Business Performance Blog

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Driving Counterproductive Behaviors

Submitted by on March 21st, 2014

Male figure carrying dollar symbolHow good are the employee incentives in your organization? I believe there are key principles for designing an effective rewards system. Best of breed organizations take these principles into consideration when they design or modify their incentives scheme. Did you know that poorly designed incentives can actually motivate the wrong behaviors? So, while your change initiative or training program is instilling the correct or best way to do things, the reward structures set up in your organization may actually be encouraging the opposite behaviors.

A common problem I see arises from the tension between the setting of team objectives on the one hand and individual objectives on the other. Challenges occur when a team incentive is outweighed by individual rewards. In one case following a training course on creativity, employees were encouraged to share ideas by the offering of a new award. The prize consisted of a plaque presented to the team that turned their idea into a viable and profitable new product.

The innovation program in the end faltered because the earlier “Employee Suggestion of the Month” scheme, with its cash prizes, was left running in parallel with the new scheme. The lesson here is that if you are going to offer team incentives, make sure that you look closely at what benefits currently exist in your organization that reward counterproductive individualistic behaviors. Once you find them, either abolish them or modify them so that they no longer conflict with your team incentives.

There exists a similar tension between productivity and quality. Many call centers espouse the value of customer satisfaction and conduct training programs for customer service operators to promote this. In some cases following the program, the existing incentives system continues to reward operators for achieving productivity targets. To reach these targets, operators either coerce some callers into closing the call or prematurely pass problems up to second tier support. Such rewards reveal the true “values” that the organization holds dear, paying only lip service to other espoused values, such as “customer service” and “quality”. This example demonstrates the importance of working out all aspects of your organization’s incentives scheme before training participants return to their job.

In other cases, the incentives may look effective, yet also produce damaging counterproductive behaviors that can remain undetected. In one software company, software testers were paid $5 for every software defect (or bug) that they found. After the software testers attended a quality testing training program, the number of detected defects rose dramatically.

This may seem like a success; however, the company was beginning to suffer under the financial strain of having to pay out such a high number of bonuses. A little detective work revealed that it did not take long for the testers to realize that if the software developers introduced extra defects in their work and the testers agreed to split the bonus with the developers, all would be financially better off. Teamwork is a worthy ideal; however, this is not the type of teamwork that the company had banked on.

How could managers redesign the rewards system so that it encourages productive teamwork? Here is one option that has worked well for many companies. Managers restructure the software developers and testers into product teams. They then allocate to each team the objective of reducing the number of software defects reported by the end users of the software; that is, the customers. For teams meeting their targets, the company awards a one-time bonus and a congratulatory note during a special award ceremony. The added advantage of rewarding this kind of team achievement is that all team members are focused on the external customer.

These examples illustrate how poorly designed rewards can end up costing the business more than it recoups in extra productivity and efficiency. With a little thought and redesign, a dysfunctional incentives scheme can be transformed into a scheme that works.

Have you experienced an incentives scheme that did more damage than good? What was the organization’s response? Please share your examples of rewards systems that backfired and those that have worked.

Managing Change in the Workplace guide

Do you need help with implementing your new employee incentive scheme? Many implementations fail because the change process was not handled well. If you need to keep managers and employees on board throughout your organization’s change journey, get a copy of my Managing Change in the Workplace guide and workbook.

Posted in Change, Performance, Training | Comments (0)

Case Study: Setting Business Performance Targets

Submitted by on March 11th, 2014

Word target circled on pageThe most effective training programs are those that have a clear link with one or more business goals. In my Expert View on setting business objectives, I talked about why this is such an important first step in designing a new training program. I also highlighted a couple of approaches to consider when working with the management team to clarify the business direction. One of these was about setting SMART objectives and the other about taking a balanced scorecard view of the business.

In this blog post, I want to illustrate how one company went about setting targets before embarking on a training initiative. This example is equally instructive whether you are initiating a program of change in your organization or wanting to design and run a new training course for employees.

This mini-case study concerns an electronics manufacturing company implementing a new inventory management system. The implementation involves a server upgrade and the installation of new software. The business owners intend to engage the software vendor to roll out a training program for all production planning department and warehouse employees over a six week period.

In this case, the Project Manager organized an impact mapping workshop for the program sponsor and the training participants’ managers to attend. To get a view from the trenches, a representative group of prospective training program participants were also invited. After much discussion and debate, the meeting participants decided on two key business objectives. These were:

  • reduce average monthly total inventory value by 30% by end of year
  • improve delivery to commit by 20% by end of year

The meeting attendees then went on to discuss possible methods for calculating progress towards meeting the objectives. This is an important step that many organizations neglect, only to be faced with arguments later about whether the results did or did not meet target.

The meeting attendees considered many options, with proponents writing up various formulae for calculating results on a whiteboard. One group, for example, proposed that “average monthly value” be calculated by summing the values for each day of the month and dividing the result by the total number of days in that month. In the end and following much deliberation, the meeting attendees agreed that this value will be determined by summing the values on the first and last days of the month and dividing by two. This was also done for the other value; “delivery to commit”.

These two measures constitute the business’ “lagging” measures. Lagging measures give insight into the outcomes of a business’ activities. These outcomes typically directly impact the bottom line of a business. When a lagging indicator reveals that a business has failed an objective, it’s too late for the management team to do anything about it. For example, if the “delivery to commit” result for the month of June is calculated as 10% worse than the same time last year, the management team cannot take any remedial action to improve the June result.

For this reason, it makes good sense to develop some “leading” measures. These kinds of measures provide either advanced news that activities are on track or a warning sign that a key target will be missed. The Project Manager organized a follow up meeting to discuss and agree subsidiary objectives that would support the key business objectives. The means of measuring achievement of these second-level objectives could then serve as “leading” measures.

The Project Manager also invited the inventory management system software vendor to attend the meeting. After considerable debate, the meeting attendees agreed that to reduce total inventory value and improve the delivery to commit percentage to their target levels, the two following objectives needed to be met:

  • 90% of inventory items entered in system by end of March
  • reduce inventory data errors to 5% by end of June

In deciding these two targets, the vendor’s input proved invaluable as it had access to industry benchmarks and a wealth of experience with previous clients. Near the conclusion of the meeting, the Project Manager asked the Production Planning Manager and the Warehouse Supervisor to devise a procedure for measuring and reporting progress on targets.

With the business objectives agreed and in place, the instructional designer was then in the best position to write learning objectives and design a program that directly meets the needs of the business.

High Impact Training Guide

Find out more about setting business performance targets and improving the impact of your training programs. Check out Leslie Allan’s high impact training guide, From Training to Enhanced Workplace Performance. Learn proven strategies and techniques for finding performance roadblocks, aligning training to real needs, developing training partnerships, engaging learners and maximizing skill application. Find out more about From Training to Enhanced Workplace Performance and download the free introductory chapter today.

Posted in Performance, Training | Comments (0)

Case Study (Roles): Working in Teams

Submitted by on February 19th, 2014

human figures on mismatched puzzle board positionsIn previous blog posts, I’ve been working through case studies illustrating the importance of getting employees on board with any changes in their roles and responsibilities before they start a training course. The training room is not the place to be negotiating changes to people’s employment agreements and manager-employee relationships. Training programs can quickly descend into a farce when employees are kept in the dark and it is left to the trainer to sort out changes to people’s roles.

In this blog post, I want to pick up on a company that we looked at in a previous case study on self-managed work teams. Last time we visited this auto repair shop, we investigated how they went about integrating their new team-working procedures into a comprehensive training program.

Roles and Responsibilities is one of eight factors in Leslie Allan’s PRACTICE Approach™ for improving the impact of training. Find out more and get Leslie’s high impact training guide.

Here, the two owners of the large auto repair company restructured the way cars were repaired in the workshop and mechanics were supported. Mechanics and support staff were reorganized into self-managed work teams, each specializing in particular makes and models of car. Each team comprised five mechanics, a parts inventory clerk and a scheduler. From this reorganization, the owners were expecting to see more satisfied customers and higher throughput. To achieve this end, they scheduled a Working in Teams training program. The program extended over a two week period and involved all floor staff.

This ambitious change project required an extensive rethinking and rewriting of employee role descriptions. In particular, the two owners needed to work out which employees would be responsible for each of the following work areas:

  • team goal setting
  • financial tracking and budget approval
  • recruitment and selection of new team members
  • team member performance management
  • purchasing and invoicing customers
  • work scheduling

Other questions the owners needed to answer were:

  • Will these responsibilities be shared concurrently among team members or rotated?
  • What is the role of the team leader?
  • What is the duration of their leadership?

What other questions can you think of that needed attention before the training program started? Please share your answers by writing your response in the area below.

Epilogue

Over these last few weeks, I’ve been sharing case studies examining the purpose that clarifying roles and performance expectations play in bolstering the success of employee training programs. Not every training program is a major endeavor requiring the creation or rewriting of people’s role descriptions. The purpose of some programs may simply be to enhance existing skills. Here, a conversation between the program participant and their manager about the new performance expectations may be all that is required.

On the other hand, one employee being asked to attend a program may necessitate a completely new role description. For example, a business analyst may be adopting a new role as a project manager.

If you want your training to be effective, whatever your situation, leave no surprises for participants attending your program. Work with participants’ managers to clarify role expectations with participants prior to program start and update the necessary documentation. What you want to avoid is participants fronting up for a training program with little or no inkling that their managers are placing different requirements on their job scope and task performance.

I still see this approach today, where managers are sending people to training “blind”, in the hope that the participants will “get it”. What the participants do “get” with this approach is that their managers did not pay them the due respect and consideration by discussing their requirements beforehand.

Sometimes this happens because the employee reports to two or more managers who have not clearly worked out role scope and performance expectations. In other cases, system implementations are over budget and rushed, with little time left to discuss role expectations with employees.

These are all recipes for poor transference of the skills learned to the participant’s workplace. The message from these case studies is clear. It pays huge dividends when you work with participants’ managers up front to prepare employees for their new roles and responsibilities.

High Impact Training Guide

If you want to create the right learning environment for effective transfer of training to the employee’s workplace, then check out Leslie Allan’s high impact training guide, From Training to Enhanced Workplace Performance. Learn proven strategies and techniques for finding performance roadblocks, aligning training to real needs, developing training partnerships, engaging learners and maximizing learning transfer. Find out more about Leslie’s From Training to Enhanced Workplace Performance and download the free introductory chapter today.

Posted in Change, Training | Comments (0)

How Do You Engage Learners?

Submitted by on February 14th, 2014

Finger pushing LEARN buttonI recently published a series of articles on engaging learners. For me, getting participants involved in the learning is critical to organizations obtaining the most benefit from their training spend. Just as importantly, it helps training program participants get the most rewards for their time and effort.

In each article, I examined one of four key areas I think trainers need to focus on to get program participants motivated and engaged in useful learning. These four areas are:

  1. Goal orientation
    When the training is goal orientated, program participants have a reason to learn and are stretched to apply the learning to achieve concrete workplace outcomes.
  2. Real work relevance
    Making the training relevant to real work hooks into participants’ existing knowledge and aspirations, leading to immediate practical application.
  3. Practice
    Providing plenty of opportunity for practice strengthens neural pathways in the learner’s brain, increasing learning efficiency and learner proficiency.
  4. Interpersonal interaction
    Relationship building mediates the other three factors through engaging program participants to strive for goals, connect with existing knowledge and practice skills.

I asked readers for their thoughts on what I wrote. The most comprehensive comments I received came from Adele Sommers. Adele is the owner of Business Performance Inc. She been designing and delivering programs for a variety of clients over many years. So, I was particularly interested in what she had to say. With Adele’s permission, I’d like to share with you her insightful comments. She wrote:

I love the focus on engaging learners from so many insightful points of view! While all of the topics were highly relevant, those of particular interest to me revolved around the following key points:

  1. Goal orientation – Having learners complete a Personal Action Plan as they proceed through a program is a sustainable way to help support training transfer — even if no other support mechanisms exist. So, even if a learner manages to arrive on the scene completely bereft of organizational objectives and department goals for applying the training back on the job, an Action Plan can help the learner anchor, digest, and transform the material into usable ideas. I usually include an Action Plan in each module I design for a client course.
  2. Building course material around real work experience is an invaluable, and necessary, approach in my book. On multiple occasions, I’ve informed clients that I would not develop or deliver custom courses for their employees unless I could build in examples and exercises related to real, job-related work samples and project challenges. Although that often meant a lot of last-minute content customization, I’ve learned the hard way that the difference between teaching this way and teaching more generic content, even if well-designed, is like night and day! This approach is especially impactful when the samples the employees provide have a direct bearing on their performance.
  3. I’ve found that when practice sessions are designed to dovetail with the real work experience above, they produce, at a minimum, a deeper level of comfort at one end of the spectrum, and mastery and fluency at the other end of the spectrum, with enough exposure. An excellent example is the just-in-time training for meeting facilitation and problem-solving techniques, where people learn in teams and apply on the tools on the fly. There is no downside to realistic practice, and any type of team learning powerfully applies this principle!
  4. I loved your tips on effective interpersonal interaction through asking a variety of questions. Here’s an anecdote that shaped my view of when to use certain types of questions with a group of strangers. As a trainer, I had always leaned toward using non-intimidating questions that would not put any one participant on the spot. I therefore steered away from a highly directive style of questioning that named an individual respondent, such as, “Bob, can you please summarize for us what this idea means to you and explain why you agree or disagree?” or “Mary, would you recap what we talked about just before the break to bring everyone back up to speed?”

    One client for whom I was delivering five identical classes finally took me aside and asked me to start using these kinds of very pointed questions that did put individuals on the spot. The client explained that the participants were all very used to being “confronted” in this way in the training sessions they attended (since they were trainers themselves) and were wondering why I wasn’t doing it! So, from that point on, I was happy to oblige, and so were they. In the end, with this particular audience, a directive questioning approach turned out to be a very good fit.

Thank you, Adele, for taking the time to let me know your thoughts. What do you think of Adele’s comments? I was pleased to read her confirmation of the usefulness of Personal Action Plans when other pre-training organizational supports are missing. I was also delighted to see her emphasize the importance of building in real work examples into the program materials, exercises and practice sessions.

What intrigued me most was her story on how she uses questioning. Adele does make a good point that we sometimes underestimate the capacity of our learners. What do you think about the way she uses questions? In many programs, I start by directing the question I am asking to the whole group. That’s so all the participants pay attention to the question. It is only when no one attempts an answer that I then direct the question to a specific individual. What do you think of this method? Have you tried this approach in your own programs? Can you see any downsides to asking questions this way?

Thank you again, Adele, for your instructive comments and feedback. Please let me know what you think of her ideas. How do you go about engaging your learners? What challenges and successes have you experienced? Please share your thoughts below.

High Impact Training Guide

If you want to create the right learning environment to get the most benefit from your training prorgrams, then check out our high impact training guide, From Training to Enhanced Workplace Performance. Learn proven strategies and techniques for finding performance roadblocks, aligning training to real needs, developing training partnerships, engaging learners and maximizing learning transfer. Find out more about From Training to Enhanced Workplace Performance and download the free introductory chapter today.

Posted in Training | Comments (0)

Case Study (Performance): Inventory Management

Submitted by on February 11th, 2014

pen lying on business reportIn my last blog post on clarifying roles, I explored what happens when training participants turn up for a training program when they are unclear about their role and responsibilities in their organization. This confusion typically happens when the training program is part of a broader change initiative. Such initiatives include the implementation of new systems, additional auditing requirements, an expanded product range, and so on.

In my previous post, I used a case study to illustrate identifying Key Result Areas and specifying tasks for a new Data Entry Officer role. Completing a role and task analysis and assigning roles to specific employees answers the first of two questions I posed. These two questions that need asking and answering before the training program is rolled out are:

  1. What new roles and responsibilities will these changes necessitate? What key result areas will the new roles and responsibilities encompass? Which employees will be impacted?
  2. For each key result area, what are the performance expectations? How can these performance expectations be expressed in terms of measurable objectives and observable behaviors?

(You can read more about the two questions in my Expert View, titled Training Expectations: Roles and Performance.)

In this blog post, I want to go on to consider the second question. With the first question, we ask who will be impacted by the change and how their responsibilities will differ. With the second question, we are asking what performance standards will change. I will draw upon the same scenario I used in my previous blog post.

Roles and Responsibilities is one of eight factors in Leslie Allan’s PRACTICE Approach™ for improving the impact of training. Find out more and get Leslie’s high impact training guide.

In this scenario, an electronics manufacturing business implemented a new inventory management system. The implementation involved a server upgrade and the installation of new software. Over a six week period, the software vendor rolled out a program for all production planning department and warehouse employees.

Three months after the training, the training participants’ managers expressed their disappointment to the Human Resources Manager. They were upset that only a core of production planning and warehouse department staff was using the new system. They were also very dismayed that the expected efficiencies from the new system did not eventuate.

A subsequent role analysis identified the following Key Result Areas across the various employee roles:

  • data management
  • system upgrade and maintenance
  • supplier relations
  • accounting

Following a role analysis, the next step is to list the tasks in each Key Result Area. This analysis is best achieved using the people actually doing the tasks, as they have first-hand experience. The most important thing to remember here is to begin each task statement with a verb (doing word). Using the data management Key Result Area as an example, we can list the tasks as follows.

  • enter Bill of Materials, purchasing and dispatch data into the inventory module
  • customize and print reports as requested from managers
  • audit data for accuracy and produce monthly audit report
  • set up new inventory categories as required

Notice how each task statement starts with a verb (enter …, customize …, audit …, set up …). By sticking to this format, you forge a powerful link between the training program and later workplace performance.

The next step is to transcribe these task statements from the revised role descriptions into learning outcomes for your training program. The learning outcomes for a program are what the training participant is expected to be able to do back on the job as a result of completing all of the program requirements.

After the behavior or task statement, the second important component of a learning outcome is the performance standard. This specifies the standard to which the task is expected to be performed by the employee. Take the first task listed in my example above. Once the performance criterion is added, the learning outcome may appear as:

At the end of this training program, participants should be able to enter Bills of Material, purchasing and dispatch data into the inventory module at the rate of 30 entries per hour with no errors.

Once the performance standards are specified for all tasks, they can serve a number of important and interrelated purposes. In role descriptions, they clarify role expectations for prospective employees and incumbents. In performance appraisal documents, they communicate the criteria for employees’ performance evaluations. In training materials, they set learning expectations for program participants. The performance standard links all of these interconnected employee management functions in a consistent and comprehensive manner.

In a future blog post, I will continue this theme on the importance of clarifying roles and responsibilities for the success of training programs. Stay tuned for the next case study in this series.

Writing Learning Outcomes e-book

If you need to develop training programs with more impact, then check out Leslie Allan’s step-by-step guide on writing learning objectives. Writing Learning Outcomes helps you focus on real organizational objectives and the needed post-training participant behaviors in your training design. As you complete each step in the guide, you will write the results for your particular training project in the workbook provided. When you have finished working through the workbook, you will have a complete set of documented learning objectives for your project that are guaranteed to deliver results. Find out more about Writing Learning Outcomes and download the free introductory chapter today.

Posted in Change, Performance, Training | Comments (0)

Case Study (Roles): Inventory Management

Submitted by on January 31st, 2014

wooden hand with jigsaw pieceIn my Expert View, titled Training Expectations: Roles and Performance, I looked at the negative impact on training effectiveness when employees turn up to a training event without a clear idea of their roles and responsibilities. Manager and employee confusion over roles often reigns when the training program is part of a poorly thought-out change initiative. Perhaps the organization is merging with another company and tasks will need to be divided differently amongst employees. Or perhaps a new accounting system is being implemented, necessitating the creation of additional roles.

In my Expert View, I urged managers to ask and answer two crucial questions before the training program starts:

  1. What new roles and responsibilities will these changes necessitate? What key result areas will the new roles and responsibilities encompass? Which employees will be impacted?
  2. For each Key Result Area, what are the performance expectations? How can these performance expectations be expressed in terms of measurable objectives and observable behaviors?

Roles and Responsibilities is one of eight factors in Leslie Allan’s PRACTICE Approach™ for improving the impact of training. Find out more and get Leslie’s high impact training guide.

In this blog post, I want to expand on the first question about who will be impacted by the change and how will their responsibilities differ. I will do this by revisiting the example I introduced in my Expert View.

In this example, a company manufacturing consumer electronics recently implemented a new inventory management system. The new system involved a hardware upgrade to the company’s servers and the installation of new inventory management software. The training department invited production planning department and warehouse employees to a demonstration of the new system. The demonstration included some hands on exercises. Over a period of six weeks, the software vendor delivered the training competently to a little over 70% of the eligible employees.

Three months after the training, the training participants’ managers expressed their disappointment to the Human Resources Manager. They were upset that only a core of production planning and warehouse department staff was using the new system. They were also very dismayed that the expected efficiencies from the new system did not eventuate.

The Human Resources Manager met with the production planning and warehouse department staff to find out what went wrong. The employees complained that when they tried to use the new system following the training sessions the inventory data was incomplete and inaccurate. Managers had assured the employees before the training began that the data would be fixed when, in actual fact, they could not agree who should be entering the data.

It was left up to some enterprising individuals to enter the data in their own way, leaving inconsistencies and duplications in how the data was stored and reported. Other employees quickly gave up on the system and went back to their tried and tested paper-based methods.

What could managers have done differently to ensure that the training program was a success? Turning to my first question above, I encourage managers, at the outset, to decide on the who aspect of the change. In this case, they needed to work with the systems vendor and project manager to conduct a role analysis. A role analysis will identify the new and changed tasks required to be done in the new system.

I suggest grouping the tasks under specific Key Result Areas. A Key Result Area is a grouping of activities within a role for which there is an identifiable outcome or result. In this example, Key Result Areas could include:

  • data management
  • system upgrade and maintenance
  • supplier relations
  • accounting

Once identified, each Key Result Area can then be populated with the relevant tasks. The existing problem of inaccurate data in the new system concerns the first Key Result Area in the above list; data management. The managers in our case study can then work with the production planning and warehouse department employees to flesh out the various tasks in the data management Key Result Area. For example, these data management tasks could include:

  • enter Bill of Materials, purchasing and dispatch data into the inventory module
  • customize and print reports as requested from managers
  • audit data for accuracy and produce monthly audit report
  • set up new inventory categories as required

Once the Key Result Areas and tasks for each area are categorized, managers will then need to decide on how the areas and tasks will be apportioned. Questions to ask at this point include:

  • Which Key Result Areas and tasks will form the basis of newly created roles within the organization?
  • Which Key Result Areas and tasks will be allocated to existing roles?
  • Which employees will be migrated to new roles?
  • Which employees will adopt new Key Result Areas and tasks as part of job enlargement or job enrichment?

These are the hard questions that need to be sorted before any training on the new system takes place. When managers avoid these difficult questions, change initiatives and their related training programs suffer. In this example, after five employees left the organization in frustration, the management team created new Data Entry Officer and Systems Manager roles. The existing Warehouse Clerk role was made redundant, with the current incumbent being offered the role of Data Entry Officer. When the offer was not taken up, they were offered a Warehouse Picker role, which they duly accepted.

Trainers need to be very cautious about conducting training programs for which the prospective participants are unsure of their roles and responsibilities. Starting such a program before these questions are clarified for everyone concerned is setting up the program for failure even before the program begins.

Some managers are only too happy to leave it to the trainer to communicate changes to people’s roles or to sort out the confusion in the training room. I encourage program designers to identify unclear roles and responsibilities at the program design stage and to work closely with participants’ managers to bring certainty to people’s roles.

Now that you are on your way to identifying roles, Key Result Areas and tasks with a proper role analysis, the next key question that you need to ask and answer before training begins is what performance standards should you expect from each employee affected by the change. It is to this question that I will turn my attention in my next blog post. Stay tuned.

Training Evaluation Toolkit

For a complete step-by-step guide and resource kit for helping you evaluate the effectiveness of your training programs, Leslie Allan’s popular Training Evaluation Toolkit is excellent value. With this toolkit, you will be able to plan your evaluation exercise, collect all relevant data, isolate non-training factors and then analyze and report the results convincingly to your key stakeholders. Leslie’s toolkit is packaged with a full set of reusable and customizable Microsoft Word forms and Excel calculation worksheets for all of your measurement and reporting needs. Find out more about our Training Evaluation Toolkit and download the free introductory chapter today.

Posted in Change, Training | Comments (0)

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