Measuring Benefit of Employee Development Program

Submitted by  on January 14th, 2012

Percentage graph constructed from blue blocksI see a lot of people struggling with how to measure the effectiveness of their training programs. And, of course, there is no “one-size-fits-all” answer as every training program is different. A question that was put to me recently was whether measuring the level of employee retention is a relevant measure of usefulness. To put the question another way, “Is measuring the proportion of employees that stay on with my employer an indicator of the worth of my training program?” This question is usually posed about developmental type programs; that is, programs for which the employer is not expecting to see an immediate boost in work performance.

My first response to this kind of question is that we need to be careful as there are many causes of people staying in their job, other than the developmental program they attended recently. These other influences include factors both external to the organization, such as the current demand for work in the region, and internal factors, such as salary level and group camaraderie. To use this kind of measure effectively, then, you will need to put serious thought into how you will separate out these other non-training influences.

A second aspect you will need to consider is whether you are retaining the right kind of people. The people who are leaving may be the most talented, looking for greener pastures in which to apply their new skills. You may be enticing the people who are the least likely to add value to your organization to stay. So, my advice here is that if you are going to use level of retention as a measuring stick, then only measure the retention of your high performers and those with the most potential.

Think also about whether this should be your primary measure. What, fundamentally, do you want from your programs? If it is to retain employees, then there are other more cost-effective means of getting your people to stay. You may want to improve productivity or efficiency or customer value as your primary goal. In that case, measuring retention may be a worthwhile secondary measure.

Training programs should be primarily targeting improved business results in the longer term. For help with identifying business benefits, I’ve been advocating the Kirkpatrick Four Level model for many years. Looking at the developmental aspects of employee programs, these in particular should be helping your people apply for and win internal promotions or coveted side-ways moves that benefit their career choices. Perhaps measuring the incidence of these moves may be more relevant to measuring retention alone.

In summary, consider what it is you really want to achieve with your development type programs -in concrete terms that will benefit your business. Supplement these measures with one or two specific development type measures that I’ve mentioned here and you are well on your way to rolling out meaningful and useful measures.

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Survey: Organizations Evaluating Coaching Programs Poorly

Submitted by  on November 30th, 2011

Businessman writing Benefits on glass wallWorkplace coaching is a powerful and flexible development tool that can be tailored for specific people and positions. It’s a great fit for organizations looking to raise the bar, especially after employee performance has plateaued under traditional management techniques.

As I reported in an earlier post on coaching in organizations, a survey of 250 UK companies by the Institute of Leadership and Management found that coaching practices are taking off. Ninety percent of respondents said coaching is or will be part of their organization’s development toolkits. An even larger number (95%) cited specific benefits to the coached individuals and the organization as a whole. The ILM study was conducted by telephone in February 2011 and covered a broad swath of industries.

There’s agreement on the benefits, which range from improvements in leadership and management skills to greater confidence and better preparation for a new role. However, the survey does raise red flags about how well organizations are measuring the effectiveness of their coaching programs.

Though 93% of the respondents reported that their organizations evaluate the outcomes of coaching, the methods they use are quite inconsistent. Only 40% evaluate specific “coaching interventions”. Less than half (49%) say coaching is measured against key performance indicators or business goals.

So how are companies assessing the worth of these programs? Seventy percent of respondents said evaluation is folded into internal regular employee appraisals. Forty percent say it is part of 360 degree evaluations.

Even if employee performance appraisals are done well (which often is not the case), they’re unlikely to capture the specific impact of coaching. In addition, such evaluations are designed to reveal the performance of an individual, not an initiative or development tool.

I’ve written many times about the need to objectively measure the impact of training programs so that we can confirm their value and implement continuous improvements. Coaching is no different. Goals must be identified and should be connected to business outcomes. Many of the techniques I’ve outlined in previous posts on measuring the effectiveness of training programs could be used.

Without hard numbers, it’s difficult to discern what works and what does not. This is key to the successful evolution of any development initiative. It’s not enough to say that coaching improved an employee’s motivation or attitude. If the goal is to boost the productivity of a sales manager, did the coaching result in an increase in orders generated by the employee?

Targeted evaluations will also demonstrate the value of coaching programs. Accounting departments are very much aware of the cost in terms of time and personnel when managers or other employees are told to coach their direct reports. If proponents of the program are unable to demonstrate a return on that investment, coaching will be viewed as an expendable expense when budgets get tight.

Of course, the budget swings both ways. If hard numbers demonstrate the value of coaching, senior management will be more likely to boost funding and expand the program to cover more employees.

Do you have a story to tell about how your organization measures the effectiveness of your coaching program? What did you learn? Please share your experiences here.

Reference

Managing Change in the Workplace guide

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The guide covers every aspect of managing change effectively and uses my unique CHANGE Approach to getting all affected on board and working towards the new way of doing things. As you work through the guide, you will complete a series of practical exercises that will help you plan and manage your change for maximum impact. Find out more about Managing Change in the Workplace and download the free introductory chapter today.

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Are Your Internal Coaches Doing More Harm than Good?

Submitted by  on November 22nd, 2011

Word Success pinned over word Failure on boardIn this series of blog posts, I’ve been reporting on and drawing lessons from the Institute of Leadership and Management’s (ILM) recent survey on coaching practices within organizations. Workplace coaching has never been more popular, with the survey finding that more than 90% of UK companies have used or plan to use coaches as part of their employee development toolkits. Nearly all respondents (95%) said coaching has been beneficial.

Given that many organizations are still suffering the effects of the GFC, the key question is: “How can businesses afford coaches in these tough times?” It’s simple: they are asking managers and other employees to do the job. In the ILM survey of 250 UK companies, 83% of respondents reported their companies use internal coaches. (Senior executives are still primarily coached by outsiders.)

Internal coaching is a good idea, but there are risks. Coaching can easily turn into therapy or instruction. Neither is conducive to the sort of development that professional coaching can deliver. What’s worse, an ill-trained or inept coach can cause major problems for an organization. Coaches also require continuous development. Their techniques need to be monitored, critiqued and measured for success.

How are companies finding internal coaches? The ILM survey reveals it’s often an informal process. Sometimes, the role comes with the job. A line manager, for instance, is expected to coach his direct reports. Other times, managers are just told to “have a go”, without any specific direction. Some organizations seek volunteers.

The survey also found varying approaches to developing coaching skills. More than a third of the respondents (34%) said their organizations do not offer any support for the development of internal coaches. The remainder cited a mixed bag of initiatives, including in-house training (20%), management development programs (11%) or train-the-trainer support (8%).

Coaching sessions can get highly emotional, and the coach needs to know what to do to prevent it from getting out of control. Properly trained coaches will have the skills, knowledge and attitude to handle any situation without losing sight of the goal of professional development. Ill-trained or inept coaches, on the other hand, will be lucky not to cause major damage.

The good news is that help is available. In May 2011, Standards Australia released the first set of comprehensive national coaching standards anywhere in the world. Coaching in Organizations answers many questions about selecting coaches and implementing and evaluating coaching programs. In addition to this resource, consider contacting your local or national coaching association for guidance on coaching skills and practices.

The ILM study suggests a lot more work is needed on finding, developing and maintaining internal coaches. Does your organization use insiders as coaches? How do you find candidates and train them? Please share your experiences here.

References

High Impact Training Guide

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Survey Finds Organizations Restrict Workplace Coaching

Submitted by  on October 27th, 2011

Arm in blue suit with thumb downCoaching is a powerful tool that is effective at boosting performance from the athletic field to the workplace. In my previous blog post on workplace coaching culture, I reported that the Institute of Leadership and Management (ILM) recently found that 80% of the 250 UK organizations it surveyed have used coaching or are using it – and another 9% planned to do so. Of those whose companies practice it, 95% said it benefits both the organization and the coached individual.

The study also revealed a startling fact: despite its effectiveness at raising the performance bar, it’s offered to relatively few. In my mind, this is a lost opportunity. If the goal is to stretch employees beyond what they think they can do, then it should be more broadly available.

If you work for a large organization of 2,000 or more employees, you’re more likely to have access to coaching. The ILM survey found that 91% of these enterprises have used coaching in the past five years. The percentage drops to 81% for organizations with 501 to 2,000 employees. And the number drops further – to 68% – for companies with 230 to 500 employees.

Of the companies where coaching is made available to employees, 85% of the ILM survey respondents said it’s targeted at middle managers and above. This makes sense since the reason for coaching is often management and leadership development (21%), senior executive development (19%) and preparation for a new role in the corporate hierarchy (12%).

But the benefits of coaching – better performance, stronger teamwork and increased motivation, to name a few – would help anyone regardless of rank. Yes, coaching assists the rising middle manager in his jump to the next level. But it also would help an entry-level employee get off to a good start and be in a position to move to a bigger role. Programs would need to be adjusted for different positions within the organization, but flexibility is one of the hallmarks of coaching. It’s never about one size fitting all. It’s about the coach’s ability to help an individual develop professionally.

Another factor, of course, is the availability of resources. Coaching requires a commitment of personnel and time. This explains why there’s much less coaching happening at smaller organizations than larger ones. However, the ILM survey shows that it is being done by some companies regardless of size. Just over 60% of organizations make coaching available to non-managers, while 52% say it’s available to all staff. There needs to be a visible commitment to universal coaching from the highest reaches of the company – those who are most likely to have their own coaches.

The decision to make coaching available to a select few is an example of a kind of thinking that keeps small companies small. The technique of good coaches is exactly what’s needed to propel individuals and entire organizations to the next level. It’s an investment that will pay dividends for years to come.

If your organization is short on resources to engage expensive external coaches, consider training your senior employees, managers and HR personnel as coaches. Implement peer-to-peer coaching or ask your local university’s business school if their business studies students are available for coaching assignments.

Does your organization limit who gets coached? What ideas do you have for making it more widely available? Please share your thoughts here.

Reference

2 Way Feedback e-book

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Study Shows Coaching Culture Alive in Workplace

Submitted by  on October 22nd, 2011

Male coaching female in outside settingBusiness owners are discovering that traditional management tools aren’t as effective as they used to be at boosting performance. After years of layoffs, cuts and increased workloads, employees are hitting the wall. How can you raise the bar in this high-pressure environment?

A number of organizations are tearing pages out of the playbooks of sports coaches and instituting many of the same techniques in the office. Workplace coaching is very different from traditional management, where the boss is the expert, the enforcer or the instructor. The workplace coach guides, asks questions and inspires the employee to the next level, tapping a reservoir of talent and strength that wouldn’t have been known without the coach’s help.

A recent survey by the Institute of Leadership and Management (ILM) reveals that the coaching culture is taking off. The survey of development managers was conducted by phone in February 2011 and covered 250 UK organizations. Surveyed organizations represented a range of industries with no more than 20% in the public sector. Each organization employed no fewer than 230 people and two-thirds of the respondents were female.

A key revelation of the study is that coaching techniques are finding widespread adoption. It also found organizations are realizing a variety of benefits to the coached individuals and the overall business. The findings make a lot of sense. Many organizations have been pushing workers to their limits in recent years. Not unlike an athlete who has hit the wall, employees feel like they can’t do anything more to boost their performance. Some, including top performers, may be ready to give up and accept failure. In cases like this, a coach is what’s needed to raise the bar.

How prevalent is coaching? ILM’s study found that 80% of the companies surveyed have used or are currently using coaching as a development tool while another 9% plan to do so in the future. Though ILM’s study was limited to UK companies, I suspect that the results would be comparable in many other countries.

ILM reports that there are two primary reasons organizations offer coaching: personal development and the sharing of business knowledge or skills. Respondents reported their companies were more likely to offer coaching for personal development (53%) than to improve specific areas of performance (26%). This is no surprise given the personal nature of coaching. The best coaches unlock capabilities that are difficult or impossible to realize without the help of a facilitator.

The benefits cited by the respondents reflect this skew toward personal development: 43% reported improvements in self-awareness while 42% said coaching boosted self-confidence. Other benefits include the development of leadership, management and communication skills, better conflict resolution, higher levels of motivation and improved preparation for a new role in the organization.

In all, 95% of respondents said they believe coaching benefits the organization while 96% said it benefits the coached individual. Even at organizations that don’t engage coaching, 93% of respondents were able to identify some of the practice’s benefits.

The wide adoption and benefits of coaching are no surprise, but the ILM researchers also found areas of concern. There’s a shift toward using internal coaches who may not be prepared for the job. The tools for measuring the success of coaching are inconsistent. And, most significantly, not everyone in an organization has access to a coach. I’ll take a closer look at each of these issues in future posts.

Has your organization adopted a coaching culture? If not, why not? If so, what benefits are you seeing from this management tool? Please share your experiences here.

Reference

Succession Planner software

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