of the Year Award in their category and ranked among Houston’s Top 100 companies for six consecutive years. CompleteRx was on the Top 10 list for three of those years, and was ranked #1 on its fifth year.

Despite the fact that the company operates in an industry that has experienced 23 percent annual turnover nationally for more than twelve years, CompleteRx has experienced an average annual turnover rate of just 3 percent (or less) for each of the fifteen years since its founding. What’s more, the company’s annual employee satisfaction surveys consistently show that 80 percent to 90 percent of their employees believe CompleteRx is the best place they have ever worked.

Unlike their competition, the established giants that spend millions each year on recruiting new workers, CompleteRx has job applicants waiting in a long line. Several hundred unsolicited resumes are on file from highly qualified professionals—people dying to come to work for them.

It goes without saying that our client achieved its goal of becoming the industry’s employer of choice—an accomplishment credited in part to the Team Covenant and Team Development Strategy. In the years which followed, the principles of the Team Covenant (TC) and the processes that comprise the Team Development Strategy (TDS) have been applied to a growing variety of organizations—for-profit, nonprofit, small, mid-sized and large—with astonishing results.

Whenever we’re hired by a new client, we almost always face this same make-or-break challenge: convincing managers and employees that the TC and TDS will make a big, positive, and lasting impact on the organization’s bottom line. We continually struggle to demonstrate that this program will produce results, not empty clichés and meaningless mission statements designed to look good on the organization’s brochures and signage.

A thirty-one-year-old professional, working for an organization that we helped bring back from near-dead, said, When I first heard all this TDS stuff, I thought: ‘Yeah, I’ve heard all that before.’ But this is the first place I’ve ever been where they really mean it and live it. This process keeps a constant scoreboard in front of me that lets me know how I’m doing and where I stand. And that’s what I need and want.

This employee’s before and after reactions are something we hear all the time. Although the Team Excellence program has received two Impact Awards from the Society for Human Resources Management—in Organizational Development and Employee Development—a great many employees and managers are cynical when we first introduce this revolutionary performance management system.

They have a right to be cynical.

Many employees have been exposed to performance reviews, personality tests, and employee satisfaction surveys. These elements may bear a superficial resemblance to the components of our program, but the similarities end there. For one thing, these individual components have never before been integrated into a system based on rewards and accountability. For another thing, no other program has directly tied objective measurements of employee strengths, competencies, and preferences to management strengths, competencies and preferences in order to create policies for improving compensation, communication, recruiting, retention, motivation, and productivity—and held employees and management accountable for their continued success or for not performing up to plan or meeting expectations.

Based on a written agreement between the organization and its employees (The Team Covenant), our business process integrates three proprietary systems of accountability that encompass every level of the organization. Our system rewards performance and requires every employee to accept personal ownership for measured successful work. It also applies a values-based process to establish quantified benchmarks for doing the job—and doing it right. The Team Covenant is an integral component of our award-winning approach to measuring accountability: The Team Development Strategy. The Team Covenant and the Team