performance consulting: make performance your business! (and prove it) jack phillips dick handshaw
TRANSCRIPT
Performance Consulting:Make Performance
Your Business! (and Prove It)
Jack PhillipsDick Handshaw
Manufacturing Plant Scenario
Safety violations are increasing within a manufacturing plant
Plant managers request safety training for operations and supervisors
Records indicate individuals attended safety training last year
Could you create a learning solution for this scenario?
Will a learning solution, by itself, bring about a sustained decrease in safety violations?
The Story Continued
Multiple Factors Impact Upon:
• Operators/Supervisors• Plant operations
“A strategic process that produces business results by maximizing performance of people and organizations.”
Performance Consulting is …
- Dana and James Robinson, Patti and Jack Phillips, and Dick Handshaw
The Performance Consulting Process
The Performance Consulting Process
The Performance Consulting Process
The “True” Client
The owner of the line of business who is experiencing the performance problem.
The “True” Client
They know:
• Current business goals• Internal and external barriers• Strongest and weakest
performers
The “True” Client
They can:
• Answer questions as you conduct Reactive and Proactive Consulting
• Make the decisions that affect the final business results
Two Key Principles
Partner with clients who accomplish results:
• Own the business and performance needs
• Have the most to gain or lose• Have authority to make decisions• Can obtain needed resources
1
Use mental models to ask powerful questions and to accomplish results:
• The Needs Hierarchy• SHOULD-IS-CAUSE Logic
Two Key Principles
2
Business Needs
Performance Needs
Organizational& Individual
Capability Needs
Needs Hierarchy
Business Needs
• Strategic Business Goals
• Hard Data• Revenue• Profitability• Market share• Customer
satisfaction• Quality
Business Needs
• Performance Needs• On-the-job
performance• Best practices• Following
procedures• Supports Business
Goal
Performance Needs
Performance Needs
Organizational and Individual Capability Needs
• Organizational Capability
• Coaching and reinforcement
• Incentives• Work systems and
processes• Individual Capability
• Required skill and knowledge
• Internal motivation• Educational
credentials
Organizational& Individual
Capability Needs
Needs Hierarchy
Business Needs
Performance Needs
Organizational& Individual
Capability Needs
“The process of establishing a consulting relationship that will lead to a strategic approach to achieving business results.”
Proactive Performance Consulting is…
“Also referred to as ‘reframing’ is the process of assessing a client request through questioning to transition the discussion away from a focus on a solution and into a discussion about the business needs.”
Reactive Performance Consulting is…
Powerful Questions Are:
• Open-ended• Focused to a specific need in
the hierarchy• Solution- and cause-neutral
SHOULD Questions
Business SHOULDs Performance SHOULDsSeeking desired operational numbers
“What is our goal for the percent of customers indicating service is very good or excellent?”
Seeking desired on-the-job accomplishments / behaviors
“What must our customer service representatives do more, better or differently to achieve this level of service rating?”
Seeking current operational numbers
“What is our current customer satisfaction rating for service?”
Seeking current on-the-job accomplishments / behaviors
“What are customer service representatives typically doing now that yields this level of result?”
IS Questions
Business IS Performance IS
Seeking root causes within the organization
“What factors, if any, within our organization are contributing to the disappointing customer satisfaction results?”
Seeking root causes within individuals
“What is your assessment of the capability of customer service representatives to provide high levels of service to our customers?
CAUSE Questions
Organizational Capability CAUSEs
Individual Capability CAUSEs
Successful On-the-Job Performance(Accomplishments and Behaviors)
Root Cause Categories for Gaps
Factors EXTERNAL to Organization
Factors INTERNALto Individuals
(Individual Capability)
1. Skill and Knowledge
2. Inherent Capability
4.6. Supportive Culture
Factors INTERNAL to Organization(Organizational Capability)
1. Clarity of Roles and Expectations
3. Incentives
5. Access to Information, People, Tools, and
Job Aids
2. Coaching and Reinforcement
4. Work Systems and Processes
6. Supportive Culture
Develop/Review Objectives of
Program
Develop EvaluationPlans and
Baseline Data
CollectData During
ProgramImplementation
CollectData AfterProgram
Implementation
Level 2: Learning
Level 4: Business Impact
Level 1: Reaction, and Planned Action
Level 3:Application
EvaluationPlanning
Data Collection
The ROI Methodology
Capture Costsof Program
IdentifyIntangibles
GenerateImpactStudy
Level 5:ROI
Intangible Benefits
Data Analysis Reporting
The ROI Methodology
Isolate the Effects of Program
Convert Datato Monetary
Value
Calculate theReturn on Investment
1. Reaction and Planned Action
2. Learning
3. Application
4. Business Impact
5. Return on Investment
Matching Evaluation Levelswith Objectives Exercise
Level 3 and Level 4 objectives provide:
• Direction to designers and developers
• Guidance to facilitators and coordinators
• Goals for participants
• Satisfaction for program sponsors
• A framework for evaluators
Developing Level 3 andLevel 4 Objectives
Alignment and Measurement Model
Payoff Needs
5
ROI Objective
5
ROI Results
Business Needs 4 Business Objectives
4 Business Results
Performance Needs
3 Performance Objectives
3 Performance Results
Individual and Organizational Capability Needs
2 Individual and Organizational Capability Objectives
2 Individual and Organizational Capability Results
Preference Needs 1 Reaction Objectives
1 Reaction Results
Solutions
Assessment (the IS/Current State)
Objectives for Initiative(the SHOULD/Desired State)
Measurement (the RESULTS)
Alignment and Measurement Model
Data Collection During Program
Surveys Questionnaires Observation Interviews Focus Groups Tests/Quizzes Demonstrations Simulations
Level 1 Level 2Method
Surveys
Questionnaires Observations
Interviews
Focus Groups
Action planning/improvement
plans Performance contracting Performance monitoring
Level 3 Level 4Method
Data Collection During Program
Factors to Consider When Selecting Data Collection Methods
34
• Time – Participant/Supervisor
• Costs
• Accuracy – Validity/Reliability
• Utility
• Type of data
• Culture/Philosophy
Factors to Consider When Determining timing of Follow-Up
35
• Availability of data
• Ideal time for behavior change (Level 3)
• Ideal time for business impact (Level 4)
• Convenience of collection
• Constraints on collection
International Sales
• Use of a control group arrangement
• Trend line analysis of performance data
• Use of forecasting methods of performance data
• Participant’s estimate of program impact (percent)
• Supervisor’s estimate of program impact (percent)
• Manager’s estimate of program impact
• Use of experts/previous studies
• Calculate/estimate the impact of other factors
• Customer input
Methods to Isolate Program Effects
Benchmarking Data
0%
10%
20%
30%
40%
50%
60%
1 2 3 4 5 6 7 8
32% 29%
5%
55%
37%
11% 13% 11%
Method
1. Control Groups2. Trend Line Analysis3. Forecasting Methods4. Participant Estimates5. Manager Estimates6. Sr. Management Estimates7. Expert Input8. Customer Input* Survey of Users, N = 235
Isolating the Effects of the Program
Control Group
ExperimentalGroup
M1
M1
Program M2
M2
$35,000 $45,000
$35,000 $40,000
Control Group Method
Data are Converted by:• Converting output to contribution – standard value
• Converting the cost of quality – standard value
• Converting employees’ time – standard value
• Using historical costs
• Using internal and external experts
• Using data from external databases
• Linking with other measures
• Using participants’ estimates
• Using supervisors’ and managers’ estimates
• Using staff estimates
Cost Items Prorated Expensed
Needs Assessment Design and Development Acquisition/Purchase (if applicable) Delivery/Implementation
• Salaries/Benefits-Facilitator Time • Salaries/Benefits-Coordination Time • Program Materials and Fees • Travel/Lodging/Meals • Facilities • Salaries/Benefits-Participant Time • Operating Expenses
Ongoing Operations Cost (if applicable) Evaluation Overhead
Typical Intangible Benefits Adaptability Awards Brand awareness Career minded Caring Collaboration Communication Conflicts
Cooperation Corporate social responsibility Creativity Culture Customer complaints Customer response time Customer satisfaction Decisiveness
Typical Intangible Benefits Cont.
Employee complaints Engagement Execution Image Innovation Job satisfaction Leadership Networking
Organizational climate Organizational commitment Partnering Reputation Resilience Stress Talent Teamwork
The ROI Calculation
44
Benefit Cost Ratio (BCR) =Program Benefits
Program Costs
ROI = Benefits - Costs X 100Program Costs
The ROI Calculation Exercise
45
Costs per program (25 participants) – $80,000Benefits per program (1st year) – $240,000
Benefit Cost Ratio (BCR) = ____________
ROI = X 100 =_____________%
Performance Consulting
Training That Delivers Results