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Lincoln Financial

Financial Services Dec 24, 2024 12:06:42 AM Topgrading %

Founded over 100 years ago, Lincoln was a traditional insurance company based in Indiana. In 1998 Jon Boscia was named Chairman and CEO, and his charge was to develop the company into a diversified, multibillion-dollar financial services powerhouse. Topgrading (“The most important book I have ever read,” says Boscia) was key to converting the company into a leading provider of wealth management and financial planning to the affluent and retirement markets.Lincoln required dramatic changes in leadership because traditional insurance managers lacked the experience and competencies to drive the new strategy.

Industry: Financial Services

Highlights:

  • A Players hired and promoted improves from 25% to 85%
  • Stock performance improves from 5.4% average return to 17.5%

Solutions

Boscia launched Topgrading with professionals assessing and coaching the company’s top 200 managers, training all managers, and assessing candidates for hire and promotion to the top 4 levels in the company. Topgrading started at the top and was systematically rolled out down through the supervisor level.

Four years into using the Topgrading methodology, Lincoln managers were self-Topgrading, with hundreds of managers regularly conducting Topgrading Interviews of candidates for hire and promotion. Topgrading Professionals continued to conduct interviews of finalists for the two levels reporting to Boscia.

Human Resources managers are the heroes of the Lincoln story. To start the hiring process, they immerse themselves in the business by writing Job Scorecards with measurable accountabilities. Then they conduct all the Topgrading steps including serving as tandem partners with hiring managers in Topgrading interviews. When candidates arrange reference calls with their bosses and others, typically the HR managers (who become highly experienced) ask the most questions.

The Results

Prior to launching Topgrading, the company experienced only 25% high performers hired and promoted. This improved steadily and reached 85% companywide in the 4th year.“We want 100% A Players, particularly in management,” says Boscia, “but we hold mangers accountable for a more achievable goal of 85% to promote transparency and trust.”

Measuring results is critical with any essential business process, and measuring the activities – how the methods are implemented – is also crucial. Admits Boscia, “When we measured the activities we found that, way down in the organization, corners were cut and bad hires resulted. Topgrading is not a panacea, and slippage will occur, but it has packed Lincoln with the talent that has turned the company around, which is in everyone’s interest.”