Building the next generation of Leaders:
Are you on track?
1
What will we speak about today?
Leadership
Training
Case Study on
Learning for
Leadership
Pipeline
Examine ways to
measure...
LEADERSHIP TRAINING
3
Why some leadership training fails?
• Too broad
• Event driven rather than process
• Not enough action
• Wrong people• Wro...
Trends & Best Practices
• Driven by business strategy
• Top leadership sponsorship
• Target multiple levels of competency
...
CASE STUDY
6
About Company X’s Business Context
• High-growth infrastructure market
• Project based organization
• Highly domain expert...
Key Success Factors for Company X
• Optimize asset base
• Build brand in India & credibility overseas
• Simultaneously man...
Company X followed these key steps
1. Align Leadership Strategy with the Business Strategy
2. Segment the Workforce (level...
Step 1. Align Leadership Strategy to Business Strategy
[A] Sustaining Success
Finding ways to take the
business to the nex...
Step 2. Segment Leadership Levels
Top Management
Middle Management
Key Questions
1.Where will you focus your talent
develo...
Step 3. Leader Role Requirements for Each Level
Accountabilities identify the specific outcomes each role is
expected to a...
Step 4. Assess Leadership Gaps
Performan
ce/
Business
ImpactImpact
Personalit
y Tools
(DISC,
MBTI)
Assessmen
t Centres
360...
Step 5: Develop the leaders
Target Multiple Levels of the Workforce
First Level Managers, Professional
Individual Contribu...
Step 5. Develop the leaders
Target Multiple Levels of the Workforce
Mid-level Managers
20%
• NexGen Blended Managers Progr...
Step 5. Develop the leaders
Target Multiple Levels of the Workforce
Senior- Level Managers
15%
• eLearning courses, online...
Step 5. Develop the leaders
Target Multiple Levels of the Workforce
• Top Management
5%
• eBook Summaries, Leadership
stor...
Why did company – x choose technology enabled
learning?
• Learning is continuous
• Just-in-time access/ Quick to deploy
• ...
Examining Training Measurement
MethodologiesMethodologies
19
Connection
between Business
Set
Program
Goals &
Keep
everyon
Engage all
stakeholder
I am a 100% supporter of measurement. ...
ROI of Training ModelROI of Training Model
CollectCollect
DataData
Isolate the EffectsIsolate the Effects
of Trainingof Tr...
Net Program BenefitsNet Program Benefits
Program CostsProgram Costs
X 100X 100
Return on Investment FormulaReturn on Inves...
Collecting DataCollecting Data
• Identify appropriate
performance indicators
• Develop a collection plan
CollectCollect
Da...
Example of Performance IndicatorsExample of Performance Indicators
• Units produced
OutputOutput
• Equipment downtime
Time...
Example of Hard IndicatorsExample of Hard Indicators
• Unit costs
CostCost
• Scrap
QualityQuality
• Unit costs
• Variable ...
Example of Performance ResultsExample of Performance Results
•• Some performance results after trainingSome performance re...
Isolating the Effects of TrainingIsolating the Effects of Training
Methods to IsolateMethods to Isolate
UsingUsing
Control...
UsingUsing
Control GroupControl Group
• A control group arrangement can be
used to isolate training impact.
• With this st...
Trend LinesTrend Lines • Trend lines are used to project the
values of specific output variables if
training had not been ...
Trend Lines AnalysisTrend Lines Analysis
At the beginning of
May, a Sales training
Program session was
held
VolumeofSales
...
Participants andParticipants and
Supervisors ofSupervisors of
ParticipantsParticipants
Estimate ofEstimate of
TrainingTrai...
Participants andParticipants and
Supervisors ofSupervisors of
ParticipantsParticipants
Estimate ofEstimate of
TrainingTrai...
1 Training Program 50% 70%
2 Change in Procedures 10% 80%
Percent
Improvement
Caused by
Confidence
Expressed as
a Percent
...
1 Training Program 50% 70%
2 Change in Procedures 10% 80%
3 Adjustment in Standards 10% 50%
Percent
Improvement
Caused by
...
Converting Data to Monetary ValuesConverting Data to Monetary Values
Converting DataConverting Data
to Monetaryto Monetary...
Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values
An example to illustrate the steps to con...
Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values
3. Calculate the
change in
performance da...
Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values
5. Calculate the
annual value of
improvem...
Tabulating costTabulating cost
of the programof the program
• Tabulating the costs involves
monitoring or developing all o...
Tabulating costTabulating cost
of the programof the program
• Cost components that should be
included are :
• The cost to ...
Tabulating costTabulating cost
of the programof the program
• Cost components that should be
included are :
• Travel, lodg...
An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis
Weeks after
training Trained Group Control Grou...
An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis
Data US$
Average weekly sales
Trained Group 12,...
An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis
Cost US$
Facilitation fees 11,250
Program mater...
Program Goals vs. Success Criteria
Learning Programs including eLearning
• Sample Program Goals
–Reduce training-related t...
Introduce Talent Review Sessions at Your Organization
Calibrate Assessments & Planned Actions for Assessing the Leadership...
Final word
Building a culture of eLearning with 24x7 Learning
We consult you to …
1.Integrate eLearning into other HR prog...
This presentation will be mailed to you
Thank you
Presented by chief L&D consultant
Shonalie Gupta Ray
Shonalie.Gupta@24x7...
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Building The Next Generation of Leaders: Are You on the Right Track

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-Leadership Training

-Case Study on Learning for Leadership Pipeline

-Examine ways to measure impact


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Building The Next Generation of Leaders: Are You on the Right Track

  1. 1. Building the next generation of Leaders: Are you on track? 1
  2. 2. What will we speak about today? Leadership Training Case Study on Learning for Leadership Pipeline Examine ways to measure impact 2
  3. 3. LEADERSHIP TRAINING 3
  4. 4. Why some leadership training fails? • Too broad • Event driven rather than process • Not enough action • Wrong people• Wrong people 4
  5. 5. Trends & Best Practices • Driven by business strategy • Top leadership sponsorship • Target multiple levels of competency • Competency-Aligned Blended approach• Competency-Aligned Blended approach • Measure Business impact 5
  6. 6. CASE STUDY 6
  7. 7. About Company X’s Business Context • High-growth infrastructure market • Project based organization • Highly domain expertise driven • Large employee base• Large employee base • Indian-owned International business • Businesses – Roads, Highways, Ports, SEZs, Power • Challenges include highly regulated business environment for infrastructure companies 7
  8. 8. Key Success Factors for Company X • Optimize asset base • Build brand in India & credibility overseas • Simultaneously manage multiple forays/ diverse businesses• Simultaneously manage multiple forays/ diverse businesses • Align workforce to changing trends in technology & work • Work with multi-generational workforce 8
  9. 9. Company X followed these key steps 1. Align Leadership Strategy with the Business Strategy 2. Segment the Workforce (levels) 3. Identify Leader Role requirements at each Level (competency- aligned)aligned) 4. Assess the Gaps 5. Develop Leaders – Create the Learning Plan: Critical Learning Experiences – Sample Learning Plan – Introduce Talent Review Sessions 9
  10. 10. Step 1. Align Leadership Strategy to Business Strategy [A] Sustaining Success Finding ways to take the business to the next level & avoiding decisions that may cause issues [B] Start-Up/ High Growth Building Structures, systems, processes (Sales, Marketing, product development) that lead to revenue growth BusinessStrategy Key Questions • What are the skills/ competencies required to be effective in our business [C] Re-alignment Redirecting resources such as abandoning old product line & developing new technologies, often requires changing organization strategy, structure & skills [D] Turnaround Fast decision making & elimination of non-value added products, resources and /or business units to ensure survival BusinessStrategy Transactional Change Transformational Change business scenario (Quad B)? • Do we have leaders who have managed in this quadrant? 10
  11. 11. Step 2. Segment Leadership Levels Top Management Middle Management Key Questions 1.Where will you focus your talent development investments? 2.What criteria will you use to prioritize levels or roles? 3.Where do you have current leadership gaps or surpluses? 4.What roles are most critical toMiddle Management Frontline Management Employees Contingent Workforce 4.What roles are most critical to business and must have a pipeline? 5.What are the key skills and capabilities for each workforce segment? 6.Will these be the same for different in 1 – 3 years? (Ref: McKinsey Workforce Pyramid) High Potentials 11
  12. 12. Step 3. Leader Role Requirements for Each Level Accountabilities identify the specific outcomes each role is expected to achieve relative to the strategy (via Job Descriptions @ Your Organization) Responsibilities identify the primary tasks and activities each role is expected to perform in order to achieve the outcomes expected of the role Performance Metrics are focused on measuring business outcomes, not activities; enable focus on achieving business Via Job Descriptions Via Goal Sheets/ Appraisals outcomes, not activities; enable focus on achieving business impact and drive greater ownership for business impact Competencies identify the knowledge, skills, and abilities most critical to successfully fulfilling the accountabilities of the role; focus on those competencies that differentiate superior performance Critical Experience Sets identify the experiences that best prepare someone to fulfil the requirements of the role Required experiences • Desired experience • Targeted years of experience Appraisals Via Competency Frame/ Job Descriptions 12
  13. 13. Step 4. Assess Leadership Gaps Performan ce/ Business ImpactImpact Personalit y Tools (DISC, MBTI) Assessmen t Centres 360 degree Feedback 13
  14. 14. Step 5: Develop the leaders Target Multiple Levels of the Workforce First Level Managers, Professional Individual Contributors 60% • eLearning courses on influencing skills, planning their time, growing professionally, working under pressure 14
  15. 15. Step 5. Develop the leaders Target Multiple Levels of the Workforce Mid-level Managers 20% • NexGen Blended Managers Program, experiential programs, Action Learning projects 15
  16. 16. Step 5. Develop the leaders Target Multiple Levels of the Workforce Senior- Level Managers 15% • eLearning courses, online customized programs, and eBooks • Rotational assignments 15% 16
  17. 17. Step 5. Develop the leaders Target Multiple Levels of the Workforce • Top Management 5% • eBook Summaries, Leadership stories (50lessons), Coaching 17
  18. 18. Why did company – x choose technology enabled learning? • Learning is continuous • Just-in-time access/ Quick to deploy • Dispersed and diverse work-force • Minimized disturbance to the work-day• Minimized disturbance to the work-day • Maximized their budget (cut-down per head training cost) and increased coverage of training • Build self-directed learning as a responsible choice • Product Knowledge • Blend, blend, blend 18
  19. 19. Examining Training Measurement MethodologiesMethodologies 19
  20. 20. Connection between Business Set Program Goals & Keep everyon Engage all stakeholder I am a 100% supporter of measurement. I amI am a 100% supporter of measurement. I am 100% terrified that …we are measuring the wrong thing -- Tom Peters between Business Results & Learning Programs Goals & create the plan everyon e on track stakeholder s in identifying metrics 20
  21. 21. ROI of Training ModelROI of Training Model CollectCollect DataData Isolate the EffectsIsolate the Effects of Trainingof Training Convert Data toConvert Data to Monetary ValuesMonetary Values Calculate ROI ofCalculate ROI of TrainingTraining TabulateTabulate ProgramProgram CostsCosts IdentifyIdentify IntangibleIntangible BenefitsBenefits 21
  22. 22. Net Program BenefitsNet Program Benefits Program CostsProgram Costs X 100X 100 Return on Investment FormulaReturn on Investment Formula ROI =ROI = ExampleExample :: •• Costs per program (25 participants)Costs per program (25 participants) $ 88,500$ 88,500 •• Benefits per program (1st year)Benefits per program (1st year) $230,625$230,625 $ 230,625$ 230,625 –– 88,50088,500 $ 88,500$ 88,500 ROI =ROI = X 100X 100 ROI = 161 %ROI = 161 % Adapted from Jack and Patti Phillips ‘Fifth Level of Evaluation’22
  23. 23. Collecting DataCollecting Data • Identify appropriate performance indicators • Develop a collection plan CollectCollect DataData • Develop a collection plan 23
  24. 24. Example of Performance IndicatorsExample of Performance Indicators • Units produced OutputOutput • Equipment downtime TimeTime • Units produced • Items sold • Work backlog • New accounts opened • Productivity • Inventory turnover • Etc. • Equipment downtime • Overtime • Time to project completion • Processing time • Repair time • Lost time days • Etc 24
  25. 25. Example of Hard IndicatorsExample of Hard Indicators • Unit costs CostCost • Scrap QualityQuality • Unit costs • Variable costs • Overhead costs • Operating costs • Number of cost reduction • Etc. • Scrap • Waste • Rejects • Error rates • Rework • Product defects • Product failure 25
  26. 26. Example of Performance ResultsExample of Performance Results •• Some performance results after trainingSome performance results after training program:program: • Scrap was reduced from 11 % to 7.4 % • Absenteeism was reduce from 7 % to 3.25 %• Absenteeism was reduce from 7 % to 3.25 % • The annual turnover rate was reduced from 30 % to 16 % • Lost time accidents were reduced 95 % 26
  27. 27. Isolating the Effects of TrainingIsolating the Effects of Training Methods to IsolateMethods to Isolate UsingUsing Control GroupControl Group TrendTrend LinesLinesMethods to IsolateMethods to Isolate the Effects ofthe Effects of TrainingTraining LinesLines ParticipantsParticipants EstimateEstimate Supervisors ofSupervisors of Participants EstimateParticipants Estimate 27
  28. 28. UsingUsing Control GroupControl Group • A control group arrangement can be used to isolate training impact. • With this strategy, one group receives training, while another, Isolating the Effects of TrainingIsolating the Effects of Training similar group does not receive training. • The difference in the performance of the two groups is attributed to the training program. 28
  29. 29. Trend LinesTrend Lines • Trend lines are used to project the values of specific output variables if training had not been undertaken. • The projection is compared to the Isolating the Effects of TrainingIsolating the Effects of Training actual data after training, and the difference represents the estimate impact of training. 29
  30. 30. Trend Lines AnalysisTrend Lines Analysis At the beginning of May, a Sales training Program session was held VolumeofSales The difference represents the estimate impact of training. Actual sales performance Jan Feb Mar Apr JulJunMay Aug VolumeofSales training. Trend Projection 30
  31. 31. Participants andParticipants and Supervisors ofSupervisors of ParticipantsParticipants Estimate ofEstimate of TrainingTraining’’s Impacts Impact • This method rests on the assumption that participants (and their supervisors) are capable of estimating how much a performance improvement is related to the training program. • Because their actions have produced the Isolating the Effects of TrainingIsolating the Effects of Training TrainingTraining’’s Impacts Impact • Because their actions have produced the improvement, participants (and their supervisors) may have very accurate input on the issue. • They should know how much of the change was caused by applying what they have learned in the program. 31
  32. 32. Participants andParticipants and Supervisors ofSupervisors of ParticipantsParticipants Estimate ofEstimate of TrainingTraining’’s Impacts Impact Typical Questions to Estimate :Typical Questions to Estimate : • What percent this improvement can be attributed to the application of skills/techniques/knowledge gained in the training program? Isolating the Effects of TrainingIsolating the Effects of Training TrainingTraining’’s Impacts Impact gained in the training program? • What confidence do you have in this estimate, expresses as a percent? • What other factors contributed to this improvement in performance? 32
  33. 33. 1 Training Program 50% 70% 2 Change in Procedures 10% 80% Percent Improvement Caused by Confidence Expressed as a Percent Factors Which Influenced ImprovementNo. Isolating the Effects of TrainingIsolating the Effects of Training Example of a ParticipantExample of a Participant’’s Estimations Estimation 2 Change in Procedures 10% 80% 3 Adjustment in Standards 10% 50% 4 Revision to Incentive Plan 20% 90% 5 Increased Management Attention 10% 50% 6 Other - - The confidence percentage is multiplied by the estimate (50 % x 70 %) to produce a usable training factor value of 35 %a usable training factor value of 35 % 33
  34. 34. 1 Training Program 50% 70% 2 Change in Procedures 10% 80% 3 Adjustment in Standards 10% 50% Percent Improvement Caused by Confidence Expressed as a Percent Factors Which Influenced ImprovementNo. Isolating the Effects of TrainingIsolating the Effects of Training Example of a ParticipantExample of a Participant’’s Estimations Estimation 4 Revision to Incentive Plan 20% 90% 5 Increased Management Attention 10% 50% 6 Other - - • The confidence percentage is multiplied by the estimate (50 % x 70 %) to produce a usable training factor value of 35 % • This adjusted percentage is then multiplied by the actual amount of improvement (post-program minus pre-program value) to isolate the portion attributed to training • The adjusted improvement is now ready for conversion to monetary values, and used in the return on investment 34
  35. 35. Converting Data to Monetary ValuesConverting Data to Monetary Values Converting DataConverting Data to Monetaryto Monetary ValuesValues •• Steps to Convert Data to MonetarySteps to Convert Data to Monetary ValuesValues 1. Focus on a unit of improvement 2. Determine a value of each unit2. Determine a value of each unit 3. Calculate the change in performance data 4. Determine an annual amount of change 5. Calculate the annual value of improvement 35
  36. 36. Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values An example to illustrate the steps to convert data to monetary values 1. Focus on unit improvement • One grievance reaching step two in the four-step grievance resolution process StepsSteps IllustrationIllustration improvement four-step grievance resolution process 2. Determine a value of each unit • Using internal experts, the cost of an average grievance was estimated to be $ 6,500 when considering time and direct costs (V = $ 6,500) 36
  37. 37. Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values 3. Calculate the change in performance data • Six months after the program was completed, total grievances per month reaching step two declined by ten. • Seven of the then grievance reductions were StepsSteps IllustrationIllustration • Seven of the then grievance reductions were related to the program as determined by supervisors (isolating the effects of training) 4. Determine an annual amount for the change • Using the six month value, seven per month (grievance reductions), yields an annual improvement of 84 (7 x 12 months)
  38. 38. Steps to Convert Data to Monetary ValuesSteps to Convert Data to Monetary Values 5. Calculate the annual value of improvement • Annual value = 84 x $ 6,500 = $ 546,000 StepsSteps IllustrationIllustration
  39. 39. Tabulating costTabulating cost of the programof the program • Tabulating the costs involves monitoring or developing all of the related costs of the program targeted for the ROI calculation. Tabulating Cost of the ProgramTabulating Cost of the Program
  40. 40. Tabulating costTabulating cost of the programof the program • Cost components that should be included are : • The cost to design and develop the program Tabulating Cost of the ProgramTabulating Cost of the Program • The cost of all program materials provided to each participant • The cost for facilitator • The cost of the facilities of the training program
  41. 41. Tabulating costTabulating cost of the programof the program • Cost components that should be included are : • Travel, lodging, and meal costs for the participants Tabulating Cost of the ProgramTabulating Cost of the Program • Salaries, plus employee benefits of the participants who attend the training • Administrative and overhead costs of the training function, allocated in some convenient way
  42. 42. An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis Weeks after training Trained Group Control Group 1 US$ 9,723 9,698 Post Training Data Average Weekly Sales 2 9,978 9,720 3 10,424 9,812 13 13,690 11,572 14 11,491 9,683 15 11,044 10,092 Average for weeks 12,075 10,449 13, 14, 15
  43. 43. An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis Data US$ Average weekly sales Trained Group 12,075 Control Group 10,449 Annualized Program Benefits Increase 1,626 Profit Contribution from Training 2 % 32.50 (Training Impacts) Total weekly improvement 1,495 (32.5 x 46 participants) Total annual benefit 71,760 ($ 1,495 x 48 weeks) Note : 46 participants were still in job after 3 months
  44. 44. An Example to Illustrate ROI analysisAn Example to Illustrate ROI analysis Cost US$ Facilitation fees 11,250 Program materials : $ 35 x 46 1,610 Meals : 3 days x $ 28 x 46 1,288 Cost Summary : An Illustration ROI (%): $ 71,760 - $ 29,090 $ 29,090 x 100=Meals : 3 days x $ 28 x 46 1,288 Participant salaries plus benefit (35 %) 12,442 Coordination and Evaluation 2,500 Total Cost 29,090 $ 29,090 146 %=
  45. 45. Program Goals vs. Success Criteria Learning Programs including eLearning • Sample Program Goals –Reduce training-related travel costs by 20% (cost initiative) –Improve first-pass resolution of customer service or help desk issues by 3% (operational initiative) –Increase adoption of e-Learning as the preferred training modality (change initiative) • Supporting Success Criteria –Employees satisfy 20% of IDP requirements with e-Learning courses –50% of all help desk employees complete two courses from a defined curriculum within three months –Positive evaluation results, demonstrating affinity for e-Learning, with a >80% approval rating 45
  46. 46. Introduce Talent Review Sessions at Your Organization Calibrate Assessments & Planned Actions for Assessing the Leadership Pipeline Introduces Common Thinking about Talent Gives an Overview of Leadership Pool Gaps & Gains Promotes Real Action about Performance & Potential • Improves understanding of the current talent • Ensures Actions plans are in place • Links talent to • Clarifies who owns talent • Leads to better assignment and current talent portfolio for critical roles • Establishes common talent standards • Aligns assessments • Brings together multiple viewpoints on individuals • Gives leaders a sense of fairness, objectivity, and transparency • Links talent to strategy • Highlights individual performance success and issues • Identifies gaps (functional, global, diversity, etc.) • Makes it easy to see if leaders are building their talent pool assignment and development decisions • Facilitates mobility across functions and divisions • Refines the messages to be delivered • Identifies individual contributors who have the interest and potential for movement into critical roles 46
  47. 47. Final word Building a culture of eLearning with 24x7 Learning We consult you to … 1.Integrate eLearning into other HR programs like PMS, Leader feedback, mentoring 2.Create internal communication to encourage staff & leaders to learn 3.Utilize onboarding to orient new hires 4.Design Rewards, recognition and/or incentives to learners 5.Make training relevant, self-paced & flexible 6.Set stretch goals to push learning 7.Encourage both formal (e-learning, coaching) & informal (on-the-job special projects) learning )47
  48. 48. This presentation will be mailed to you Thank you Presented by chief L&D consultant Shonalie Gupta Ray Shonalie.Gupta@24x7learning.com 48

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