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Performance
Consulting
THIRD EDITION of the Classic Bestseller
Completely Revised and Updated
Performance
Consulting
A STRATEGIC PROCESS TO IMPROVE,
MEASURE, AND SUSTAIN
ORGANIZATIONAL RESULTS
Dana Gaines Robinson | James C. Robinson
Jack J. Phillips | Patricia Pulliam Phillips
Dick Handshaw
Berrett–Koehler Publishers, Inc.
a BK Business book
Berrett–Koehler Publishers, Inc.
a BK Business book
Berrett–Koehler Publishers, Inc.
a BK Business book
Copyright 2015 by Dana Gaines Robinson, James C. Robinson, Jack J. Phillips,
Patricia Pulliam Phillips, and Dick Handshaw
All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in
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Library of Congress Cataloging-in-Publication Data
Robinson, Dana Gaines, 1944–
Performance consulting : a strategic process to improve, measure, and sustain organizational
results / Dana Gaines Robinson, James C. Robinson, Jack J. Phillips, Patricia Pulliam Phillips, Dick
Handshaw. — ird edition, completely revised and updated.
pages cm
Includes bibliographical references and index.
ISBN 978-1-62656-229-5 (pbk.)
1. Employees—Training of. 2. Performance. 3. Business consultants. I. Title.
HF5549.5.T7R526 2015
658.3’12—dc23
2014047009
ird Edition
20 19 18 17 16 15 10 9 8 7 6 5 4 3 2 1
is book is dedicated to all those
in the human performance eld
who make performance their business
and prove it each and every day.
vii
Contents
Contents
Contents
List of Figures xiii
List of Tables xv
Preface xvii
Introduction: Stop Jumping to Solutions and
Make Performance Your Business! 1
What Is the Alternative? 2
Performance Consulting Process 3
The Proof 5
1 Performance Consulting: The Process 7
Types of Work 7
Our Partners in the Performance Consulting Process 9
The Performance Consulting Process 12
Performance Consulting Pointers 18
2 Performance Consulting: The Mental Model
and Logic 21
The Need Hierarchy 23
The SHOULD-IS-CAUSE Logic 26
Gaps Map: Here’s How It’s Done 32
Performance Consulting Pointers 37
viii
|
CONTENTS
FIRST PHASE:
Identify Strategic Opportunities 39
3 Build Client Partnerships 41
Access 43
Credibility 47
Trust 52
Performance Consulting Pointers 55
4 Identify Strategic Opportunities Reactively 57
Reframing—What Is It? 58
Core Practices to Use in Reframing Discussions 67
Reframing Requests: Here’s How It’s Done 69
Performance Consulting Pointers 72
5 Identify Strategic Opportunities Proactively 75
Triggers for Working Proactively 76
The Proactive Discussion 81
Conducting Proactive Discussions: Here’s How It’s Done 89
Performance Consulting Pointers 91
SECOND PHASE:
Assess Business and Performance Needs 93
6 Define the SHOULDs 95
Defining Business SHOULDs 95
Defining Performance SHOULDs 96
Collecting Data 102
Defining Organizational SHOULDS 108
Building Performance Models: Here’s How It’s Done 112
CONTENTS
|
ix
Shortcuts for Forming a Performance or Competency Model 116
Performance Consulting Pointers 117
7 Assess the IS 119
Business IS 119
Performance IS 121
Data Sources 123
IS Assessment: Here’s How It’s Done 131
Shortcuts for Doing an IS Assessment 137
Performance Consulting Pointers 138
8 Identify CAUSEs and Select Solutions 139
Identifying Root Causes, Not Symptoms 140
Designing CAUSE Assessments 146
Reporting Results 149
Interpreting Data 149
CAUSE Analysis: Here’s How It’s Done 156
Shortcuts for Obtaining CAUSE Data 162
Performance Consulting Pointers 162
THIRD PHASE:
Implement and Measure Solutions 165
9 Alignment and Measurement Model 167
Client Preferences for Measurement Information 168
Alignment and Measurement Model 170
Alignment and Measurement Logic 175
Alignment and Measurement Model: Here’s How It’s Done 176
Performance Consulting Pointers 181
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CONTENTS
10 Develop and Implement the Measurement Plan 183
Guidelines for Effective Measurement 184
Measurement Data as Diagnostic Data 186
Measurement Objectives and Plans: The What, How, Who
and When 187
The Use of Technology 197
Measuring Results: Here’s How It’s Done 199
Shortcuts for Measuring Results 206
Performance Consulting Pointers 206
11 Determine Return on Investment (ROI) 209
Methods of Isolating the Effects of the Solution 210
Converting Data to Monetary Values 218
Determining Monetary Value of a Unit of Measure 219
Identifying Intangible Benefits 222
Determining Costs of a Performance Consulting Initiative 223
Calculating ROI Measures 230
Shortcuts to Determining the ROI 233
Performance Consulting Pointers 234
FOURTH PHASE:
Report and Sustain Results 235
12 Report Results and Form Plans for Sustaining
Results 237
Preparing for the Meeting 238
Conducting the Meeting 241
Sustaining Performance, Organizational, and Business
Results 243
CONTENTS
|
xi
Knowing When to Actively Reengage 246
Shortcuts for Reporting Results 248
Performance Consulting Pointers 249
Conclusion: Commit Now to Make Performance
Your Business 251
Performance Consulting and Measurement Toolkit 253
Glossary 257
References 261
Index 263
About the Authors 271
xiii
List of Figures
List of Figures
List of Figures
1.1 Performance Consulting Process 13
2.1 The Need Hierarchy 23
2.2 The Components of a Gaps Map 29
2.3 GAPS! Map for Manufacturing Situation 33
4.1 Direction of Reframing Discussions 59
4.2 Starter List of SHOULD, IS, CAUSE Questions 63
4.3 Logic Path That Begins on Performance Side of Map 65
4.4 Logic Path That Begins on the Business Side of Map 66
5.1 Direction of Proactive Discussions 77
6.1 Applications from SHOULD Assessments 97
7.1 Skill and Frequency Matrix 122
7.2 Accomplishment: Maintain Contact with Store Manager/
Owner, Encourage Acceptance of New/Additional Products 135
7.3 Accomplishment: Respond to Complaint of Store Manager/
Owner 136
8.1 Root Cause Categories for Gaps 141
8.2 Unabridged Root Cause Categories 145
8.3 Data Funnel 150
xiv
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LIST OF FIGURES
8.4 Gaps Map for Route Delivery Representations (RDRs),
Northeast Region 161
9.1 Alignment and Measurement Model 171
10.1 Performance Consulting Process 185
11.1 Example of Results from Control/Experimental Group
Design 212
11.2 Example of a Trend Line 213
11.3 Forecasting Example 215
12.1 Data Funnel 238
xv
List of Tables
List of Tables
List of Tables
2.1 Need Hierarchy Terminology 27
5.1 Examples of Business Goals and Strategies 81
5.2 Checklist to Prepare for a Proactive Business Goals
Conversation 82
6.1 Comparing Performance and Competency Models 100
6.2 Performance Model for Quality Control Representative (QCR) 102
6.3 Competency Model for Quality Control Representative (QCR) 103
7.1 Designing IS Assessments 126
7.2 Frequency Scale 129
7.3 Skill Level Scale 129
7.4 Gap Analysis Plan 133
8.1 Designing Cause Assessments 147
8.2 CAUSE Analysis Questionnaire for RDRs 158
8.3 Results of CAUSE Analysis for RDRs 159
9.1 Executive View of Measurement Data 169
9.2 Objectives for Work-at-Home Initiative 178
9.3 Business Results 180
10.1 Measurement of Reaction 189
xvi
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LIST OF TABLES
10.2 Measurement of Organizational and Individual Capability 191
10.3 Sample of a Cause Analysis Survey 192
10.4 Measurement of Performance Results 194
10.5 Measurement of Business Results 196
10.6 Data Collection Plan for Metro Transit Authority 202
10.7 Cost of Absenteeism Comparisons 204
11.1 An Example Illustrating the Steps for Converting Data to
Monetary Values 220
11.2 Consulting Cost Categories 226
12.1 Typical Agenda for a Meeting to Report and Discuss
Measurement Results 241
xvii
Preface
Preface
Preface
by e Robinsons
“What do you think of the idea of working together
on a third edition of Performance Consulting?”
—Jack Phillips in conversation with Jim and
Dana Robinson, ISPI Conference, 2013
We were stunned when this question was posed to us by Jack Phillips. We
sold the intellectual property for our workshops and retired in 2011. We
believed that the second edition of Performance Consulting, published in
2008, would be our last. However, the idea of a new edition was exciting
to consider!
In ongoing conversations with both Jack and Patti Phillips, as well as
Dick Handshaw, it became evident that coauthoring a third edition with
these three individuals was not only possible but would be enriched by
integrating each of our perspectives and experiences. Dick brings fresh
applications and cases from his consulting practice, which employs per-
formance consulting techniques. e Phillipses bring their robust body
of work regarding measurement and evaluation. And we provide the per-
formance consulting models and techniques that have evolved over thirty
years and are validated by practitioners every day. us, we began our
work as a team with this book the result.
xviii
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PREFACE
PERFORMANCE CONSULTING—THE PROCESS:
WHAT’S NEW?
We are reminded of the statement “Books stand still; knowledge does not”
when reecting on all that has changed since 1995 when the rst edition of
Performance Consulting was released. One change relates to the very peo-
ple who use performance consulting techniques in their work. When we
rst began our journey into the eld of human performance improvement,
performance consulting was viewed as a role for people in the learning and
development eld. Now it is a process embraced by individuals, working
both internally and externally, in an array of functions including human
resources, talent management, and organization development in addition
to learning and development. During the last ve years of managing our
consulting rm, we assisted people in nance, information technology
(IT), and quality functions to incorporate performance consulting prin-
ciples and practices into the partnering processes used with their clients.
e bottom line: performance consulting is a process that benets anyone
who aspires to achieve organizational change, enhance human perfor-
mance, and impact the business through inuence, not edict.
In 1995, our knowledge of performance consulting was almost entirely
based on what occurs in American corporations. Since then, our books
have been translated into multiple languages, and we have assisted func-
tions around the globe to operate strategically, employing performance
consulting models and logic. We know, from our work and that of our
coauthors, that performance consulting is a process used in countries
throughout Asia, Europe, the Middle East, and South America. is
global experience has enriched the performance consulting process and
this book.
Even our denition of performance consulting has changed. Twenty
years ago our focus was on how a client and a consultant partner to achieve
optimal human performance. Years ago we emphasized the relationship
aspect of performance consulting because so many people operated as
either experts or pairs-of-hands, paraphrasing the work of Peter Block
(2011). Our focus was also on enhancing human performance that would
result in business impact.
PREFACE
|
xix
Times are dierent, and so is our denition of performance consulting.
We now view performance consulting as a strategic process that produces
business results by maximizing performance of people and organizations.
e partnership of clients and consultants is still an integral part of the
process—this relationship matters. But now our emphasis is on the process
of performance consulting. is process is strategic because it begins with,
and directly addresses, the long-term and mission-critical needs and goals
of a business. What also is new is the greater focus we place on the need
to enhance performance of both people and the organization if business
results are to be achieved.
PERFORMANCE CONSULTING—THE BOOK:
WHAT’S DIFFERENT?
is edition contains new cases and multiple examples from the authors’
recent consulting assignments. Terminology has been changed to reect
today’s business world, and the models themselves have been refreshed.
e primary change you, the reader, will experience is new content regard-
ing how to measure performance consulting initiatives. In our previous
books, we acknowledged measurement to be a part of the process. How-
ever, we oered little advice on how to plan for and implement that part of
the process. Enter Jack and Patti Phillips and their in-depth knowledge of
this critical component. It has been a joy to partner with them, discovering
how our performance consulting models and techniques combine with the
measurement models they have developed and validated over the years.
e result is a book that describes an end-to-end performance consult-
ing process, taking you from how to respond to a client’s initial request to
forming the measurement strategy, implementing solutions, and report-
ing on the business and performance results.
WHAT’S THE SAME?
One of the major reasons for writing the rst edition of Performance Con-
sulting remains the same today: too many people still support a jump-to-
solution approach. In other words, when a need is presented by a client, the
xx
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PREFACE
conversation quickly progresses to deciding on the solution that will “x”
the problem. Several reasons explain why this approach persists, including
that many people in organizations are biased to action, resistant to taking
the time needed to ensure the solution is appropriate and sucient. en,
once resources are expended and the problem remains, the conversation
moves to laying blame. Clearly this bias to action, before determining if
that action will yield success, can no longer be justied. Performance con-
sulting remains a process that prevents this solution-jump from occurring.
Performance consulting is a systemic process requiring that we (1) work
on the right problem, (2) implement the right solutions, and (3) focus on
achieving and measuring the right results.
We still believe performance consulting is comprised of both art and
science techniques. e art is evidenced through the relationships devel-
oped with clients, sharing the goal of enhancing the performance of peo-
ple and the organization to achieve business results. e science includes
the mental model and logic that performance consultants use. e science
also includes techniques for designing and reporting data obtained from
assessment and measurement initiatives. It is this evidenced-based approach
that helps us avoid the “jump to solution” tactic too frequently used today.
Each of the art and science components is described in depth in this book.
is book embraces the practical, how-to approach of our previous
books, including the following:
Here’s How It’s Done are examples from the consulting practices of our
author team. ese cases tell the story of how people actually utilized
the practices we discuss in the book and the results they obtained.
Shortcuts are suggestions for how to complete some phase of the perfor-
mance consulting process in a reliable, time-ecient manner.
Performance Consulting Pointers appear at the close of each chapter, sum-
marizing primary learnings you can take away and utilize.
Download ese lists the tools, checklists, and graphics described in this
book that can be downloaded and utilized in your day-to-day practice.
ese tools can be accessed by going to the Berrett-Koehler website.
Complete information on how to purchase and download these tools
can be found on page 253.
PREFACE
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xxi
FOR WHOM IS THIS BOOK WRITTEN?
is book is written for people who work within any of the people-focused
functions in organizations, including human resources (HR), learning and
development (L&D), organization development (OD), and talent manage-
ment. People who work in these functions have diverse job and role titles.
In this book we will use the term performance consultant to reference any
and all of these individuals, whether they are internal or external to an
organization.
Performance consulting techniques and processes are relevant whether
you work in a for-prot, not-for-prot, governmental, or nongovernmental
organization. Each of these entities has goals of an operational nature that
must be achieved, as well as employees and managers whose performance
is key to realizing these goals.
What we now know, as mentioned earlier, is that performance consult-
ing techniques are also relevant to people who work within other support
functions of an organization. ese functions include but are not limited
to quality, IT, nance, and operations. Individuals within these functions
partner with clients on business initiatives and strive to achieve results
through the inuence and collaborative practices that comprise the art of
performance consulting. Determining the root causes of problems, rather
than jumping to solutions, is also a relevant approach.
Finally, people who work as external consultants will nd relevance in
this book. External consultants partner with one or more clients in diverse
organizations. Frequently, the goal shared by these consultants and their
clients is to enhance business results through the performance of people
and organizations—the purview of performance consultants!
OVERVIEW OF BOOK CONTENTS
We begin with two chapters that provide the ow of steps and logic that
are the framework for performance consultants. In Chapter 1 we describe
the nine steps in the Performance Consulting Process. e logic and
mental model that guide the thinking and actions of a performance con-
sultant are described in Chapter 2. ese two chapters can be viewed as
xxii
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PREFACE
describing both the “what” (the mental model) and “how” (the process)
of performance consulting. e remainder of the book is a deep dive into
the optimal practices and techniques for performing each of the steps in
the Performance Consulting Process. ese steps are organized into four
phases of work.
First Phase: Identify Strategic Opportunities
e rst phase of work focuses on identifying strategic opportunities. By
“strategic opportunities,” we mean the results that the business or orga-
nization must achieve to ensure long-term success. rough our partner-
ships with managers who “own” accountability for business results, we
gain access to the projects that will benet from our work. Chapters 3,
4, and 5 provide techniques for deepening client partnerships, as well as
identifying strategic opportunities both reactively and proactively.
Second Phase: Assess Business and Performance Needs
e second phase in the Performance Consulting Process focuses on
assessing business and performance needs relevant in a given situation.
In Chapters 6 through 8, we provide the “how- to’s” for assessing what
SHOULD be occurring, what IS occurring, and the root CAUSEs for these
gaps. Once causes are known, selecting the appropriate solutions is pos-
sible. We do not discuss how to design the solutions required to enhance
the performance of people and organizations. ere are literally hundreds
of books dedicated to solution design. We do discuss how to decide, with
your client, on the solutions that will be required.
Third Phase: Implement and Measure Solutions
Planning for measurement begins at the time that goals for the initiative,
and solutions to be implemented , are determined. is is what we mean by
the statement that measurement is a front-end process—planning begins
before you launch solutions. Chapter 9 introduces you to the Alignment
PREFACE
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xxiii
and Measurement Model that integrates performance consulting and
measurement processes. is model has ve levels of measurement cor-
responding with the increased level of impact that can occur as solutions
are implemented. Which level(s) to focus on and how to design the appro-
priate measurement process are topics we include in this section. Chapters
10 and 11 describe techniques for developing a measurement strategy and
analyzing the data obtained, including return on investment (ROI).
Fourth Phase: Report and Sustain Results
Once measurement results are known, it is critical to share the ndings
with clients and other stakeholders. is is where the proverbial rubber
hits the road with regard to performance consulting initiatives. Which
business and performance results did we obtain? Which results are unsat-
isfactory—and why? And how can we sustain results over time? We address
these questions in Chapter 12.
ACKNOWLEDGMENTS
As an author team, we want to begin by thanking the many people who
assisted us in writing this manuscript. ey include those we reached out
to early in the process to discuss current research and trends, including
Elaine Biech, Marc Eron, Ann Herrmann-Nehdi, Pat McLagan, and
Norm Smallwood. Several people read versions of the manuscript, provid-
ing us with valuable suggestions and comments that improved the book.
Our reviewers include Chris Adams, Paul Butler, Gary DePaul, Tora Estep,
Jean Larkin, Steven Manderschied, and Leigh Wilkinson. And thanks also
to Barbara ornton for providing one of the in-depth cases included in
this book.
A special thanks to Hope Nicholas, of ROI Institute, for her edito-
rial and administrative support throughout the writing process. She is a
real pro! We want to also acknowledge the entire Berrett-Koehler (BK)
team. As authors, we have published several books with BK; each experi-
ence arms both the talent and the commitment to collaboration that is
xxiv
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PREFACE
integral to this organization. anks for the opportunity to partner with
you once again.
We each want to thank the many clients with whom we have worked
over the past decades. It is within their organizations, and through the
partnering on their performance consulting and measurement initiatives,
that our collective ideas on optimal practices and processes have been
formed and tested.
Finally, we want to acknowledge each member of our author team. We
have been on a journey together for more than a year; we have each learned
a great deal and experienced, once again, the joy that comes from working
in a synergistic manner with others.
1
Performance Consulting
Introduction
INTRODUCTION
Stop Jumping to Solutions
and Make Performance
Your Business!
Consider these scenarios, representative of what occurs frequently in
organizations today:
Sales representatives in a tech company are charged with selling large
enterprise-wide systems. While their revenue goals are being met, the
protability goals associated with these sales are not being achieved.
e VP of enterprise sales and his HR strategic partner have decided
to change the compensation plan so it puts more emphasis on making
protable sales.
Safety violations are increasing in a manufacturing organization. A
decision has been made to have all operators and their supervisors
participate in a refresher course on safety. is is a program these indi-
viduals attended just one year ago that was never measured to deter-
mine if employees’ on-the-job performance had actually changed.
Management in a hotel chain is concerned about the low customer
satisfaction ratings obtained for the past four months. is is the same
time period when a large number of new hires were placed into front
desk positions. A senior leader asks the chief talent ocer to meet to
discuss changing the selection criteria and process used to hire people
2
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PERFORMANCE CONSULTING
into the front desk clerk position. Clearly this process is not identify-
ing people who possess good customer contact skills.
What do these scenarios share in common?
1. ey use a jump-to-solution approach, quickly moving from an iden-
tied problem to a request for solution.
2. Root causes for the problem are not identied before agreeing on
a solution.
3. And, as evidenced in the second scenario, measurement of results is
neither planned for nor completed.
WHAT IS THE ALTERNATIVE?
Our message: utilize a performance consulting process and partner with
clients to
translate business strategy into talent requirements;
identify on-the-job performance gaps, both current and future, that
impact business results;
determine root causes for gaps in business and performance results—
and form strategic plans and the solutions required to address
those causes;
form a measurement strategy on the front end of solution imple-
mentation;
implement solutions that yield measurable and sustainable results; and
measure the results, determining with management any future actions
that are required.
e need to align tactics, such as HR and learning solutions, to the
strategic business requirements of organizations is not new. e books and
messaging that headline the need to be strategic are ubiquitous. Unfortu-
nately, too many people who work in the HR, L&D, and OD elds con-
tinue to perform more tactically (their focus is on solution design and
implementation) than strategically (where the focus is on achieving busi-
ness results). A robust amount of research supports this statement. In the
INTRODUCTION
|
3
interest of brevity, we will cite just one of these studies. Lawler and Bou-
dreau are authors of a longitudinal study of the HR strategic partner role.
ey began their research in 1995 and have continued their research to
the present day. eir conclusion? Only modest change has occurred since
1995. “ere is no question that the business environment has changed
dramatically in the last 20 years, but the HR function in most organiza-
tions does not look very dierent from 10–15 years ago. . . . On the other
hand there is widespread agreement concerning how HR needs to change:
it needs to be more strategic and more of a business partner” (Lawler &
Boudreau, 2012, p. 152).
is book is written as a call-to-arms to you and others who work
to enhance human performance and contribute to business results. e
approach of focusing on the solutions to implement, rather than starting
with the required business results, is no longer an option. We can—and
must—work dierently. With numerous tools and how-to techniques, this
book provides a proven process for working strategically and for partner-
ing with managers to achieve and measure sustainable business results
through human performance improvement solutions.
PERFORMANCE CONSULTING PROCESS
We dene performance consulting as a strategic process that produces
business results by maximizing performance of people and organizations.
Let’s look more closely at elements within this denition.
Strategic Process
e Performance Consulting Process is a dened ow of steps that pro-
duces strategic outcomes of importance to the business. ese outcomes
are long-term in scope and directly related to the organization’s sustained
success. e process steps are incorporated into four phases of work:
First Phase: Identify strategic opportunities. In this phase, you forge strong
partnerships with clients so that you gain access to strategic opportu-
nities on which to partner.
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PERFORMANCE CONSULTING
Second Phase: Assess business and performance needs. Now you assess
business and on-the-job performance needs, determining root causes
for identied gaps.
ird Phase: Implement and measure solutions. With data from the
assessment, you partner with clients to identify and implement solu-
tions. You also form a measurement strategy at the time solutions
are identied. Measurement is a front-end process, not something
to be determined once solutions have been implemented. Obtaining
measurement data is an activity that occurs throughout the solution
implementation phase of work.
Fourth Phase: Sustain results. Results are reported to your clients, deter-
mining with them the actions required to sustain results and/or to
make adjustments when results are insucient.
What are some of the critical capabilities you need to employ success-
fully as a performance consultant? You must have skills to translate busi-
ness needs into human performance and organizational requirements.
You need to have the condence and capability to ask powerful, thought-
provoking questions of your clients. It is not your job to have the answers;
it is your job to ask the right questions and then partner with clients to
determine the answers. Also integral to success as a performance consul-
tant is to work in a solution-neutral manner. is approach means you do
not have preconceived ideas as to what solutions will be needed; rather, you
are data driven and evidence based—a far cry from the solution-jumping
approach that is still prevalent! e how-to’s of evidencing these capabili-
ties are described in this book.
Maximizing Performance of People and Organizations
is is a goal shared with your clients—the managers with whom you part-
ner. For business results to be achieved, there must be alignment among what
people do on the job, how the organization provides support for that desired
performance, and the business goals required for success. Taking an active
role in making that alignment a reality is a responsibility you share with
INTRODUCTION
|
5
your client. You also share accountability for the results that do, or do not,
occur. is means you step up to the plate and measure results. If the goals
have been achieved, the question becomes how to maintain those results.
If, however, results are disappointing, then the question turns to deciding
what future actions are needed to continue a forward progress. Performance
consulting is about change that becomes embedded into the organization.
THE PROOF
Most people do acknowledge that working strategically yields greater
results to an organization than working only as a solution provider. Pro-
viding data and metrics about the results achieved is something managers
in our organizations value. Each of these statements meet what is referred
to as the “face validity test.” However, in a book that espouses measure-
ment, we think it is important to provide evidence that when HR, OD, and
learning professionals work in a strategic manner, benets accrue to the
business. So consider these ndings:
When the organizational barriers come down and HR business part-
ners become more strategic, they can improve employee performance
by up to 22 percent, employee retention by up to 24 percent, revenue by
up to 7 percent, and prot by up to 9 percent (CEB Corporate Leader-
ship Council, 2014).
Learning organizations that use a performance consulting process
have found a consistent, structured way to develop trust and build
strong relationships with leaders. Over time these relationships will
result in the learning organization becoming a highly aligned and
strategic partner with the business, increasing the learning organiza-
tion’s ability to deliver value and contribute to the business, its goals,
and ultimate its protability (Bersin by Deloitte, 2014).
High-impact learning organizations (HLOs) grow their prots three
times faster than their peers. Excellence in performance consulting is
one of the top capabilities distinguishing HLOs (Lawler, Jamrog, &
Boudreau, 2011).
6
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PERFORMANCE CONSULTING
HR leaders who emphasize numbers tend to see the biggest gains in
the power and eectiveness of their HR functions. erefore, to be
seen as a credible function, HR leaders need data and analytics that
show how eectively the HR organization operates and how talent
management systems perform (CorpU, 2010).
e default of jumping to solution is no longer an option; maintain-
ing the status quo is also not a viable strategy. We must move to a more
strategic, data-driven, and measurable way of operating. e performance
consulting process is proven. e need to work strategically is both real
and current. e person who can make this happen is you. We encourage
you to use this book as a guide and resource, and to experience the satis-
faction that comes from making a dierence that is valued, measurable,
and sustainable in your organization.
7
Performance Consulting
Performance Consulting: e Process
1
Performance Consulting:
The Process
If you can’t describe what you are doing as a process,
you don’t know what you’re doing.
—W. Edwards Deming
What is performance consulting? We dene it as a strategic process that
produces business results by maximizing performance of people and orga-
nizations. e use of the word strategic is purposeful. Strategic work is
critical to sustaining future business and organizational success. Perfor-
mance consulting is a process used to partner with management on these
types of initiatives. However, strategic work is not the only type of work
we support. is chapter begins with a look at the types of work in which
performance consultants engage and the people with whom they partner.
It then describes the performance consulting process.
TYPES OF WORK
Performance consultants typically encounter three categories of work when
working with a function that is focused on the “people side” of business.
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PERFORMANCE CONSULTING
Transactional Work
Transactional work is administrative in nature. Typically this work
addresses the needs of a specic individual. When a manager seeks guid-
ance in how to interpret a specic organizational policy or when an
employee inquires about the status of her tuition reimbursement payment,
transactional requests are received. Procurement managers need to pro-
cess requests regarding suppliers, and call center representatives need to
respond to questions from customers—each of which is a transactional
request. is work must be done eectively and promptly. is category
of work is important, but it is not strategic. Transactional work is increas-
ingly being outsourced or transitioned to self-service through technol-
ogy. e goal of many HR, learning, OD, and other functions today is to
accomplish transactional work through alternative means, thus freeing up
time to work on more strategic opportunities.
Tactical Work
Tactical work focuses on the design and implementation of solutions that
support successful work group performance. Examples include utilizing an
e-learning methodology for compliance training or the introduction of a
more ecient work process. Tactics are intended to support a strategy. e
problem is that many tactical solutions are implemented with minimal or
no linkage to a strategic goal. In these instances, the solutions are essentially
programs or events. How many times have we seen a manager take a single
action, such as reorganizing the function, in hopes of achieving greater e-
ciency? Yet over time, greater eciency is not achieved because other needed
changes are not implemented. Or what about a training program rolled out
to hundreds of people with limited connection to a business goal? Solutions
implemented as stand-alone tactics have minimal probability of a long-term
impact on business results. Certainly there are times when a single solution
is appropriate—for example, to certify employees in handling specic types
of projects. But more oen than not, single solutions do not bring about sus-
tained change in performance or long-term business results. Instead, they
consume valuable resources in terms of money, people, and time.
PERFORMANCE CONSULTING: THE PROCESS
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9
Strategic Work
Strategic work benets the long-term and overall aims and interests of
the organization. It requires clear business goals that guide the perfor-
mance requirements of people who support those goals. Strategic work is
inclusive of tactical work—a strategy with no tactics is just a dream. As
performance consultants, we want to ensure that the work we do to design
and implement tactics directly supports one or more strategic goals of the
organization.
How do you know you are working on a strategic initiative? e char-
acteristics of strategic work are as follows:
It focuses on business units, functions, or the entire enterprise. It is
macro, not micro, in focus.
It is long-term in scope, frequently taking actions that will benet the
organization over the long term (over one or more years) and not short
term (the next quarter)
It is directly linked to one or more business goals or needs of the
organization
It is solution-neutral in its early stages. e role of a performance con-
sultant is to work with clients to identify the problem or opportunity
before beginning to work on tactics.
It requires multiple actions to be implemented; single solutions do not
yield strategic results.
As a performance consultant, it is important to focus on the strate-
gic results needed and not just the tactical solutions to be implemented.
You want to make sure you are not just doing something, but that you are
doing the right thing. Chapters 6 through 8 will help you accomplish this,
because doing the right thing generally requires some level of assessment.
OUR PARTNERS IN THE PERFORMANCE
CONSULTING PROCESS
When you work strategically, you are focused on delivering results to
the business or organization. You, however, cannot achieve these results
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PERFORMANCE CONSULTING
alone. Many factors are controlled by business leaders, factors that can be
changed only by those leaders. Partnering with these individuals becomes
critical to your success as a performance consultant.
It is important to clearly identify the appropriate individual(s) with
whom you should partner when working on any type of performance con-
sulting initiative. We use the term client to refer to the individual with
whom you should partner. You may prefer another term, such as customer
or partner. A common mistake made by performance consultants is deter-
mining too late in the process that they are not working with the “true”
client. A client is someone who
owns (has accountability for) achieving business results within the
organization and in this way has something to gain (or lose) from the
success (or failure) of the initiative;
has authority and power to make things happen, including the garner-
ing of resources required to support a specic initiative;
is within the chain of command of the employees whose performance
is to be changed in some manner; and
frequently, although not always, acts as a sponsor of the initiative and
is the primary funder of it.
Clients
Clients come in two “avors”: sustained and project.
Sustained clients meet the criteria just listed and, because of their
position and inuence within the organization, are people with whom a
partnership is maintained independent of any current project or initiative.
Your level of communication and contact with these clients is sustained
and continuous. Generally, sustained clients are located in the mid- to
upper levels in an organization. Job titles of sustained clients include presi-
dent, chief executive ocer, vice president, chief operating ocer, general
manager, country manager, and director.
Project clients meet the criteria noted for a specic project. Your
communication with project clients will be robust during the life of the
project and will decrease when the project has been completed. ese
PERFORMANCE CONSULTING: THE PROCESS
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11
are individuals whose position and power generally do not warrant the
intensive communication on a sustained basis. However, their importance
relative to a specic project does require a strong partnership during that
initiative. Frequently, projects are supported by client teams where several
individuals have ownership for some aspect of the initiative; they work
together as a team to support the project. For example, if the business
goal is to successfully introduce a new product to the marketplace, a client
team may consist of the vice president of sales, vice president of marketing,
and vice president of supply chain management. Client teams are almost
always required for enterprise-wide projects.
All of this yields yet another characteristic of strategic work: perfor-
mance consultants can work in a strategic manner only when they have
direct access to the client for the initiative. As a performance consultant,
you need to inuence clients as they make decisions relative to perfor-
mance and business goals. It is virtually impossible to inuence someone
with whom you do not have direct access. is is all the more reason to be
thoughtful about with whom you will need a sustained client relationship.
We will discuss techniques for gaining access and deepening sustained
client partnerships in Chapter 3. Here are a couple important questions
for you to consider:
1. With whom do I currently have a sustained partnership in my organization?
2. With whom should I have a sustained partnership?
Stakeholders
Stakeholder is a term used frequently today with regard to projects and
initiatives. We want to clarify the dierence between a stakeholder and
a client. Clients own and are accountable for the business results that the
initiative is addressing. For example, clients are responsible for achieving
sales goals, providing superior customer service, or reaching prot goals.
Clients are also the ultimate decision makers. While stakeholders have
a vested interest in the outcome and may have accountability to achieve
some portion of the results, they do not have accountability for the entire
set of results. An example would include rst-line supervisors of employees
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PERFORMANCE CONSULTING
whose performance is to be improved in some manner. As stakeholders,
supervisors are accountable for those results within their span of control.
ey will also have a signicant inuence on the outcome of the entire
initiative. ey can stress the importance of using a new approach on the
job and how that will help the department “make its numbers.” erefore,
strategies to engage stakeholders should be considered when designing
and implementing solutions.
Employees are not stakeholders; they are the group of individuals
whose performance is to change. Employees will benet from, or be hin-
dered by, the actions of stakeholders. e key to keep in mind: the ultimate
decision maker and your partner for the initiative is the client. However, a
successful performance consulting engagement requires interaction with
and participation from stakeholders.
THE PERFORMANCE CONSULTING PROCESS
As performance consultants, we become aware of a need to improve busi-
ness results in a variety of ways—a discussion with a line manager client,
a request from a middle manager, an alert from a sta specialist, to name
a few. e need to improve business results is identied on the “front end.”
If the need is warranted, it begins a process that results in improved busi-
ness and measurable performance results on the “back end.” Let’s look at
the steps contained in the Performance Consulting Process as shown in
Figure 1.1.
Identify Strategic Opportunities
e rst phase of the Performance Consulting Process involves activities
associated with identifying opportunities where we can partner with our
clients. Sometimes these opportunities are identied in a reactive manner
(step 1). is occurs when a client requests a specic solution. In these situ-
ations, the goal is to reframe the request so that the focus is on the results
the client seeks, rather than the solution that the client has requested.
Techniques for reframing are described in Chapter 4.
FIGURE 1.1 Performance Consulting Process
1
Reactively
Identify
Opportunities
4
Determine
Business and
Performance
SHOULD, IS,
and CAUSE
5
Report
Results to
Clients;
Agree on
Solutions
6
Plan, Design,
and/or Select
Solutions;
Design
Measurement
Strategy
7
Implement
Solutions
8
Collect and
Analyze
Data
Reaction
Capability
Performance
Business
ROI
9
Report
Results to
Clients;
Develop
Plans for
Sustainability
2
Proactively
Identify
Opportunities
3
DETERMINE IF
STRATEGIC OR
TACTICAL
(Strategic requires
Assessment Phase)
(Tactical moves to Step 6)
Identify Strategic
Opportunities
Assess Business and
Performance Needs
Implement and
Measure Solutions
Report and
Sustain
Results
Client Partnerships Formed and Maintained
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PERFORMANCE CONSULTING
Opportunities to partner with a client can also be identied in a pro-
active manner (step 2). When using this approach, you initiate discussions
with your client about future goals. You want to raise your client’s aware-
ness about factors that should be considered regarding specic goals. ese
may include how best to prepare a workgroup to implement a new strategy
or how to determine supervisor readiness to support the new strategy. e
key is to discuss performance issues that are not currently on your client’s
radar screen but are contributors to business results. Techniques for proac-
tive discussions appear in Chapter 5.
Whether a need is identied reactively or proactively, it is important
to explore the situation suciently to determine if it is best managed in a
strategic manner (requiring some level of assessment) or in a tactical man-
ner (moving directly into solution implementation). ese decisions occur
in step 3 of the process. ey represent a key judgment you will make,
frequently in the moment of the discussion. It is your responsibility as a
performance consultant to sort and si requests, using the information
you obtain from your client to determine the most appropriate route to
take in moving ahead. A strategic situation meets the following criteria:
One or more business needs are directly supported by the initiative.
You have direct access to the client(s) accountable for achieving the
business needs.
e client is seeking performance change from people in one or more
employee groups.
e client is willing to share accountability with you for producing the
required change.
e client will provide you with time and access to the appropriate
people so you can obtain necessary information before deciding on
and implementing solutions.
e situation focuses on a group of people, not on a few individuals.
To qualify as a strategic opportunity, each of these criteria must be
met. It is possible that a criterion may not be evident during the early stages
of the engagement. For example, the fourth criterion—that the client is
willing to share accountability for producing change—is oen dicult
PERFORMANCE CONSULTING: THE PROCESS
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15
to arm following a single meeting with the client. Will this client truly
share accountability over the long term? As long as you have no reason
to think the client will not share accountability, move ahead. Should it
become evident over time that the client is unwilling to share account-
ability for producing change, it will be necessary to address that lack of
support—and perhaps even stop the initiative.
Assess Business and Performance Needs
Any situation determined to be strategic must move into the assessment
phase of the process. In this phase, you conduct one or more of the assess-
ments described in Chapters 4 through 6. You will be conducting a solu-
tion-neutral assessment. By solution-neutral, we mean that you begin the
assessment with an open mind as to what solutions may be needed. e
data from your assessment will help determine what solutions are required.
Tactical work oen requires assessments. e dierence is that a tactical
assessment focuses on obtaining information to ensure that an agreed-on
solution is designed and implemented successfully. For example, a learn-
ing needs assessment is one that focuses on identifying the specic skills
and knowledge required for the learning solution; a performance manage-
ment process (PMP) assessment is one that focuses on determining ele-
ments to include in the design and execution of that PMP. Each of these
assessments occurs to ensure that the tactical solution will be designed
and implemented eectively. Strategic assessments, in contrast, result
in information that is used to decide on what specic solutions will be
implemented.
ree types of strategic assessments are possible in the Performance
Consulting Process:
SHOULD assessments. e goal of these assessments is to determine,
in specic terms, what operational results are required of the busi-
ness and what people need to do day-to-day if these results are to be
achieved. In essence, you are identifying the desired state for both the
business and the performance of people who support that business.
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IS assessments. When conducting an IS assessment, you are identify-
ing the current state for both the business and employees. What are
the current operational results for the business? What are employ-
ees currently doing on the job to support those goals? What are they
not doing? With this information, we can identify the gap that exists
between the desired and current state.
CAUSE assessments. is assessment answers the question “What are
the root causes for gaps in business and performance results?” It is
vital to focus on root causes, and not symptoms, when taking actions
to close gaps. Once you know root causes, you can select solutions
and begin the process of designing and implementing those solu-
tions. e data obtained through strategic assessments becomes the
basis for the measurement objectives and processes that you and
your client agree on.
In Chapters 6, 7, and 8, we discuss how to conduct these three assess-
ments. We include techniques for obtaining multiple kinds of data during
an assessment. Clearly, a great deal of valuable information is obtained
before agreeing on and implementing solutions.
Implement and Measure Solutions
Solution selection, design, piloting, and implementation occur during this
phase. e Performance Consulting Process owchart shows two routes
to this phase of work. For tactical projects, you move directly from step
3 to solution design and implementation. For strategic projects, you part-
ner with your client and obtain more information through the assessment
phase. In step 5, you determine the solutions. In step 6, you plan, design,
and select the specic solutions to be implemented. You also agree on a
measurement strategy. Five levels of measurement are possible:
Reaction: Are people viewing the change and the solutions in a posi-
tive manner?
Capability: Has the capability of people increased and is the organiza-
tion supporting the change?
PERFORMANCE CONSULTING: THE PROCESS
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17
Performance: Has the on-the-job performance of people involved in
the initiative been enhanced?
Business: Did the needed operational results occur?
Return on investment (ROI): Do the benets to the organization out-
weigh the initiative’s cost?
During the assessment phase, measures associated with these ve lev-
els are identied; however, agreement on which levels of measurement to
focus on is reached with your client when deciding on solutions (step 6).
Implementation of agreed-on solutions occurs in step 7. As you can imag-
ine, this step oen requires implementation of multiple solutions. In fact,
one of the most crucial roles of a performance consultant is to coordinate
and track the many solutions that are part of any initiative. If these solu-
tions are to have sustained impact on business results, you as a perfor-
mance consultant must be rigorous in tracking the eectiveness of the
solutions being implemented.
While the Performance Consulting Process shows that measurement
data is obtained in step 8, the actual collection of the measurement data
can occur during and following solution implementation. erefore, you
want to have your measurement strategy in place prior to solution roll out.
Technology and soware programs enable data collection and analysis.
Chapters 9 and 10 describe the development of a measurement strategy
and the creation of a data collection plan. It is important to work closely
with your clients as you plan and implement the measurement process to
ensure that credible, reliable data is both obtained and discussed.
Report and Sustain Results
In the nal phase of the Performance Consulting Process, you share the
measurement results with your client and other stakeholders (step 9). When
results are positive, it is time to celebrate. When results are disappoint-
ing, it is time to discuss the reasons for the insucient results, agreeing
on additional solutions and actions that will improve results. Frequently,
you and your client may both be celebrating a positive outcome while also
agreeing on additional actions to ensure long-term success. Remember
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PERFORMANCE CONSULTING
that the status quo can be compelling to participants in a change process.
Removing focus from the initiative and the actions to sustain the change
may possibly cause the organization to revert to the prior state. is “avor
of the month” approach occurs when people’s attention moves elsewhere,
returning to what was done previously. Chapter 12 describes what actions
you and your client can take to ensure your change initiatives and the
results that follow are more than a avor of the month—they are a sustain-
able part of the organization’s success.
One nal observation about the Performance Consulting Process:
Across the top of the owchart are the words “client partnerships formed
and maintained.” Developing strong partnerships is not a step in the pro-
cess but rather a thread woven throughout it. We believe partnerships are
the “art” that makes performance consulting work. Without access to cli-
ents and the formation of a partnership based on mutual trust and respect,
we do not get the opportunity to partner on strategic initiatives.
e Performance Consulting Process provides a ow of steps for the
work we do as performance consultants. ere is, however, another key
element: the logic by which we do our work. In essence, this logic is the
mental model we bring to situations that will guide our behavior, interac-
tions, and decisions. is logic is discussed in Chapter 2.
PERFORMANCE CONSULTING POINTERS
1. ree categories of work are required in organizations: transactional,
tactical and strategic. Performance consulting is a process used to
identify and address strategic needs.
2. Strategic needs are directly linked to one or more business goals and
are “owned” by people with whom performance consultants must
partner. ese individuals are referred to as clients.
3. e Performance Consulting Process is a four-phased workow that
yields business results by maximizing performance of people and
organizations.
PERFORMANCE CONSULTING: THE PROCESS
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19
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Please see page 253 for download instructions
Performance Consulting Process
21
Performance Consulting
Performance Consulting: e Mental Model and Logic
2
Performance Consulting:
The Mental Model and Logic
He who loves practice without theory is like the sailor who boards a ship
without a rudder and compass and never knows where he may cast.
—Leonardo da Vinci (1452–1519)
Unlocking individual change starts and ends with the mental maps
people carry in their heads—how they see the organization and
their jobs. Just as actual maps guide the steps people take on a hike
through the Himalayas, mental maps direct people’s behavior
in daily organizational life. And if leaders cannot change
individuals’ mental maps, they will not change the destinations
people pursue or the paths they take to get there.
—J. Stewart Black and Hal B. Gregersen (2003, p. 2)
Interesting, isn’t it, that da Vinci lived centuries before Black and Gre-
gersen, yet their thoughts are so comparable? Clearly, the need to develop
a mental model to guide our behavior is a powerful truth that has reso-
nated through time. A mental model provides the logic and framework
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PERFORMANCE CONSULTING
used to interpret information and to determine appropriate responses to
new situations. It guides your perceptions, decisions, and behavior. Bot-
tom line: the mental model and logic you use in your work is integral to
your success!
Imagine this: You just received a call from the director of technology,
who reports to the chief information ocer (CIO). e director wants to
meet with you to discuss some type of incentive bonus for project manag-
ers within his area. Project managers are expected to lead projects for new
and updated information systems, bringing them in on time and within
budget. Currently, more than half of the projects are completed late, result-
ing in increased costs. When a project runs behind, project team mem-
bers work overtime. is delay frequently requires that additional team
members be brought on board, adding to costs. is director’s operating
expenses are currently 6 percent over budget.
e goal is to complete 95 percent of projects on time; only 58 per-
cent of projects are meeting this goal. is situation is also resulting in
user dissatisfaction. When projects do not meet their deadlines, there are
repercussions for the operating divisions such as delayed launches of new
products and systems.
e director of technology wants to discuss a project-based incen-
tive bonus plan, believing that an incentive bonus will encourage project
managers to work harder to complete projects on time and within budget.
e director envisions that the bonus paid to project managers will be in
addition to their current salary. Fiy percent of the incentive would be
earned if the project is completed on time, and 50 percent if the project is
completed within budget. e director wants your help in designing this
project-based incentive bonus.
is is a situation that calls for a performance consulting approach.
Why? Because the problem is having a signicant, negative impact on the
business. ere can be a true payo to the investment of time needed to
obtain information about the root causes of the problem and the interre-
lationships of factors aecting the situation. We need to avoid the jump-
to-solution approach, especially a solution that involves compensation.
What if that solution does not work? It is hard to take back a compensation
PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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23
package. To make sound decisions in this situation, you will need more
information. But what information is required—and from whom? is
is where the mental model of performance consulting is benecial. e
two components to this mental model are the Need Hierarchy and the
SHOULD-IS-CAUSE logic.
THE NEED HIERARCHY
e rst element in the mental model for performance consulting is the
Need Hierarchy. is hierarchy includes four types of needs that must be
dened and aligned (see Figure 2.1):
Business needs
Performance needs
Organizational capability needs
Individual capability needs
Business Needs
Business needs are the highest-order need; all other needs emanate from
them. e term business need is typically used in for-prot organizations.
FIGURE 2.1 Need Hierarchy
BUSINESS NEEDS
PERFORMANCE NEEDS
ORGANIZATIONAL
AND INDIVIDUAL
CAPABILITY
NEEDS
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PERFORMANCE CONSULTING
In a not-for-prot organization, the term is frequently replaced with
organization or operational need. A governmental organization may use
the term agency need. Regardless of what it is called, this need must be
achieved. Not doing so, over a period of time, threatens the viability of the
organization.
Business goals and results are usually measured quantiably. Growing
market share is an example of a business need; it can be measured in terms
of the percentage of market share, the number of new customers, and the
revenue needed. Other examples of business needs are to increase customer
satisfaction, increase operational eciency, retain talent, decrease opera-
tional costs, and increase prot. In a not-for-prot organization, examples
may be to raise enrollment, improve member satisfaction, and grow con-
tribution to reserves. In a governmental organization, examples may be to
increase citizen satisfaction with services provided, to lower cycle time, or
to reduce rework. All of these needs can be measured numerically.
Let’s return to the situation within information technology described
at the beginning of this chapter and determine what, if any, business need
was identied. e director indicated a business goal was to manage oper-
ating expenses within budget. Currently, the director’s operating expenses
are exceeding budget by 6 percent. How does that 6 percent translate into
dollars? Is this the only business goal concerning the director? For exam-
ple, the director mentioned that the current situation is resulting in “user
dissatisfaction.” What is the goal for user satisfaction? What are the actual
results compared with the goal? Is this goal one to also focus on? is is the
type of information you seek when discussing business needs with a client.
Performance Needs
Performance needs describe on-the-job accomplishments and behaviors
required of individuals who are performing within a specic job and who
contribute to the achievement of business goals. Performance needs identify
what individuals must do more, better, or dierently in order to achieve the
business goals. Performance needs are described in behavioral terms. e
optimal source for this information are star performers—those individuals
PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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25
who are obtaining exceptional results. In our technology case, by inter-
viewing star project managers, we learn that they are consistently following
a documented project management process. ese individuals also obtain
specic requirements in conversations with the users for the application to
be developed. In identifying performance needs, we could also determine
what typical project managers are doing compared with what the stars are
doing. is information helps identify performance gaps. A gap naturally
leads to the question “What are the causes for the performance gaps?”
Organizational Capability Needs
Organizational capability needs refer to the infrastructure of the organiza-
tion, including work processes, information systems, and incentives. e
intent is for this infrastructure to support and enable practices required of
the work group to achieve business goals. Organizational capability fac-
tors can be tangible or intangible. Intangible factors are those that, while
unseen in a physical sense, are known to be true. Examples are norms,
incentives, clarity of expectations, and amount of authority. Other organi-
zational capability factors are tangible, such as the availability of vehicles,
computers, and adequate space. In the situation where the project manag-
ers were having problems bringing projects in on time and within budget,
organizational capability factors to be investigated could be the presence
of necessary technology and equipment as well as the evidence of a proven
process for forming project teams.
Any organizational factor can operate as either a barrier or an enabler.
e factor will be an enabler if it encourages desired on-the-job behavior
and accomplishments. e same factor can be a barrier if it discourages
desired behavior and accomplishments. For example, if coaching is done
eectively, it is an enabler to performance; if absent, it is a barrier.
Individual Capability Needs
Individual capability needs refer to the skills, knowledge, and attributes
that employees must have if they are to perform as needed. Skills and
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knowledge are typically needs that can be developed. Attributes, however,
are best obtained through the selection process because developmental
time could be protracted and even unsuccessful. An example of an attri-
bute for a sales representative is resilience. is is the ability to bounce
back from the disappointment of losing a sale, evidencing enthusiasm and
energy with new prospective buyers despite that disappointment. is is a
dicult characteristic to develop through a learning intervention—better
that it be assessed at the time of hire.
In our project management example, if teams are formed based strictly
on availability of someone, the team may lack the necessary technical
competence to get the project done within the agreed-on parameters. To
what degree are project team members not performing because they feel
they are inadequately compensated? is may be a question to consider.
An incentive solution will only have sustained results if it is addressing a
root cause of the problem.
We are introducing you to the four needs using terms that work for us. We
know, however, that multiple words and phrases can refer to these same
four needs. Table 2.1 provides some of the more common alternatives that
you may prefer. Regardless of the term you use, it is important is to real-
ize that your job as a performance consultant is to partner with clients to
dene and align these four needs.
THE SHOULD-IS-CAUSE LOGIC
e second element in our mental model is the SHOULD-IS-CAUSE logic
used to analyze business and performance situations. When partnering
with a client on a strategic initiative, you will almost certainly need more
information if you intend to dene and align the four needs in the hier-
archy. What information is important and relevant? What information,
though available, is not necessary for the situation at hand? Most impor-
tant, what information is required but currently unknown? Questions like
these led to the creation of a tool to guide performance consultants as
they obtain information needed to address a specic business problem or
opportunity. is tool is called a Gaps Map (Robinson & Robinson, 2005).
PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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27
Why this name? Because as a performance consultant you seek to
understand what gaps exist between what SHOULD be occurring and
what IS occurring; gaps are what you want to close. e tool we oer is
designed to be used like a map, guiding you through the process. Consider
this image: You are seated in a car with one of your clients driving to a
destination that is a goal for you and your client. is is a small car with
only two seats. Your client sits behind the wheel, driving the car, while
you are on the passenger side helping to navigate. e client is the decision
maker and has determined the destination. However, you have GPS on
your smartphone. is is your map. You use it to provide your client with
suggestions about which roads to take and what cities to avoid. In this way
your role is to guide, and your client’s role is to decide as you consider the
optimal route to take.
Such is the purpose of a Gaps Map. However, with a Gaps Map, the
information you obtain focuses on the SHOULD (goal), IS (current state),
and CAUSE (factors that may help or hinder achieving the goals that
are established). e Gaps Map is designed to provide a structure and a
logic that
TABLE 2.1 Need Hierarchy Terminology
GLOBAL TERMS ALTERNATIVE TERMS
Business needs Business goals
Business objectives
Current business results
Performance needs Accomplishments and behaviors
Behavioral requirements
Current practices
Organizational capability needs Barriers or enhancers
Inhibitors or enablers
Infrastructure
Individual capability needs Skill
Knowledge
Attributes
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PERFORMANCE CONSULTING
ensures the business and performance SHOULDs, as expressed by the
client, are identied in specic terms;
organizes relevant SHOULD-IS-CAUSE information that is known
about the situation; and
determines what information is relevant but unknown, so that you
discover what information must be obtained to determine workable
solutions. e Gaps Map helps you avoid jumping to a solution—an
approach lled with risks, including the allocation of resources with
no or limited results.
Let’s discuss the dierent areas contained in the Gaps Map illustrated
in Figure 2.2.
Business Need and Client
As we have discussed, a business need is an operational or strategic goal that
is measured in a quantiable manner. e Gaps Map asks you to identify
the business need, comparable to determining the destination on a road
trip. You also identify the specic name or position of the individual(s)
who qualify as the client(s) for achieving these business results. Keep in
mind that sometimes we begin our work with someone who is a contact
and not the true client. e Gaps Map is asking for the name or position
of the individual who should be the client. is is the person who owns
accountability for achieving the business results you are focusing on.
Employee Group
An employee group is the group of people who share a common role or job
and who, through their day-to-day performance, most contribute to the
required business results. Examples are account representatives, project
managers, team leads, and production line operators. Employee groups are
not departments or functions. e Finance department is not an employee
group; rather, it is a composite of several employee groups including
“accountants” and “analysts.” As a performance consultant, you identify
the specic employee group or groups who are relevant to the situation. If
PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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29
the business goal is broad, more than one employee group may contribute
to achieving that business goal.
Consider a manufacturing business goal to increase production out-
put. Multiple employee groups would be required to achieve this goal,
including production line operators, production planners, and mainte-
nance technicians. As a performance consultant, you want to unbundle
these groups, focusing on each separately. is approach will result in a
FIGURE 2.2 Components of a GAPS Map
Business Need: Employee Group:
Client:
Business SHOULDs Performance SHOULDs
(Accomplishments and Behaviors)
Business IS Performance IS
(Accomplishments and Behaviors)
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
Outside Client’s Control Inside Client’s Control
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PERFORMANCE CONSULTING
unique Gaps Map for each employee group. Why is this necessary? Because
while the business SHOULD and IS information may be identical, the on-
the-job performance (accomplishments and behaviors) required of each
employee group will be dierent. What line operators must do to increase
production output will surely be dierent from what the production plan-
ners must do. It is also probable that the CAUSE factors will dier for each
employee group.
Business SHOULD and IS
ese boxes in the Gaps Map call for the quantiable measures for both
the goal (the SHOULD) and the current state (the IS). Most business needs
are measured in multiple ways, so there will likely be more than one metric
for each business need. It is important that each measure contain both the
unit of measure and the numeric. For example, it would be insucient
to indicate “revenue goals met” as a business SHOULD; instead, indicate
“revenue of 10 percent over last year” or some other numerical goal. Gen-
erally, the true clients for a business need can provide this information—
this is, aer all, what they are responsible for achieving.
Performance SHOULD and IS
is portion of the Gaps Map is where you really add value as a perfor-
mance consultant. While clients know the requirements for the business,
they oen are less certain of the behavioral performance required of indi-
viduals in their group to achieve these goals. It is important to identify
both the accomplishments the employee group must produce as well as the
on-the-job practices required to achieve those accomplishments.
Let’s consider a sales organization with a business need to achieve rev-
enue and gross margin goals; the numeric for each of these is known. e
account executives are key to achieving these results. One accomplishment
expected of them is that they build and maintain strong customer relation-
ships; another accomplishment is to close sales. If this were all they were
told, people new to the account executive position would likely ask, “How
PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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do I do that eectively?” at is where the specic practices or behaviors
are important to identify. What do account executives, who have success
in building relationships and closing sales, actually do? And how is that
dierent from what is done by more typical account executives who are not
producing optimal results? e Gaps Map asks you to identify the answers
to these two questions before moving ahead with any solutions. By com-
paring the SHOULD performance with the current performance (the IS),
you are identifying what gaps exist in performance.
Causes
Causes are factors that either enable or obstruct performance of people
and the achievement of business goals. e Gaps Map is asking about
causes internal to the organization (referred to as organizational capabil-
ity needs) and causes that are internal to individuals (individual capability
needs). is map also asks about factors that are external to the organiza-
tion. ese are factors that are outside the control of any individual or
group within the organization, yet have implications for success.
e one addition is that in the Gaps Map “factors internal to the
organization” are divided into two categories: those outside the client’s
control and those within the client’s control. is is important because
factors within the client’s control are candidates for solutions that typi-
cally are easy to implement. People oen refer to these as “low-hanging
fruit” because, like apples hanging low on a tree, they are easy to reach.
An example would be if employees in a specic job are challenged to per-
form as required because they currently lack authority to access important
customer data. e client could make a decision that in the future these
employees will have access to that customer information. is solution is a
quick and easy to implement with nominal cost implications.
Factors that are outside the client’s control, but still within the orga-
nization itself, are more challenging to change. In this instance, clients
need to inuence others in the organization about the actions they believe
should be taken, requiring increased time and energy. Returning to our
previous example, let’s say the problem is not with access to customer data;
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PERFORMANCE CONSULTING
rather, the data are inaccurate or incomplete. In this case, a solution could
require the client to work with the Information Systems group, a group
outside the organizational authority of the client. is task will involve
some discussions and, perhaps, negotiations regarding the time and cost
to create a database that will better meet the client’s needs.
GAPS MAP: HERE’S HOW IT’S DONE
The map displayed in Figure 2.3 depicts a situation in a large multi-
national corporation that manufactures and sells consumer products
globally. One day, the VP of manufacturing contacted the chief learning
officer (CLO) of the organization and said, “We need some training for our
maintenance mechanics. We also may need to change our selection pro-
cess for this job in order to improve our operating efficiency in the plants.”
Take a moment to reflect on this request and the Need Hierar-
chy described earlier in this chapter. What need or needs within
the hierarchy did the VP include in the initial request? There was a
business need (improve our operating efficiency in the plants), an
organizational solution (change our selection process), and a capabil-
ity solution (training for our maintenance mechanics). However, no
information was offered about performance needs, factors external
to the organization, organizational capability factors, or the individual
capability of the maintenance mechanics. Therefore, the CLO engaged
the VP in a reframing discussion. They decided that more information
about the situation should be obtained. The Gaps Map in Figure 2.3
contains that additional information.
BUSINESS NEED AND CLIENT
At the top of the Gaps Map, on the left, is the business need focused
on in this initiative. Regarding the client, we learned quickly that there
were two levels of client: the VP was the primary client, but each of
the facility managers was also a client. This is because each of the
eight plants located around the globe was a unique environment, with
the facility manager ultimately accountable for achieving operating
efficiency in that plant.
FIGURE 2.3 GAPS Map for Manufacturing Situation
Business Need: Improve Operating Efficiency
within Manufacturing Facilities
Employee Group: Maintenance Mechanics
Client: VP of Manufacturing and the Facility Managers
Business SHOULDs
15% reduction in overall production costs
Asset utilization rates at 85%
Reject rates less than 1.25%
On-time shipments greater than 97.5%
20% reduction in maintenance and repair costs
Performance SHOULDs
(Accomplishments and Behaviors)
Maintenance Problems Prevented
Anticipate problems that will affect utilization rate
Investigate unusual noises/other out-of-ordinary
conditions that occur during production
Maintenance Problems Resolved Quickly
Work in an independent manner, taking actions
to address a production problem without seeking
permission to do so
Utilize root cause analysis techniques to identify
the true cause of a problem, not just the symptom
Develop Less Experienced Mechanics
Develop documentation for complex processes
that can be used as a reference by others
Coach newly hired mechanics and operators in
techniques that can be used to maintain efficiency
Business IS
7% reduction in overall production costs
Asset utilization rates averaging 78%
Reject rates are at 3.45%
On-time shipments averaging 89%
5% reduction in maintenance and repair costs
Performance IS
(Accomplishments and Behaviors)
Maintenance Problems Prevented
Primarily respond to calls in “firefighting” mode,
evidencing prediction maintenance activity
Maintenance Problems Resolved Quickly
Seek help frequently when diagnosing a production
problem; reticent to take action on own judgment
Use a hit or miss approach replacing components
when production problems occur
Develop Less Experienced Mechanics
Some mechanics mentor others; some do not.
This is inconsistently done.
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
Labor pool of available
mechanics is “tight”
Solution:
Apprentice program
developed to supplement
Outside client’s control
Replacement parts are:
Difficult to identify due
to poor recordkeeping
Not always available
Solution:
Supply chain for
replacement parts
enhanced
Inside client’s control
(facility manager)
Limited coaching
and reinforcement by
maintenance supervisors
Solution:
Supervisors developed
and held accountable
for coaching mechanics
Many mechanics lack
computer and diagnostic
skills
Solution:
Training program to
increase skills in use of
computer systems and
diagnostic tools
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PERFORMANCE CONSULTING
EMPLOYEE GROUP
The employee group of greatest interest to the VP was the mainte-
nance mechanics. In the course of the project, we learned of other
employee groups who had a role to play in improving operating effi-
ciency; however, for purposes of this example, we will focus only on
one group of employees—the maintenance mechanics.
BUSINESS INFORMATION
Five metrics were used to measure the achievement of the business
need to improve operating efficiency. The same metrics were used to
measure current results. When comparing the SHOULD and IS mea-
sures, it is clear multiple business gaps did exist. No wonder the VP
was concerned.
PERFORMANCE INFORMATION
The employee group consisted of approximately two hundred mainte-
nance mechanics worldwide. In the initial meeting with the VP, the CLO
asked, “What must maintenance mechanics do more, better, or differ-
ently if the efficiency goals are to be achieved?” The VP acknowledged
this was a good question and provided some descriptive but vague
information. The CLO then asked, “Are any maintenance mechanics
achieving these goals on an individual basis? If yes, what are they
doing differently than other mechanics who are not achieving goals?”
The VP, again, acknowledged the value of the question and went on to
say that he was certain some maintenance mechanics were achieving
goals individually. However, he did not know what they were doing dif-
ferently and would value having that information.
This is an example of how performance consultants can use ques-
tions to change the discussion away from solutions to a discussion
that focuses on performance and business results. When the CLO
asked questions about high-performing or star maintenance mechan-
ics, the VP became aware of the type of information required to make
sound decisions about solutions and was willing to gather that infor-
mation before making decisions about solutions. This shift in focus is
a process we call reframing, discussed in Chapter 4.
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Suffice it to say, this reframing discussion with the VP resulted in
an agreement to do an assessment for purposes of obtaining perfor-
mance SHOULD and IS information. A high-level summary of some of
the findings is noted in Figure 2.3. Although the performance accom-
plishments expected of the star and typical maintenance mechanics
were the same, clear differences emerged in the behaviors each group
used to support these accomplishments. For example, star mainte-
nance mechanics worked independently, were action oriented, and
utilized a root cause approach to solving equipment problems. Con-
trast these practices with those of the typical maintenance mechan-
ics, who were reluctant to take action and used a “Let me try this
and see if it works” approach. These gaps in on-the-job performance
were contributing to the current shortfall in business results. But what
was needed to have more maintenance mechanics demonstrate the
SHOULD performance? To answer that question, we needed to deter-
mine causes for the business gaps together with reasons for the per-
formance gap of the maintenance mechanics.
CAUSE INFORMATION
As displayed in Figure 2.3, the problems in this manufacturing orga-
nization had multiple causes. A tight labor market was a factor exter-
nal to the organization. The job of maintenance mechanic was highly
complex, requiring a great deal of technical and interpersonal skill.
The labor pool available in the marketplace was limited, with many
companies competing to hire the same people. This was an external
factor that could not be changed by the manufacturing plant alone. A
corporate strategy for acquiring additional maintenance mechanics,
despite this external challenge, was needed.
When organizational factors within the client’s control were inves-
tigated, the two levels of clients became very important. The insuf-
ficient coaching and reinforcement by supervisors in a plant was a
factor that facility managers could control. The coaching was intended
to overcome the mechanics’ reticence to take action on their own.
The facility managers could take actions to develop the coaching and
reinforcement skills of the maintenance supervisors and to hold them
accountable for using those skills.
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PERFORMANCE CONSULTING36
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PERFORMANCE CONSULTING
Organizational factors outside the control of the facility managers,
but within the control of the VP of manufacturing, focused on the
supply chain. Challenges in obtaining replacement parts and accu-
rate records were problems for multiple facilities. The VP needed to
take action and work with supply chain management to address these
problems.
Finally, there was the issue of the capability of the maintenance
mechanics. This company had invested in computerized diagnostic
tools for the mechanics to use in troubleshooting equipment prob-
lems. Unfortunately, some mechanics—but not all—lacked skill in how
to operate the software and interpret data obtained from these tools.
SOLUTIONS
Once the root causes were identified, the CLO and the VP could decide
on the solutions needed to address the business and performance
gaps. The goal is to select the “right” solutions—those solutions that
will address one or more of the root causes. As illustrated in Figure
2.3, each of the four causes resulted in a unique solution.
To address the tight labor pool for maintenance mechanics, the
organization developed an apprentice program. Now they could sup-
plement their external hires with those individuals whom they devel-
oped internally. To address the low skill of some mechanics regarding
their use of the diagnostic tools, a technologyenabled, skill-building
program was implemented. Actions were also taken to develop the
supervisors’ coaching skills and hold them accountable for provid-
ing greater coaching support of the maintenance mechanics. The VP
of manufacturing worked with supply chain management to address
problems in obtaining replacement parts.
Bottom line: The client’s original request transitioned during the
initial reframing discussion, as did the role of the CLO, who moved
from solution provider to strategic partner. The CLO identified the fac-
tors causing the problem and what was needed to solve it. If the CLO
had only implemented solutions the client had requested, the operat-
ing efficiency problem would not have been resolved. The solutions
ultimately implemented were different from those originally proposed.
You may recall that the VP originally requested a change in selec-
tion of maintenance mechanics. This was not the problem; rather, it
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37PERFORMANCE CONSULTING: THE MENTAL MODEL AND LOGIC
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37
was a need to generate a greater number of qualified candidates. The
apprentice program was a solution used to address this need.
Returning to the original request, the client had asked for some type
of training for the maintenance mechanics. Although learning was a
part of the solution package, it was a much more targeted and spe-
cific learning requirement than the client had originally envisioned. The
CLO, working in the role of performance consultant, used the logic of
the Gaps Map to navigate the project successfully.
PERFORMANCE CONSULTING POINTERS
1. Performance consultants work from mental models that guide how
they analyze business and work group performance situations.
2. One component of a performance consultant’s mental model is the
Need Hierarchy. is hierarchy contains four needs: business, per-
formance, organizational capability and individual capability. Per-
formance consultants partner with clients to dene and align these
four needs.
3. e second component of the model used by performance consultants
is the SHOULD-IS-CAUSE logic.
4. e Gaps Map is a tool designed to assist performance consultants in
obtaining the information needed to address a specic business need.
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PERFORMANCE CONSULTING
DOWNLOAD
THESE
Tools that support content from this chapter, and are contained
in the Mental Model Toolkit, are listed here. ese tools can be
purchased and downloaded from the BerrettKoehler website.
Please see page 253 for download instructions.
Need Hierarchy
Gaps Map Template
Gaps Map (Template for Data Input)
Identify Strategic Opportunities
Identify Strategic Opportunities
FIRST PHASE
Identify Strategic
Opportunities
3
Determine if
Strategic or
Tactical
1
Reactively
Identify
Opportunities
2
Proactively
Identify
Opportunities
40
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IDENTIFY STRATEGIC OPPORTUNITIES
is section includes the following chapters:
CHAPTER 3: BUILD CLIENT PARTNERSHIPS
Partnerships with clients need to be based on access, credibility, and
trust. is chapter provides techniques for deepening client relationships
through these three characteristics.
CHAPTER 4: IDENTIFY STRATEGIC
OPPORTUNITIES REACTIVELY
When a client calls with a request to implement a specic solution, you
must reframe the request so that the business and performance results
the client seeks, not the solutions that were suggested, are the focus of the
discussion. Techniques for reframing are discussed in this chapter.
CHAPTER 5: IDENTIFY STRATEGIC
OPPORTUNITIES PROACTIVELY
How do you partner with a client on a strategic initiative when you have
not been asked or contacted for support? is chapter describes how to
partner with clients when you are initiating the contact.
41
Identify Strategic Opportunities
Build Client Partnerships
3
Build Client
Partnerships
e greatest change in corporate culture—and the way
business is being conducted—may be the accelerated
grow of relationships based on partnership.
—Peter Drucker
Have you ever observed or worked with someone who was clearly an
expert in his eld yet was unsuccessful in inuencing others to support a
specic plan or strategy? In-depth expertise, by itself, is insucient when
you wish to inuence clients to take actions that support organizational
and performance change. What performance consultants must be able to
demonstrate is the “art” of partnering with clients. By “art,” we mean the
interpersonal and collaborative approach to working with others that is
integral to success as a performance consultant. ese are the more sub-
jective, judgment-based, and behavioral tactics—no paint-by-number
approach will do. It is critical that performance consultants use this col-
laborative approach in the entry phase of the Performance Consulting
Process. Without demonstrating this capability in the rst phase of the
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IDENTIFY STRATEGIC OPPORTUNITIES
process, you probably will not gain access to strategic work or have the
opportunity to optimize your value as a performance consultant.
As we begin our focus on partnering, we want to reiterate the three kinds
of work supported by performance consultants discussed in Chapter 1:
Transactional work, which consists of a variety of administrative tasks,
such as providing information to individuals, scheduling events, and
inputting information into electronic les
Tactical work, which oen involves managing a project, such as de-
signing a learning event, hiring and stang, restructuring a depart-
ment, and mentoring others
Strategic work, which focuses on work and eorts that have an impact
on the overall health, vitality, and direction of the business enterprise
or of a group within it
While all three types of work need to be accomplished in any given
year, our goal as performance consultants is to increase the percentage
of work and time focused on strategic initiatives. Strategic initiatives are
“owned” by managers and executives who are accountable for the results
of these initiatives. It is these managers or executives we reference with
the term client. As noted, there are two types of clients: sustained and
project. Sustained clients are people with whom, because of their position
and inuence within the organization, a partnership is maintained inde-
pendent of any current project or initiative. e level of communication
and contact with these clients is sustained and continuous. Project clients
are the “owners” of a business need for a specic initiative. Your commu-
nication with project clients will be robust during the life of the project,
gradually decreasing as the project concludes.
As Peter Block (2011), in his book Flawless Consulting, identied, we
can take three approaches as we work with sustained and project clients.
We can work as an expert, where the client plays a more inactive role and
looks to us to make decisions and implement solutions. Another option is
to work as a pair-of-hands to the client. In this approach, the client is mak-
ing the decisions and is telling us what is needed. e consultant assumes
a passive role with regard to the decisions that are made. e third, and
BUILD CLIENT PARTNERSHIPS
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43
desired, approach is that of a collaborator, in which the consultant and cli-
ent work as an interdependent team. ey make joint decisions about the
situation and what is required, sharing accountability for results, which
raises the probability positive results will occur.
To form strong collaborative partnerships, you need to have access,
credibility, and trust with your clients. Because performance consultants
can only support clients and their strategic projects when there is direct
access to the client, we will begin our discussion with this element.
ACCESS
Access is a client’s willingness to provide “face time” to discuss business
challenges, opportunities, and initiatives. e optimal technique for gain-
ing access is to be proactive. When rst assigned to support a business
unit, identify managers who are the strategic decision makers. Who are
the managers driving the business and are responsible for getting results?
It is these managers with whom you will want to form sustained client
relationships—partnerships in which you invest time independent of any
project work. Even though you may be involved in projects that originate
from other managers, it is important to periodically meet with each of your
sustained clients. You want to stay current with their business require-
ments, challenges, and strategic initiatives so that you will be in a position
to consult with them as opportunities arise in the future.
Access to a Sustained Client
So how do you build access to potential sustained clients? Remember that
clients are usually located in the mid- to upper levels of your organization.
ey have accountability for achieving business results and have author-
ity to make things happen. Using these criteria, identify those individuals
who should be your sustained clients. Typically, a performance consultant
builds relationships with between ve and ten sustained clients. You will
spend substantive time with each client during the course of a year. at
is why we encourage you to work from the concept that “less is more.”
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It is not possible to build a strong, partnering relationship, in which you
evidence deep knowledge of the business, with thirty or forty individuals.
is is one reason that most performance consultants are assigned to sup-
port one or more business units and not the entire enterprise. e excep-
tion would be if you work in a small company, where supporting the entire
organization is possible.
When assigned to a new business unit, review the organizational chart
identifying those people who have the position power to make things hap-
pen and have accountability for achieving business results. Next, learn
more about the business unit, going “below” the organizational chart to
gain insight regarding items such as these:
How are important decisions made within the business unit? Is a col-
laborative and consensus-seeking process used? Or a more unilat-
eral process?
Who is at the table when the strategies and goals are being determined?
What recent initiatives have enabled the organization to be successful?
Who were the key players in deciding and implementing those
initiatives?
Are there informal leaders who have strong inuence on the strategic
decisions that are made?
Who has the power of veto on strategic decisions?
Answers to these questions will provide you with insight as to which
leaders are driving the business and have the power to get things done. You
want to work with these individuals because they have the most to gain
or lose from the success or failure of a strategic initiative, and they have
authority to make things happen. A word of caution, however: Relation-
ships are formed with people, not jobs. When a client is promoted or leaves
the job for any reason, and a new person steps in, you must invest time in
building a new relationship.
Once you have identied those individuals with whom you should have
a sustained relationship, it becomes important to nd ways to gain access
to these people. You want to be on their radar screen, so that when there
is a strategic opportunity, they will think of including you right from the
BUILD CLIENT PARTNERSHIPS
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45
start. An example of getting on the radar screen is Joan, who works within
an L&D department. She designed and executed a measurement study of
a major initiative within the organization. She invited several executives to
attend the brieng where she discussed the results. is brieng provided
exposure to several executives who were potential clients. Following the
presentation, one of these executives was impressed to the point that the
executive became a new client for Joan.
You may already have a relationship with some—perhaps all—of those
individuals who qualify as sustained clients. But analyze the relationship
by asking yourself, “Is my current relationship primarily based on provid-
ing solutions in a tactical manner, or is it truly a strategic, business-linked
partnership?” If the answer is that you are mainly called upon aer deci-
sions are made, then it is important to change the nature of your relation-
ship. Here are suggestions for gaining access to a person who should be a
sustained client:
Ask the client for time to discuss business goals and challenges that
the client is facing. e key is to focus the discussion on the “business
of the business” and not on HR or other solutions. (In Chapter 5 we
describe this type of proactive business discussion in more detail.)
Send articles from journals, industry magazines, and Internet sites
that focus on items of importance to this client’s business. Include a
note indicating why you believe the item has relevance for the client
and a plan for a follow-up discussion of the item and its implications
for the business.
Ask the client how you can increase your knowledge of the business.
In essence, ask your client to become your coach.
Volunteer to serve on high-visibility projects and task teams that are
important to this client.
Leverage current relationships with other managers to assist you in
gaining access to the client.
Publicize your “wins.” Ask your clients to market the results to their peers.
Provide guidance to the client during a crisis. For example, if an opin-
ion survey reveals distressing results, oer suggestions that might be
used to close the gaps.
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Oer to help on a project or business situation that is similar to another
client’s in which you are currently involved.
Be alert to information from various parts of the organization that
have impact on your client’s business unit. Send this information to
your client, indicating that you would like to discuss it. Ask to attend
the client’s sta meetings as an observer, so you gain greater insights
into the business. When in these meetings, expand thinking of the
group by asking thought-provoking questions.
Access to a Project Client
Let’s now look at how access to project clients diers from gaining access
to sustained clients. Certainly, a major dierence is that the enhanced level
of contact with a project client is maintained only during the life of the
project. What is the same are the criteria you use to determine your “true”
client for the initiative. Project clients own the business results supported
by the initiative. Unfortunately, with some frequency the person who ini-
tially contacts you regarding the project does not meet the client crite-
ria. is person, whom we identify as the “contact,” has been delegated
the responsibility for the activities within a specic project. e ultimate
accountability for the project results, however, resides with someone else
who is the true client.
Without direct access to the true client, it will be dicult for you to
inuence and guide the project implementation strategy. To gain access
to the true client without alienating the contact requires that you work
with—not around—the contact. For example, when there are questions
about the business goals, suggest that you and the contact together meet
with the client to discuss these issues. When the contact lacks authority or
power to obtain resources, suggest that you and the contact go together to
present the situation to the true client. When you have good relations with
the contact, it becomes possible to be candid and direct, indicating con-
cern about the limited access to and involvement of the true client. Bottom
line: it is important to gain access to the true client for any project where
the end goal is to eect a change in people’s performance and positively
impact business results.
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CREDIBILITY
Let’s now look at credibility, which we dene as a client’s condence in
your ability to deliver results to the business. While access to your clients
is tangible, credibility is intangible. e indicators of credibility are based
on what you experience as you work with your clients over time. To what
degree do your clients respond positively—or at least thoughtfully—to
your suggestions and questions? How willingly do they provide informa-
tion about operations within their group? How helpful are they in provid-
ing access to key people within their business units? How responsive are
they to examining approaches you suggest when dealing with business
problems or opportunities? You need to continually monitor these types
of indicators to determine your level of credibility.
e reality is that credibility cannot be earned until you demonstrate
knowledge of the organization’s business model as well as knowledge of
the industry in which your organization operates. We are using the term
business knowledge in an all-encompassing manner, referring to for-prot,
not-for-prot, and public organizations. Whatever the mission of your
organization, there is a business model under which it operates. As a per-
formance consultant, you need to understand the fundamental concepts
of your organization’s business model. You need to recognize external fac-
tors that aect that business in a positive or negative manner as well as the
implications these factors hold for people’s performance. How to develop
this business knowledge? An eective technique is to ask your client for
suggestions as to how you might learn more about the business. is is the
“turn-your-client-into-your-coach” technique.
John is someone who used this approach with positive results. He is
a performance consultant supporting the procurement function within
his organization. Early in his tenure in this role, John asked his client for
guidance in how to learn more about the business of procurement. e
client suggested that John join the professional organizations to which the
client belonged. e client also encouraged him to read the literature these
organizations provided and to attend some of their webbased seminars.
Aer doing so, John forwarded information he thought others might nd
valuable to colleagues. By turning his client into a coach, John deepened
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his knowledge about the procurement industry and the challenges it faced.
He made an impact on his client, who was impressed by John’s sincere
interest in the business.
Here are other ways that as a performance consultant, you can build
and deepen your knowledge of the organization and industry:
Identify individuals within the function who are key inuencers. Take
actions to get to know them and nd out what issues are challenging
them. In essence, ask, “What is it I need to know about this business
so I can support you and others eectively?”
Locate websites that are the preferred sources of information for peo-
ple in the organization you support. Put these sites on your favorites
list and visit them frequently.
Find people who are in pivotal jobs in the business you support. Invite
yourself to shadow one or more of them for several hours or a day. You
will learn not just what they do, but how that job connects to others.
You will also gain insight into the forces, factors, and opportunities of
the specic job and the business as a whole.
Read annual reports and other organizational documents that provide
information about the vision, mission, and strategic goals as well as
about business and nancial performance. Make it a routine practice
to review business plans, marketing plans, research-and-development
white papers, customer service reports, and operating statements. Much
of this material is available on organizations’ websites; in fact, for public
companies, it must be readily accessible to anyone, per federal law.
In some businesses, it is possible to actually work the job of people you
are supporting. You can learn a great deal in the process. On a few
occasions each year, the chief learning ocer of a fast-food restaurant
chain spends one day “working the line,” taking orders and serving
customers. He nds this helpful for staying close to his organization’s
customers as well as to more personally identify the evolving skill sets
required of employees who work this role every day.
If your organization employs consulting rms, seek out these consul-
tants and “pick their brains” regarding the trends and issues they see
occurring within the industry.
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Acquiring Business Knowledge as an External Consultant
For people who are external consultants, some of the suggestions just
shared will be relevant, and for others they may not be relevant. What is
important is to obtain as much information about an organization and
its business before you have initial meetings to discuss possible work.
en use this information when asking powerful questions, such as the
SHOULD-IS-CAUSE questions that we describe in this book. Oen the
organization’s website is a good source of information about the specic
business. Search the Internet, beyond the website, to discover more infor-
mation about the organization and the industry in which it operates.
External consultants who eectively gain, and use, knowledge of an
organization and its business are highly valued in the marketplace. Vern
and Jayne are external consultants who eectively used their knowledge
of the business needs and challenges of a city government when discuss-
ing a proposed project. ey had worked on several small projects and,
through these projects, became aware of a goal to have all city employees
interface eectively with citizens within this multicultural community.
Vern and Jayne drew upon this knowledge when discussing a request to
provide diversity training to city employees. While the request was for
a training program, they responded with a persuasive proposal for link-
ing the diversity activities to the city’s goals. is approach prompted dis-
cussions with city executives and resulted in a contract for assessment of
the city government’s diversity needs. Findings from the assessment were
used to form a set of coordinated actions to achieve the city’s goals. Vern
and Jayne used knowledge they had about the city and its business goals
to evolve their role from tactical to strategic; the work itself transitioned
from a single solution (training) to a more comprehensive set of diversity
initiatives.
Clearly, there are many ways to develop knowledge of the “business of
the business.” Your credibility as a performance consultant, whether inter-
nal or external, is strongly correlated with the degree of business knowl-
edge you evidence. is is not a “nice to have” but a prerequisite to building
strong partnerships with clients. Gaining and deepening this knowledge
must be a priority.
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Demonstrating Your Professional Expertise
Credibility with a client requires that you have in-depth knowledge of
the business; you also need in-depth knowledge of the subject matter and
tools that are your professional area of expertise. e goal is to integrate
your business knowledge with these processes and tools so you can suggest
optimal solutions for a client’s specic situation.
What professional expertise should you have? e foundational need
is a working knowledge of multiple HR, learning, OD, and talent manage-
ment solutions such as recruitment, selection, talent development, career
management, succession planning, and compensation, to name a few.
Increasingly it is also becoming critical for performance consultants, who
operate strategically, to have knowledge regarding talent analytics.
By “working knowledge of solutions,” we refer to having competence to
identify strategic needs and to propose appropriate solutions to address
specic needs. It is also important to know when a solution would be
ineective. Included in this knowledge is the capability to determine, at
a macro-level, the requirements for the design of the solution as well as
any issues to address when implementing it. While you may have exper-
tise in implementing some solutions, it is not possible for any single indi-
vidual to be an expert in developing and delivering all the solutions a
business requires when closing performance gaps to ensure business suc-
cess. Remember: when the goal is to enhance performance and positively
impact business results, multiple solutions will be needed. What you need
is sucient knowledge to identify and locate appropriate resources; per-
sonally designing and delivering the solutions is not the requirement.
View your professional expertise as “foundational competence”—it
gets you in the door. Many other areas of expertise are required at a work-
ing level, including some or all of the following:
Change management. Change, with increasing velocity, is here to stay.
You can provide clients with valuable guidance regarding the intro-
duction and execution of change.
Consulting model. As a performance consultant, you do not gain
acceptance of ideas and suggestions through position power; rather,
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you gain acceptance of ideas by inuencing and guiding others. is
requires that you work from a mental model that is proven to be eec-
tive, such as the one we describe in this book.
Critical thinking. is competency focuses on the need to conceptual-
ize, analyze, synthesize, and evaluate information gathered from mul-
tiple sources and methods.
E-systems. A working knowledge of electronic systems, soware,
and technology that support performance and solutions designed to
enhance that performance is also important.
Human performance technology (HPT). HPT is a body of knowl-
edge based on substantive research and the work of numerous and
renowned individuals, such as omas Gilbert and Geary Rummler,
that focus on how to design systems so that people and organizations
can perform successfully.
Organization development. It is important to understand how to sys-
temically change an entire enterprise, not just a single unit or employee
group within it. OD competence provides the knowledge needed to
dene and align the many elements of an organization—its mission,
goals, systems, processes, and structures.
e next question is how to develop this knowledge and skill. One
obvious answer is to take courses at a college or university, ultimately to
obtain a degree. However, a degree, by itself, is insucient. Professional
elds are dynamic and changing; learning must be ongoing and continu-
ous. Certainly, networking with respected colleagues is important, as is
reading books published by noted authors and researchers in the eld.
Finally, we would be remiss not to mention the need to seek on-the-job
experiences that provide an opportunity to stretch and grow within the
eld as a way to enhance and deepen your skills.
Applying Your Business and HR/Learning Knowledge
us far in this chapter, we have focused on what you need to know. Cred-
ibility, however, is gained because of what you do with what you know.
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Here is a list of practices that successful performance consultants use on
the job to enhance credibility:
Present proposed solutions with a clear nancial business case, for both
the investment to be made and anticipated return from that solution.
“Connect the dots” within and across business units. Talk about ini-
tiatives occurring in another part of the business, and raise questions
about their implications for the business.
Ask questions to expand the thinking of clients.
In business meetings, oer suggestions that go beyond the typical
practices of the organization.
Demonstrate belief that you share accountability for business and per-
formance results, not just for the quality of the solutions.
Be objective in discussions with clients; present your point of view
factually and by acknowledging the multiple points of view on which
your perspective is based.
Push back when the client’s preferred action is inappropriate for the
situation. Indicate your concern when the client’s desired results and
the suggested solutions are not aligned.
When just beginning to support a client, seek to work on a small proj-
ect where you can get results quickly. is way, the client will see you
as a person who takes action and gets results.
Bottom line: you need to make development of credibility a goal. Don’t
wait for it to happen. Make it happen!
TRUST
Trust can be the most fragile and elusive of the three factors that are essen-
tial for a positive and eective consulting relationship with a client. We
dene trust as your client’s condence in your integrity and reliability to
achieve results in support of the business.
ere really is no single action that will develop trust. Trust is built
over time by consistently exhibiting a number of behaviors and values.
However, trust can be shattered by one action that seems to be self-serving
versus client focused.
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Let’s consider a common scenario. Have you ever retained the ser-
vices of a consultant who, in your opinion, seemed more intent on obtain-
ing a contract than on doing what would most benet your organization?
Clearly the consultant had competence and a great track record that
caused you to retain the consultant in the rst place. What you doubted
was the motivation by which the consultant operated. Was the motivation
to provide services that would benet your organization, or was it to sell
the consultant’s services in order to build a larger contract and generate
more fees? Your uncertainty about the consultant’s motivation most likely
resulted in diminished trust.
You will know you are trusted when clients seek out your advice.
Another indicator of trust occurs when clients ask you to be present at key
meetings. If they share personal anxieties or condential information with
you, you know you have earned a high level of trust.
You can build trust in many ways. One of the most obvious is to main-
tain condences when they are shared. Divulging condential informa-
tion to others is a sure way to kill trust. Another important practice is
to honor commitments you make to clients. Here are other actions that
you can take:
Ensure your words and actions are congruent; avoid providing
mixed messages.
Act in ways that support the values of your organization.
When having diculty with a client, go directly to that individual to
discuss the situation. Be a straight-shooter, discussing issues with that
person rather than going to other people rst.
Be a sounding board on sensitive issues; demonstrate strong listening
capability. Acknowledge the other person’s point of view.
Share your own opinions and perspectives, even when they are dier-
ent from the majority view; avoid being a yes person.
Keep your focus on the big picture and the shared goals; help elevate
discussions to this level.
Accept accountability for your own actions and the results of those actions.
Avoid blaming others; instead, focus on what can be done to x the
situation.
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FUN FACT ABOUT DICK HANDSHAW
Dick Handshaw was speaking to one of his client’s employees groups
in 1995 in Pittsburgh, Pennsylvania. Dick’s presentation focused
on instructional design and included a new topic that his client had
encouraged him to discuss—performance consulting. During this pre-
sentation, Dick commented on the work of Dana and Jim Robinson,
whose first book on the subject had just been released. Dana and Jim
also happened to live in Pittsburgh at that time.
Dick’s client has a great sense of humor and loved to plan sur-
prises for his consultants. While the client had encouraged Dick to
reference Jim and Dana’s work, he neglected to inform Dick that Jim
Robinson was in the audience. Following the presentation, the client
took delight in introducing Dick to Jim. Naturally Dick was a little anx-
ious and hoped he had made appropriate comments that Jim would
support. Before returning to Charlotte, where Dick lived and worked,
he was invited to the offices of Partners in Change. And thus began a
professional relationship between Dick and the Robinsons.
In the ensuing years, Dick’s firm became one of the first consulting
companies to retain the Robinsons for purposes of developing perfor-
mance consulting capability within the staff. Dick attended many of the
sessions that the Robinsons delivered at conferences and kept current
with their writing. Over time the professional relationship between Dick
and the Robinsons transitioned to a personal friendship as well.
Interesting, isn’t it, how one chance encounter can result in a part-
nership that influences the future direction of a career? In this case,
it included the opportunity for Dick to be a coauthor on this book. It
affirms one of the tenets of this book: that performance consulting is
a relationship-driven process. You just never know which relationship
may change your career.
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PERFORMANCE CONSULTING POINTERS
1. Building and maintaining strong client partnerships is a requirement
if you are to have the opportunity to do performance consulting with
your clients. ese relationships are built through the actions you take;
they don’t just happen. Because relationships are dynamic, investing
time in these partnerships will be ongoing and continuous.
2. Strong partnerships are based on three elements:
Access
Credibility
Trust
3. Gaining access requires you to identify the specic individuals who
qualify as clients. ere are two categories of clients: sustained and
project. Several criteria determine “true” clients, including the crite-
rion that these individuals own accountability for accomplishing busi-
ness results.
4. Credibility requires that you have deep knowledge of the business and
industry in which you work, as well as working knowledge of the many
potential, available solutions.
5. Trust means your client has condence in your integrity and reliabil-
ity to achieve results that support the business.
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DOWNLOAD
THESE
Tools that support content from this chapter can be
purchased and downloaded from the Berrett-Koehler website.
Please see page 253 for download instructions.
Organization and Industry Knowledge Assessment Tool
Client Relationship Strategy Worksheet
Assessment of Performance Consulting Capability
Assessment of Your Critical inking Capability
57
Identify Strategic Opportunities
Identify Strategic Opportunities Reactively
4
Identify Strategic
Opportunities Reactively
If a problem can’t be solved within the frame it was conceived,
the solution lies in reframing the problem.
—Brian McGreevy
“We are moving to a team-based sales approach. I’d like to discuss
the compensation plan we’ll need to support this approach.”
“We are experiencing an increase in preventable accidents and incidents.
Safety is a primary goal for our manufacturing organization. What kind
of safety training can we oer our operators and supervisors?”
How oen are you contacted by a client who has requests such as these?
Each request is presented with a solution in mind; the client seeks your
help to design and/or implement the already determined solution. In
essence, the client expects you to work in a tactical manner, providing
the expertise needed to deliver the solution. Unfortunately, this approach
has a high probability for low or no results, because most performance
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problems have multiple causes. erefore, multiple solutions are needed
for sustained change to occur. Single solutions rarely work.
Requests for solutions provide opportunities to use a performance
consulting approach. In these situations, you ask powerful questions to
reframe the request so the focus is on the business and performance results
the client seeks to achieve and not the solution that was requested. When
you successfully reframe a request, you change your role from a tactical
one (providing a solution) to that of a strategic partner, working with the
client to determine both the problem and the solution.
REFRAMING—WHAT IS IT?
e purpose of reframing is to have the client see the need from a dierent
point of view. You do this by asking powerful questions about the results
the client seeks; you do not ask questions about the client’s solution at this
time. Consider the following request: “I have two teams who are in con-
tinual conict. I would like to oer some type of team building.” Although
this client has identied a team-building solution, the client likely seeks
results that go beyond delivery of a team-building activity. Resolving
team conict would be one possible result, but there could also be a busi-
ness result that is driving this request. In a reframing discussion, you do
not focus on the solution (team-building activity). Instead, focus on the
desired performance accomplishments (resolving team conict), as well as
business outcomes that are connected to that performance. rough the
use of the Gaps logic and skillful questioning, you broaden the discussion
and reframe the need. Frequently, this conversation results in client aware-
ness that some information is lacking and must be obtained if appropriate
solutions are to be determined. Moving ahead without this information
would be jumping to a solution with all the potential landmines and prob-
lems inherent in that approach. By reframing the request, you increase the
probability that the client will want your help in obtaining the missing
information. In this way, you have also reframed your role from one that
is tactical (solution provider) to one that is strategic (helping determine
what is needed). Your goal in a reframing discussion is not to solve the
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problem; rather, your goal is to work with the client to determine what the
problem is.
We introduced you to the Need Hierarchy in Chapter 2. is hierarchy
illustrates the interrelationship of business, performance, organizational,
and individual capability needs. As we have indicated previously, your
goal as a performance consultant is to help clients dene and align these
four needs. When the client requests a solution that focuses on enhancing
individual and/or organizational capability, you are brought into the cen-
ter box of the Need Hierarchy. As Figure 4.1 illustrates, when you reframe
a request, you are moving from the inner box outward. To successfully
reframe requests, you will use two techniques:
Ask powerful questions.
Use a compelling logic when asking questions.
Ask Powerful Questions
In discussing the art of questioning, we are reminded of the time we were
interviewing an executive about the support he received from his HR
FIGURE 4.1 Direction of Reframing Discussions
BUSINESS NEEDS
PERFORMANCE NEEDS
ORGANIZATIONAL
AND INDIVIDUAL
CAPABILITY
NEEDS
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partner. is executive made the following statement: “is individual
asks, and then helps us to answer, questions we did not even know we had.”
In other words, the HR partner was valued for the questions he raised as
much as for the work done to support obtaining the answers. We are con-
vinced that as a performance consultant, you raise more insights and have
greater inuence because of what you ask rather than what you tell. ere
are three categories of questions performance consultants use that draw
on the logic contained in the Performance Consulting Process:
SHOULD questions identify both the business and performance
SHOULDs or desired state. Business SHOULDs are described numeri-
cally (e.g., “We need to increase sales by 500 units”), while perfor-
mance SHOULDs are dened behaviorally (“Sales reps must ask
probing questions to determine the customer’s real need”).
IS questions identify what currently exists as compared to the SHOULDs.
Business IS information describes current results in quantiable terms
(“Our sales are currently showing an increase rate of 300 units”), whereas
IS performance denes the current behavior of specic employee groups
(“Currently, sales representatives are not asking probing questions”).
CAUSE questions focus on the three categories of root causes for the
current situation: causes external to the organization, within the orga-
nization, and within individuals. CAUSE questions can also identify
factors that might hinder future performance once a new initiative
is under way. CAUSE questions seek reasons for gaps in business
results ( “What factors are making it dicult for you to achieve your
sales goal?”), as well as causes for performance gaps (“Why do you
think more sales reps are not asking the probing questions needed to
uncover the true needs of a customer?”).
Asking SHOULD, IS, and CAUSE questions provides you with the
content that is known about a situation. ese questions also uncover
what is unknown but needed and, if appropriate, the next steps required
to obtain that information. Four techniques are key to asking powerful
questions; your questions need to be open-ended, solution-neutral, cause-
neutral, and focused. Let’s discuss each of these techniques in more detail.
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Open Ended
ese are questions that cannot be answered with a yes or no response;
each question requires a more complete narrative response. Consider the
dierence in these two SHOULD questions:
Are your sales representatives identifying customer needs in their ini-
tial discussions?
What do you need your sales representatives to do more, better, or dif-
ferently in initial discussions with customers?
Each of these questions is designed to learn more about what sales reps
should do when in customer discussions. However, it is the second ques-
tion that yields the best information; in fact, there will likely be follow-up
questions once the response is received that will deepen understanding of
what the client is seeking in terms of performance results.
Cause-Neutral
Avoid asking questions that suggest possible barriers for the problem. Your
goal is facilitate a discovery process with the client, working together to
determine what is known, and unknown, about the situation. Again, let’s
consider two alternative questions:
To what degree do managers have sucient data to make the decisions
you believe they need to make?
Why do you think managers are challenged to make the types of deci-
sions you have described?
e second question is neutral in construct, providing the client with an
opportunity to indicate what he or she knows regarding possible barriers.
It is also possible the client will acknowledge being uncertain of the causes
for the lack of decision making. is response provides you with a perfect
opportunity to suggest the value in determining the answer to that ques-
tion before proceeding with solutions.
Solution-Neutral
Just as we want to avoid suggesting causes for the situation, we also want
to steer clear of questions that propose or even assume possible solutions
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to implement. Solution selection would be premature in this initial dis-
cussion. Which of the following questions, in your opinion, is the most
powerful and neutral?
What do you want supervisors to do dierently on the job aer attend-
ing this workshop?
What do you want supervisors to do dierently on the job?
Clearly the rst question assumes there will be some type of training
solution; the second question makes no such assumption.
Focused
Each question you ask needs to focus on one specic element within the
Gaps Map. When we ask broad questions, we usually obtain a response
that is vague and based more on opinion than fact. By asking focused ques-
tions, we get more specic responses from the client, and the probability of
an “I’m not sure” response increases. An “I don’t know response” provides
an opportunity to ask if it would be benecial to obtain that information
before moving ahead with solutions. Again, two examples:
What’s going on?
What actions do technicians typically take when the process is outside
specications?
e second question is designed to determine specic information about
the current state of performance—a performance IS question. With the
rst question, we can obtain almost any response, including one that
yields limited insight into the problem. Figure 4.2 provides a starter list of
generic questions to help reframe discussions.
Ask Questions Using a Compelling Logic
Asking powerful questions is an important but insucient technique by
itself. You need to ask questions using a compelling logic path. What do
we mean by “compelling logic”? We mean that you begin the questioning
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process by starting with the client’s mindset, and then guide the discussion
in a logical manner so it discusses all elements contained in a Gaps Map.
Imagine this scenario between the manager of customer service and
her performance consultant:
FIGURE 4.2 Starter List of SHOULD, IS, CAUSE Questions
Business Need: What is the business goal or
objective?
Employee Group: What workgroup(s)
contribute to the
achievement of this goal?
Client: Who is/are accountable for achieving this business goal?
Business SHOULDs
What are the business goals for your group?
What are your measures of success for
these goals?
If there is any business unit or function
achieving the goals now, what are they doing
differently to contribute to these results?
Performance SHOULDs
(Accomplishments and Behaviors)
If the goals are to be achieved, what
on-the-job performance is required of
(name of workgroup)?
If there are star employees, what do they
do more, better, or differently to achieve
these goals?
Business IS
What are the current results of your group?
What are the actual results of a typical
business unit or function?
Performance IS
(Accomplishments and Behaviors)
What do the employees in the workgroup
typically do when (name of
accomplishment)?
What have you observed that leads you to
believe people will benefit from (the
solution that has been mentioned)?
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
What are the reasons for
the gap between your
business goals and the
current results?
(Question can yield internal
and/or external factors.)
What are the reasons for
the gap between what
employees should be doing
and what they are doing
now?
If the (solution suggested)
were implemented, what
other reasons might still
make it difficult for people
to perform as needed?
How do the capabilities of
the employees compare to
the requirements of the
job?
What skills and knowledge
do employees require if
they are to perform
successfully?
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Manager: I want to discuss some training needs of my new employees.
Performance consultant: I look forward to our discussion. I’d like to begin
by learning more about your business goals. What operational goals
do you have for this year?
Your thoughts in response to this hypothetical conversation are likely
along the lines of “Huh?” ere is no connection—no logic—between the
request of the manager and the response of the performance consultant.
e rst principle of using a compelling logic is to begin your ques-
tioning process by starting at the highest-level need, in the Need Hierar-
chy, that was provided by the client. In essence, your conversation starts
with the client’s mindset, not yours. In the scenario just provided, here is a
more appropriate response by the performance consultant:
I look forward to discussing this need with you. What have you
observed your new employees doing, or not doing, that leads you
to the conclusion they would benet from some training?
is is a performance IS question that launches the discussion. Once the
current performance has been discussed, we move on to discuss perfor-
mance SHOULD. What is the client wanting her new employees to do
more, better, or dierently? From there we would like to learn what are
the CAUSES of the current performance. In this way we have begun
with the client’s mindset but have navigated the discussion away from
a solution and on to a more robust conversation about the employees’
performance.
We also want to discuss the client’s business goals, as they relate to this
group of employees. So a logic path now has us transition to the other side
of the Gaps Map with a question such as “If your employees were operating
in the manner you just described, what would be the impact on the busi-
ness results for this group?” With this business SHOULD question, you
have now moved into a business discussion. Once the SHOULD informa-
tion is obtained, we can easily transition to a business IS question (“What
are the current results compared to those goals?”) and CAUSE (“What are
some reasons for the gap you have described between desired business
results and what is actually occurring?”). e logic path that has just been
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illustrated is displayed in Figure 4.3; the numbers in the gure indicate the
order in which the questions are asked.
But what if the need includes a business goal or gap? For example,
consider this request from a client:
We are experiencing an increase in preventable accidents and in-
cidents. Safety is a primary goal for our manufacturing organiza-
tion. I think we need a refresher course on safety for my operators.
I also want to institute some type of competition between shis
with a reward going to the shi with the best safety record over
the next three months.
e client has indicated that safety results are a problem (business
need) and is seeking your help in implementing two solutions (refresher
FIGURE 4.3 Logic Path That Begins on the Performance Side of Map
Numbers indicate order in which questions are asked.
Business SHOULDs
4. If your employees were operating in the
manner you have described, what would be
the impact on the business results for this
group?
Performance SHOULDs
(Accomplishments and Behaviors)
2. What do you want these new employees
to be doing more, better, or differently in
the future?
Business IS Performance IS
(Accomplishments and Behaviors)
1. What have you observed your new
employees doing, or not doing, that
leads you to the conclusion they would
benefit from some training?
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
3. What is making it difficult
for these employees to
perform in the manner you
have described?
Transition Question
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training and some type of reward system). e business need is the high-
est-level need presented, so you begin the conversation by focusing on the
business side of the map, obtaining as much information as possible. Ques-
tions such as “What are the safety goals for the manufacturing organiza-
tion?” and “How are we currently tracking against each of these goals?”
are examples of questions that yield operational information. When you
have uncovered a gap between SHOULD and IS on the business side, ask
a CAUSE question such as “Tell me more about the reasons that safety
results are declining.” Once you have obtained sucient information for
the business side of the map, transition to the performance side and con-
tinue the discussion. A good transition statement might be “Clearly the
operators are key to improving safety results. What is it they need to do
more, better, or dierently if the safety goals are to be achieved?” Figure
4.4 illustrates the logic path used when you enter the Gaps Map on the
business side.
FIGURE 4.4 Logic Path That Begins on the Business Side of Map
Business SHOULDs
1. What are the safety goals for the
manufacturing organization?
Performance SHOULDs
(Accomplishments and Behaviors)
4. Clearly the operators are key to
improving safety results. What is
it they need to do more, better, or
differently if the safety goals are to
be achieved?
Business IS
2. How are we currently tracking
against each of these goals?
Performance IS
(Accomplishments and Behaviors)
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
3. Tell me more about the
reasons why safety results
are declining
Transition Question
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CORE PRACTICES TO USE IN REFRAMING DISCUSSIONS
Here are ve additional practices useful in successful reframing conversa-
tions. ese practices have been applied in thousands of reframing discus-
sions, particularly those of the Robinsons.
1. Cash in on “I don’t know” responses. is technique is borrowed from
sales processes where salespeople continually seek small commit-
ments throughout the conversation rather than wait until the end to
determine if such a commitment exists. When a client responds with
“I don’t know,” ask if it would be helpful to determine that information
before moving ahead. If the client says yes, you have cashed in—you
are moving into a role of obtaining information rather than imple-
menting a solution.
2. Deep-drill key issues. Frequently clients will respond to a question
with vague information. For example, a client might indicate that
her team needs to be more collaborative and supportive. Turn that
response into a question by asking, “What is it that team members
need to do to demonstrate collaborative and supportive behavior?”
is deep-drilling technique is one that oen yields uncertainty and
provides another opportunity to cash in and determine if obtaining
that information would be helpful.
3. Push back when the client’s solution is inappropriate. When clients
identify specic performance or business results they seek, but then
indicate an intent to implement a solution that will not provide those
results, it is vital that you express your concern. If you do not, you are
implicitly endorsing the proposed plan. When the solution is imple-
mented, but the intended results do not occur, you risk losing cred-
ibility with your client. You have also contributed to an inecient use
of valuable resources.
4. Use a “Yes, and” approach. is is a valuable technique when, despite
your best eorts, the client insists on moving ahead with a solution
where it is unlikely the intended results will occur. With a “Yes, and”
approach, you agree to implement the solution while also proposing
one or more additional actions to increase the probability of success.
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In our previous IT example, where the client is insisting on the reor-
ganization solution, a “Yes, and” approach could be to agree to work
with the client on the solution and also to obtain information from
some individuals in the group about what they feel is needed to yield
better project results. You could review these ndings with the client
in the same meeting where you begin planning for the reorganization.
Perhaps a more holistic solution set will then be selected.
5. Be prepared to exit entirely. When a reframing discussion is ending,
determine the next steps. Four outcomes are possible:
e situation, presented in a tactical solution-focused manner,
remains as such and the decision is to move ahead with
that solution.
e situation moves forward both tactically and strategically,
meaning you will deliver on a solution while also gathering more
information to determine what additional actions may be needed.
e situation moves to a strategic approach, meaning the tactical
solution that was suggested is put on hold while additional
information is obtained.
A decision is reached to take no action at all at this time. You are
exiting the situation.
As a performance consultant, it is your responsibility to sort and si
through requests, using information you obtain to determine the appro-
priate next step. Sometimes the appropriate next step is to take no action
at all. We have found that typically 10 to 20 percent of requests that are
reframed do not move ahead; most important, this is oen a decision with
which the client concurs. Perhaps the client acknowledges that the ques-
tioning process has raised questions in her mind regarding the situation;
she wants more time to discuss with her team what may be needed and to
consider options. We feel this is a most exciting outcome! Imagine your
client determining, from a thirty- to sixty-minute conversation, that to
move ahead with any solution at this time would be premature and inef-
fective. You have avoided allocating resources to implement a solution that
would likely result in no sustained impact, and done so with your client’s
full support.
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REFRAMING REQUESTS: HERE’S HOW IT’S DONE
Sandy is an HR strategic partner supporting the Inside Sales and Ser-
vice (ISS) division of a large financial services organization with offices
in five U.S. cities. The customers for this organization are primarily
people who work within a municipal, state, or federal agency or institu-
tion. These customers invest their funds in various equities and annui-
ties sold by this financial services organization.
A pivotal position within ISS is that of financial services representa-
tive (FSR). This position is considered an entry-level, professional posi-
tion into the organization. A typical FSR is hired shortly after graduating
from college, and a significant investment is made in developing these
individuals. Their role is twofold: to respond to customer concerns and
complaints and also to counsel customers on the management of their
portfolio. For example, a customer may call with a request to move
into a more aggressive investment portfolio and seek guidance as to
the equities or funds to purchase. FSRs receive a salary and also a
commission based on meeting their sales quota. Approximately seven
hundred FSRs work throughout all offices of this organization.
PRESENTED NEED
One of Sandy’s clients is the ISS vice president. The VP sent Sandy
an email a few days ago indicating that she wants to discuss creat-
ing a career path for the FSRs and would like an educational program
designed so that the FSRs will be aware of the career path and its
benefits. Sandy realized that she had been presented with a solution
request; no additional information was provided. So she prepared for
a reframing meeting and arranged for a one-hour meeting with the cli-
ent. She brought a Gaps Map with her to the meeting into which she
planned to take notes as she acquired more information.
REFRAMING DISCUSSION
Following some informal discussions on other topics, Sandy began the
meeting by acknowledging the client’s request to create a career path
for the FSRs. She then followed that with this question: “What have
you observed that leads you to believe a career path is needed at this
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time for our FSRs?” The client indicated that the unplanned turnover
of FSRs is increasing and the trend line is concerning. She noted the
significant investment made in FSRs with the hopes that they will con-
tinue their careers with the organization. Sandy learned that the attri-
tion rate for the previous two years had been less than 8 percent; in
the past six months, it had increased to 16 percent, and there was no
reason to think it would improve. In exit interviews, the VP had learned
that several of the FSRs left to move to a comparable position in
another firm where the salary and benefits were not significantly differ-
ent. The most frequent reason provided as to why an FSR was resign-
ing is that he or she was seeking “a better opportunity.” This vague
response sounded to the client as though the FSRs do not realize the
opportunities for them and their careers in this organization—thus, the
request to form a career path and educate the FSRs on it.
Sandy knew that the client had taken her into a business discussion
with this response, so she elected to remain there and asked, “How is
the attrition of our FSRs impacting other business results for this divi-
sion?” She learned that the department is dealing with an increasing
number of compliance violations. The VP also indicated that there is a
growing number of customer complaints and problems escalating from
the FSRs to their supervisor and even into the managerial ranks. The
goal is to resolve problems in the first call; clearly the loss of FSRs is
contributing to greater pressure on those who remain and having a
negative impact on morale within the group.
Once Sandy learned about the current business situation, she
decided to transition over to the performance side of the Gaps Map:
“I know that there are sixty-eight supervisors in this division. Are any
supervisors experiencing very low turnover among their FSRs?” The
VP indicated that she was certain there were. In fact, she named
two supervisors she knew who had turnover rates under 5 percent.
Sandy then asked, “What are these supervisors doing differently that
is resulting in this lowered attrition rate?” The VP paused and then said
she thought that was a good and intriguing question—and she did not
have an answer. Sandy asked if it would be helpful to collect some
answers to that question before launching ahead with any solutions.
The VP agreed that made sense, as long as the information could be
obtained quickly.
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Sandy next moved into a CAUSE discussion. She acknowledged
the information the client had obtained from exit interviews as to why
FSRs are choosing to leave the organization. But the VP had also
mentioned that customer complaints are escalating and the number
of out-of-compliance issues is increasing. Sandy asked, “What do you
think are the causes for either of these problems?” The VP responded
that she thought there was stress on the FSRs who remained because
they were working in an understaffed situation. Typically an FSR, who
is resigning, provides two weeks’ notice, which is insufficient time to fill
the opening that is created. Currently, there were more than thirty open
positions to fill. Sandy affirmed this talent gap certainly could be con-
tributing to the problem. She also noted that about one year ago they
had invested in a customer service program that all FSRs attended;
a key element in this program focused on managing customer com-
plaints in the “once and done” manner, meaning the goal is to resolve
the problem in the first call. So she followed up the VP’s response with
another question: “What other factors, besides understaffing, could be
contributing to these two business issues?” Again, the client admitted
she did not know and it would be helpful to determine.
GO-FORWARD PLAN
As the discussion closed, Sandy summarized what she now knew about
the situation but also what was unknown and important to determine:
why some supervisors are having better results in terms of retain-
ing FSRs and what other reasons, if any, were causing the decline
in customer service and increase in out-of-compliance situations. It
was agreed that Sandy would conduct telephone interviews with any
supervisor whose turnover rate for FSRs was six percent or less in the
past six months. She would also interview some FSRs to determine
challenges they face with regard to customer service and compliance.
Finally, she would use that conversation as an opportunity to deter-
mine what the FSRs knew—and would share—about why people are
leaving the organization. Sandy and the VP agreed they would meet in
two weeks to review the findings from this assessment.
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RESULTS
Because Sandy asked thought-provoking questions, within a logic path
that began with the client’s mindset, she navigated a discussion that
resulted in a request to obtain more information. In the end, creation
of a career path may be appropriate but, by itself, probably would not
resolve the many problems this VP was experiencing. Sandy reframed
the request from one that focused on designing and implementing a
solution to one that focused on obtaining more information. In the
process, Sandy also reframed her role—from a solution provider to a
strategic partner.
PERFORMANCE CONSULTING POINTERS
1. Reframing is a questioning approach used when a client comes with a
solution in mind. In a reframing discussion, you focus on the results
the client seeks rather than on the solution the client has requested. In
this discussion, the goal is not to solve the problem but to work with
the client to determine what the problem is.
2. Successful reframing discussions depend on eective questioning
techniques that include (a) asking SHOULD, IS, and CAUSE questions
and (b) doing so with a compelling logic path.
3. Powerful questions are open-ended, cause- and solution-neutral, and
focused to one element in the Gaps Map. ey also support the prin-
ciple of beginning with the client’s mindset.
4. When clients insist on moving ahead with a solution, even though that
solution has a low probability of providing results, it is important to
push back on the request. When the client still insists on the solution,
use of the “Yes, and” technique may increase the probability of success.
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DOWNLOAD
THESE
Tools that support content from this chapter and are
contained in the Performance Consulting Toolkit are listed
here. ese tools can be purchased and downloaded from
the Berrett-Koehler website. Please see page 253 for
complete download instructions.
Starter List of Questions
Reframing Discussion Template
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Identify Strategic Opportunities
Identify Strategic Opportunities Proactively
5
Identify Strategic
Opportunities Proactively
e people who get on in this world are the people who get up and look for
the circumstances they want and if they can’t nd them, make them.
—George Bernard Shaw
Bill is a performance consultant who believes in the “make circumstances
happen” approach. He works in a large nonprot organization with facili-
ties throughout North America. One day while at an open house, he was
talking with the community executive who asked him to brief four new
board of director members regarding their board responsibilities. Bill had
briefed new board members in the past and acknowledged he would be
pleased to do this. He was aware of the board’s changing role, partly due to
disappointing business results, and asked the executive about these results
and the implications for the board’s responsibilities. His questions were
thoughtprovoking, and the community executive asked to meet with Bill
the following week to continue the discussion. Even though the client’s
original need was of a tactical nature (brief new board members), by tak-
ing the initiative to ask questions, Bill was successful in partnering on a
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more strategic need (dening the board’s role). It is unlikely Bill would
have been invited to discuss the situation if he had not indicated interest
in doing so through his questions. As we have noted, to identify strategic
opportunities on which to partner, you rst must gain access to the leaders
who have accountability for those situations. It is this access that provides
a platform for proactively surfacing strategic partnering opportunities.
TRIGGERS FOR WORKING PROACTIVELY
As a performance consultant, you want to work proactively for two reasons:
(1) to deepen client partnerships and (2) to identify strategic opportunities
on which to partner with your clients. at said, not every proactive dis-
cussion will result in a partnering opportunity. But when such an oppor-
tunity is identied, your role in the project will almost always be strategic.
Rather than implementing others’ decisions, you are “at the table” having
input to these decisions.
One of the clear dierences between a reactive and proactive discus-
sion is how the discussion begins. In a reactive discussion, you are respond-
ing to a client request. Because the client is initiating the conversation, it is
important to begin with the client’s mindset, which frequently is focused on
a solution. e goal is to reframe the discussion, transitioning from a solution
focus to a discussion of the client’s business needs that are driving the request.
In a proactive discussion, you initiate the discussion with the client.
You determine where to begin the conversation, and you choose to begin
by exploring the client’s business needs. You use logic contained in the
Gaps Map to guide the discussion so, at the conclusion, you have discussed
performance and capability needs. As illustrated in Figure 5.1, you start
the discussion at the highest need, which is the business need.
Several triggers create opportunities to initiate a proactive discussion
with your client. Let’s look at some of these.
Business Planning Cycle
e business planning cycle of your organization oers a rich opportunity
for proactive discussions. For example, if the scal year of your organization
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is from January 1 to December 31, the planning process oen begins in the
June and July timeframe and needs to conclude by the end of December. In
this cycle, November or December are opportune times to set up a meeting
with your client for a proactive discussion. By this date, the business goals,
strategies, and challenges have been identied and discussed. Managers
know what work groups will be essential to achieving the goals, but they
may not have given much thought to what those groups must do more, bet-
ter, or dierently. When setting up the meeting, acknowledge your aware-
ness that the business planning process is nearly complete. e more you
know about the business unit’s goals, challenges, and strategies for the
coming year, the better you can provide support directly linked to those
business goals. is approach oen leads to an agreement to have review
meetings on a scheduled basis throughout the year.
New Client
Another trigger is when you begin supporting a new client. is oen
happens when there is a change in leaders in a business unit you have
FIGURE 5.1 Direction of Proactive Discussions
BUSINESS NEEDS
PERFORMANCE NEEDS
ORGANIZATIONAL
AND INDIVIDUAL
CAPABILITY
NEEDS
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been supporting. When setting up this discussion with the new business
unit leader, indicate that not only do you want to update that person on
your activities within the unit, but you also wish to learn more about the
client’s go-forward plans. ere are essentially three purposes to proactive
discussions in this situation. One is to gain access to this individual and
begin the process of building credibility and trust. e second is to provide
the leader with information regarding your function and how you can
support the business unit as a performance consultant. e third purpose
is to determine the plans that leader has for the business unit. Perhaps
this client is only beginning to form plans for the next twelve months.
e questions you ask may stimulate thinking and could result in your
involvement in these plans.
New Assignment
Yet another opportunity to be proactive is when you are appointed as a
new performance consultant to a business unit. In this case, you need to
learn more about that business and your client’s plans for the future. Prior
to scheduling the meeting with the client, be sure to research information
about the business unit. When setting up the meeting, indicate to the cli-
ent that you want to learn about the business goals, challenges, and strat-
egies in order to provide targeted, needed support to the business unit.
In the meeting, ask how you can learn more about the business unit. In
essence, you are using the technique we referenced earlier about turning
your client into your coach.
New Corporate Initiatives
New corporate initiatives provide other opportunities for proactive discus-
sions. Oen performance consultants are involved in projects like intro-
ducing a culture change. Although the business leaders have set specic
business and organization goals, many times they have not yet considered
the performance implications for people. As a performance consultant,
you can help identify those implications, as well as ones for organizational
and individual capability. Taking this holistic approach will add to the
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probability that the intended changes will be successfully implemented
and sustained. In this way, you are partnering with your clients to imple-
ment a “corporate” initiative so it is adapted to the unique needs of a spe-
cic department or group.
Burning Platform
One of the most powerful triggers for a proactive discussion is referred
to as the “burning platform.” You may have heard the story of the explo-
sion and re that occurred on an oil drilling platform in the North Sea in
1988. One employee on that rig told the story of being awakened by the
explosion and the ensuing alarms. Within seconds, this individual ran
from his bed and jumped een stories down to the water below—water
that was so cold he would live but a few minutes if not rescued. He did
live to tell the tale; he said that he made a potentially lethal jump because
not to do so meant certain death. is life-and-death decision was made
in an instant because he was on a burning platform and had to act. us
was born the phrase “burning platform,” a phrase used in business today.
e term refers to any business scenario in which the current state is not
an option and there is a sense of urgency to act; in fact, it is imperative
to do so (Conner, 1992). rough your relationships, you may learn of a
burning platform situation. By making an appointment to discuss it, you
are conducting a variation of the proactive conversation. Rather than a
wide-ranging discussion of a client’s business needs and goals, you focus
the discussion on the specic concern.
Connecting the Dots
Consider the multiple types of information you learn about your business
and clients as “dots” of content—for example:
e business requirements and current results of your client’s orga-
nization
Information about the external marketplace in which that organiza-
tion operates
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e changing preferences of the organization’s customers and clients
e projects and initiatives underway within your client’s organiza-
tion and the reasons or drivers for these eorts
Trends within the talent management and development practices in
comparable, even competitive, organizations that may be of interest
to your clients
When you connect the dots, you integrate all these seemingly dispa-
rate pieces of information, identifying the implications for your client’s
organization and business success. When you discuss them with your cli-
ent, you are putting something on the client’s radar screen that currently is
not there but needs to be. Clients value this type of insight and guidance.
Here is an example of how a performance consultant connected the
dots. An ongoing responsibility for this HR partner within a consumer
products business was to help recruit people for mid- and upper-level
management positions. One day he received a call from a client request-
ing support to ll a managerial position in marketing. is HR partner
knew the criteria that had been used previously to ll this position. He
also was aware of market research indicating that customer preferences
were changing dramatically, a change that had negative consequences for
the products made by this part of the business. e HR partner mentioned
these trends to the client, saying, “I think we may need to reconsider the
criteria we are using to ll this position. We anticipate the successful can-
didate will hold this position for four or more years. It seems the candidate
we select should be someone who can help lead us into the new areas where
we must move.” e client acknowledged that this was a good point but
also was not sure how the job requirements needed to be modied regard-
ing education, background experience, and competencies. e HR partner
volunteered to take the initiative to nd the answer. A strategic partnering
opportunity was born! Rather than simply lling a job opening, a tactical
request, the HR partner transitioned his role into one that was strategic,
helping to create the prole for this dierent type of individual needed to
lead the business to its future. Connecting dots is an excellent technique
for raising clients’ awareness to a need that is currently not apparent.
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THE PROACTIVE DISCUSSION
Before discussing the components of a proactive discussion, it is important
to note the one glitch that can occur in this discussion—and when it does,
it happens at the very beginning of the conversation. A proactive discus-
sion starts with some form of the question “Tell me about your business
goals for the coming year.” A client may respond by providing a business or
performance strategy rather than a business goal. While strategies will be
discussed, they are not where you want the discussion to begin. You want
to discuss the “what” before you discuss the “how.” Consider the deni-
tions for each of the items that will be discussed in a proactive discussion:
Business goal is an operational objective for a unit, department, or
enterprise and is measured in numbers. It is the “what” for the business.
Business strategy is an overarching plan for accomplishing the busi-
ness goal. is is the “how” at the business level.
Performance strategy is an overarching plan for enhancing per-
formance of employees. is is the “how” at the employee perfor-
mance level.
Table 5.1 provides an example of each of these.
In a proactive discussion, you discuss all three of these; however, it is
important to begin with a business goal. e business goal is the stake in
the ground to which strategies are linked. If you receive a strategy from
your client in response to your initial question, it is important to recognize
TABLE 5.1 Examples of Business Goals and Strategies
BUSINESS GOAL BUSINESS STRATEGY PERFORMANCE STRATEGY
“We need to grow
market share of our
two signature brands.”
“We are acquiring a company
that manufactures products
that will complement the
products already in our
brands. We want to ensure
the integration of that
company is effectively done.”
“We need to increase the
flexibility of our workforce
so that they can operate
in a cross-functional
manner across our
growing number of
products.”
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this and ask questions to clarify the business goal that the strategy sup-
ports. For example, if you ask for a business goal and your client replies,
“We are acquiring a company with complementary products,” you might
ask, “For what business purposes are we making this acquisition?” It is
highly possible the business purpose is to grow market share through
acquisition rather than through organic means. Now you have a business
goal to discuss. When your discussion transitions to the strategies used to
accomplish the goal, you can reference the acquisition strategy mentioned
earlier, moving into a more comprehensive discussion.
Preparing for a Proactive Discussion
You can do several things to increase the probability of a successful meet-
ing with your client. Table 5.2 lists information that would be helpful to
know about the client’s organization prior to your conversation. Some
TABLE 5.2 Checklist to Prepare for a Proactive Business Goals Conversation
Check off each item that is relevant for you to know prior to a business goals
discussion with your client. Ensure that your knowledge of these items is current
prior to the conversation.
(�)
___ 1. Organization chart for the client’s business unit/function/department
___ 2. Most current business plan for the client’s business unit
___ 3. Demographic information regarding the employees within the client’s span
of control (number of employees by job groups, geographic location of
employees)
___ 4. Information about the product(s) and service(s) provided by the client’s
business unit including the customers (internal and/or external) for these
products and services
___ 5. Organizations that directly compete with the business unit
___ 6. Alliances, joint ventures, acquisitions, and/or divestitures that are occurring
and are relevant to the client’s organization
___ 7. The operating metrics used to measure the results from the client’s business
unit—both what they are and the current results against goals
___ 8. Other items of relevance such as recent hires, promotions, and placement
of key people within the division or function
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of the items you may already know; some may not be relevant to your
particular client. You want to invest your time in learning more about
the items that are important to your client and about which your current
knowledge is limited. If a client measures results with terms like “amount
of ow-through” or “assets under management,” do you know what those
terms mean and what factors aect them? And when the client mentions
a concern about the performance of people in a specic job group, it is
important to know the approximate number of people in that group and
where they are geographically located. You do not want to ask the client to
explain terms and details that you could easily nd out yourself through
some quick research. Doing your homework prior to the meeting will reap
rewards in terms of gaining credibility with the client as well as promot-
ing a discussion that goes deep into your client’s business challenges and
opportunities.
Managing a Proactive Discussion
We have mentioned various incidents that are triggers for a proactive dis-
cussion. When setting up an appointment with a client for this type of
conversation, ask for one hour of time. is conversation needs to be done
in real time, either face-to-face or on the phone. Email and texting are not
appropriate alternatives. You want to build upon responses in a conversa-
tional manner. Also, keep in mind the two purposes for a proactive discus-
sion: to deepen the client relationship and to identify strategic opportunities
on which to partner, when possible. Not every proactive discussion yields
such an opportunity, and you do not want to appear as though you are push-
ing to create one. At minimum, you will leave this type of discussion with a
much deeper appreciation of what your client seeks to achieve and informa-
tion that will likely prove worthwhile as the year unfolds.
We are continually amazed at both what is learned in these discus-
sions as well as the eagerness with which sustained clients participate in
them. We recall one situation in which an HR strategic partner made an
appointment with a director who, when conrming the appointment,
requested that they meet in a conference room with a whiteboard. When
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the time came for the meeting, the director brought in several documents
for the strategic partner and used the whiteboard to illustrate initiatives
and items relevant to his business. Continuing well past the one hour that
had been scheduled, their conversation resulted in the identication of a
project on which to partner.
Another principle of proactive discussions is the opportunity it pro-
vides to demonstrate to the client how you and your function intend to
operate. You must rst understand the business before you can determine
how to support it. is point was clearly in evidence when a performance
consultant we know was conducting a proactive conversation with one of
her sustained clients. ey discussed the client’s business needs in depth;
virtually no time was spent on describing the learning and HR services
and products that were available. Near the close of the conversation, the
client acknowledged what a refreshing change it was to “have HR help
determine the needs of my business and how to support them rather than
asking me to gure out how I can best use HR programs and services.”
Clearly, proactive discussions are a signicant opportunity to gain
entrance to strategic work. We want to maximize that opportunity, so let’s
look at some proven techniques.
Opening the Discussion
Aer the greetings and discussion of any other business matters, begin by
stating the purposes for the meeting. Because you’ve initiated the meeting,
you need to clarify your objectives and the benets to the client for taking
time to have this discussion. What might those benets be?
Enhancing the value of the support you provide to the business unit. You
want to ensure that any work you do is directly linked to the business
needs for the client’s organization and adds value. Knowledge about
current business situations will help ensure this is done.
Providing the opportunity to anticipate needs, not just respond to
them. While you support the client by responding to requests, it is
also possible to anticipate needs. is discussion reveals information
that makes anticipating needs possible.
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A tip regarding your introductory comments: Be certain to determine
what your client would like to accomplish in the meeting. We have found
that clients do come with questions about a specic situation or need for
their organization. Allow time to address those questions.
Discussing Business Goals
is is the most important part of the discussion. Business goals represent
what must be accomplished if that business is to be successful in the future.
Your clients are accountable for achieving those goals. It is critical for you
to know which goals are important to the client and which metrics they
monitor. You want to walk in your client’s shoes, developing a deep appre-
ciation of the challenges and opportunities that this client faces each day.
Be prepared for some real surprises. For example, a performance con-
sultant in one of our workshops was assigned to interview the director of
manufacturing security, a leader who was unknown to the performance
consultant as this director was not her client. In preparing for the conver-
sation, the performance consultant tried to anticipate what would be dis-
cussed in the conversation with someone responsible for “manufacturing
security.” Issues regarding access to facilities? Concerns regarding infor-
mation system security? In the conversation, the performance consultant
learned that this director was responsible for preventing pilfering of prod-
uct that was produced in the manufacturing plants. ere was a problem
with product being sold on the black market in some countries in which
the organization operated. e consultant had not even considered that
accountability. You have a great deal to be gained by walking in the shoes
of your client for an hour.
So, what are some tips for managing this part of the conversation? e
most eective discussions are conversational in nature, as if the two of you
are in a coee shop, enjoying a café latte while discussing what’s happen-
ing in the business. Show interest in the conversation without interrogat-
ing the manager. Let your natural curiosity prompt you to ask questions
such as “Why is that important to do?”, “How do you overcome that chal-
lenge?” and “Anything else that would be good for me to know?” We have
found that conversations with a natural, logical ow generate the greatest
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amount of information. What follows is a starter list of questions to use
in your proactive discussion; each question notes the specic purpose for
asking the question within the SHOULD-IS-CAUSE logic.
Starter Kit of Questions for Proactive Discussions
1. What is a major business goal for you and your business unit for the
next 12 months? (SHOULD question)
2. Why is this an important goal at this time? What are the driving forces
behind this goal? (CAUSE question)
3. a. What indicators are you using to measure this goal? What are the
goals relative to these measures? (SHOULD question)
b. What are the current results relative to these metrics? (IS question)
4. What strategies are you using to accomplish this goal? (SOLUTION
and possible CAUSE question)
5. What factors outside our organization are going to challenge goal
achievement? What factors outside our organization will encourage
success? (CAUSE question)
6. What factors inside our organization will challenge achievement of
the goal? What factors in our organization now encourage our suc-
cess? (CAUSE question)
7. Within your business unit, what employee group(s) will most directly
contribute to the achievement of this goal through their day-to-day
performance? (Moving into PERFORMANCE)
8. a. Considering the business goal and challenges you are facing, what
must employees in this business unit do more, better, or dierently
to support this goal? (SHOULD question)
b. Are any employees currently achieving desired results? If yes, what
are they doing dierently? (SHOULD question)
9. What are employees typically doing now in their day-to-day work?
What are the major gaps, if any, between what you need employees to
do and what they are typically doing now? (IS question)
10. What barriers, if any, challenge employees to perform as you need
them to? (CAUSE question)
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Starter questions oen yield information that can be probed through
additional questions that will take you more deeply into a discussion of the
specic item. You begin the conversation by asking the business questions
and move into other areas to explore from there.
Even though this discussion is informal, you may choose to deep-drill
some items. Look for opportunities to enhance your client’s awareness
of factors that could impact employee performance and ultimately the
achievement of business goals. You do this by asking probing questions
about a few specic factors that you want your client to examine in greater
detail. For example, how are the employees supported by organizational
systems and processes? What are the practices used by star employees that
enable them to consistently achieve their goals? Your primary purpose is
to increase awareness and not to contract for a project.
ese discussions are robust and fascinating for both you and the cli-
ent in many instances. Clients are oen describing their expectations of
employee practices in very general terms. is is not a problem at this
time, unless the lack of specic employee practices is a barrier to goal
achievement. We have found clients value the opportunity to step back and
reect on their goals and what is needed to achieve them. At the end of the
discussion, managers oen say, “Your questions helped me think through
how to describe these strategies to others” or “Our discussion uncovered a
couple of areas that will need more attention by my team.” e time spent
discussing business issues is valuable to both the client and you.
Closing the Discussion
Aer 60 to 90 minutes, you will have discussed one or two business goals.
You are now ready to close the conversation. Five closings are possible:
1. Summarize what you’ve learned. is needs to be a concise, clear
summary that arms you have listened to and do understood what
the client was saying.
2. Acknowledge if a potential project was identied. Mention the situa-
tion that was identied as a possible opportunity on which to work.
Conrm if the client would still like your support in that area, and
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establish the next step that will begin the work; most likely this will be
a meeting with the client to dene the project’s purposes and process.
3. Gain agreement for future meetings. Acknowledge the value of stay-
ing current on the client’s business issues. Determine if it is possible
to have this type of discussion on a scheduled basis—perhaps once a
quarter. You want proactive business discussions to become part of an
ongoing dialogue with the client.
4. Determine actions to take to deepen knowledge of the business. Clients
appreciate when their HR or learning partners demonstrate a sincere
interest in learning about the “business of the business.” e close of a
proactive discussion is an opportune time to seek the client’s sugges-
tions as to how you could learn more about the business. Clients oer
suggestions such as “I’ll send you a list of my favorites on the internet.
I suggest you go to those sites on a regular basis,” and “ere are some
people I think you would value job shadowing for a few hours. Let me
send you a list of those individuals.” In essence, you are asking your
client to become your coach in learning more about the business.
5. Determine if the client still has questions. e proactive discussion
oen spawns additional questions the client would like to discuss. It
can also be an opportune time to clarify the client’s and your expecta-
tions about working together in a more strategic manner. You are now
contracting for the type of partnership you will share.
Indicators of a Successful Meeting
How do you judge if a proactive business goals discussion with your client
has been successful? One option is simply to seek your client’s reaction to
the process. Here are some other indicators of success we look for:
To what degree was your client engaged in the conversation? When
you asked thoughtprovoking questions, did your client show interest
in discussing that topic in greater detail? Did you nd that the client
became more engaged in the conversation as time went on? ese are
signals that the discussion is valued by your client.
How much information did your client share regarding business
goals, activities, and challenges? To what degree did the client have
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CONDUCTING PROACTIVE DISCUSSIONS:
HERE’S HOW IT’S DONE
Andrew is a performance improvement manager (PIM) working in a
large home improvement products company. Based in the United
States, this company has hundreds of retail stores located throughout
North America. It has started to open stores in other countries, pri-
marily in the Asia-Pacific region. One of Andrew’s clients is the VP of
merchandising for the appliance division. In this role the VP is respon-
sible for decisions regarding large and small appliances that will be
sold and how they will be displayed throughout the stores. He is also
responsible for the revenue and profit generated from this product line.
The Learning and Development (L&D) department where Andrew
works has a practice of developing business support plans for all key
clients on an annual basis. These plans require that the PIMs meet
with their clients in the last quarter of the year to conduct a proactive
business discussion. The focus on this conversation is to develop in-
depth knowledge of the goals for the coming year and also to deter-
mine which, if any, of these goals might benefit from L&D support.
When meeting with the VP, Andrew began the conversation by
acknowledging a business strategy that was launched in the previous
an in-depth discussion about the results that various employee groups
must accomplish in support of the business goals? Did your client pro-
vide in-depth information about specic goals that will be dicult
to achieve?
When you suggested scheduling future meetings, to what degree
did your client seem open to these discussions on a quarterly or six-
month basis?
Certainly an indicator of success would be if you and your client dis-
cussed a project, strategic in nature, on which the client would like
your help. While this is not a primary purpose of the discussion, it is
certainly a wonderful result when it occurs.
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year: to provide “an extraordinary experience” to customers. Andrew
then asked the VP to identify the pivotal goals for the appliance busi-
ness in the coming year and their connection to this strategy. A few
goals were identified in the conversation, including the following:
1. Increase the draw rate into the appliance department. Draw rate refers
to the percentage of consumers who shop at a specific retailer for
a product category, such as appliances. Currently the draw rate for
this organization was not at goal and was lower than that of primary
competitors.
2. Increase the close rate, which is the percentage of people who visit the
appliance department and then make a purchase.
3. Increase sales made by new employees. Currently there is a ramp-up
time of about three years before new employees reach their maximum
sales rate. The goal was to reduce that time.
Andrew unbundled these goals and discussed each one separately.
He asked questions regarding the operational indicators that would be
used to measure each goal, identifying both the current and desired
results. He also asked questions to learn more about what factors,
within and outside the organization, would challenge goal achieve-
ment. The client had robust information when discussing these ques-
tions. Andrew then moved to a discussion about the performance that
would be required of sales associates and their managers, if these
goals were to be achieved. Andrew asked questions such as “What did
sales associates need to do more, better, or differently to provide an
extraordinary experience that would result in the customer making a
purchase?” and “What needed to be done differently if new employees
were to reach their optimal sales potential earlier?” The VP was uncer-
tain about the answers—and interested in obtaining them.
NEXT STEPS
As a result of this conversation, it was agreed that Andrew would
visit the appliance departments in selected stores to interview some
employees and their managers. He could observe the interactions of
employees with their customers. He could also observe how products
were merchandised, as well as what signage and brochures were dis-
played. Andrew then shared his observations with the VP.
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THE RESULT
Several projects were identified for Andrew and the L&D group to sup-
port. These projects formed the basis for the business support plan,
guiding the work of the L&D department within the appliance group for
the coming year. The VP indicated that he felt Andrew was a “trusted
partner” and invited him to attend the VP’s staff meetings, so Andrew
could keep current on business issues, opportunities, and challenges.
Clearly, using the client’s business goals as the foundation for the
plans formed by the L&D department and how it would provide support
is a best practice!
PERFORMANCE CONSULTING POINTERS
1. In a proactive discussion, you are initiating contact with the client for
the expressed purpose of discussing the client’s business opportunities
and challenges. At minimum, you will increase your knowledge of the
client’s situation; at maximum, you will discover a strategic opportu-
nity on which to partner.
2. ere are numerous triggers for initiating proactive conversations,
including when you take on the assignment of supporting a new client
or when your client has a burning platform that requires action.
3. Eective proactive discussions depend on asking powerful questions
that support the SHOULD-IS-CAUSE logic. It is also critical to clar-
ify the dierence between a business goal (the WHAT) and business
strategy (the HOW), ensuring you are focused on a business goal as
the conversation begins.
4. Preparation is a key to success. Deepen your knowledge about your
client’s organization before meetings with the client.
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PURCHASE AND
DOWNLOAD
THESE
Tools that support content from this chapter and are
contained in the Performance Consultant’s Toolkit are
listed here. ese tools can be purchased and downloaded
from the Berrett-Koehler website. Please see page 253
for complete download instructions.
Checklist to Prepare for a Proactive Business Goals
Conversation
Proactive Business Goals Discussion Template
Assess Business and Performance Needs
Assess Business and Performance Needs
SECOND PHASE
Assess Business and
Performance Needs
4
Determine
Business and
Performance
SHOULD, IS,
and CAUSE
5
Report
Results
to Clients;
Agree on
Solutions
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In this section of the book are the following chapters:
CHAPTER 6: DEFINE THE SHOULDS
Identifying the business goals as well as performance and organizational
requirements in specic terms is essential to a successful performance
consulting initiative. Once you have determined the SHOULD busi-
ness results, you next identify the SHOULDs for human performance by
answering these two questions: What must people do more, better, or dif-
ferently if the desired business results are to be achieved? What organi-
zational supports are required for this performance to be enabled?” is
chapter provides techniques and processes for answering these questions.
CHAPTER 7: ASSESS THE IS
When the desired business and performance results are known, determine
the current state for each of these—what we refer to as the IS. is chapter
provides how-to’s for identifying business and performance gaps.
CHAPTER 8: IDENTIFY CAUSES AND
SELECT SOLUTIONS
Once gaps are known, you must uncover their root causes. A key to a suc-
cessful initiative is that you and the client are focused on addressing root
causes and not symptoms. is chapter identies the nine most common
root causes of performance gaps and provides techniques for doing this
assessment. Proven practices for interpreting and reporting SHOULD,
IS, and CAUSE data are provided. Guidelines for selection of appropriate
solutions are also included in this chapter.
95
Assess Business and Performance Needs
Dene the SHOULDs
6
Define the SHOULDs
Begin with the end in mind.
—Stephen Covey
You have undoubtedly heard the expression, “If you don’t know where
you are going, then any route will do.” As a performance consultant, you
want to ensure that you—and your client—know where you are going.
Specically, you want to identify three destinations:
For the required business results
For the performance of people who support those business results
For the organizational systems people require so they can per-
form as needed
We will begin by discussing how to identify the goals for the business.
DEFINING BUSINESS SHOULDS
Because employee performance should support desired business results,
we begin by identifying the business SHOULDs. A business SHOULD
is an operational goal that is measured numerically— for example, as
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percentages or monetary values.. Clients are the primary source of infor-
mation for this business information. You want to know not only the goals
(e.g., to improve prots), but the numerical measures that will be used to
determine success (e.g., to increase the prot margin by 3 percent). Ideally
business goals are expressed in quantitative measures. We cannot over-
state how critical it is to have one or more specic business goals that will
be the impetus for the performance consulting initiative. ese goals are
what garner the ownership and support of clients—a support that is key if
the initiative and its results are to be sustained.
But what if your client has only a vague notion of what he seeks as a
business outcome? Consider this example: A client is seeking your help to
“improve our brand’s image in the marketplace.” But the information the
client is using is anecdotal, consisting primarily of comments on social
media sites and what the sales force has “heard” from potential custom-
ers. ere are no quantitative measures currently being captured. A ques-
tion to pose to the client would be “What are your personal measures of
success? What results will tell you that this initiative and the investment
we are making in it are worthwhile?” e response may be qualitative in
nature, such as “We will see more positive comments on social media.”
At minimum, you will have some indicator to measure. It is also possible
that you can build on the response, agreeing on how to make that mea-
sure more quantitative. For example, set a goal for a specic percentage
increase in positive comments in social media sites. We have been a part
of initiatives where the client had only fuzzy measures for a goal. How-
ever, by initiating discussions, measures of relevance were identied, with
the client agreeing to form a data collection system to obtain reliable data
regarding the goal. In essence, this data collection system became one of
the solutions agreed to in the initiative. e key here is that the goal (e.g.,
to improve brand image) is the client’s. What is up for discussion is how
you and the client will know that goal was achieved.
DEFINING PERFORMANCE SHOULDS
Once the business goals are identied, you then determine which of three
SHOULD assessments (shown in Figure 6.1) is appropriate for the initiative.
DEFINE THE SHOULDS
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97
Process models describe the work ow or procedures required to
accomplish business goals. e Performance Consulting Process, around
which this book is organized, is an example of a process model. It is a ow
of steps as people should perform them to achieve a desired outcome. In
today’s organizations, the process known as Six Sigma is frequently used to
reengineer process workows. Six Sigma is a proven and prescriptive set of
analytical tools, project control techniques, and reporting methods used to
analyze a current process ow and to design the process as it SHOULD be.
FIGURE 6.1 Applications from SHOULD Assessments
Identify
Business
Goals and
Requirements
Process
Models
Competency
Models
Performance
Models
Requires Identification
of:
Business Goals
Metrics Used to
Identify Success of
Each Goal
(This informa tion
is obtained through
discus sions with
clients.)
Possible
Applications
Enhance Qual ity of
Output
Redesign Work flow
to be More Efficient
Change Output
Requirements
Establish Input
Requirements
Determine Work
Environ ment
Require ments and
Take Actions to
Re move Barriers
Determine Staffing
Require ments
Possible
Applications
Design Recruitment
and Selection
Systems
Design 360°
Feedback Systems
Design Succession
Planning Systems
Build Career
Planning Systems
Coach Incum bents
in the Job
Form Develop-
mental and
Learning Expe-
riences for People
in the Job
Design
Compensation
Systems
Possible
Applications
Orient to Specific
Job
Clarify Roles Across
Jobs
Establish
Performance
Standards for a Job
Coach Incum bents
in the Job
Determine Work
Environ ment
Require ments and
Take Actions to
Re move Barriers
Form Develop-
mental and
Learning Ex-
periences for
People in the Job
Design
Com pensation
Systems
Bold = applications that are similar across differing models.
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As a performance consultant, you may be asked to work within a Six Sigma
project; in doing so, you are most likely helping to build a process model.
Competency models describe the skills, knowledge, and attributes
required if people in a specic role or job group are to perform success-
fully in support of business goals. Most people within HR and learning are
familiar with competency models as they are frequently utilized to design
various solutions, such as performance management systems, recruitment
systems, succession planning systems, as well as learning curricula.
Performance models describe performance accomplishments required
of people in a specic job if business goals are to be achieved. ese mod-
els also describe the specic behaviors or practices that highly successful
employees use to achieve these goals.
Determining which of these models is optimal for a given situation
requires that you “begin with the end in mind,” an age-old concept made
notable by Stephen Covey in his many books including e 7 Habits of
Highly Eective People (1980). Before beginning an assessment, it is impor-
tant that you determine how you and your client intend to use the infor-
mation drawn from the assessment. What actions will be taken once the
assessment is completed? What applications, such as coaching or selection,
will be designed? ese applications are the ultimate “end” of data collec-
tion. Obtaining information but never acting on it is a misuse of resources.
Figure 6.1 lists some of the applications optimal for each of the three types
of models we are discussing.
As you will note, some applications might support more than one
type of model. For example, both competency and performance models
provide information of value when designing learning or compensation
programs. ere are other applications where only one type of model is
appropriate. Consider a situation in which a client needs to divide one
job into two positions, allocating accountabilities between these two posi-
tions in a manner that is optimal for the business. A competency model
is of limited use in this case. Because the specic skills and knowledge
required for success (i.e., the competencies) will most likely be similar, the
distinctions between the two newly created jobs will not be clear. While a
process model will describe the work ow and procedures that people in
DEFINE THE SHOULDS
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99
each of the two jobs must follow, it will not identify the specic techniques
and practices required for success in each job. It is almost certain that the
accomplishments required of people in each job will be dierent. A per-
formance model identies these unique accomplishments as well as the
optimal practices required of people in each job. Performance models can
prevent any accountability overlap and/or role confusion that may occur
for people in these two positions.
Volumes of literature discuss and explain process models. ese
resources explain process models far more completely than we will in this
book. In the remainder of this chapter, we focus on performance and com-
petency models.
Performance and Competency Models
As noted, performance and competency models describe performance as
it SHOULD be if business goals are to be achieved. Just as there are mul-
tiple languages people can use when speaking with others, there are multiple
“languages” we can use to describe on-the-job behavior. However, many
people who are new to performance consulting confuse competency and
performance models. We can relate, as we ourselves were uncertain of the
dierence when starting our work in performance consulting. A friend
helped us when he said, “Look at it this way. A performance model focuses
on a specic job. A competency model focuses on a role or job group.” He
went on to say that a performance model is a type of database contain-
ing practices and techniques proven to work and required for success in a
specic job. A competency model describes the skill, knowledge, and attri-
butes required of people for success in a specic role, such as management
or sales. e dierences and similarities of performance and competency
models are summarized in Table 6.1.
Purposes are unique to each model. In a performance model, we
describe the performance accomplishments and on-the-job behaviors
required for job success; in the competency model, we describe the
knowledge, skills, and attributes (oen abbreviated as KSAs in busi-
ness) needed for success.
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TABLE 6.1 Comparing Performance and Competency Models
PERFORMANCE MODEL COMPETENCY MODEL
Purpose Answers the question “What
must people do more, better,
or differently if business goals
are to be achieved?”
Answers the question “What
skills, knowledge, and
attributes do people require
if they are to perform
effectively in a given role?”
People
Focused on
by the Model
Identifies performance of
people in a specific job
Identifies competencies for
people in a specific role (i.e.,
all first-level supervisors)
Sources Competency and performance models utilize the same
sources, including:
Star employees (NOTE: Generally star employees are not
more than 5% of the target population.)
Managers of star employees
Typical employees (to determine which behaviors are setting
the stars apart from the typical; referred to as “set-apart”
behaviors)
Direct reports to star employees
Clients
Customers of star employees*
Peers of star employees
Literature*
Subject-matter experts*
Internal or external benchmarking*
Operational data
Methods Competency and performance models utilize the same
methods, including:
Observation
One-on-one interview
Focus group interview
Review of work products or documentation
Bold = preferred sources.
*Indicates a reliable source of information for behavior when there are no stars in the client’s
organization.
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Let’s assume you are working in a call center. e customer satis-
faction ratings are declining, and the number of customer complaints
is escalating. Your client wants to obtain information to determine how
to address this business problem. If you are developing a performance
model, your purpose statement could be “To identify accomplish-
ments and optimal practices used by customer service representatives
who are currently obtaining strong customer satisfaction ratings.”
If, however, you are taking a competency approach, your purpose
statement for the same situation would be to identify the KSAs required
of customer service representatives if they are to work eectively with
customers.
People focused on is also unique to each model. Performance models
dene performance for people in a specic job (e.g., design engineer or
team lead). Although a competency model can be created for a specic
job, it is more typical that a competency model is created for people
across a job band, such as all rst-line supervisors in an organization
regardless of function.
Sources and methods are the same for either model. One of the positive
characteristics of these two models is that the method for obtaining
the needed information is identical. So it is possible to develop both a
performance and a competency model from the same data set.
An area of true dierence is in regard to how results are documented.
We have illustrated an example of each type of model in Tables 6.2 (Per-
formance Model) and 6.3 (Competency Model). As we mentioned earlier,
performance models describe practices that individuals can use to achieve
job accomplishments; thus, the data is organized by accomplishments.
Competency models provide a description of the capabilities required
for job success. erefore, information is organized by competency, oen
providing behavioral examples for each competency. In summary, while
the data collection processes are comparable for performance and compe-
tency models, the manner in which the data is organized and the potential
applications are dierent.
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COLLECTING DATA
As noted previously, the processes used to obtain information for a per-
formance or competency model are comparable. Let’s explore more com-
pletely the various sources and methods available when doing this work.
Sources
Table 6.1 shows that the two primary data sources performance consul-
tants use when building models are “star employees and the managers of
the star employees.” But why stars, and who are they? e short answer is
that stars are individuals and teams, within the target job or role, who con-
sistently achieve exceptional results through their day-to-day performance
and do so in a manner that is valued by the organization. Even Bill Gates,
the founder of Microso, is keen on the contribution of stars. As noted in
Exemplary Performance (Elliott & Folsom, 2013), Gates once stated that
TABLE 6.2 Performance Model for Quality Control Representative (QCR)
The following illustrates two of the accomplishments required of QCRs:
ACCOMPLISHMENT SAMPLE PRACTICES
Ensure and certify
predictable quality
through control.
When investigating out-of-specification results, check
for accuracy of sampling and testing.
When process is out of specification, discuss situation
with production team.
Jointly identify cause(s) and agree on actions to take.
Conduct trend analysis of critical quality indicators to
determine whether process is still under control.
Ensure and certify
predictable quality
through compliance.
Meet with production team daily to discuss any events or
changes and to solve problems.
Proactively look for failure trends; once identified, work
with production team to determine actions to take.
Ensure that changes made in process are in
compliance with good manufacturing practices and
with corporate policy.
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if he had lost the top ve performers in his company during its formative
years, Microso would never have become the company it is today.
A myriad of research studies arm the value of obtaining information
from star employees. One of these is the McKinsey Quarterly study “e
Way for Talent, Part 2,” which acknowledged a 45 to 75 percent range of
dierence in performance of stars compared with typical employees (Sto-
lovitch, 2006). A study conducted by a European cross-national agency
about the performance of analysts found that analysts who are stars com-
pleted three projects for each single project the typical analyst completed.
What’s more, there was no signicant dierence in performance quality
(Stolovitch, 2006). It is common for employees in the top 10 percent of
their group to generate between 30 and 50 percent of the revenue (Elliott
& Folsom, 2013).
In fact, the dierence in results produced by exemplary sales teams
compared to more typical teams can be extraordinary. A study done by the
TABLE 6.3 Competency Model for Quality Control Representative (QCR)
The following illustrates a partial list of competencies required of QCRs:
COMPETENCY AND DEFINITION SAMPLE PRACTICES
Analysis/Problem Assessment
Secure relevant information and identify
key issues and relationships from a base
of information; identify cause-and-effect
relationships.
Seek information that identifies
underlying problems or opportunities.
Relate information from different
sources to draw logical conclusions.
Attention to Detail
Accomplish tasks by considering all areas
involved, no matter how small. Show
concern for all areas of the job; be
watchful over a period of time.
Check to see that all details in each
step of a procedure have been
completed.
Complete reports, orders, and
other documentation accurately.
Communication
Convey information and ideas to individuals
or groups in a manner that engages the
individuals and assists them in under-
standing and retaining the message.
Ask questions clearly.
Present thoughts in a logical
sequence that listeners can follow.
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Sales Executive Council found that high-performing sales teams outpro-
duced average sales teams by 180 percent (Elliott & Folsom, 2013). Doesn’t
that make you want to nd an answer to the question “What are those high
performing teams doing more, better, or dierently?”?
What a benet and privilege it is to learn from star employees! We
recall a situation where a sales organization had made the decision to focus
more strategically on multinational customers. In the past, these custom-
ers had been serviced by account managers who were in closest geographic
proximity. e position of global account manager (GAM) was created to
orchestrate strategies and tactics for the entire account worldwide. e
objective was to grow the account more quickly, with a goal of at least
doubling revenue from the account in three years.
Clearly, the individuals who lled the role of global account manager
were pivotal to success of this initiative. To ensure success, the organiza-
tion recruited and retained some individuals from outside the company
who had worked successfully in this role. Because these new global account
managers had contributed signicantly to the business results of their pre-
vious organizations, the senior leaders wanted to identify the practices
they had used. ese practices could then be shared with individuals who
had been internally promoted into the GAM position. To obtain this infor-
mation, we interviewed the stars in depth. In one of these conversations, a
star global account manager indicated that she had achieved success in a
previous organization when she “turned her client into her coach.” When
she made that statement, it was clear that it was a key behavior—one of
those “set-apart” practices we mentioned earlier. Many questions followed:
How was she able to achieve this coaching support from her client? What
were the benets to the client to work with her in this manner? What was
the focus of the coaching the account manager received? What problems
or possible ethical challenges did she encounter when her client was also
working as a coach, and how did she and her client overcome these chal-
lenges? e result was a list of practices that could now be leveraged across
all individuals in the GAM role. e learning curve was shortened as indi-
viduals did not have to acquire this knowledge through a series of trial-
and-error attempts over a protracted time period.
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e goal for you as a performance consultant is to identify set-apart
practices. What is it that stars are doing and typical employees are not?
ere are likely many practices that both star and typical employees evi-
dence. But what are the dierences? Once these setapart practices are iden-
tied, the goal is to facilitate the process that enables more employees to
utilize these practices. As an increasing number of people employ these
practices, gaps in business results will close.
One additional item to note regarding star employees: It is important
to use criteria when identifying stars. Doing so avoids including people
who may not be accomplishing the desired business and performance
results, but who are valued by management for other reasons. e follow-
ing are typical criteria used:
Achievement of operational/business results. We seek people who
have demonstrated achievement of the operational (i.e., quantiable)
results identied as important to the client. is is how we know the
practices that they describe are best practices—we know the practices
are eective in achieving business goals.
Achievement of qualitative results. Rarely are star employees superior
only because of what they achieved operationally; how they do their
work is also important. If an employee achieves results but alienates
other employees in the process, that person is not a star. Who achieves
results while operating as a team player? What leader is accomplish-
ing business results while also developing and empowering others to
perform? When selecting people to be interviewed as star performers,
identify those qualitative results and processes that are important to
the position. Use those results and processes as selection criteria for
star employees to be interviewed.
Length of time in position. As good as someone may be, unless the
individual has been in the position for a reasonable amount of time, it is
dicult to determine if that person is a star. We typically suggest a mini-
mum of one year, because we like to see consistent star performance over
a period of time; however, this time requirement can be modied depen-
dent on the situation. We once had a contract to form competency
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models for a position where people typically remained in the position
only one year before moving into another position; the time require-
ment used for inclusion in the interviews was reduced to six months.
It has been our experience that approximately 5 percent of the people in
a given position qualify as a star. is represents a very select group of people.
What if the group does not contain any stars, and/or the group is so small
the number of stars is only one or two people? en you will likely need to
utilize data from internal or external benchmarking. Is there a department
or group in your organization that has comparable jobs and accountabili-
ties? If so, there may be stars in that group from whom you can obtain
information. In today’s highly competitive marketplace, looking outside
the organization for best-in-class practices is also a valuable strategy.
We have discussed star employees and why they are so important when
building performance or competency models. Now we want to comment
on why the managers of these individuals are also key. ese managers are
important for ve reasons:
Star employees, like all of us, operate from unconscious competence.
ey do many things without thinking about them. is means dur-
ing interviews, star employees may not describe all the practices they
use. eir managers can ll in the gaps that result from obtaining
information from stars.
Managers can arm what we have learned from a star, indicating the
value of the practices to achieving results. Information that is sup-
ported from two dierent sources is highly reliable.
Managers are most likely managing typical employees as well as one or
more stars. Managers are, therefore, in a position to identify set-apart
behaviors. What is the star employee doing to accomplish a result that
is dierent from how others are performing?
e manager may be part of the reason why the star is performing in
such an exceptional manner. What is the manager doing to encour-
age, support, and reinforce these behaviors? Again, this is important
information to obtain.
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When the model is completed, you will move to an implementation
strategy. Managers of the employees for whom the model was devel-
oped will be a key stakeholder group, inuencing this strategy’s suc-
cess. By including some managers during the data collection phase,
you have begun the process of building commitment and ownership
from managers to the practices contained in the model.
While stars and their managers are the two optimal sources for infor-
mation, Table 6.1 indicates other sources to consider as well. A decision to
make with your client is which, if any, additional sources are necessary.
Each additional source will enrich the information you obtain but will also
add time to the project. If you are working on a sales situation, obtaining
information from customers could be most helpful. If forming a model
for leaders, obtaining information from employees who report to the star
leaders is valuable. But each option will require more time to complete
and, perhaps, add cost if travel or other expenses are involved. Ensure that
the value to be derived from additional sources is worth the cost it will
take to obtain.
Methods
Four methods for collecting information when building a model include
the following:
e one-on-one interview is most frequently used. It provides a safe
environment in which the individual can speak openly and freely. It
also provides an opportunity to ask questions that will probe more
deeply the star performer’s responses.
Focus group interviews are a time-ecient method to obtain informa-
tion from several people. e dynamics of the group can enrich the
information as participants build on each other’s ideas and comments.
Observation provides an opportunity to obtain rsthand what is hap-
pening in the workplace, including challenges and enablers. is is
oen used to supplement interview data.
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Documentation review oen provides hard data that supplement the
anecdotal information.
DEFINING ORGANIZATIONAL SHOULDS
e third SHOULD is to dene the organizational support that must be
in place if people are to perform as needed. In Chapter 8, we provide in-
depth techniques for designing a cause analysis, an assessment specically
suited for determining organizational and individual capability require-
ments. Suce it to say at this time that when obtaining information from
star employees, typical employees, and their managers, you will want to
ask questions regarding organizational barriers and enablers that are pres-
ent. Star employees are excellent sources of information on what is both
supporting them as they do their work, as well as what is getting in the
way. You will likely unearth some of the work-arounds that star employ-
ees develop to overcome organizational barriers. Are these work-arounds
a practice that others should be encouraged to use? Or should the barrier
be removed? You and your client will have an opportunity to make that
type of decision when you obtain CAUSE data as part of your SHOULD
analysis. Content in Chapter 8 will assist you in designing that assessment.
Obtaining Information from Star Employees
e challenge when interviewing employees is to ask questions that prompt
stars to explain what they do to accomplish results. Because much of what
they do is at an unconscious competence level, it is also vital to go deep
into the behaviors being discussed. For example, if a star indicates that one
behavior she uses when building strong customer relationships is to “grow
trust with the customer,” drill deeper by asking a question such as “What
practices do you use to develop trust with a customer?” Developing trust
without clarifying behaviors is too vague to be helpful.
Interviews with star employees are enhanced when prework is sent
to the employee. In that prework, you want to identify the business needs
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(e.g., to grow revenue) and/or the performance accomplishments (to man-
age projects on time and within budget) that you will be discussing in
the conversation. e employees can be asked to write down some of the
actions they take (i.e., behaviors they use) to accomplish each of the busi-
ness needs and accomplishments focused on. is type of preparation by
the star will lead to a faster-paced and richer conversation.
Over the years we have found a set of six questions to be the “starter
questions” performance consultants use to manage successful discussions
with star employees. e term starter question refers to the fact that each
question moves you into a specic area of focus; based on the responses
from the star employee, you ask other, more content-focused questions,
such as those in the prior example regarding trust.
Starter List of Questions to Ask Star Employees
1. In this discussion, I would like to rst discuss the business goal [or
accomplishment] of ____________.
e conversation with a star employee begins by arming the
specic business result or performance accomplishment you will be
discussing. Your objective is to have star employees describe the prac-
tices they use to achieve the business result or performance accom-
plishment. When you have more than a single result to focus on in an
interview, discuss each of them separately. Because multiple results are
oen discussed, an interview with a star employee can require two to
three hours to conduct.
2. I would like to learn what you specically do to accomplish this result.
Please walk me through the steps and actions you take to achieve
this result.
is question is designed to identify the actions, steps, decisions,
and analyses the star employee uses to accomplish the result. e
question begins in a broad manner. For example, “Walk me through
the steps and actions you take to achieve the revenue goal expected of
you,” or “Please describe the actions you take to ensure your employees
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are capable to perform their jobs as you need them to do.” But that is
only the beginning! Once you start to obtain content, you want to
probe more deeply. Remember, your goal is to assist a star employee
to discuss actions they take that are (most likely) at the unconscious
level. How do you bring these behaviors to the consciousness of the
star so they can be discussed?
Here are some techniques we have found for managing this part
of the conversation:
Organize the discussion into some type of sequence by asking the
star to describe what is done rst, next, and so on. is technique
works well when the result focused on has a process integrated to
it, such as project management.
Ask the star employees about problems they have encountered.
For example, what are some things that go wrong as they work to
produce the result? en determine what the star does to overcome
these problems.
Probe for analytic behavior such as decisions made and problems
solved. Identify both the behaviors and the rationale used to
determine why those behaviors should be used.
3. Are there any steps or actions you would like to take in support of this
result, but are not currently doing so? If yes, please describe them.
Star employees are an excellent source for identifying value-added
actions that can be taken. is question helps push the envelope so that
a model is truly a description of performance as it could and should be.
Star employees oen have tried innovative practices to achieve results,
or they may have ideas for actions but are not using them at this time.
Oen one or more organizational barriers prevent them from using
this practice. You want to obtain this information so you can share it
with your client; then possible solutions can be taken to remove the
identied barriers.
4. How do you know that you have accomplished this result in an excel-
lent manner? What criteria do you use to determine that the result was
completed successfully?
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With this question you seek to identify both quantitative (numeri-
cally based) and qualitative (anecdotal and behavioral) criteria that
the employee uses personally to determine success. Why is it impor-
tant to identify both types of criteria? Optimally, a job is measured
in both ways. Quantitative measures provide a rear-view mirror
look as to progress (e.g., revenue goals for the rst quarter are met or
exceeded), while the qualitative measures project the degree of suc-
cess to be expected in the future (customers acknowledge the value
of the support they are receiving). We want to include both types of
measures in a model.
5. What obstacles or barriers within our organization, if any, do you
encounter as you work in support of this result?
is is where you are determining organizational, and even capa-
bility, barriers to performance. You are seeking the factors that are not
supportive of the practices required to achieve success. Is there suf-
cient support from subject matter experts in the organization? Are
databases out of date? Are there any gaps in the skills and knowledge
required for success? Your goal is to identify all factors in the organi-
zation and in the capability of people that make success dicult.
6. What factors within our organization are supporting you as you work
to achieve this result?
You also want to identify organizational factors that support the
best practices used by the star employee that you are interviewing.
Your client will oen be unaware of what organizational factors are
required to support and sustain a new best practice. When these fac-
tors are identied, your client will be able to install them and, if nec-
essary, expand them so more people benet from the factors. Perhaps
you learn that an organizational support present in one region is help-
ing people work in support of a goal, but that this support has not been
instituted in all regions. Knowledge of the value of these factors may
incent leaders to implement them across the entire enterprise.
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BUILDING PERFORMANCE MODELS:
HERE’S HOW IT’S DONE
Several years ago a large gas and electric utility found itself in a chal-
lenging competitive situation. The utility served metropolitan and rural
areas in the eastern region of the United States. Because this industry
had been deregulated some time ago, other electric providers were
becoming strong competitors. Senior management realized that the
situation demanded their immediate attention. Their primary goal was
to maintain market share, in spite of the heavy competition and a
changing marketplace. Following a strategic planning session, these
executives identified customer service as a competitive differentiator
in the marketplace. The goal was to provide extraordinary service on a
consistent basis. Over the last couple of years customer surveys indi-
cated that customer satisfaction for this company was declining. One
area of greatest customer dissatisfaction focused on the interactions
customers had with customer service representatives (CSRs). There-
fore, a decision was made to make the CSR position one that focused
on customer service strategy.
THE ASSESSMENT PROCESS
Several project teams were established to work on various aspects of
making this strategy a reality. One of these teams was tasked to form a
performance model for the position of customer service representative
(CSR). There were six hundred CSRs and forty-five customer service
supervisors located in three service centers. A performance consul-
tant from the OD group was named as project lead for this team. The
goals were to obtain answers to these two questions:
What must CSRs do more, better, and/or differently if they are to
provide extraordinary customer service?
What organizational support(s) will be required to ensure that this
level of service can be institutionalized?
The task force first reviewed internal company and call center doc-
uments. They also performed an online literature review of studies
of other call centers within the last three years. This work provided
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team members with baseline data regarding customer expectations,
call center procedures, and CSR practices. In addition, an examina-
tion of the internal call center documents showed that within each of
the three centers, a few CSRs were achieving positive results on the
three goals that are aligned with strong customer service. These high-
performing CSRs were
ensuring customers were satisfied with the quality of the call,
managing the length of each call so their call rate was high, and
supporting colleagues in the Customer Service Center.
These CSRs were identified as stars and became the primary data
source for determining best practice. One interesting fact was that
over half of the star CSRs were within the same call center.
The performance consultant and his project team created the fol-
lowing plan:
Sources of Information
Approximately twenty-five CSRs were identified as stars. Over
half of these individuals were from one of the service centers;
the remainder were located in the other two centers.
Supervisors of the star CSRs. This resulted in only twelve inter-
views because frequently more than one star CSR reported to
the same supervisor.
Data Collection Methods
Face-to-face or telephone interviews were conducted with CSRs
and their supervisors. The CSR interview required about 90 min-
utes; for the supervisor the time requirement was 45 minutes.
Additionally, some project team members listened into conversa-
tions star CSRs had with customers. When this was done, the
time listening period was usually 30 minutes or less.
The data from CSRs and their supervisors were integrated with the
information obtained previously from the literature review and other
documents. A performance model was drafted, to include optimal
practices as well as organizational capability factors that would need
to be addressed if this desired performance was to become a reality.
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THE RESULTS
The performance consultant and his team met with senior managers
who were their clients for this initiative and reviewed the performance
model that had been drafted. What follows are excerpts from that
model:
Best practices for ensuring that customers are satisfied with the
quality of service:
1. Obtain information required to identify the customer’s specific ques-
tion or need.
2. Listen to the words, as well as the customer’s tone of voice, to
determine his or her emotional frame of mind, in order to determine
how to respond.
3. Ask questions to determine the root cause for a problem presented
by the customer.
4. Determine the actions that can and cannot be taken.
5. Explain to the customer, with reasons, the actions that can and
cannot be taken.
6. Reflect on a call, and how it was managed, to identify what was
done effectively and what could be done differently to improve ser-
vice in the future.
Best practices for maximizing phone time with customers:
1. Maintain control of the conversation with the customer by redirect-
ing the conversation back to the purpose of the call, when needed.
2. Organize information so it is easily accessible.
3. Develop alternate ways to complete follow-up work to minimize “not-
ready time.”
Best practices for supporting colleagues within the service center:
1. Share information with other CSRs on shortcuts in how to use the
system.
2. Make suggestions to the supervisor for improvement in the work
processes which are being used.
3. When transferring a call to another individual, provide relevant infor-
mation to the person receiving the call.
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Additionally, some organizational capability factors were identified. For
example, the staffing model used in the service centers had some
problems. Frequently there were insufficient CSRs for the call volume.
There was also confusion regarding how to perform the job when CSRs
perceived two requirements as conflicting: provide quality customer
service, but do so quickly, freeing up the CSR to take another call. It
was also determined that supervisors of CSRs could influence per-
formance in a substantial manner through the type of feedback and
coaching the supervisors provided. Specific practices for this support
were also identified.
THE GO-FORWARD PLAN
The performance model was reviewed with the senior management
team in a meeting. Some modifications and enhancements were
made, but the majority of the model was accepted as presented.
There was a high degree of “ownership” for the product because it
was developed from internal sources who were achieving results. An
implementation plan was formed for both communicating the model
and addressing organizational barriers. This plan was then integrated
into the larger, overall initiative of which the performance model was
a part. The performance consultant was asked to continue working on
the implementation phase of work, providing an opportunity to have an
integral role in the initiative through to its conclusion.
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➥ SHORTCUTS FOR FORMING A PERFORMANCE OR
COMPETENCY MODEL
1. Avoid enlarging in scope the assessment project beyond what was agreed to
with your client; in other words, avoid scope creep. Have specific and well-
defined purposes for the model you are building.
2. Repurpose research done by others both within and outside your organiza-
tion. If you need to build a leadership model, go to the Internet and published
books, all of which can yield valuable information as to proven practices of
effective leaders. If developing a model for a sales position in one part of
your organization, determine what may have been done in other parts of the
organization, and build on that information rather than start over.
3. If time is of the essence, use data collection methods that support time effi-
ciency. A focus group with eight people will require less time than interview-
ing each of the eight people individually. One-on-one interviews conducted
on the telephone will take less time than traveling to a site to conduct an
interview face-to-face. Most likely observation would not be an option to
consider as generally this approach requires several hours with each person
who is observed.
4. Utilize technology to conduct interviews if star employees are located in sev-
eral geographic areas. Avoid taking time to travel to sites so that face-to-face
conversations can occur. Videoconference and telephone interviews work.
5. Keep data sources to the minimum of two: stars and their managers. Every
time you add an additional data source, you increase the amount of time
required to obtain that information and analyze it. Use a third source of data
only when that source can provide information not available from primary
sources.
6. Send prework to star employees prior to the interview asking them to list
some of the practices they use to accomplish the result(s) to be discussed.
Star employees almost always complete prework, expediting the interview
process.
7. Engage others to help collect data. If there are twenty interviews to be con-
ducted and four people each conduct five of these conversations, the cal-
endar time required to produce a document for the client will be reduced
significantly. Just ensure that each interviewer is asking questions and
obtaining data in a consistent manner.
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PERFORMANCE CONSULTING POINTERS
1. A SHOULD assessment is designed to determine the desired state for
(a) the business, (b) people’s performance, and (c) the organization to
support needed performance.
2. e most frequent outputs of a SHOULD assessment that focuses on
employee performance are process models, competency models, and
performance models.
3. To determine which model is optimal for a situation, clarify with the
client how the information will be used. e applications to be made
from the information will determine which type of model is best.
4. Star employees are a vital source of information when building models.
Stars are individuals or teams who are achieving exceptional results
through their day-to-day performance.
5. e methods and sources used to obtain information for performance
and competency models are identical; the di erence is in how the
information is organized once it is obtained.
DOWNLOAD
THESE
Tools that support content from this chapter are listed here.
ese tools can be purchased and downloaded from the Berrett-
Koehler website. Please see page 253 for complete download
instructions.
Prework for Star Employee Interviews
Starter Kit of Questions to Ask Star Employees
Tips for Managing Interviews with Star Employees
Comparing Performance and Competency Models
119
Assess Business and Performance Needs
Assess the IS
7
Assess the IS
Your problem is to bridge the gap which exists between
where you are now and the goal you intend to reach.
—Earl Nightingale
There is much wisdom in this quotation. As performance consultants, we
partner with our clients to close gaps in business and performance results.
But in order to close a gap, we must rst identify what is the gap. We begin
by determining the SHOULD results. Chapter 6 provides techniques for
this type of assessment. We can think of the SHOULD results as the “n-
ish lines”—and actually there are two nish lines: one for the business
results, and one for the performance of people who directly contribute to
the success of the business goals. Once we have claried these nish lines,
we are ready to determine the current state of both business and perfor-
mance results.
BUSINESS IS
e rst gap we need to identify is the business, so let’s begin there. e
good news is that this type of analysis is usually relatively simple. Given
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that you and the client have identied the business SHOULDs and the
relevant quantied measures, the need now is to determine the current
operational results for each business goal. Your client and the organiza-
tion’s operational data will be your data sources. If the goal is to have 90
percent of customers rate their satisfaction with service as “very good” or
“excellent,” what is the current percent? If the goal is to achieve $800,000
of revenue for a specic product line this year, then what is the current
revenue generated this year for that product line?
While obtaining business IS information can be straightforward, there
can also be some unique situations to consider regarding this category of
information. For example, what if you are launching an initiative to sup-
port a new product for which there is no current revenue? en the goal for
the rst year of this product launch becomes the SHOULD; the IS revenue
at time of launch is “zero.” Of course, we hope that the revenue will grow
rapidly aer the launch. en there is the instance where there are no met-
rics of any kind regarding the business goal. In Chapter 6, we discussed
what to do when a client has a goal (i.e., increase positive comments on
social media) but lacks metrics for it. As we noted, it becomes important
to identify with your client what success looks like. How does your client
describe success? Even if the measure is not numerical, agree with your
client on what you will use as the measure to dene the current state. Here
is an example of an experience we had with this type of situation. A major
bank was implementing a coaching process for managers and executives
aimed at improving several indices not currently measured. One of those
was to “improve customer relationships.” e client agreed to use a rating
system—a 5-point scale—to determine to what extent the customer rela-
tionships had improved as a result of the coaching solution. Information
was obtained prior to the initiative. Data was also obtained following the
implementation of the coaching solution. SHOULD and IS data were com-
pared. While not an ideal operational measure, this metric was supported
by the client for a result that he viewed as important.
Bottom line: To be credible and accepted by your clients, operational
data can only be obtained from your clients and those in their organiza-
tion. When there are no current measures, work with the client to dene
metrics that will be accepted and valued.
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PERFORMANCE IS
Once a SHOULD performance model for an employee group has been
developed, performance consultants are oen asked to describe the actual
performance of the individuals. By comparing the current IS performance
with the SHOULD performance in the model, we are able to determine
specics regarding a performance gap. Correspondingly, if a competency
model has been developed, performance consultants are asked to iden-
tify the gaps between the SHOULD competencies and the actual compe-
tencies being used. Each of these assessments qualies as a gap analysis.
e purpose of a performance gap analysis is to determine the dierences
between the current behaviors and practices of employees in a work group
compared with what they should be doing. Gap analyses determine which
specic practices have a gap and how large that gap is. Most people in an
employee group are using some of the SHOULD practices. Our experience
has been that frequently 80 to 85 percent of the SHOULD practices are
already being used. Of course, if the work group consists of novice workers
or if a new process is being introduced, the percentage of practices cur-
rently being used might be much smaller.
Given these gures, there may be only 15 to 20 percent of total prac-
tices that separate star employees from typical employees. But which spe-
cic practices are these? A gap analysis answers that question. Certainly,
changing only 20 percent of the practices is much more manageable than
attempting to change all practices. Time spent obtaining data to dene
specic gaps will provide multiple benets, because solutions will be tar-
geted to where they will have the greatest benet.
Two types of data are optimal to focus on in a performance gap analysis:
Frequency: How frequently do members of the work group actually
use the SHOULD practices and behaviors in their job? Frequency is a
quantitative or numerical measure of performance.
Skill: How skillfully do work group members apply the SHOULD
practices on the job? is is a qualitative measure indicating the level
of competence with which group members actually demonstrate the
practices. In essence, this is a measure of the capability of people to
perform as needed.
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When we combine these two elements—frequency and skill—we nd
that four options are possible (see Figure 7.1):
High frequency, high skill: e goal is for employees to apply the
desired practices frequently and in a skillful manner; this is illustrated
in the top right quadrant. We celebrate the practices that are in this
quadrant. We also need to make sure that management continues to
reinforce the use of these practices.
High frequency, low skill: In this situation, employees lack skill, so a
developmental solution is needed to enhance their capability. Although
it may seem illogical that people with low skills would demonstrate the
practices frequently, we encounter that situation quite oen, particularly
with interpersonal and communication practices; for example, a customer
service rep who multi tasks but makes multiple errors in the process.
Low frequency, low skill: Practices in this quadrant are decient in
two ways. e employees are not using the practices frequently and
FIGURE 7.1 Skill and Frequency Matrix
High
Skill
Level
Low
Low
Frequency High
of Use
Probable
Organizational
Capability
Barriers
CELEBRATE!
(This is
the goal)
Probable
Organizational
and Individual
Capability Barriers
Probable
Individual
Capability
Deficiencies
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also are decient in the required skills. Lack of skill is one of the causal
factors for this situation, but it is not the only reason. Most likely, one
or more organizational capability factors are suppressing frequency.
erefore, a solution to only develop capability of individuals would
be insucient. We will need to look to the organizational capability
factors to determine what else could be contributing to this result.
Low frequency, high skill: Here employees possess the skill but are not
using the practice at the required frequency. Most likely the reasons
for this suppression of performance are within the organization. We
describe how to obtain data about the organization’s capability to sup-
port desired performance in Chapter 8. Only with this knowledge are
you and your client in a position to take appropriate actions.
In our gap analysis work over the years, we nd that for each work
group some practices are usually present in each of the four boxes. But
what patterns can we identify? Are most practices in the high frequency,
high skill box? Or are only a few in that box? Are most coming low in the
capability area, meaning some developmental solutions will be required?
Answers to these questions will guide you in determining where to focus
your cause analysis and identify solutions to propose.
DATA SOURCES
When considering sources of data for IS performance, you want to use
those individuals who are actually in the job and doing the work in a satis-
factory, but not exceptional, manner. ey are a valuable and very reliable
source of information about what is really happening on the job. ese
“typical performers” are the employees whose performance is yielding the
current business results. It is these individuals whose performance must
change if business results are to improve.
Typical Employees
ere are three groups of performers within the normal distribution of
employees in any work group, department, or business unit.
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1. Exemplary or star employees who are exceeding the desired results for
the job. ese are the individuals we refer to as stars and are the people
whom we access when identifying SHOULD performance.
2. Individuals who are new to the job or who are experiencing perfor-
mance problems. Generally these will be a small percentage of the
total group.
3. e majority of individuals are “typical employees” who are perform-
ing satisfactorily in the job but are not achieving exceptional results as
are the star employees. is group must be included as a data source.
Any organization may have a large number of individuals within the
targeted, typical employee group. You may not have the time, money, or
resources to obtain information from all individuals in this group. How do
you decide which individuals to use in your data collection to ensure that
the resulting picture is accurate for the group in entirety?
If you collect data from the entire population of employees, you can
accurately describe what the typical employees are doing, as they are the
majority of this population. For example, if there are fortyshi supervi-
sors who comprise the population for a gap analysis in a manufacturing
facility, you can send a questionnaire to all forty shi supervisors. Tabula-
tion of the questionnaires will give you information about the frequency of
use and the skill level for that population of forty supervisors.
Sending a questionnaire to forty shi supervisors is easy. But what if
the population consists of a thousand shi supervisors? Obtaining data
from all of them would be costly and time-consuming. In this instance,
sampling the population is an option. To do this, you send the question-
naire to a random sample of supervisors with a goal to receive a sucient
response rate for you and your client to have condence in the ndings.
How large a sample do you need? You can do a web search to nd a sample
size table that will provide you with the answer. Keep in mind that a sam-
ple size table indicates the number of individuals from whom question-
naires must be returned. erefore, to ensure you meet your target sample
size, you must consider the anticipated response rate. For example, if you
need 360 responses in your sample and you anticipate a response rate of 50
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percent, to calculate the number of questionnaires to administer, simply
divide the sample size of 360 by the response rate of 0.50; in this example,
you will need to send questionnaires to 720 people.
Other Data Sources
You want the information that you obtain to be reliable, reecting the real
on-the-job situation. It is a disservice to your client and organization if
unreliable information is used to make decisions as money and time will
be expended on solutions that may prove to be incomplete or even wrong.
One way to increase reliability is to obtain data from multiple sources.
When collecting IS performance data, we recommend a minimum of two
data sources. In addition to using the typical employee, we encourage
you to select, as data sources, people who have an opportunity to directly
observe how the typical employees perform. ree or four data sources
may be required if each source only has an opportunity to observe some
of the SHOULD practices. Table 7.1 lists possible sources to use in addition
to typical employees.
A good second data source can be the direct managers of the employ-
ees. Direct managers have valuable insight regarding current use of the
SHOULD job practices and the skill level of their employees. Frequently,
managers have worked in a job comparable to those of the employ-
ees themselves—an especially helpful element if the performance being
assessed is technical and complex. In addition, managers have a “bigger
picture” perspective of the job and greater insight into current and future
job requirements.
A third possible data source is internal or external customers. Remem-
ber, customers can report on only that part of the job they observe. For
example customers cannot reliably report on the type of support that
employees provide their teammates in a call center, as it is unlikely the cus-
tomer would personally observe this behavior. Likewise, airline passengers
cannot report on how ight attendants manage emergency situations if
the passengers have not observed the ight attendants in these situations.
Many times documents produced during the course of business are used
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as a data source. An example would be utilizing recorded call data from a
call center. ese recordings provide a reliable source of information about
what is really happening on the job day-to-day. In some instances (e.g.,
banks, hotels, and convenience stores) video recordings are available, so
this information source is sometimes an option. If employees are required
to maintain handwritten or computer incident logs, these documents may
be another data source.
Data Collection Methods
e ve data collection methods suitable for obtaining data for an IS anal-
ysis are shown in Table 7.1. Data collection methods include one-on-one
interviews, focus group interviews, questionnaires, observation, and doc-
umentation review. When deciding on a data collection method, consider
the following:
TABLE 7.1 Designing IS Assessments
PURPOSES RELIABLE SOURCES RELIABLE METHODS
Answers the following questions:
What are the gaps
between the business
goals and actual
results?
For Business Gaps
Clients
Business documents
For Business Gaps
Interviews
Documentation review
What are the gaps
between employees’
current performance
and the desired
performance?
For Performance Gaps
“Typical” employees
Managers of “typical”
employees
Employees of “typical”
employees
Clients
Customers of “typical”
employees
Peers
Operational data
For Performance Gaps
Interview (one-on-one)
Focus group
Questionnaire/survey
(Note: We use the term
questionnaire in this
book.)
Observation
Documentation review
Bold = Required source
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e type of information desired. Do you and your clients want descrip-
tive data so you can explain current on-the-job behavior in narrative
terms? Perhaps you prefer quantied data, providing numerical informa-
tion such as the percentage of times account representatives use open-
ended questions in discussions with customers. Or do you seek both?
e size and location of the groups from whom data will be collected
e resources available for the project to complete tasks associated
with data collection, including both internal resources and external
resources. Keep in mind that interviews and observation are resource-
intensive options.
e cost and availability of funds for collecting the data
e amount of time available to collect the data
e one-on-one interview, focus group interview, and observation
are most frequently used to collect descriptive data. is type of narra-
tive information, however, can be time-consuming to obtain and analyze
if you seek the frequency of use and skill level of people in work groups.
A major consideration in selecting the data collection method is how the
data will be analyzed. We nd that the two-by-two matrix in Figure 7.1
is well adapted to analyzing frequency of use and skill level information
regarding specic practices. With questionnaires, the analysis process can
be managed electronically. Using the soware package you prefer for this
application, you input the practices to be assessed. Typically the survey is
distributed and returned through the internal email system. e soware
package can then do the analysis, providing you with a printout of the
results. ere is a signicant savings in both time and expense when IS
assessments are completed with the support of technology.
Some situations require other data collection methods. For example,
documentation review is required when the data source consists of busi-
ness documents. In today’s business world, an abundance of electronic
data can be reviewed. Direct observation is appropriate to use when it
is important to note any deviations from required procedures and the
population or the random sample is relatively small. However, direct
observation is expensive because of the amount of time required of the
observers.
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Because the questionnaire is well adapted and cost-ecient for the
collection of IS performance data, we are providing some guidelines below
for creating a questionnaire.
Questionnaire Design
When designing a questionnaire to provide frequency and skill level data,
we recommend the following.
1. Clarify the purposes for the data collection. For IS performance assess-
ments, the purposes are oen to identify the frequency and the skill
with which people are demonstrating the desired practices. If we want
to obtain data on organizational and individual capability factors, a
cause analysis is required (see Chapter 8). ere can be other pur-
poses for a gap analysis. For example, it may be critical to determine
the importance of the SHOULD practices to a specic job; therefore,
the questionnaire could be designed to obtain information about
the importance of each practice as well as the frequency with which
people use the practice. You may also want to compare results across
dierent regions or functions; if you do, acknowledge this in your pur-
pose statement. Be sure to reach agreement with your clients about the
purposes before moving ahead with questionnaire design.
2. Determine the rating scales to be used. A multitude of rating scales
can be used for IS assessments. Table 7.2 provides an example of a
frequency scale we oen use. Note that the scale ranges from “almost
never use” to “almost always use,” and each rating is described as a per-
centage range. We avoid using “always” and “never” options because
people rarely select such absolute choices.
Table 7.3 provides an example of a skill level scale. e scale allows
for rating of individuals of minimal ability (little to no skill) to those who
are so eective that others seek them out for help and coaching (expert
skill). Note that there is a unique description for each of the scale points.
e scales in Tables 7.2 and 7.3 are shown as they would be used for the
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employees themselves. Questionnaires sent to other sources, such as to
supervisors, would use these same scales, but the descriptions would be
modied to acknowledge the relationship the rater has to the individual
(i.e., “is employee demonstrates little or no skill when performing this
practice”).
TABLE 7.2 Frequency Scale
Indicate “NA” (not applicable) if you have not had the opportunity to use the listed
practice or otherwise cannot rate your frequency of use.
When the opportunity arises, this is a practice that you:
Indicate a “1” if . . . Almost never use—less than 10% of the time.
Indicate a “2” if . . . Very infrequently use—less than 25% but more than
10% of the time.
Indicate a “3” if . . . Infrequently use—less than 50% but more than
25% of the time.
Indicate a “4” if . . . Frequently use—more than 50% but less than
75% of the time.
Indicate a “5” if . . . Very frequently use—more than 75% but less than
90% of the time.
Indicate a “6” if . . . Almost always use—more than 90% of the time.
TABLE 7.3 Skill Level Scale
Circle the number on the scale that best describes your level of skill.
1 = Little or no skill You demonstrate little or no skill when performing this
practice.
2 = Basic skill You can perform this practice in routine situations but need
guidance to do so effectively.
3 = Adequate skill You demonstrate skill when performing this practice in routine
situations without help; however, you need guidance when in
difficult/unusual situations.
4 = Proficient skill You consistently demonstrate skill when performing this
practice even in difficult/unusual situations.
5 = Expert skill You are among the very best at performing this practice;
others come to you for assistance and coaching in this practice.
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3. Create a list of behavioral items for the questionnaire. A performance
gap analysis requires that the desired practices are already known.
ese are the performance standards against which employees in the
workgroup will be assessed. If a performance or competency model has
been developed, the specic practices to be assessed can be extracted
from it. If focusing on competencies, you need to list behaviors that are
appropriate for that competency, not the competency itself. Unreliable
data is the result of asking employees to rate their “judgment skill.”
which is too broad and open to interpretation. Instead, create three to
four behavioral statements describing how sound judgments are made,
and ask individuals to rate the frequency and skill with which they use
these behaviors. For example, with what frequency and skill do people
“make exceptions to standard ways of implementing the goal when
circumstances require it” or “make a decision based on experience and
intuition when time is an issue”?
4. Design, pilot, and revise the questionnaire as needed. Once you have
determined the questionnaire items to include and the scales to use,
you are ready to create the questionnaire. Typically, you rst design
the version of the questionnaire that employees will complete. Once
this has been designed and piloted, you can develop other versions of
the questionnaire to be used as companion questionnaires (i.e., those
for the direct managers or customers). Revise the questionnaire based
on your ndings from the pilot.
Piloting questionnaires ensures they are providing reliable infor-
mation and that the instructions are understandable to the population
receiving the questionnaire. You also want to be certain each item on
the questionnaire is understood as you intended by the respondents.
Jargon or trade terms may not be correctly interpreted. Finally, you
want to ensure that respondents understand the rating scales. For all
these reasons, piloting the questionnaire is essential.
5. Design the companion questionnaires. Now that the questionnaire
for employees has been developed, companion questionnaires can be
draed for the additional data sources. Because the employee question-
naire has been pilot tested and revised, there is no need to pilot-test a
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companion questionnaire that is being developed for others who work
in the same environment, such as direct managers or direct reports.
6. Once all questionnaires are complete, distribute them to the data sources.
To ensure a good response rate, a cover email or note from the client
or a member of the client team should accompany the survey. Include
the following:
Why it is important for the respondent to complete the
questionnaire and benets to the individual for doing so
How long it takes to complete the questionnaire
How, and by what date, to return the questionnaire
What information the respondent will receive about the results
of the study
Relationship Between IS and Measurement Data
People oen think of measurement as an activity that is planned for and
implemented once a performance change initiative has been completed.
Actually, measurement is a front-end process. By this we mean measure-
ment begins with the collection of IS data on the front end of an initiative;
these ndings form the baseline to which you will compare the post-
data. In this way, the data obtained on the front end of a performance
change initiative serves to identify two elements: the gap to be closed and
the baseline, to which information obtained following the initiative will
be compared.
IS ASSESSMENT: HERE’S HOW IT’S DONE
Scott is the vice president of operations at a large bakery company in
eastern North America. The company began as a wholesale bakery in
New England and features a wide selection of breads, including many
ethnic breads. The bakery products are sold through supermarkets,
convenience stores, and delicatessens, as well as to small independent
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retailers. Sales revenue has grown over the last ten years. Much of this
growth is due to the organization’s philosophy of “taking care of the
customer.”
The sales force in this bakery company is responsible for identifying
and obtaining new customers. They do this by directly contacting the
store managers and bakery department managers within retail stores.
A salesperson’s role is to first describe how the array of bakery goods
will assist a store in growing revenue. The salesperson then configures
a merchandising and display layout that will create a “buzz” regard-
ing the bakery products. When a retail store is obtained as a new
customer, the sales force monitors the store sales closely for the first
eight weeks, adjusting the bakery product selections and displays to
maximize revenue. After this initial eight-week period, and if sales are
satisfactory, the salesforce turns the responsibility for sales and ser-
vice over to the operations group.
At this time, route delivery representatives (RDRs) become the pri-
mary contact with the retail store. The RDRs are experienced delivery
and service people who are responsible for the following performance
accomplishments:
1. Deliver bakery products to stores at predetermined times.
2. Freshen and update the displays.
3. Bring back any damaged or old product.
4. Stay in contact with the store manager or owner, encouraging
acceptance of new/additional products.
5. Manage problems or complaints the store manager or owner may
have.
In the interest of brevity, only the last two performance areas will be
focused on in the remainder of the case discussion.
THE PROBLEM
The goal for this business is to increase sales by 6 percent over the cor-
responding quarter of the previous fiscal year. Results to date indicate
that sales for the company are only growing at the rate of 4 percent.
For two of the three regions, the 6 percent goal has been realized. It
appears that the problem is in the Northeast (NE) region, where there
is only a growth of 2 percent in sales for the past two quarters. The NE
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region is obtaining a sufficient number of new customers; the problem
is that the region is also losing a surprising number of established cus-
tomers. Scott, the VP of operations, contacted Barbara, the director of
L&D, with a request to provide RDRs in the Northeast region with train-
ing in customer contact skills. Scott indicated that this training would
enhance the interpersonal skills of RDRs in the Northeast and would
reinforce the mission of “taking care of the customer.”
Barbara met with Scott to discuss the situation. She began by ask-
ing several questions. They agreed that Barbara should meet with
managers of RDRs in the NE region to obtain additional information
and insights. Following Barbara’s meetings with these other managers,
she and the VP agreed that information about the current performance
of the RDRs in the Northeast region was unclear. What were they doing
differently than RDRs in other regions? How was that difference con-
tributing to the unsatisfactory business results? It was important to
determine specifically what those RDRs were doing effectively and,
also, what they were not doing in a skillful manner.
THE GAP ANALYSIS PLAN
A project team—consisting of the NE region director, a route sales
manager and the L&D director—was created to conduct the gap analy-
sis. The plan to gather data about the situation is shown in Table 7.4.
The questionnaire was designed to provide information about the
frequency and the skill with which RDRs demonstrated the desired
TABLE 7.4 Gap Analysis Plan
PURPOSE SOURCE METHOD TIME REQUIRED
Determine which desired
performance RDRs in the
Northeast were using, and
were
not using, on the job.
RDRs
Route Sales
Managers
Questionnaire
to all 80
RDRs
4 weeks
Determine what level of
satisfaction the Store
Managers/Owners have with
service from their RDR.
Store
Managers
and Owners
Phone survey
with a sample
of customers
2 weeks
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performance. The team established criteria for an acceptable level of
performance for each of the two rating scales:
RDRs need to evidence the desired behavior at least 80 percent
of the time when possible to do so.
Their skill level needed to be proficient, which is 4.0 on the scale.
Any practice that did not meet these criteria would be identified as of
concern, potentially requiring some type of action or solution.
The team created a list of behaviors for the questionnaire. The
content for the survey came from a performance model created
approximately two years ago and focused on the five performance
accomplishments of the RDRs. Specific behaviors were listed in the
survey that correlated to these five accomplishments. Here is an
example:
Accomplishment: Maintain contact with the store managers
or owners who I support, encouraging acceptance of new/addi-
tional products.
1. I seek out and directly ask the manager/owner of the store about
any special requests they have of me or our company.
2. I ask the manager/owner if they have any suggestions or comments
about how our products are displayed.
3. I introduce the manager/owner to a new product, indicating how the
product could increase sales and margins in the store.
Accomplishment: Respond to a problem or complaint that a
store manager or owner mentions.
1. I ask questions to make sure I understand the details of the situation.
2. I ask what the manager/owner feels our company and/or I should do.
3. I specify the action that will be taken to correct the problem.
4. I ask if the manager/owner is satisfied with that action.
The questionnaire asked the RDRs to rate the frequency and skill with
which they demonstrated each of the above behaviors. Once the ques-
tionnaire was designed, it was piloted with several RDRs and route sales
managers randomly selected from the two regions that were not part of
the gap analysis. The piloting resulted in some minor changes in both
the wording of the practices and the instructions. Then a companion
questionnaire, to be sent to the route sales managers, was developed.
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A phone survey was created to be used when interviewing store
managers and owners on the phone. The store managers/owners were
asked to rate their RDR and the bakery company on eight items using
a 5-point scale, with 5 being excellent service and 1 unsatisfactory
service. In addition to obtaining the ratings, the interviewers asked the
store managers and owners to explain their rating, providing sugges-
tions for what the RDR might do differently.
THE FINDINGS
The RDR questionnaire with a cover letter from the VP of operations
was sent digitally to all RDRs in the NE region. The questionnaires
for route sales managers were sent out at the same time. After two
weeks, more than 90 percent of the questionnaires were returned
and the responses were tabulated. The results were input into the
two-by-two matrix that indicates skill and frequency of use. Figures
7.2 and 7.3 indicate results for two of the performance areas that
FIGURE 7.2 Accomplishment: Maintain Contact with Store Manager/
Owner, Encourage Acceptance of New/Additional Products
High Skill
Level
Proficient
Skill
Little/
No skill
0% 80% 100%
Frequency of Use
Introduce manager/
owner a new bakery
product.
Seek out and ask
manager/ owner about
special requests of me
or the company.
Ask manager/owner
if they have any
suggestions/comments
about how the products
are displayed.
Indicate how the new
product could increase
sales or margins in the
store.
Current Skill Level
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were assessed: “Maintain contact with the store managers/owners”
and “Respond to complaint that store manager/owner mentions.”
Barbara met with the VP and some of his direct reports to review the
findings. The findings enabled them to reach the following conclusions:
There is insufficient skill and use of the practice of introduc-
ing store managers/owners to new products, indicating how the
products could increase sales and margins.
When responding to a customer problem or complaint, the RDRs
are not effective in asking questions and getting closure by spec-
ifying what action will be taken.
Analysis of the phone survey data with customers confirmed these
results. The NE region received an average rating of 4.6 from custom-
ers, on a 5-point scale, of its products and in-store displays. How-
ever, the interface with the RDRs showed an average rating of 2.1,
FIGURE 7.3 Accomplishment: Respond to Problems or Complaints from
Store Manager/Owner
High Skill
Level
Proficient
Skill
Little/
No skill
0% 80% 100%
Frequency of Use
Ask what the manager/
owner feels our company
and/or I should do.
Ask if the manager/
owner Is satisfied with
that action.
Indicate that our
company and I value
the opportunity to
supply product to that
store and its customers.
Ask questions to make
sure I understand the
details.
Specify the action that
will be taken to correct
the problem.
Current Skill Level
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and satisfaction with how RDRs managed complaints and problems
received an even lower rating. These results for the RDRs in the NE
region were considerably lower than for the RDRs in the other two
regions.
The findings indicated that skill development was part of the solu-
tion needed in the specific areas noted. However, skill development
alone would not resolve the problems. There were reasons that the
frequency of use of key behaviors was low. So before decisions were
made on the entire set of solutions that would be required, Barbara
was asked to complete a cause analysis. This analysis is described in
“Here’s How It’s Done” in Chapter 8.
➥ SHORTCUTS FOR DOING AN IS ASSESSMENT
1. Develop clear purposes for the analysis. Clarify with your clients the deci-
sions they want to make and the information required to make those deci-
sions. Then design a gap analysis that focuses only on those purposes; avoid
scope creep.
2. Distribute questionnaires electronically, and use tabulation software to mini-
mize the time needed to obtain data and tabulate results.
3. Limit the number of ways the data is sorted. Each time data is sorted (i.e.,
by region, function), it must be interpreted and reported. This requires time.
Use only the minimum number of data sorts required for the purposes you
have established.
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PERFORMANCE CONSULTING POINTERS
1. e frequency of use and skill level matrix is a helpful guide to deter-
mine which practices are impacted by the organizations, which are
a ected by lack of skill and for which both organizational and indi-
vidual capability issues are present. We have found that clients value
the clear logic of the two-by-two matrix.
2. Reliability of data can be increased by using more than one data source
and more than one data collection method.
3. Questionnaires are well suited for collecting gap analysis data from
large populations and from a variety of locations. And they can be
distributed and tabulated electronically, speeding up the data analy-
sis process.
DOWNLOAD
THESE
Tools that support content from this chapter are listed here.
ese tools can be purchased and downloaded from the
Berrett-Koehler website. Please see page 253 for
complete download instructions.
Checklist for Piloting Questionnaires
Template for a Gap and Cause Analysis Survey
Sources of Data and Methods for Performance Assessments
Conversion Table (for translating frequency means into
percentages)
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Assess Business and Performance Needs
Identify Causes and Select Solutions
8
Identify Causes and
Select Solutions
It’s not what you don’t know that will hurt you.
It’s what you think you know that just ain’t so.
—Satchel Paige
When a gap between SHOULD and IS performance is being discussed
with a client, oen the conversation quickly moves to identifying solu-
tions. Unfortunately, it is improbable that this jump-to-solution approach
will be sucient to achieve improved and sustained results. is is because
the solutions proposed are based on assumptions as to the reasons for the
gap—assumptions that may be inaccurate and certainly are incomplete.
Most gaps have multiple reasons for the situation, requiring multiple solu-
tions. For example, while an improved information system may be needed,
there may be other causes that are not being addressed, such as lack of
clear performance standards or insucient stang.
e pressures in organizations to improve results encourage this jump-
to-solution mentality. However, a solution without a link to a cause is a
waste of resources. As a performance consultant, you want to prevent the
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solution-jumping approach. Instead, work with your client to determine
causes for poor business and performance results (if a problem exists) or
the probable barriers to success (if working on a future opportunity). Once
causes are identied, you and your client can decide on and implement
solutions that will provide results.
IDENTIFYING ROOT CAUSES, NOT SYMPTOMS
When designing a CAUSE analysis, focus on causes and not on symp-
toms. As an analogy, consider a situation when you did not feel well and
went to your doctor. She likely asked you about your symptoms, such as a
fever, aches, or respiratory congestion. If she had prescribed a treatment
plan based only on the symptoms, it may or may not have corrected the
situation. By treating only the symptoms, it is possible that the situation
continued or even worsened. at is why we expect doctors to look beyond
symptoms and take actions needed to identify the causes for our illness.
e same scenario is true for organizations and the problems they face. By
treating only symptoms, and not attacking causes, we run the risk that the
problem will remain and worsen.
Here is a scenario you may have experienced. When interviewing peo-
ple about why they do not perform a specic responsibility in their job, a
response could be “I don’t have the time.” Or perhaps managers indicate
that “People are just not motivated to do this.” Each of those responses
is a symptom—not a root cause. When you hear “insucient time” as a
response, inquire as to what is causing the lack of time. Perhaps there is too
much administrative work to be done, which does not leave enough time
to do other work. In this case, the solution would be to lessen, or remove
entirely, the need to do administrative work. e same logic applies to
“poor motivation” as a reason for insucient performance. What is caus-
ing employees to evidence low motivation to perform? Is it that they are in
a job with limited career opportunity? Perhaps they are bored by the job or
feel unappreciated by their manager. Once you have identied causes, the
appropriate solutions can be selected and implemented.
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To assist people in identifying causes and not just symptoms, we cre-
ated a graphic that illustrates the root causes for gaps (Figure 8.1).
As you can see, successful on-the-job performance rests on a three-
legged stool, so to speak, with each “leg” a category of root cause:
Factors external to the organization
Factors internal to the organization
Factors internal to individuals
FIGURE 8.1 Root Cause Categories for Gaps
Factors EXTERNAL
to Organization
Factors INTERNAL
to Organization
(Organizational Capability)
1. Clarity of Roles and
Expectations
2. Coaching and
Reinforcement
3. Incentives
4. Work Systems and
Processes
5. Access to Information,
People, Tools, and
Job Aids
6. Supportive Culture
1. Skill and Knowledge
2. Inherent Capability
Factors INTERNAL
to Individuals
(Individual Capability)
Factors outside the
control of anyone in the
organization. Examples
include economic
conditions, competition,
and government
regulations.
Factors within individuals
that ensure they are
capable of performing as
needed.
Categories:
Factors within the control
of management and the
organization.
Categories:
Successful On-the-lob Performance
(Accomplishments and Behaviors)
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We use these categories as “buckets” into which we organize barriers of a
comparable nature. Let’s begin by discussing factors on the right side of
this graphic—factors internal to individuals.
Factors Internal to Individuals
Factors internal to individuals refer to capability needs. ese address fac-
tors that reside within individuals and either enable people to perform or
hinder their performance.
1. Skill and knowledge refers to what individuals must know and be able
to do to perform successfully on the job. For example, if people do
not know how to operate heavy equipment, they will not be able to
perform their job as operators of this equipment in a safe and eec-
tive manner.
2. Inherent capability refers to the “raw ingredient” that is within each of
us, making each of us unique. It includes our background, education,
previous work experience, as well as attributes and traits. Inherent
capability develops over a long time. It is inuenced by our DNA and
our life experiences. It is very dicult to change over a short period.
erefore, it is more ecient to create a selection process that accu-
rately identies individuals with the required inherent capabilities.
It is important to note that skill is not performance. For example, if a
manager called and asked you to develop the negotiating skills of a work
team, this manager has provided you with a capability need, not a perfor-
mance need. To qualify as a performance need, the request must describe
what the work team is expected to actually do on the job when negotiating.
Factors Internal to Organizations
Factors internal to organizations consist of six categories of organizational
capability needs. When these factors are present in a positive manner, they
enable performance. When absent or present as an obstacle, they hinder
performance. Note, however, that organizational factors are within the
control of management.
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1. Clarity of roles and expectations focus on employees knowing speci-
cally what their roles and responsibilities are relative to their job goals
and accountabilities. When individuals know how their responsibili-
ties dier from others who are supporting the same business goal,
they have role clarity. When they don’t know how their responsibili-
ties dier from others, there can be role confusion, a frequent barrier
to performance.
2. Coaching and reinforcement means a system is in place to provide
coaching and support to individuals as they perform their job respon-
sibilities. It includes reinforcing and acknowledging desired perfor-
mance as well as providing developmental feedback.
3. Incentives are the rewards, both tangible and intangible, that encourage
people to perform as needed. Tangible incentives include bonuses and
nancial rewards. Intangible incentives include a supportive culture
and interesting, meaningful work. Eective performance requires a
positive balance of consequences. It is easy for employees to maintain
the status quo in their performance when there are no consequences,
positive or negative, for changing.
4. Work systems and processes are the work ow and organizational
systems within which individuals perform. ese can make work
performance easier and more ecient; they can also make desired
performance dicult and even impossible. Geary Rummler, coau-
thor of Improving Performance: How to Manage the White Space on
the Organization Chart (Rummler & Brache, 1995) states it quite suc-
cinctly when he says, “If you pit a good employee against a bad system,
the system will win almost every time.”1
5. Access to information, people, tools, and job aids is a category of orga-
nizational capability that continues to grow in importance as people
are expected to perform eectively in complex environments without
a lot of day-to-day guidance. People cannot perform eectively with-
out accurate and current information and access to the type of tools
required to do the job.
6. Supportive culture is an intangible, but very real, organizational capa-
bility. e inuence of culture on human performance cannot be
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overstated. We dene culture as the collective set of norms, values,
and shared assumptions that become a type of glue within an orga-
nization. It is very dicult to achieve results if people must operate
counter to the underlying culture.
Factors External to the Organization
is category refers to factors outside the control of the organization.
Examples include competitive pressures, economic conditions, weather
conditions, and regulatory requirements that impact the organization.
No individual or group within an organization can change these factors;
rather, the leaders must form strategies for the organization to be success-
ful despite the external factors. For example, when energy prices are high,
companies and organizations that operate in the transportation industry
must nd ways to operate and meet prot goals despite this challenge. Of
course, there are times when external factors can be supportive of an orga-
nization’s business needs, as when the housing market is growing. Busi-
nesses that sell products to the construction industry, as well as people in
the remodeling business, are beneted.
When conducting a CAUSE analysis, you want to obtain answers to
the following questions:
Which categories are creating barriers to the desired business and per-
formance results we seek?
Which categories are enabling performance?
Which categories are having no impact as they are not relevant in the
given situation?
Sorting and siing through these categories allows you to reliably identify
where solutions are needed and the priority with which these solutions
should be implemented.
Figure 8.2 displays a more detailed graphic of these root cause catego-
ries. is time, however, we refer to the graphic as “unabridged” as we list
many examples of barriers and enablers contained within each category.
FIGURE 8.2 Unabridged Root Cause Categories with Examples
Factors EXTERNAL
to Organization
� Economic Conditions
�Demographics
�Competition
�Changing Customer
Expectations
�Government
Regulations
Factors INTERNAL
to Individuals
(Individual Capability)
1. Skill and Knowledge
a� Possessing Required Skill
and Knowledge and/or
Having Access to Learning
Opportunities, Including
Self-Study and Mentoring
2. Inherent Capability
a� Intelligence
a� Emotional Fitness
a� Physical Capability
a� Attributes
a� Personal Characteristics
a� Artistic Gifts
a� Internal Motivation
a� Previous Experience
a� Educational Credentials
*NOTE: All items are stated
as enablers. The goal is to
determine factors relevant
to a specific business goal
and whether they operate
as enablers or barriers
to successful on-the-job
performance.
Successful On-the-lob Performance*
Factors INTERNAL
to Organization
(Organizational Capability)
1. Clarity of Roles and
Expectations
a� Clarity of Performance Expectations
and/or Standards
a� Role Clarity, Including “Turf” Issues
and/or Job Outputs
a� Sufficient Staffing for the Required
Work
a� Job Structure
a� Sufficient Authority
a� Appropriate Workload for Position
2. Coaching and Reinforcement
a� Coaching and Reinforcement on the
Job
a� Support of Appropriate Specialists
a� Acknowledgement for
Accomplishment
3. Incentives
a� Financial Incentives
a� Meaningful Rewards; Reward
System Viewed as Fair and
Equitable
a� Consequences for Not Performing
as Needed
a� Value for the Desired Performance
a� Organizational Norms
a� Interesting and Meaningful Work
4. Work Systems and Processes
a� Technology and Information
Systems
a� Organizational Systems
a� Defined Processes Are Effective
a� Ergonomic Design of Tools and
Workstations
a� Lack of Physical Obstacles
a� Lack of Task Interference
5. Access to Information, People,
Tools, and Job Aids
a� Information Necessary to Perform
Is Available, Accurate, and
Complete
a� Databases
a� Experts
a� Documentation
a� Electronic Performance Support
System/Job Aids
a� Computers
a� Phones
a� Vehicles/Transportation
6. Supportive Culture
a� Values and Beliefs
a� Vision and Mission
a� Norms and Accepted Practices
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e intent of this gure is to clarify the boundaries between and
among the cause categories. At a macro-level, there is clear delineation
across the three major categories of factors external to the organization,
internal to the organization and internal to the individual. But more spe-
cic information is needed to identify the true causes. Only until specic
causes have been identied can the appropriate solutions be selected and
implemented. Consider, for example, the cause of “information necessary
to perform is available,” which is noted in the h cluster under organi-
zational capability. If this is all we know, we cannot take any action. We
need to know what information is lacking, the source of that information,
and why it is insucient before we can take action to remove this barrier.
If the organization’s computer and information systems do not provide
needed information, a solution may require a change in hardware, so-
ware. and/or programming. But what if the cause is that employees do not
have access to information that already exists in the information system?
In this instance improving the capability of the information system would
not solve the problem. Rather, you need to focus on how existing informa-
tion is distributed to the people who require it. Without clarity as to the
true cause, the probability of selecting solutions that will close business
and performance gaps is low.
DESIGNING CAUSE ASSESSMENTS
As with model building and gap analyses, successful cause assessments
support purposes that are focused and clear. In Table 8.1 we show the two
primary purposes of a cause assessment. ese purpose statements are
written in a generic manner. When you form purposes with your client,
however, it is important to make those statements specic to the business
and performance issues being assessed. For example, if a business goal
is to increase revenue and account executives are the individuals whose
performance most contribute to that goal, your purpose statements for a
CAUSE analysis might be as follows:
What are the reasons for the gap between our goal of a 15 percent
increase and the actual results of a 9 percent increase?
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Why are the account executives not creating a compelling business
case for the customer as our sales approach requires?
Utilizing appropriate sources and methods is required to ensure reli-
ability of information. erefore, in Table 8.1 we also provide options for
reliable sources and methods when you are designing CAUSE analyses.
Sources
e sources are dierent depending on whether you are identifying causes
for gaps in business results or seeking to understand reasons for deciency
in performance of people. In either instance, you will note that the reliable
sources are few. e clients who are accountable for achieving business
goals will be the best and most reliable source of information regarding
reasons for the current business results. ey will probably mention one
or more reasons that are external to the organization. External factors are
oen the drivers for strategies that clients develop to guide the business
toward goal achievement. So, when discussing causes for business gaps,
expect to learn about competitive pressures and macro-economic and
global conditions. In addition, social unrest within a country, trade barri-
ers, or natural disasters such as hurricanes can be a factor. Sadly, in one of
TABLE 8.1 Designing Cause Assessments
PURPOSES RELIABLE SOURCES RELIABLE METHODS
A cause analysis answers these questions:
What are the reasons
for the gaps between
business goals and
actual results?
For Business Gaps
Clients
Business documents
For Business Gaps
Interview
Documentation review
What are the reasons
for the gaps between
the SHOULD and
ACTUAL performance of
employees?
For Performance Gaps
Employees (both star
and “typical”)
Managers of employees
Clients
For Performance Gaps
Interview (one-on-one)
Focus group
Questionnaire/survey
Bold = Required source.
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our client organizations experiencing revenue declines in a region of the
world, a major external factor was the civil unrest and war in that region.
Your client’s organizational documents oen provide insight into why busi-
ness results are not satisfactory. ese documents can also shed light on
internal causes for business gaps, such as outdated equipment, inadequate
processes, or insucient capability of people. Once the causes are known,
the goal is to remove the barrier or nd ways to minimize its impact.
When obtaining information to identify causes for gaps in workgroup
performance, clients are once again a source of information; however, they
are not the optimal source. e most reliable source for this cause data
are the employees in the jobs focused on in the initiative. More than any
other single group of people, employees can indicate what is helping them
to perform (the enablers) as well as what is making it more dicult (the
barriers). is is why employees, both typical and star, are the required
source of information when obtaining CAUSE data. e managers of these
individuals will also have valuable insights to share. Again, our advice is
to use a minimum of two sources of cause information: the employees and
one other source. is design has the highest probability for obtaining reli-
able and complete information.
Methods
Once again, options are few. We have found that obtaining CAUSE infor-
mation through interviews or focus groups can be eective methods. We
oen use interviews with a few employees from the target group to develop
a list of possible causes that are specic and relevant to the workgroup. We
then use the content we obtained to develop a questionnaire that is sent to a
larger group of people. If we include only a generic list of potential barriers,
the information we receive will be too vague for us to act on. Remember:
Cause data should be clear enough for us to select appropriate solutions.
If as a result of a CAUSE analysis, we nd that we still must collect more
data because our initial ndings were too vague, we have wasted time and
resources. In general, we nd surveys to be the most economic method for
identifying causes of performance gaps when requiring information from
a large number of people. Surveys are a method that is enabled through
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technology. A survey can be constructed utilizing one of the many so-
ware applications currently available and then sent to, and returned from,
employees through the organization’s internal communication system.
e soware can compile results, providing you and the client with infor-
mation about specic causes in a timely manner. Of course, now you must
interpret that information. It is important to “let the data speak.” ere is
no place in data interpretation for subjective opinions and personal agen-
das. Let’s look at a process for turning data into actions.
REPORTING RESULTS
You have now completed your performance assessment, identifying the
SHOULDs, IS, and/or CAUSEs. You have the data available and are pre-
paring to take that information with your proposed solutions to the client
for discussion. e ultimate goal of a data reporting meeting is to gain
consensus as to the primary themes and conclusions from the information
you have obtained and to agree on solutions that will now be taken.
You will note the term meeting. It is possible to discuss this type of
information in a conference call; videoconferencing also oers an option.
What you need is face time with your clients and other stakeholders to
discuss and draw conclusions from the results. We encourage that you not
send a document with the results to your clients prior to the meeting. With
that option, you have lost the opportunity to inuence and guide the client
team’s thinking. Remember the car analogy we described in Chapter 2.
e goal is to be in the car with your client, inuencing the route to follow.
When sending data ahead, you and the client are in separate cars with the
possibility of heading in dierent directions. Stay in the car—be present in
the meeting when the ndings are discussed and solutions are agreed on.
INTERPRETING DATA
e process of interpreting data and translating it into useful information
for selecting actions is similar to the funnel displayed in Figure 8.3. You put
the data you obtained through this funnel, beginning with the ndings.
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Findings
Findings are the specic data points you obtained as a result of the data
collection sources and methods. ere are likely hundreds, perhaps thou-
sands, of ndings. ey range from SHOULD behaviors obtained in inter-
views to the means and standard deviations generated from questionnaire
data. ere are only two ways in which these ndings can be disputed by
your client. e rst is the client does not value how you have obtained
the information. is can be prevented by involving the client in the plan
for conducting the assessment. e second reason may be that your client
does not trust you to provide the information in an objective, unbiased
manner. Of course this problem is mitigated by developing a strong part-
nership with your clients. In Chapter 3, we discussed how to build strong
partnerships with clients.
Bottom line: As a performance consultant, you can do a great deal to
ensure the ndings will be accepted by your clients. Acceptance is required
in order to move into interpretation and solution selection.
Patterns
As Figure 8.3 illustrates, ndings begin the data interpretation process,
but they need to be organized in some manner to facilitate discussion and
insight. Presenting pages of means and frequency distributions, or lists of
FIGURE 8.3 Data Funnel
Performance
Consultant
Prepares
Do in
Partnership
with Clients
Findings
Patterns
Conclusions
SOLUTIONS
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behaviors, is not helpful. What does work is to organize the ndings, with-
out interpreting them, into logical data patterns. e two-by-two matrix,
described in Chapter 7 on IS data, is an example of how quantiable data
can be patterned. e performance and competency model formats illus-
trated in Chapter 6 are examples of organizing qualitative information. In
each instance, the data have been organized to facilitate understanding; they
have not been interpreted. As a performance consultant, you are responsible
for moving the data through the initial steps of the data funnel. Here you are
turning data into information that can be understood and used to make deci-
sions. e last step in the funnel takes place in a meeting with your clients.
Conclusions
As the funnel in Figure 8.3 indicates, you now form conclusions from
the ndings and their patterns. e funnel narrows because there are
fewer conclusions than there are patterns or data facts. Conclusions are
reasoned deductions made by connecting several pieces of data together.
Frequently, the conclusions omit references to numerical ndings; the
conclusion statement is descriptive. For example: perhaps 65 percent of
employees indicate their managers are unavailable for coaching and assis-
tance when needed. When the managers of these employees are asked for
their self-assessment, more than 90 percent of the managers respond that
they are available for coaching and assistance. A conclusion from these
two data sources could be that “there is a disconnect between the coaching
and assistance employees seek and the coaching and assistance managers
believe they are providing.” e specic numbers are less important than
the overall conclusion that can be reached from them.
It is important to note that, when forming conclusions, data are being
interpreted. People bring their experience, opinions, and perspectives to
this process. As long as the conclusions have a connection to the data nd-
ings and patterns, there is no “correct” or “incorrect” conclusion. Consider
an eight-ounce glass of water with four ounces of liquid in it. Is this glass
half empty or half full? Each of these conclusions is accurate but dierent.
at is why it is important to study the ndings and form some of your
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own conclusions before meeting with clients. Provide these conclusions as
your perspective, seeking your client’s reaction to them. What additional
conclusions would your clients reach? What is their level of agreement
with the conclusions you are providing? is should be a highly interactive
exchange designed to reach agreement about, and produce client owner-
ship for, the ndings.
One note of caution regarding conclusions: It is important to prevent
clients from jumping to conclusions that have little linkage to the nd-
ings that have been reported. Statements such as “No one is doing what
we need” and “Clearly people are blaming us for their problems and not
taking responsibility” are examples of what we have heard when clients
conclusion-jump without ndings that indicate this is the case. When you
hear these types of statements, you might ask, “What data are you using
from our report of ndings to form that conclusion?” While conclusions
are interpretive and can be dierent among people, they should be con-
nected to the ndings included in the assessment report.
Once conclusions have been agreed on, you are ready to discuss and
select solutions to be implemented. is is a pivotal time in the Perfor-
mance Consulting Process as you and the clients are agreeing on what
solutions will be invested in so that the desired business and performance
results can be achieved—and you are converting data into action.
Solutions
As we have noted, selecting solutions that will address business and per-
formance gaps is dicult to do without accurate cause data. Solutions to
problems are like keys and locks: they don’t work if they don’t t. Clients
do expect you to oer ideas for possible solutions when reporting ndings
from an assessment. ese solution suggestions become “thought-starters,”
generating discussions with clients who build on the ideas and form addi-
tional solutions to consider.
We nd it helpful to identify more than one possible solution for a
cause or set of causes, providing several options to discuss with our cli-
ents. Having several options also encourages discussion of each option’s
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potential for successfully addressing the causes. We also nd it helpful to
utilize the categories contained in the root causes for Gaps graphic when
focusing on solutions. For example, what causes were identied that are
external to the organization? What causes are internal to the organiza-
tion? What causes are internal to the individuals? Solutions for each of
these three major categories will likely have dierent “owners” who are
responsible for designing and implementing the solution. Bringing a laun-
dry list of all possible solutions to a client seldom works; it can be seen as
overwhelming. Let’s look at a process you can use to identify solutions to
recommend to your clients.
Process for Selecting Solutions
Typically, you will identify multiple causes for the gaps within a situation;
therefore, you need to consider multiple solutions. When identifying solu-
tions, it is important to do so with some degree of specicity. For exam-
ple, if you identify a skill and knowledge gap, a developmental solution is
appropriate. But for what learning purposes? By connecting with people
who are specialists for dierent solutions in your organization, you can
draw on their expertise when forming your initial list of possible solutions.
At this initial stage these would be broad suggestions to be discussed. Be
sure to seek client reaction and input.
Once you have formed a list of possible solutions for each cause, it is
time to compare the solutions against criteria. e ve criteria we use, and share
with you now, were developed by our colleagues Harold Stolovitch and Erica
Keeps and appear in their book Beyond Training Ain’t Performance (2006):
Appropriate. How certain are you that the solution, when imple-
mented, will close the gap? is criterion tests the degree of linkage
that exists between the solution you are proposing and the cause that
has been identied.
Economics. Most solutions will require some nancial investment.
What is the probability that budgetary funds can, and will, be allo-
cated for the solution? Is the cost of the solution less than the cost of
the performance problem?
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Feasibility. Other “costs” are required to design and implement the
solution, including costs associated with time and people. Also, there
may be a specic capability requirement for the solution to be both
designed and used as intended. To what degree do you believe the
capability and time of people required are available?
Organizational acceptability. is criterion focuses on the degree
of alignment between the solution and your organization’s culture.
While some solutions may need to push the envelope of the culture,
caution should be exercised when the solution is signicantly counter
to that culture. In this instance, you and the client may be expending a
large amount of energy to gain cultural acceptance before the solution
can even be implemented.
Individual employee acceptability. Consider the people who are in the
employee group(s) targeted for change. How acceptable will the solu-
tion be to them? Or, again, will the solution be so unacceptable that a
high degree of resistance will be incurred? Is the solution worth over-
coming that resistance? ese are the questions to consider in analyz-
ing employee acceptance.
Rate possible solutions on each of the ve criteria, using the fol-
lowing scale:
0 = Solution does not meet this criterion at all; it is not acceptable.
1 = Solution has low acceptance compared to this criterion.
2 = Solution is acceptable for this criterion.
3 = Solution meets this criterion in an exceptional manner.
When you have made your ratings, you are in a position to determine
which solutions have the highest overall probability of being accepted by
your clients and others. Avoid, if possible, proposing any solution you have
rated as a 0 on one or more of the criteria. Perhaps a learning solution is
required to close a gap in capability, but the population for this solution
is widely dispersed geographically. Proposing a technology-enabled learn-
ing solution may meet all of the criteria, but if it is a 0 on economics—
meaning the cost to implement it is greater than the cost of the problem—it
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may not be worth bringing forward to your client. At minimum, a 0 rating
should cause you to pause before including the proposed solution in your
set of recommendations.
Generating Ideas and Agreeing on Solutions
As we indicated earlier, one of the goals of a data-reporting meeting is to
agree on solutions that will be taken. In a well-planned meeting, you will
be discussing the ndings in “bite-size chunks.” You can bring solutions
that you have already tested against the ve criteria. Your clients, and pos-
sibly other stakeholders in the meeting, would suggest additional solu-
tions. Many times people build on solutions already suggested. Be sure to
write suggested solutions on a ipchart or into a computer screen. Aer
discussing all the conclusions, you may have many solutions still on that
list—oen more than can be implemented with the available resources.
is is a good time to use the ve criteria to assess each solution. If each
person in the meeting rates each solution, you will be able to rank-order
solutions. ose with the highest ratings have the highest probability of
success and acceptance. ose solutions can be identied for immediate
implementation.
One caution: Before the meeting, discuss the criteria with your client
and reach agreement on the criteria. Your client may insist on some other
criteria, but at least you will be using criteria that your client supports. e
decision-making process will be transparent, promoting discussion and
encouraging decisions about the best solutions for the situation.
Of course, solutions that are not implemented have no value to the
organization. As a performance consultant, take the lead in developing an
action plan or possibly several action plans based on the nature of the solu-
tions—for example, an HR action plan, a learning action plan, a marketing
and sales action plan, a client action plan. Be ready to start building action
plans in the meeting. Have a standard template on your computer or on a
ipchart, so the group can list important actions and milestones immedi-
ately. If there is little energy or time available to develop action plans in the
meeting, volunteer to take the lead in meeting with appropriate people to
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form these plans following the meeting. Your goal is to facilitate the pro-
cess of converting data into actions that will improve the situation. Ensure
that your clients are identifying actions and accountabilities with dates
as mileposts. is is the time to be assertive and to share your concerns
if you notice that your client is not committing resources to the solutions
that were agreed on.
CAUSE ANALYSIS: HERE’S HOW IT’S DONE
BACKGROUND INFORMATION
In Chapter 7, we described how Mike, the VP of operations for an
organization that sells bakery products to retail stores, contacted Bar-
bara, the director of L&D, regarding a concern about the route delivery
representatives (RDRs) in the Northeast region. The region was not
achieving its sales goals. The RDRs are the primary contact with the
retail stores and are responsible for increasing the revenue from those
stores. A gap analysis was completed with a goal to determine which
of the desired SHOULD on-the-job actions the RDRs were and were not
using. The results from this analysis determined that the RDRs would
benefit from skill development in customer interface techniques. But
other factors were inhibiting the RDRs from demonstrating some of the
critical practices—for example, practices related to encouraging store
managers/owners to add new products to their bakery department.
Also, RDRs were not sufficiently skillful and, at times, seemed hesi-
tant when responding to store manager/owner complaints. What was
unknown were the reasons that RDRs were not using these techniques
for interfacing with store managers/owners. Certainly only developing
the skills of RDRs would be an insufficient solution. There were some
factors within the organization inhibiting the RDRs from using the
desired practices. What were those factors? It was determined that
a CAUSE analysis was needed. Once the causal factors were known, a
complete set of solutions could be identified and implemented.
IDENTIFY CAUSES AND SELECT SOLUTIONS
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157IDENTIFY CAUSES AND SELECT SOLUTIONS
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DATA COLLECTION PLAN
It was decided that a survey would be the optimal method of data col-
lection. This is because there were a total of eighty RDRs, located in
several states. To obtain the data to use in the survey, Barbara and
her project team conducted focus group interviews with two groups of
RDRs and one group of their immediate managers. These focus group
interviews required only one hour of time and had the express purpose
of determining organizational capability factors that could be relevant
to this situation.
Several possible factors were identified as affecting how RDRs
introduced new products and handled complaints from store manag-
ers/owners. These factors became content for the questionnaire. This
survey was sent electronically to all RDRs and their managers within
the NE region. Table 8.2 shows a portion of the questionnaire. All of
the statements were written as positive statements. By agreeing with
the statement, RDRs were indicating that the item was enabling their
performance. By disagreeing with the statement, the RDRs were not-
ing the item was a barrier.
THE RESULTS
Once a sufficient number of surveys were returned, the results were
tabulated (Table 8.3). The client team determined that when at least
60 percent of the respondents agreed with a statement, that fac-
tor would be interpreted as an enhancer. Conversely, when 40 per-
cent or less agreed with a statement, it would be viewed as a barrier,
most likely requiring some type of action. Factors where the responses
showed agreement among 40 to 60 percent of the respondents would
be discussed on an individual basis.
From the results, it was clear that the following are enabling RDRs
to perform their responsibilities:
RDRs have sufficient products and display materials.
Their schedules are designed to support arriving at stores at the
scheduled time.
RDRs have sufficient information about ingredients in new
products.
TABLE 8.2 Cause Analysis Questionnaire for RDRs
Instructions
Listed below are factors that affect you as you discuss our products with store managers or owners. These factors are also important to managing customer
complaints and problems. Please read each statement and indicate your level of agreement or disagreement with it.
Circle the number that corresponds to the extent you agree or disagree with each statement, using the following scale:
NA = Does Not Apply to My Situation
1 = Strongly Disagree
4 = Somewhat Agree
2 = Disagree
5 = Agree
3 = Somewhat Disagree
6 = Strongly Agree
NOT
APPLICABLE STRONGLY DISAGREE STRONGLY AGREE BARRIERS/ENHANCERS
When delivering bakery products to customers,
NA 1 2 3 4 5 6 1. My truck regularly has sufficient product to meet store demands.
NA 1 2 3 4 5 6 2. My schedule enables me to arrive at store locations at scheduled times.
NA 1 2 3 4 5 6 3. My truck regularly has sufficient display materials for the stores I support.
When interfacing with store managers/owners,
NA 1 2 3 4 5 6 4. I have sufficient information about benefits of new products for store customers.
NA 1 2 3 4 5 6 5. I have sufficient information about how the new product will increase store sales.
NA 123456 6. I have sufficient information to answer questions about ingredients in the new product.
When store managers/owners complain about products,
NA 1 2 3 4 5 6 7. I have sufficient authority to determine appropriate actions to be taken.
NA 1 2 3 4 5 6 8. My direct manager typically supports my recommendation for actions to be taken.
NA 123456 9. My direct manager coaches me on how to respond to store manager/owner complaints.
My Route Sales Manager stresses the importance of
NA 1 2 3 4 5 6 10. Increasing sales to stores.
NA 1 2 3 4 5 6 11. Meeting profit goals.
NA 1 2 3 4 5 6 12. Achieving high customer satisfaction.
TABLE 8.3 Results of Cause Analysis for RDRs
FACTOR IMPACTING PERFORMANCE
PERCENT OF RDRs WHO AGREE WITH STATEMENT, INDICATING
THE ITEM IS AN ENABLER (RATED 4, 5, OR 6 ON THE SCALE)
1. My truck regularly has sufficient product to meet store demands. 87%
2. My schedule enables me to arrive at store locations at scheduled times. 71%
3. My truck regularly has sufficient display materials for the stores I support. 91%
4. I have sufficient information about benefits of new products for store customers. 38%
5. I have sufficient information about how the new product will increase store sales. 45%
6. I have sufficient information to answer questions about ingredients in the new product. 64%
7. I have sufficient authority to determine appropriate actions to be taken. 33%
8. My direct manager typically supports my recommendation for actions to be taken. 45%
9. My direct manager coaches me on how to respond to store manager/owner complaints. 28%
10. Route Sales Managers stress the importance of increasing sales to stores. 85%
11. Route Sales Managers stress the importance of meeting profit goals. 78%
12. Route Sales Managers stress the importance of achieving high customer satisfaction. 51%
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ASSESS BUSINESS AND PERFORMANCE NEEDS
Route sales managers are stressing the importance of increasing
sales and meeting profit goals.
The following factors were identified as barriers to the performance of
RDRs in the Northeast region;
RDRs have insufficient information about benefits of new prod-
ucts to be discussed with store managers/owners.
RDRs believe they have insufficient authority to determine appro-
priate actions for handling store manager/owner complaints.
There is insufficient coaching by route sales mangers on how to
respond to store manager/owner complaints.
With this information, the reasons for the low frequency with which
RDRs were performing some of the needed practices became evident.
It would be difficult for RDRs to increase store sales if they lacked
information about the new products, and not having authority to take
actions when a problem or complaint surfaced would inhibit resolving
the problem to the satisfaction of a customers.
The client team met and agreed on actions to be taken. These
actions included some skill building as well as working with RDRs to
clarify, and enhance, the authority limits the RDRs had when resolv-
ing store manager/owner complaints. There were also actions taken to
enhance the coaching that route sales managers provided.
Figure 8.4 displays the Gaps Map along with the information that
was learned during this IS and CAUSE analysis.
IDENTIFY CAUSES AND SELECT SOLUTIONS
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161
FIGURE 8.4 Gaps Map for Route Delivery Representations (RDRs), Northeast
Region
Business Need: Grow Revenue Employee Group: NE Route Delivery
Representatives (N=80)
Client: VP Operations
Business SHOULDs
Total Sales: Increase 6%
On-time Delivery: 100% within 30 minutes
Delivery Cost: 6% of sales
Customer Retention 94%
Performance SHOULDs
(Accomplishments and Behaviors)
Deliver bakery products to stores at
predetermined times
Freshen and update displays
Return damaged or old products
Stay in contact with store manager/owner,
encouraging acceptance of new/additional
products
Manage problems or complaints from store
manager/owner
Business IS
Total Sales: Increase 2%
On-Time Delivery: 100% within 30 minutes
Delivery Cost: 6% of sales
Customer Retention: 89%
Performance IS
(Accomplishments and Behaviors)
Bakery products are delivered on time
Displays are updated and refreshed
Damaged and old products are returned
Infrequently encourage store managers and
owners to accept new and additional
products
Problems and complaints are not being
resolved to satisfaction of store manager/
owner
Factors External to
the Organization
Factors Internal to
the Organization
(Organizational Capability)
Factors Internal to
Individuals
(Individual Capability)
Stable demographics
in the community”
Outside the Client’s
Control
Insufficient
information about
benefits of new
products
Insufficient
information regarding
how new products
will increase store
sales
Within the Client’s
Control
Insufficient authority
provided RDRs to
resolve complaints
independently
Insufficient coaching
by RDR direct
managers
Skill insufficient to:
Describe how new
product could
increase sales and
profit of store
Ask questions to
understand details
of complaints
Form specific
actions that will
address store
manager’s/owner’s
problem
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➥ SHORTCUTS FOR OBTAINING CAUSE DATA
1. If CAUSE information is required, obtain it at the same time you obtain
SHOULD and/or IS performance data.
2. Conduct a focus group discussion with a representative sample of employees
from the workgroup. While a focus group requires a skillful facilitator and a
welldesigned process to capture information, it is an efficient method to use
when time is of the essence.
3. Use an electronic questionnaire to obtain CAUSE data. To obtain content for
the survey, conduct an interview with a few individuals from the employee
group, identifying the barriers and enablers they most frequently encounter.
Then construct the questionnaire and transmit it to employees via your inter-
nal email. The responses can be easily and quickly tabulated when surveys
are done electronically
PERFORMANCE CONSULTING POINTERS
1. ere are three categories of CAUSE factors: external to the organiza-
tion, internal to the organization, and internal to individuals. Gener-
ally some combinations of these factors are contributing to current
business and performance gaps.
2. CAUSES and symptoms are dierent. Symptoms are indicators of a
problem with insucient clarity to be actionable. CAUSES provide
clarity for which solutions can be implemented.
3. e data funnel is used to interpret ndings. With it, you move from
ndings and patterns to conclusions and solutions. You present the
ndings and patterns to your clients. You discuss and clarify the con-
clusions, agreeing together on the solutions to be taken.
4. Solutions are linked to one or more identied causes. Use the criteria
of “appropriate, economics, feasibility, organizational acceptability,
and employee acceptability” when determining which solutions to
propose to clients.
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163
5. Solutions that are not implemented are of no value to the organization.
O er to take the lead in developing action plans for implementing the
solutions. Speak up when the client is not moving forward with the
agreed-on solutions.
DOWNLOAD
THESE
Tools that support content from this chapter can be purchased
and downloaded from the BerrettKoehler website
(www.bkconnection.com). Please see page 253
for download instructions.
Categories of Root Causes
Template for a Gap and CAUSE Analysis Survey
Possible Solutions for CAUSES
Solution Selection Worksheet
Implement and Measure Solutions
Implement and Measure Solutions
THIRD PHASE
Implement and Measure
Solutions
6
Design
Measurement
Strategy
7
Implement
Solutions
8
Collect and
Analyze Data
Reaction
Capability
Performance
Business
ROI
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is section of the book has the following chapters:
CHAPTER 9: ALIGNMENT AND MEASUREMENT MODEL
Now that solutions have been selected, and before they are implemented,
it is time to form a plan for how the entire initiative will be measured. is
chapter introduces the Alignment and Measurement Model. is model
is a framework used to develop a comprehensive measurement strategy
for ve levels of results that are possible within a performance consulting
initiative.
CHAPTER 10: DEVELOP AND IMPLEMENT THE DATA
COLLECTION PLAN
is chapter describes the process and techniques for creating a measure-
ment strategy and a data collection plan that supports that strategy. is
plan requires identication of the results to be achieved, methods to be
used, sources of data, and timing of the data collection. A case study pro-
vides an example of how the ve levels of measurement can be used to
assess the impact of a complex performance consulting initiative.
CHAPTER 11: DETERMINE THE RETURN ON
INVESTMENT (ROI)
e ROI of a performance consulting initiative is frequently referred to as
the ultimate measure of success. is chapter shares specic techniques
required to identify the benets derived from an initiative and to then con-
vert those benets into monetary terms. is chapter also discusses how
to identify the fully loaded costs from a performance consulting initiative
with a goal of reporting an ROI that is viewed by clients as both credible
and accurate.
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Implement and Measure Solutions
Alignment and Measurement Model
9
Alignment and
Measurement Model
What gets measured, gets managed.
—Peter Drucker
As stated previously, we dene performance consulting as a strategic pro-
cess that produces business results by maximizing performance of people
and organizations. On too many occasions we have observed situations
where performance consultants complete the front end analysis, identify
gaps and causes, and move ahead with solutions, but with no intent to
measure results. eir plan: to employ a “we’ll know it when we see it”
approach. In other words, perception is the barometer used. is means
that while the costs of the initiative are known, the specic benets are
uncertain. Clearly this leaves performance consultants in a vulnerable
position, enabling clients to judge the impact of the initiative using unreli-
able information and subjective opinions.
We know that executives and managers do seek metrics to monitor
the results that occur in many areas of their business results. For most
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executives and managers, measuring results is a must-do and not a nice-
to-do. Let’s look more closely at the type of measurement information cli-
ents seek and, more important, how we can provide that information.
CLIENT PREFERENCES FOR MEASUREMENT INFORMATION
In 2010, ROI Institute conducted a study to identify executives’ view of
success measures for noncapital expenditures such as consulting, learn-
ing and development, human resources, communications, and public rela-
tions. For this particular part of the study, ninety-six CEOs from Fortune
500 organizations responded to a survey that presented the measurement
categories shown in Table 9.1. Executives were asked if they were now
receiving this type of information for projects and programs undertaken
in their organizations. ey were also asked if they should be receiving this
information in the future. Finally, the executives were asked to rank the
data sets on a scale of 1 to 5, with 1 having the greatest value to them and
5 having the least value.
Some key ndings:
e majority of executives who responded are interested in business
(ranked 1) and ROI (ranked 2) data.
e information they are more likely to obtain focuses on reaction
(ranked 5) and capability (ranked 4).
Clearly, there is wide disparity between the type of information execu-
tives seek regarding results and the information they actually receive. For
performance consultants, the mandate is clear: We must show executives
the business impact for our initiatives and be credible in the process. We
also must step up to the ROI challenge, providing data in a language exec-
utives speak. In essence, here is what clients want to know:
1. What actually changed as a result of the solution(s) implemented?
2. What impact, if any, did the initiative have on business results?
3. Was this initiative a good investment for the organization? Was
there a payo?
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169
4. Did the initiative drive key intangible measures? ese results are
oen dicult to express in monetary terms, yet are critical to success
of an organization.
5. If the desired results did not occur, what are the primary causes?
If this is what clients want to know, we must also consider how that
information is obtained and reported. Clients oen express skepticism
TABLE 9.1 Executive View of Measurement Data
MEASURE
DATA
EXECUTIVES
CURRENTLY
RECEIVE
DATA EXECUTIVES
WOULD LIKE TO
RECEIVE IN THE
FUTURE
EXECUTIVE
RANKING OF THE
IMPORTANCE OF
THIS MEASURE
1. Reaction: “Employees rated
the initiative and the
solutions we implemented
very high; our average was
4.2 out of 5.”
53% 22% 5
2. Capability: “At least 95% of
the individuals involved in
the initiative know what
they must do to make it
successful.”
32% 28% 4
3. Performance: “The
initiative is being imple-
mented properly and on
schedule. Employees are
evidencing the desired
performance we need and
it appears the organiza-
tional support we required
is in place.”
11% 61% 3
4. Business: “The two critical
business measures we had
targeted for change are
moving in the right direction.”
8% 96% 1
5. ROI: “We have achieved a
38% return on investment
as a result of this initiative.”
4% 74% 2
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regarding attempts to quantify the success of solutions designed to bring
about organizational change. Executives question the data they receive
when other factors inuencing change are not considered, when costs that
are reported are not fully loaded, and/or when the benets are overstated.
As we move forward with a plan to measure, we need to keep in mind
requirements for this process from the viewpoint of the client. e mea-
surement process should
be simple, devoid of complex formulas, lengthy equations, and compli-
cated methodologies;
be economical, so the cost incurred to measure is worth the eort;
be credible and theoretically sound in terms of assumptions, methodol-
ogy, and techniques;
account for all factors that have inuenced results;
be exible, so it can be applied to a variety of initiatives and solutions
and work on a pre-project, post-project, and forecast basis;
include all types of data such as hard data (output, quality, costs, and
time) and so data (image, employee engagement, customer satisfac-
tion, brand awareness, teamwork, and corporate social responsibility);
identify total costs of the initiative, inclusive of direct and indirect costs.
Obtaining measurement data in the manner we have just described
may seem like a tall order—but it is one performance consultants need to
ll. Fortunately, the Alignment and Measurement Model will assist you.
ALIGNMENT AND MEASUREMENT MODEL
e Alignment and Measurement Model, displayed in Figure 9.1, is a tool
that makes visible the connection between the needs identied in the front
end assessment (the IS) and the ve measurement levels of results that are
possible (the SHOULD). On the le side of this model are the needs with
which we have become familiar as they are integral to the mental model
of performance consulting: business needs, performance needs, organiza-
tional capability needs, and individual capability needs. We identify the
SHOULD and IS for these needs on the front end of our initiative. To
FIGURE 9.1 Alignment and Measurement Model
Assessment
(the IS/Current State)
Objectives for Initiative
(the SHOULD/Desired State)
Measurement
(the RESULTS)
Payoff Needs 5 ROI Objective 5 ROI Results
Business Needs 4 Business Objectives 4 Business Results
Performance Needs 3 Performance Objectives 3 Performance Results
Organizational and Individual 2 Organizational and Individual 2 Organizational and Individual
Capability Needs Capability Objectives Capability Results
Preference Needs 1 Reaction Objectives 1 Reaction Results
Solutions
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these needs are added payo needs (to determining return on investment)
and preference needs (identifying preferences of the target group for both
the solutions to be implemented and the strategy used to implement these
solutions).
e right side of the Alignment and Measurement Model includes the
ve levels of results that are possible to measure. e model is based on
the concept of levels used for years to indicate the increased value at each
higher level. For example, when something is said to move to “the next
level,” it is suggested that the new level is of greater value than the preced-
ing one. In viewing the measurement side of the model, we see that the
factors being measured at the higher levels provide data that executives
rank as most important. e dierent levels of measurement are as follows:
Reaction to the solution(s) implemented (Level 1)
Organizational and individual capability required for sustained solu-
tions (Level 2)
Application of the SHOULD performance in the workplace (Level 3)
Business results linked to the solution (Level 4)
ROI results, which are a comparison of monetary benets to the cost
of the solution’s design and implementation (Level 5)
From the viewpoint of clients, moving measurement to the next level
represents increasing value. As we described earlier in this chapter, clients
desire information that describes the business contribution (Level 4) and
even ROI (Level 5) from the investment made in one or more solutions.
Let’s look more closely at each component in the Alignment and Measure-
ment Model.
Level 1: Reaction Results
For any change initiative to have sustained impact, it must be supported
by the employees and managers whose performance will be enhanced in
some manner. Do people buy into the value and benet of the change? Do
they support the solutions and processes? Determining preferences on the
front end of change strategies to leverage those preferences is critical to
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173
achieving results that will continue adding value over time. When begin-
ning a performance consulting initiative, it is important to identify prefer-
ences of employees and other stakeholders, and then form objectives that
will lead to optimal reaction. Measurement of the reaction of individuals
to specic activities provides important information about the degree to
which their preference needs are being met. For example, an evaluation,
completed by participants at the conclusion of an activity, is a type of Level
1 measurement.
Level 2: Organizational and Individual Capability Results
On the front end of a change initiative, you rst identify any causes for gaps
that have been identied and need to be closed. ese causes can include
capability needs of both the organization and individuals. Some causes
may include barriers to performance within the organization. Other causes
may be skills and knowledge that individuals will require. You then set
objectives for what you want to accomplish regarding these two categories.
When measuring the capability of individuals, you are assessing whether
people have the requisite skill and knowledge to adequately perform. is
assessment may include a test or other approach. When measuring orga-
nization capability, you determine the degree to which organizational bar-
riers have been removed and which support systems are present. You will
likely need to seek input from both employees and their managers. When
both organizational and individual capability are lacking, the probability
of long-term and sustainable results occurring is nil.
Level 3: Performance Results
At this level you focus on the performance change you seek. What is it that
people need to do more, better, or dierently? What is the performance
SHOULD? Perhaps the goal is for people to work in a more collaborative
manner. Or managers may need to provide greater direction and guid-
ance to their sta. e performance SHOULDs establish the performance
goals. You set objectives for desired performance and then measure to
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determine the actual performance following the implementation of the
solutions. Measurement determines the performance that occurs follow-
ing the implementation of solutions. Oen the information obtained dur-
ing the assessment phase can be viewed as the “pre” measurement data.
Some weeks or months following the initiative, you can measure again to
identify the “post” results.
Level 4: Business Results
At Level 4, you are directly focused on the type of information that execu-
tives seek. Business needs are the operational goals for an organization and
(almost always) are measured numerically. Typically, one or more business
needs were the driver for the initiative. Objectives represent the business
SHOULDs that clients are seeking. To increase sales by a specic amount.
To improve customer satisfaction by a certain percentage. Again, the infor-
mation you obtained during the assessment can serve as our “pre” data.
Some weeks or months following the initiative, you can obtain the “post”
information, identifying the degree to which desired results are occurring.
Level 5: ROI Results
Before embarking on a performance consulting initiative arm that there
will be a payo. Is the problem worth solving or the opportunity worth
acting on? In some instances, this is obvious. For example, if the sales of a
new product in which a large investment has been made are signicantly
lower than projections, there is a compelling need to act. Return on invest-
ment (ROI) determines whether the investment made in the solutions to
achieve a desired outcome resulted in a positive return. In other cases,
the payo may not be obvious—for example, when a corporation seeks to
become a “great place to work.” In these instances, discussions between
clients and performance consultants are needed to ensure commitment to
the initiative will be sustained over time. Level 5 is the level of measure-
ment that meets the “show me the money” test. On the front end of an
initiative, the potential monetary benet is determined. is is compared
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to an approximate cost of the initiative. Is the forecasted ROI worth mov-
ing ahead? If it is, objectives are established for anticipated ROI. e actual
ROI is determined following the initiative.
ALIGNMENT AND MEASUREMENT LOGIC
e steps for developing a data collection plan are described in Chapter
10. But now it is important discuss how the logic of the Alignment and
Measurement Model and the logic of performance consulting are inte-
grated. You may recall that the performance consulting logic is based on
identifying the gaps that exist between what SHOULD be occurring and
what IS occurring. Given this gap, an initiative is launched that will imple-
ment solutions to close the gap. e results of a Gaps analysis become the
input to the Alignment and Measurement Model; this is where the work
begins. e far le side of the Alignment and Measurement Model, labeled
“Assessment,” identies the IS or current state. When setting objectives,
you are identifying the SHOULDs for the initiative. For instance, what
business SHOULDs must occur? What organization and individual capa-
bilities must be developed? Objectives for the initiative are noted in the
center of the model. e Alignment and Measurement Model guides you
to identify results you must achieve and then compare those to what actu-
ally did result from the initiative. In this way, the SHOULD and IS logic is
evidenced from the beginning of your work on a performance consulting
initiative through to its conclusion.
e Alignment and Measurement Model also illustrates how the results
at one level contribute to the results at the next. For example, enhancing
capability of the organization and people is necessary if performance
change is to occur. And performance change is needed if positive impact
to the business is to result. If the anticipated business results do not occur,
where is the “break” in this linkage? At what level were there insucient
results? e model requires that you establish and agree on objectives with
clients before investment in solutions begins. is practice helps ensure
that you and your clients are on the same page as you embark on your
performance consulting initiative together.
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ALIGNMENT AND MEASUREMENT MODEL:
HERE’S HOW IT’S DONE
Deborah is a performance consultant in a large health and life insur-
ance company that has been serving families throughout North Amer-
ica for almost eighty years. With a focus on health and life insurance
products, the company is regarded as an innovative and low-cost
health insurance provider and has grown significantly in recent years.
John, the executive vice president of operations, is one of Debo-
rah’s clients. One day he discussed with Deborah two concerns he
had regarding the claims processors. There were 950 employees
involved in processing and examining claims submitted by customers
or healthcare providers. The claims processors reviewed claims that
were disputed or required audit. One concern was that productivity
for claims processors had remained static for the past three years,
despite efforts to increase it. A second concern was that the number
of claims processors had grown to the point where the current office
space was insufficient. Given the company’s continued growth, it was
likely a new building or a new facility would be needed. John wanted to
lower the annual cost of office space, which averaged about $17,000
per person per year. He also wanted to improve productivity, which
was currently at a rate of 33.2 claims processed each day by a claims
processor. It was agreed that Deborah would do a CAUSE analysis to
determine the primary reasons for the insufficient productivity, so that
appropriate solutions could be crafted.
CAUSE ANALYSIS
Deborah met with claims processors and their managers. Through
her interviews she learned that many employees had long commutes
to work that resulted in fatigue once at the office and contributed
to absenteeism. She also found that the overcrowded conditions at
the office were impeding productivity because of distractions, noise,
and some physical discomfort. Deborah met with John to discuss
the results of her assessment; together they explored the possibility
of a work-at-home solution. He encouraged Deborah to learn more
about how this work-at-home option could be implemented. Deborah
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researched several work-at-home operations of comparable organiza-
tions in order to learn what was required for success and what the
potential payoffs could be. She learned that organizations using this
approach have
a drop in office space costs,
positive results in terms of productivity increase, and
reduced absenteeism.
Clearly significant, and multiple, payoffs were possible through this
solution. Deborah continued her assessment to identify other needs
to be addressed if a work-at-home solution was to succeed. Some
examples:
Performance needs: Employees would need to work in an inde-
pendent manner and be productive in a work-at-home setting.
Managers would need to provide guidance and coaching from
remote locations.
Organizational and individual capability needs: Employees would
need to develop the skills and confidence to operate in a more
independent manner. Their work setting would need to be free
of distraction and have the technology and tools required for
success.
OBJECTIVES FOR INITIATIVE
In a meeting with John, it was agreed they would move ahead with a
work-at-home solution. Using the Alignment and Measurement Model
format, Deborah worked with her client to identify objectives for this
initiative. The objectives they agreed on are noted in Table 9.2.
SOLUTION IMPLEMENTATION
To achieve a successful work-at-home solution, several actions were
required:
A communication strategy was designed and implemented.
A process was developed through which claims processors could
volunteer and be assessed as to their readiness to work at home.
Educational programs were prepared and implemented for both
claims processors and their managers.
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Computers and other systems were installed in the homes of
claims processors selected to work at home, ensuring they had
capability comparable to what they would have if in the office.
THE RESULTS
Deborah returned to the Alignment and Measurement Model to guide
the measurement effort. She measured all five levels within that
model, starting with reaction.
TABLE 9.2 Objectives for Work-at-Home Initiative
Level 1: Reaction Objectives
Claims processors see the work-at-home initiative as satisfying,
important, and rewarding.
Managers view the work-at-home initiative as necessary, appropriate, and
important.
Level 2: Organizational and Individual Capability Objectives
Claims processors know the realities of working at home, the conditions,
roles, and regulations.
Claims processors have the discipline and tenacity to work at home.
Managers are able to explain the company policy and regulations for
working at home.
Managers have the capability to manage remotely.
At-home offices are built and are properly equipped.
The at-home workplace is free from distractions and conflicting demands.
Level 3: Performance Objectives
Managers conduct a meeting with the claims processors to discuss policy,
expected behavior, and next steps.
Sufficient number of claims processors volunteer to work at home.
Claims processors work effectively at home.
Managers are managing the claims processors effectively from a remote
location.
Level 4: Business Objectives
Office expense per person reduces by 20% in six months.
Productivity increases by 5% in six months.
Employee turnover reduces to 12% in six months.
Level 5: ROI Objectives
Achieve a 25% return on investment.
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Level 1: Reaction
Reaction data focused on reactions from both the claims processors
and their managers. Four particular measures were collected on the
questionnaire directly from the employees:
Level of satisfaction with the new work arrangement
The degree of importance claims processors placed on this
approach for their job success
The degree to which this opportunity was viewed as rewarding
The effect the work at home opportunity had on job motivation
The reaction data from the employee perspective on the above items
averaged 4.4 on a 5-point scale, with 5 the most positive rating. Reac-
tion data were also obtained from managers and their perceived value
for this initiative. Did managers view the work-at-home solution as nec-
essary, appropriate, and beneficial? The managers’ ratings averaged
4.2 out of 5.
Level 2: Organizational and Individual Capability
Table 9.2 lists several learning objectives that were measured. In a
workshop, managers had an opportunity to practice the four types of
performance discussions they would need to have with their employees
who volunteered to work at home. The facilitator of the workshop was
required to confirm whether each manager had successfully demon-
strated capability to conduct this type of conversation. Managers rated
their self-confidence to explain policy as 3.9 out of a possible 5 rat-
ing; this was just short of the goal of 4.0. The facilitators affirmed that,
with exception of one manager, all other managers successfully dem-
onstrated the performance discussions focused on in the workshop.
At the conclusion of the training for claims processors, they were
asked to self-assess their confidence and capability to perform as
needed. Self-assessment ratings for claims processors exceeded the
expectations on five measures from employees, averaging 4.3 out of 5.
Regarding organization capability, 95 percent of employees reported
that their at-home workplace was free of distractions and conflict. The
greatest barrier proved to be insufficient managerial support for 18
percent of the claims processors. Following closely behind was insuf-
ficient support from other staff members who were in the office. These
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findings provided Deborah and John with an opportunity to address
these issues before they became more pervasive.
Level 3: Performance
Both managers and claims processors were asked to complete a
questionnaire three months following the launch of this initiative. The
dual source data showed that 93 percent of managers did conduct
meetings with employees to discuss the work-at-home requirements
and were rated at 4.1 on the 5 point scale for administering policy
properly. The claims processors were rated at 4.3 on the 5 point scale
for working effectively at home. The one disappointing result: some
managers appeared to have difficulty managing employees remotely,
with an overall favorable rating of 3.8 out of 5.
Level 4: Business
The business data were monitored and included three measures: pro-
ductivity, office expense, and turnover. Table 9.3 shows the pre- and
post-business data; the post-data were obtained six months after the
project began. The differences are significant, representing distinct
improvements in the three measures and exceeding the objectives of
the project. Having the data identified and isolated to the project, the
analysis moved to the next step, converting data to money.
Level 5: ROI
The ROI is calculated when the costs of the initiative are totaled and
the monetary benefits are compared. The ROI achieved for this work-
at-home initiative was 25 percent. (Specific information regarding how
TABLE 9.3 Business Results
BUSINESS
METRICS
WORK-AT-HOME
(POST) DATA PRE DATA CHANGE
NUMBER OF
PARTICIPANTS
Daily claims
processed
35.4 33.2 2.2 234
Office expense per
person
$12,500 $17,000 $4,500 311
Annualized turnover 9.1% 22.3% 13.2% 311
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to calculate both costs and return from a performance consulting ini-
tiative is discussed in Chapter 11.)
The Alignment and Measurement Model provided Deborah, her
team and her clients with both a conceptual framework and a practi-
cal guide for assessing a complex situation, determining appropriate
solutions, and implementing effective measurement and evaluation.
PERFORMANCE CONSULTING POINTERS
1. e accountability for, and measurement of, results achieved from a
performance consulting initiative is shared by both clients and the
consultants.
2. Clients seek measurement information about a project’s business
impact and return on investment. It is the responsibility of perfor-
mance consultants to include that level of measurement when possible.
3. e Alignment and Measurement Model is a framework for illustrat-
ing the causal linkage between the needs identi ed in the assessment
phase and the results that are obtained following implementation of
solutions. It also ensures that you have mutually agreed-on expecta-
tions with your clients before the initiative commences.
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Alignment and Measurement Model
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10
Develop and Implement
a Data Collection Plan
You’ve got to be very careful if you don’t know where
you are going because you might not get there.
—Yogi Berra
Wish we had thought of the wisdom in this statement years ago when
we consulted with an organization that was implementing a supervisory
development program. e client asked us to determine the impact of the
program. We neglected to obtain greater clarity and set about to measure
what we thought was meant by “impact.” We focused on obtaining perfor-
mance change information (Level 3). We met with the client to review the
results, which were signicant. Imagine our surprise when his response
was something like this: “is information is useless to me. What I want to
know is how has the program benetted our business. What is the ROI?”
at incident taught us an important lesson: when measuring results of
an initiative, you need to agree with the client on specically what will
be measured and then form a data collection plan to obtain the needed
information.
Implement and Measure Solutions
Develop and Implement a Data Collection Plan
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Take a look at the Performance Consulting Process in Figure 10.1. In
step 5, you facilitate a data reporting meeting and agree with your client
on solutions to be implemented. You also stress the importance of measur-
ing the impact of these solutions. In step 6, you develop an action plan for
designing and implementing those solutions. You also create a measure-
ment strategy based upon the logic of the Alignment and Measurement
Model. Once you and your client agree on the measurement strategy, you
create a Data Collection Plan that describes
results to be achieved as a consequence of an initiative (the what),
methods used to measure those results (the how),
sources of data (the who), and
timing of data collection (the when).
While you may do most of the work to develop these plans, your cli-
ent must have input into and approve the plans. e result: you and your
client are in agreement on the what, how, who, and when of both the solu-
tions and the measurement process. By taking this approach, you avoid the
problem we encountered those many years ago.
GUIDELINES FOR EFFECTIVE MEASUREMENT
Before we move into the specics of measuring at each of the ve levels, we
want to provide some overarching guidelines that result in cost-eective
yet credible data.
1. Obtain data at all levels of evaluation up to the highest level you are
including. In other words, if you and the client agree that Level 4
(Business) information will be obtained, then design a system that
also obtains information on Levels 1 (Reaction), 2 (Organizational
and Individual Capability), and 3 (Performance). By collecting data
at all levels, you connect the business results to the solutions. It is
also how you can diagnose reasons for less-than-satisfactory business
results (Level 4). Was it that employees did not learn (Level 2)? Is it that
the organizational barriers prevented people from applying the skills
(Level 2)? Was there insucient behavior change (Level 3)? Answers to
FIGURE 10.1 Performance Consulting Process
1
Reactively
Identify
Opportunities
4
Determine
Business and
Performance
SHOULD, IS,
and CAUSE
5
Report
Results to
Clients;
Agree on
Solutions
6
Plan, Design,
and/or Select
Solutions;
Design
Measurement
Strategy
7
Implement
Solutions
8
Collect and
Analyze
Data
Reaction
Capability
Performance
Business
ROI
9
Report
Results to
Clients;
Develop
Plans for
Sustainability
2
Proactively
Identify
Opportunities
3
DETERMINE IF
STRATEGIC OR
TACTICAL
(Strategic requires
Assessment Phase)
(Tactical moves to Step 6)
Identify Strategic
Opportunities
Assess Business and
Performance Needs
Implement and
Measure Solutions
Report and
Sustain
Results
Client Partnerships Formed and Maintained
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these questions provide you and the client with information you need
to take corrective actions that will improve the results.
2. Plan to obtain data both early and oen during the initial phases of
the initiative. In this way you are measuring progress (or lack thereof)
toward your ultimate goals. If progress is unsatisfactory, you are in a
position to diagnose the reasons and take corrective actions.
3. Plan to use multiple sources of information. Also use dierent data
collection methods, so you can report both qualitative and quantita-
tive results. For Level 4 (Business) and Level 5 (ROI) data, use the
operational data already available in your organization. Avoid rein-
venting the wheel.
4. Design a data collection plan that utilizes credible sources of informa-
tion and reliable methods of data collection. When we worked with a
client who did not value survey data, we used interviews as our pri-
mary data collection method. Even though interviews required more
resources and time to complete, we knew this was necessary for the
client to accept the results.
MEASUREMENT DATA AS DIAGNOSTIC DATA
We cannot reiterate enough the value of using measurement data to diag-
nose the causes for disappointing results. Such data can provide insight
into actions required to achieve and sustain desired results. Here is an
example of how this can work.
Some years ago we were retained to measure the impact (at both Levels
3 and 4) of an initiative designed to build teamwork skills. e anticipated
results included (1) stronger collaborative techniques for people to use
when on project teams and (2) improved project results regarding proj-
ects completed on time and within budget. e initiative included two
implementation strategies. One was to bring intact teams into the project
so they would develop the techniques and approaches together. Another
strategy was to bring people from across the organization into the project,
thus providing the benet of meeting and working with colleagues from
throughout the company. e clients viewed this second design option as
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an opportunity to bring people together who would likely need to work
together in the future. We were retained to measure the project on the rst
one hundred participants; there would be many hundreds to follow.
We designed a data collection plan to obtain data on Levels 1, 2, 3, and
4. We reported separately results for people who attended as an intact team
from results of those who attended from across the organization. Results
were substantially stronger for those people who attended with their intact
teams. is was because team members were now operating from a shared
teamwork model with expectations of one another regarding the use of
that model. As a result, this strategy was applied to future programs.
Because the measurement study was completed early in the implementa-
tion cycle, the results were used to determine the optimal implementation
strategy going forward. ere is no doubt that measurement data can serve
two purposes: to arm what did and did not occur as well as to diagnose
reasons for less-than-satisfactory results, providing an opportunity to take
actions to enhance impact in the future.
MEASUREMENT OBJECTIVES AND PLANS:
THE WHAT, HOW, WHO AND WHEN
Five levels of measurement can be included in a plan. Each level requires
objectives. When you agree on the measurement objectives with your cli-
ent, you are agreeing on where you are going. To be more specic, you are
agreeing with your client on the outcomes expected from the initiative.
e measurement objectives become the “stake in the ground.” is stake
is central to connecting the progression from the initial problem (the IS)
to the expected results (the SHOULD). e ve levels of measurement and
the purpose of each are described here:
Level 1: Reaction—Determines the degree to which the initiative and the
solutions within it are valued by those who are participating
Level 2: Organizational and Individual Capability—Organizational
capability determines the degree to which the work environment of
those whose performance is to change is supportive of the desired
performance. Individual capability determines the degree to which
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participants acquired the knowledge and skill provided through the
initiative.
Level 3: Performance—Determines the degree to which individuals are
evidencing the desired performance on the job
Level 4: Business—Determines the degree to which the operational results
for the organization (both tangible and intangible) are achieved
Level 5: Return on Investment (ROI)—Determines the specic return
on the initiative, comparing costs incurred to monetary benets that
are received
Let’s assume you have completed your assessment and determined
your starting position (current state) for each of these levels. Decisions
have been made with your clients as to the solutions that will be imple-
mented. Before you begin to implement those solutions, you develop an
action plan with specic objectives. ese objectives are your goals for
what you want to accomplish. Another decision is to determine which
levels will be included in your data collection plan. Your goal may be to
measure Level 1 (Reaction) through Level 4 (Business). Actually, Jack and
Patti Phillips have found that only 14 percent or fewer initiatives are mea-
sured at Level 5 (ROI), for many reasons. One of the primary reasons is
that many initiatives simply do not require that level of measurement to
arm value. Consider an investment made in compliance training. e
resources required to complete an ROI on this type of initiative would be
unnecessary because the value for remaining in compliance is so obvious.
Another reason a Level 5 measure may not be done is because it would be
dicult to place monetary value on the results, given time and cost con-
straints. Many times results remain intangible—for example, increased
employee engagement. To help you better understand how to plan your
measurement approach, let’s discuss each level separately.
Level 1: Measurement of Reaction
Level 1 information provides you and your client with data from those
who are directly involved in the initiative. During the assessment phase,
you can obtain information from these individuals as to their preferences
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for timing and method of the solutions. For example, if learning is to be
a solution, what are the participants’ preferences for the learning modal-
ity—webinar, classroom, job aids, mobile learning, podcasts, or blended
learning? e more the initiative’s purpose and plan align with preferences
of those involved, the more likely there will be support for implementa-
tion. Preference data, obtained during the assessment phase, enable you
and your client to tailor the project’s introduction and activities before
implementing the project’s activities.
With Level 1 measurement, you are determining the reaction of indi-
viduals to both the overall initiative and its goals as well as to the various
activities that they participated in. Because this information is typically
obtained immediately aer a person has participated in an activity, the
ndings can be used to adjust midstream both your initiative’s strategies
and the tactics. Once again, measurement provides diagnostic data as well
as information on progress towards goals. Table 10.1 show examples of
reaction objectives, optimal methods and sources, and sample questions.
TABLE 10.1 Measurement of Reaction
EXAMPLES OF
REACTION OBJECTIVES
METHODOLOGY
AND SOURCES
QUESTION
EXAMPLES
People engaged in this
initiative will
Believe the initiative to be
relevant and will benefit
them in their work.
Acknowledge the importance
of the linkage between this
initiative and the business
goals of the unit/function/
division.
Value the design and
implementation of the
solution(s) in which they
actively participate (e.g., a
learning or team-building
experience).
Methods
Survey and interview
Sources
Those who are
actively participating
in the initiative (i.e.,
employees and
managers)
How relevant is what
you have learned in
this activity to the
work you do now in
your job? In the
future?
How important is this
initiative to
achievement of your
organization’s
business goals?
What, if anything, will
make it difficult for
you to implement
what you have
learned on the job?
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Level 2: Measurement of Organizational and Individual Capability
Level 2 measurement focuses on both the organization and the individual.
For performance change and business impact to occur and be sustained,
the skill and knowledge of some employees and managers will oen need
to be enhanced. Knowing is a precursor to doing. However, improving only
individual capability is insucient if your goal is to achieve sustainable
results. e organization must support and enable the changes. For exam-
ple, if you seek to have customer service representatives better respond
to and address customer complaints, they may require some additional
interpersonal and problem-solving skills. ey will also require a reward
system that supports this performance, a computer system that facilitates
obtaining information required, and supervisors who coach and assist the
representatives when needed. ere are many instances when the capabili-
ties of individuals have been enhanced, yet the newly acquired skills are
never demonstrated through actual work. When this occurs it is typically
because the organization’s work environment acted as a barrier to change.
Keep in mind what Geary Rummler stated years ago: “Pit a good employee
against a bad system and the system will win most every time” (Rummler
& Brache, 1995, p. 13). erefore, when designing a Level 2 evaluation, it is
important to form objectives regarding each of the following:
Organizational capability: Identify those factors internal to the orga-
nization that you and the client agree should be in place to support the
performance change and business results you are seeking.
Individual capability: Identify the specic skills, knowledge and attri-
butes you seek to develop.
Table 10.2 provides examples of Level 2 objectives as well as methods
and sources of information. Some additional guidelines for measuring
individual capability:
Measurement of individual capability requires that learning objec-
tives for the developmental programs have been formed and describe
behaviors that are observable and measurable. Specify what the indi-
vidual must do as a result of the learning experience.
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Level 2 measurement can include measurement of any of the following:
Awareness—measuring familiarity with terms, concepts,
and processes
Knowledge—measuring understanding of concepts and content
Performance—measuring ability to demonstrate a skill
As noted, surveys, and interviews are the optimal methods to use
when measuring organizational capability. One option for obtaining this
information in both a cost- and time-ecient manner is to create a sur-
vey that individuals complete immediately upon the conclusion of any
developmental experience in which they participate. ose attending now
TABLE 10.2 Measurement of Organizational and Individual Capability
EXAMPLES OF ORGANIZATIONAL AND
INDIVIDUAL CAPABILITY OBJECTIVES METHODOLOGY AND SOURCES
Organizational Capability Objectives
The organization will provide the
following:
On-the-job peer coaching
Clarity of roles and responsibilities for
people in the Relationship Manager
position
Ease of accessing customer data
from the Customer Profile Program
Individual Capability Objectives
Participants in the developmental
experiences will be able to:
Demonstrate use of each software
routine in the standard time.
Describe the six pillars in the
division’s new strategy.
Score 80 or better on a test of the
new product’s features and benefits.
Successfully complete the leadership
simulation.
Organizational Capability Methods
Surveys
Interviews
Sources
Employees
Managers
Individual Capability Methods
Tests (both paper and performance
based)
Observation in a simulation/real-time
experience
Sources
Those individuals who participate in
developmental programs
Note: Just as with CAUSE data, the
most reliable sources of information are
those individuals who are working in the
organizational environment that is being
focused on.
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understand what it is they have been developed to do; they also know the
organizational environment they will be returning to where these skills
are to be applied. ey are, therefore, in a good position to indicate what
organizational support will, and will not, be present. Obtaining organi-
zational information at the close of the developmental program provides
you with the opportunity to diagnose any potential organizational barriers
that are present. Table 10.3 is an example of a type of survey that can be
used to obtain this information.
As we mentioned earlier, tests and simulations are excellent methods
for obtaining information about individual capability. Many resources
about developing tests and simulations are available, so we will not dis-
cuss those techniques here. However, we want to note the importance of
working with instructional designers and/or others who are knowledge-
able about test and simulation construction when creating these tools.
Level 3: Measurement of Performance Results
Do you and your client want to know if employees and managers are actu-
ally changing their performance on the job? Are people demonstrating the
SHOULD accomplishments and behaviors? If these are your questions, you
TABLE 10.3 Sample of an Organizational Support Survey
NOT
APPLICABLE
STRONGLY
DISAGREE
DISAGREE
SOMEWHAT
DISAGREE
SOMEWHAT
AGREE
AGREE
STRONGLY
AGREE
1. I have sufficient information
about our products and services
to do my job effectively.
NA 123456
2. I have sufficient information
about our competitor’s products
and services to do my job
effectively.
NA 123456
3. My manager coaches me on
how to handle new and difficult
customer situations I encounter.
NA 123456
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need to measure at Level 3. Essentially, you will be comparing the actual
performance of individuals following the implementation of solutions to
the SHOULD performance you and the client have as a goal. Because a
Level 3 measurement is essentially a current-state measure, many of the
techniques that were used to obtain IS information during the assessment
phase can be adapted to a Level 3 measurement. For example:
e most reliable data source will be the employees whose perfor-
mance is to change. Data from these employees can be supplemented
by information from their managers, customers, and others who
directly observe these employees.
e data collection methods can be similar to those used in the assess-
ment phase. Frequently, Level 3 questionnaires are actually adapta-
tions of questionnaires used in the assessment phase. Interview and
focus group protocols used for measuring performance results are
oen similar to those used during assessment.
If an IS assessment was conducted prior to the implementation of
solutions, the results of that assessment serve as pre-data to which the
post-solution data can be compared. How much progress has been
made? How close to your goal in terms of human performance have
you moved?
Table 10.4 provides examples of measurement objectives for a Level 3
measurement as well as optimal methods and sources of information. e
goal of Level 3 measurement is to identify behaviors that are observable
and determine how to obtain reliable information about the job perfor-
mance that is now occurring. Remember, a Level 3 measurement is deter-
mining to what degree the SHOULD performance is in evidence.
Level 4: Measurement of Business Results
As we move into Level 4 measurement, we are entering the space that is
of keen interest to our clients. As we noted in Chapter 9, many leaders
consider this the most important measurement data to receive—yet few
are receiving this type of information. Level 4 data indicate the degree to
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which the businesses SHOULDs are being obtained following the imple-
mentation of the solutions. Business measures are typically reported in
numerical terms. Objective measures are quantiable and relatively easy
to convert to monetary values. ey are
output-focused measures (sales, new accounts, production);
quality-focused measures (errors, waste, rework, accidents);
cost-focused measures (cost per patient, labor costs, cost);
time-focused measures (cycle time, process time, wait time,
response time).
Other business results are more subjective in nature. While these types
of results can be measured numerically, the basis for measurement is more
dependent on respondent perception than objective measures. However,
they are still categories of results that are important to many leaders:
Customer service (customer satisfaction, brand, image)
Work climate (organization environment, stress, teamwork)
Job satisfaction (meaningful work, career paths, job enhancement)
TABLE 10.4 Measurement of Performance Results
EXAMPLES OF PERFORMANCE OBJECTIVES METHODOLOGY AND SOURCES
As a result of this initiative, sales reps will
Negotiate sales with customers that
increase profit to our organization.
Conduct competitive analyses of their
territories, identifying strategies that will
overcome competitive threats.
As a result of this initiative, customer
representatives will
Manage conversations and focus on
identifying the customer’s need and how
to respond to it.
Perform multiple tasks at the same time.
Resolve the customer’s problem in the
initial call and avoid call-backs.
Methods
One-on-one interviews
Surveys
Observation
Sources
The individuals whose
performance is to change in
some way
Any other sources who can
directly observe these
individuals, including supervisors,
managers, peers, and customers
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When measuring at Level 4, it is critical to identify the causal linkage
that exists between the solution(s), the on-the-job performance, and the
business results. Using a Gaps Map to illustrate the relationship between
SHOULD business results and SHOULD performance requirements is
one way of illustrating this linkage. What is also important is to acknowl-
edge the organizational support that is being provided. For example, was
a reward system modied to encourage the type of performance needed?
Were new tools and equipment purchased to assist employees in their
work? For measurement results to be viewed as credible to clients and be
accepted by them, two practices must be true:
1. You and your client have agreed on the linkage between the solutions
to be implemented, the performance that is expected, and the business
results that should occur as a result.
2. Your measurement report acknowledges the set of solutions imple-
mented for purposes of obtaining these results; no single solution
was the reason for a change. ink about an airplane—does it take
ight because it has an engine or because it has wings? Which is most
important? Obviously, ight occurs because each of these parts is per-
forming as needed. e same is true when reporting on results from
performance improvement initiative. It is the whole of the eort that
yields result; yet, it is critical that you know the contribution of each
so you are aware of what solution is performing best and what solu-
tion is not. Resources are allocated to the parts to ensure the whole is
performing optimally.
Table 10.5 provides examples of Level 4 objectives, methods, and
sources to use when obtaining this information. At this level, an impor-
tant step must be taken: isolate the eects of the project on the data. e
techniques for completing this step will be discussed in Chapter 11.
Level 5: Measuring ROI
Level 5 is oen viewed as the gold standard for measurement. Who would
not want to report to a client that the investment made in a specic initiative
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yielded a signicant return on investment? An initiative for which this
level of measurement is appropriate is one that
is closely linked to the strategic initiatives of the organization;
incurs signicant investment in terms of time and money;
is highly visible in the organization and may even be controversial;
has a large target group, such as all employees in the organization; and
commands the interest of senior executives.
When measuring an ROI, you will need two calculations:
e monetary value of the benets that occurred from the initiative and
e monetary costs of the initiative.
When these two gures are known, determining the ROI is easy. Here is
the standard formula for determining ROI:
Monetary Value of Benets—Costs of Consulting Initiative
ROI = x 100
Costs of Consulting Initiative
A 0 percent ROI indicates that the costs and benets were the same;
it is a break-even result. A 50 percent ROI indicates that for every $1
TABLE 10.5 Measurement of Business Results
EXAMPLES OF PERFORMANCE OBJECTIVES METHODOLOGY AND SOURCES
Six months following this initiative,
Absenteeism in the unit will reduce by
22%.
The average number of product
defects will decrease from 214 per
month to 53 per month.
The average number of new accounts
that are opened will increase to 350
per months.
The average sale made by an
associate will increase by 12%.
Method
Review of operational data already
obtained by the organization
Interview with clients who are in a
position to report the operational
data required
Sources
Current operational data. When pos-
sible, use what is already obtained.
When necessary, return to the
individuals who perform the role and
obtain information directly from
them regarding personal results.
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invested, the cost of the initiative was recaptured and an additional $0.50
was returned. While the actual calculation is easy to do, the challenge is to
obtain the needed monetary benets and costs and do so in a manner that
your clients view as credible.
e rst step is to agree with your client if an ROI measurement is
important to understanding the initiative’s complete impact to the organi-
zation. You will then set an ROI objective that you and your client believe
is realistic and achievable. is will likely be stated as a percentage such as
an objective of 25 percent ROI. Keep in mind that the best ROI objectives
contain measures that are linked to the performance objectives of the
initiative,
use business results metrics that are already obtained and reported by
the organization, and
use measures that are valued by your clients.
Here are a few additional guidelines to ensure the ROI data reported
are regarded as credible:
1. Only the rst year of benets (annualized) should be used in the ROI
analysis of short-term solutions.
2. Extreme data items and unsupported claims should not be included
in an ROI calculation.
3. Costs of the initiative should be fully loaded; when in doubt, include
the cost item!
Chapter 11 provides more guidance regarding determining monetary ben-
ets and costs to include as well as the ROI calculation.
THE USE OF TECHNOLOGY
Fortunately, technology is available to make it easier to collect, analyze,
and report measurement data. It is best to describe what is usually avail-
able by examining the dierent levels. What is frequently referred to as
Level 0 involves counting the people in the various projects and programs,
the demographics of those individuals, the time involved, and the cost of
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A FUN FACT ABOUT THE ROBINSONS
The year is 1977, and Dana is the manager of training and develop-
ment for a bank in Philadelphia, Pennsylvania. Her manager, the head
of human resources, has tasked her with developing 350 first-line
supervisors in skills needed to lead, motivate and manage employ-
ees. She determined that a program called Interaction Management,
developed by DDI, a Pittsburgh-based developmental firm, was the
optimal program. She completed an analysis of the cost to develop
350 people in this program and watched the color drain from her man-
ager’s face as he reviewed the document. Clearly the cost was more
than he had anticipated! He told her, “I will support the development
of 50 supervisors in this program. If you can prove to us that it works,
we will provide the program to all other supervisors.” Dana’s response
to her manager was “I can do that.” Back in her office, however, her
thoughts were more like, “How the heck do I do that?” So she phoned
DDI to explain her situation and to seek assistance—after all, DDI
would benefit if all 350 supervisors could be developed. DDI agreed to
assist and sent the consultant who developed the program. His name:
Jim Robinson. And now you know how Jim and Dana met—through a
measurement study! To complete this tale, Jim and Dana designed a
control and experimental study. With funding for only 50 out of 350
supervisors, it was easy to establish two groups and control for many
variables including for the managers to whom the supervisors reported.
Results were measured at Levels 2, 3, and 4—and each level was a
resounding success. The evidence was clear that supervisors not only
acquired the skills but applied them on the job. And in departments
of the bank where business results could be measured, such as in
the branches, the operational results were significantly greater than
results from those individuals in the control group who did not partici-
pate in the training. The result: Dana’s budget was funded to include
costs for developing all supervisors. And in 1982, Dana and Jim were
married. It appears that measuring results can have many benefits!
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MEASURING RESULTS: HERE’S HOW IT’S DONE
The Metro Transit Authority (MTA) operates a comprehensive trans-
portation system in a large metropolitan area. Over a thousand buses
operate regularly, providing essential transportation to citizens in the
metro area. Many passengers depend on the bus system for their com-
mute to and from work, as well as other essential travel. MTA employs
over 2,900 drivers to operate the bus system around the clock.
MTA had been experiencing excessive absenteeism with bus driv-
ers, and the problem was growing. Just three years ago, absenteeism
was 7 percent. At the present time, absenteeism had risen to 8.7
the involvement. Most learning management systems for the Learning and
Development team are able to collect this type of data. For the HR group,
a human resource information system or human capital management sys-
tem is available to capture this data, particularly with those implemented
by Oracle and SAP. For Level 1 (Reaction) data, a variety of survey so-
ware can help. is may be connected to the learning management system,
or it can be something as basic as SurveyMonkey or Qualtrics. For Level
2 (Organizational and Individual Capability), surveys and questionnaires
can be used; there are also soware options available to help with quiz
design and reporting. An example would be test.com. For Levels 3 (Perfor-
mance) and 4 (Business), a variety of options are available, including ROI
Navigator. is soware captures data at the dierent levels, including the
analysis required at Levels 4 and 5. Qualtrics and SPSS can serve this need
as well. For Level 5 analysis, Vestrics can provide tools to do the analysis
and report the results.
A word of caution is in order. An abundance of technology is available;
the challenge is to select the technology best suited for your organization
and needs. e good news is that technology tools already exist and can be
adapted to the measurement process described here.
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percent. To ensure that buses run on time, a pool of substitute drivers
was employed to fill in for unexpected absences. The number of drivers
in the pool was a function of the absenteeism rate. At the time of this
study, the pool consists of 231 substitute drivers. While this helped to
ensure that every route would have a driver, there were two problems
associated with the substitute pool:
When the drivers in the pool were not needed as substitutes, they
performed almost no essential work for MTA. Thus, they were
compensated but with limited value returned to the organization.
When a substitute driver was used, there was typically a delay in
the bus schedule because of the time needed to get organized
following an unexpected absence by the regular driver. This usu-
ally meant the bus was late for many of the stops on a route.
ASSESSING THE CAUSES FOR ABSENTEEISM
The VP of operations determined that he needed to address the
absenteeism issue before it continued and grew worse. He contacted
the head of HR analytics to work with him on this business problem.
They decided to conduct focus group interviews with some drivers and
their supervisors. HR records were also examined to identify patterns
and trends. From this CAUSE analysis, they determined the following:
There were limited consequences for a bus driver to call off from
work. The progressive discipline system currently in place was
onerous and challenging for a supervisor to use. Therefore, it was
easier to overlook the absenteeism issues with any particular
employee.
Individuals who were most frequently absent had a pattern of
absenteeism that dated back to the beginning of their employ-
ment. In reviewing records, it also appeared that this pattern was
present in previous positions so it was known at the time of hire.
With these findings, the VP of operations agreed to implement two
solutions:
A no-fault disciplinary system was implemented. With this policy, an
employee who experiences more than six unexpected (unplanned)
incidences in a six-month time frame is terminated—no questions
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asked. A sickness that extends more than one day is considered
to be one incidence. Thus, the policy will not unfairly penalize
those who are absent for legitimate sickness or for scheduled
surgery and other medical attention. The no-fault system was
implemented after extensive negotiations with the union. When
union officials realized the impact of problems caused by exces-
sive absenteeism, they agreed with the new policy.
The selection process for new drivers was modified. During the
initial screening, a list of questions was developed to screen out
applicants who have a history of absenteeism dating back to
their high school days. The questions, with scoring and interpre-
tation, were added to the current selection process and required
approximately thirty minutes of additional time during the inter-
view process.
THE IMPLEMENTATION OF SOLUTIONS
AND THE DATA COLLECTION PLAN
A decision was made to have supervisors conduct meetings with their
employees to explain the need for the new policy and how it would be
applied. Recruiters within the HR function were developed to utilize
the additional questions with driver applicants in order to determine if
absenteeism was evidenced in the applicant’s previous work history.
Supervisors were developed to both communicate and implement the
no-fault policy. They were also educated in the financial benefits that
would accrue if these two new practices were implemented effectively.
It was decided that this initiative would be measured at all five lev-
els. Table 10.6 summarizes the plan that was developed by the head
of HR analytics and agreed to by the VP.
LEVEL 1 THROUGH LEVEL 4 RESULTS
Level 1 (Reaction) questionnaire was administered at the end of the
employee meetings where the plan was introduced to the drivers. Over
78 percent of the drivers viewed the no-fault disciplinary system to be
fair and equitable.
Level 2 (Organizational and Individual Capability) results were
obtained from a true/false test that was administered at the close of
TABLE 10.6 Data Collection Plan for Metro Transit Authority
Business Goal: Reduce Unplanned Absences of Drivers
LEVEL OBJECTIVE(S) MEASURES
DATA COLLECTION
METHOD/INSTRUMENTS DATA SOURCES TIMING
1Reaction/Satisfaction
Positive driver reaction to the no-fault policy Positive reaction from
drivers
Questionnaire Drivers At the end of the employee
meetings introducing plan
2Individual and Organizational Capability
Employee understanding of the no-fault
policy
Score on posttest, of
70 or higher
True/false test Drivers At the end of the employee
meetings
3Performance Results
Effective and consistent implementation
and enforcement of the policy
Little or no adverse reaction from current
employees regarding no-fault policy
Use of the new screening process
Supervisors’
response on the
policy
Employee complaints
Hiring records
Follow-up
questionnaire to
supervisors
Review of records
Review of interview
and selection records
Supervisors
Company
records
Interview and
selection records
One group at 3 months
and another group at 6
months
3 months and 6 months
after implementation
3 months and 6 months
after implementation
4Business Results
Reduced driver absenteeism at least 2%
during first year
Maintained present level of job
satisfaction as new policy is implemented
Improved customer service and satisfaction
with reduction in schedule delays
Absenteeism
Employee satisfaction
Delays’ impact on
customer service
Monitor absenteeism
Follow-up question-
naire to supervisors
Monitor bus schedule
delays
Company records
Supervisors
Dispatch records
Monitor monthly and
analyze 1 year before
and after implementation
3 months and 6months
after employee meetings
Monthly
5ROI
Target ROI; 25% Monetary value of
reduced absenteeism
Cost of solutions
Monetary value divided
by cost of solutions
Company
records
1 year before and 1 year
after implementation
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the meetings where the policy was explained. The test indicated that
over 90 percent of the employees understood the policy.
Regarding Level 3 (Performance), questionnaires were adminis-
tered to supervisors. The results indicated that supervisors had imple-
mented the policy and were doing so in a consistent manner. They
also reported that the new policy took less time to administer than the
previously used progressive discipline approach. A review of interview
and selection records indicated that the new screening process to
identify applicants with potential attendance issues was being used in
every interview conducted with applicants.
Level 4 (Business) results were monitored for the 12 months follow-
ing the implementation of both the no-fault policy and screening ques-
tions when interviewing applicants for driver positions. These results
were compared to the 12 months prior to the implementation of these
changes:
Drivers with unplanned absence Pre: 8.7% Post: 4.8%
Bus delays caused by unplanned absences Pre: 27% Post: 14%
In addition, a follow-up questionnaire indicated that a large number of
supervisors and drivers were satisfied with the no-fault policy.
Cost of Absenteeism
Since the primary business measure was absenteeism, a monetary
value had to be developed for the cost of an unexpected absence. The
analysis was based on the cost of replacement driver staffing.
Substitute drivers, as well as the regular drivers, are expected to
work an average of 240 days per year, leaving 20 days for vacation,
holidays, and sick leave. The average wages for the substitute drivers
was $33,500 annually, with the employee benefits adding another 38
percent. The number of substitute drivers planned was a function of
anticipated absenteeism. Because of the service problems that could
develop as a result of understaffing, MTA planned for an excessive
number of substitute drivers to ensure coverage. This generally resulted
in an overstaffing situation. During the previous year, overstaffing
occurred about 75 percent of the time for weekdays and non-holidays,
representing 4,230 days of wasted time. For weekends and holidays
overstaffing had occurred almost half of the time, representing a total
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of 570 wasted days. A final and significant cost of absenteeism is the
cost of recruiting, training, maintaining, and supervising the substitute
driver pool. This item was estimated at 25 percent of actual annual
pay. The cost of absenteeism one year before and one year after the
initiative is shown in table 10.7.
Cost for Solutions
The cost to develop and implement the new screening process was
also calculated. The cost of implementing the no-fault disciplinary pol-
icy was also calculated.
Cost of screening process: $36,100
Cost to implement no-fault policy: $31,300
ROI Calculations
The formula for ROI is the monetary benefits divided by the cost of
the solutions. The monetary benefits were calculated as the differ-
ence between the cost of absenteeism the year prior to the initiative
($2,876,070) and the cost of absenteeism the year after the initiative
($1,945,990). The total value of the difference was $921,080. How-
ever, it seemed presumptuous to assume all of this difference was
the results of the screening process and the no-fault policy. Certainly
TABLE 10.7 Cost of Absenteeism Comparisons
COST ITEM
1 YEAR
PRIOR TO INITIATIVES
1 YEAR
AFTER INITIATIVES
Costs of overstaffing, weekdays $814,000 $602,400
Costs of overstaffing, weekends $109,800 $51,500
Cost of understaffing $8,670 $4,340
Cost of recruiting, training, and
maintaining driver pool $1,934,600 $1,287,750
Total cost of absenteeism $2,8 67,070 $1,945,990
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the MTA executives and managers had taken some actions that also
affected the improvement in absenteeism. In discussions with man-
agement, it was agreed to indicate that about 70 percent of the
improvement was contributed by the screening process and the no-
fault policy. The 70 percent amounted to $644,756 of improvement.
The benefits/costs ratio (BCR; discussed in the next chapter) and the
ROI calculations were as follows:
$644,756
BCR = = 9.56
$67,4 00
$644,756–$67,400
ROI = x 100 = 856%
$67,4 00
Certainly both MTA executives and the consultants were pleased by
these results. We would also like to point out that bus schedule delays
caused by absenteeism declined from an average of 27.1 percent to
13.9 percent in the last three months of the evaluation period. In addi-
tion, several intangible measures were identified including increased
morale, improved customer service, and fewer bottlenecks in the
entire MTA system.
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➥ SHORTCUTS FOR MEASURING RESULTS
The following are a few shortcuts that help you reduce and avoid costs in the
measurement process.
1. Form a measurement strategy early in the process. The Alignment and Mea-
surement Model and the Data Collection Plan described in this book are
tools for saving time along the way.
2. Use action plans and performance contracts to build data collection into the
initiative’s activities and solutions. This ensures that data collection is rela-
tively seamless to the process of measurement and not viewed as adding on
an extra thing to do.
3. Share responsibilities for measurement with both managers of participants
and the participants themselves. For example, require participants to com-
plete action-planning and performance-contracting steps.
4. Use sampling to select the most appropriate analysis and to sample the
number the people in the measurement effort. If you are measuring projects
or initiatives that involve thousands of people, sample only two hundred to
three hundred for the measurement process.
5. Be selective when pushing measurement to Levels 4 and 5.
6. Utilize software to reduce the time and resources required.
PERFORMANCE CONSULTING POINTERS
1. Five levels of results can be measured. However, not all levels are used
with every performance consulting initiative. But when a higher level
is used, data are collected at the lower levels to ensure the complete
story of success is told.
2. A Data Collection Plan includes identication of what you will be
measuring (the objectives), the how you will measure (the meth-
ods), the who (the sources) and the when (when you will conduct the
measurement).
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3. For a measurement strategy to have credibility to clients, the causal
linkage needs to be apparent between the business results anticipated,
the SHOULD performance of employees, and the solutions that will
be implemented.
4. Measurement data indicate the amount of progress that has been
made toward the objectives. Such data that can be used to diagnose
what other actions may be needed to ensure results are obtained and
sustained. For this diagnosis to occur, Level 2 measurements must be
done to indicate what organizational and individual capability is, and
is not, in evidence.
5. When deciding on the levels of measurement to include in your plan,
keep in mind that all levels need to be measured up to the highest level
of measurement planned.
PURCHASE AND
DOWNLOAD
THESE
Tools that support content from this chapter are listed here.
ese tools can be purchased and downloaded from the
Berrett-Koehler website. Please see page 253 for
complete download instructions.
Data Collection Plan
Selecting the Appropriate Initiative for Impact and
ROI Analysis
Tips on Improving Response Rates on Surveys and
Questionnaires
209
Implement and Measure Solutions
Determine the Return on Investment (ROI)
11
Determine the
Return on Investment (ROI)
Show me the money.
—Tom Cruise in the role of Jerry Maguire
You have just completed a signicant performance consulting initia-
tive that was launched due to decient business results in the operations
group. e assessment included identifying the SHOULDs performance
for two dierent employee groups. In addition, the assessment identied
the IS performance and CAUSEs of performance gaps for both groups. e
investment for the assessment and the resulting solutions was consider-
able. You and the client team agreed that the initiative should be measured
at all ve levels. You have just completed a meeting with the client team,
in which results from the initiative six months following implementation
of solutions were reported. e results were favorable including an ROI of
18 percent, meaning that for every dollar invested in the initiative, there
was a return of $1.18. e clients considered the ndings as both accurate
and credible.
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Determining the ROI from performance consulting initiatives is pos-
sible and is done. In fact we have participated in hundreds of these types of
measurement eorts. In order to determine ROI, two gures are needed:
the monetary value of the benets from the initiative and the costs of
the initiative. But it rst requires that you have strong evidence that the
improvement in business results is due to your performance consulting
initiative. is requires you to isolate the eects of the solution.
METHODS OF ISOLATING THE
EFFECTS OF THE SOLUTION
e cause-and-eect relationship between solutions and business results
can be developed with an acceptable degree of accuracy. You need to use
one or more specic techniques to isolate the eects of the solutions early
in the process. Ideally you select the technique at the time you develop the
measurement strategy. ere are multiple techniques to isolate the eects
of a solution. When properly designed, use of control groups is one of the
most credible.
Control Group Arrangement
Control group arrangement, or experimental design, involves the use of
an experimental group that participates in the solutions and a control
group that does not. e composition of both groups should be as identi-
cal as possible. When feasible, each group should be selected randomly
from a list of potential participants, and then randomly assigned to either
the control or experimental group. Randomization assumes both groups
are subjected to the same environmental inuences; the only dierence
is participation in the solution. Data from users of the ROI Methodology
indicates that about 30 percent of the completed ROI studies have used this
isolation approach.
e control group arrangement does have some inherent issues that
may make it dicult to apply in practice. e rst issue is the selection
of the groups. It is highly unlikely you will succeed in matching identical
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control and experimental groups. Dozens of factors can aect business
performance, some of them individual, others contextual. While random
selection assumes there will be a good match, on a practical basis it is best
to use four to six variables that will have the greatest inuence on perfor-
mance, such as location, manager, shi, job responsibilities, and so forth.
Another issue is contamination, which can develop when participants
in the experimental group actually communicate with others who are in
the control group. Sometimes the members of the control group will begin
to model their performance on what they observe people doing in the
experimental group. When this happens, the design for measuring results
becomes contaminated as the inuence of the consulting intervention is
passed on to the control group. is contamination can be minimized by
ensuring that control and experimental groups work at dierent locations,
have dierent shis or are on dierent oors in the same building.
A third potential problem with a control/experimental design has
to do with image. Sometimes the use of control groups may create an
image that the consultants are producing a laboratory setting, which can
cause a problem for some executives. To avoid this stigma, consultants
oen use the term pilot group instead of the experimental group. A simi-
larly matched, nonparticipating group, is referred to as the comparison
group. When measuring an initiative for which a pilot group is not an
option, identify a similar group for future involvement and use them as
the comparison group. is naturally occurring control group allows for
comparing performance between the two groups without purposefully
withholding an opportunity from a group.
Consider this example. Teams in a manufacturing unit were averag-
ing thirty-one hours of overtime a week. Management felt that overtime
must be reduced. It was determined that a new scheduling process might
address this issue and reduce overtime. It was important to determine if
this was the case before investing in an implementation of a new sched-
uling process throughout the organization. A measurement design was
created that included one team to use the new process (the experimental
group) and to a comparable team who would not be using the process (con-
trol group). e two teams were carefully matched—each had comparable
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overtime and used the same types of manufacturing processes. Figure 11.1
shows the two teams: the control group and the experimental group. e
project was implemented and the results were captured in seven weeks.
Aer seven weeks, the dierence in the control and experimental groups
was eight hours of overtime. us an improvement of eight hours per week
was the dierence attributed to the new scheduling process. e clients felt
that this was a sucient result to invest in the new system throughout the
manufacturing organization.
Analytical Approaches
e control group is the most credible process for isolating eects, but not
always possible to use. Other analytical approaches involving mathemati-
cal relationships and calculations are available. ese approaches include
trend-line analysis and forecasting, which can involve regression analysis.
Trend-Line Analysis
Actual performance in a measure is tracked over time. Using this trend in
the data as a base, you project where the trend would go if there is no inter-
vention. Following implementation of the solution, actual performance of
the business measure is tracked over time and compared to the trend-line
FIGURE 11.1 Example of Results from Control/Experimental Group Design
35
30
25
20
15
10
5
0
–5 –4 –3 –2 –1 0 1 2 3 4 5 6 7 8
Weeks
Overtime Hours
Consulting Project
Control Group
Experimental Group
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213
projection. Any improvement of performance over what the trend line
predicted can then be reasonably attributed to the performance consult-
ing initiative. While this is not an exact process, it provides a reasonable
estimation of consulting impact.
Figure 11.2 shows an example of a trend-line analysis taken from a
processing unit of a nancial services company. Error rates were increas-
ing, averaging about 30 per month for the six-month period prior to the
performance consulting initiative. e solutions were implemented in
June. As shown in Figure 11.2, there was an upward trend on the data
prior to the launch of the consulting initiative. Based on the trend that had
previously been established it was anticipated that, if no action was taken,
the error rate would rise to forty per month by the last quarter of the year.
e most accurate interpretation of these ndings is to compare the value
aer the project (eighteen errors) compared to the trend-line projection
(forty errors). In this example, the dierence is twenty-two errors.
e primary advantage of trend-line analysis as an approach to isolate
the impact of a solution is that it is simple and inexpensive. If historical
FIGURE 11.2 Example of a Trend Line
50
45
40
35
30
25
20
15
10
5
0
J F M A M J J A S O N
Months
Errors per Month
Consulting Project
18 (AVG Oct–Nov)
30 (AVG Jan–May)
40 (AVG Oct–Nov)
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data are available, a trend line can quickly be drawn and dierences esti-
mated. While not exact, it does provide a credible assessment of the impact
from the investment made in solutions.
A disadvantage of the trend-line approach, like most any process, is that
it is not always accurate. is approach assumes the events that inuenced
the business measure prior to the performance consulting initiative are still
in place aer the project is implemented. It also assumes that no new inu-
ences entered the situation at the time the solutions were implemented or
during the evaluation period. is may not always be the case. It is impor-
tant to address these two factors for this option to be credible and accurate.
Forecasting
An approach more analytical than trend-line analysis is the use of math-
ematical relationships that predict a change in performance variables. is
approach represents a mathematical interpretation of the trend-line analy-
sis when other factors (variables) enter a situation at the time the consulting
project is implemented. With this approach, the business results targeted
by the performance consulting initiative are forecast based on the inu-
ence of other variables that have changed during the implementation and
measurement time period. e actual value of the business results, aer
the initiative, is compared to the forecasted value. e dierence reects
the contribution from the solutions that were implemented.
An example will help illustrate the eect of the forecasting. One
healthcare organization was focusing on decreasing length of stay. In July,
a new solution changed several procedures that made the diagnosis, treat-
ment, and healing process faster, with various ways to recognize improve-
ment quickly and make decisions and adjustments accordingly. All of
these procedures were aimed at reducing the average length of stay. Figure
11.3 shows the length of stay prior to the change in medical procedures.
e actual data show downward improvement during the ten months
aer the program was implemented. However, two important changes
occurred about the same time as the new solution was implemented. A
major provider reissued a maximum length of stay that it would reimburse
for illnesses. is inuence had a tendency to cause organizations to focus
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more intensely on getting patients discharged as quickly as possible. At the
same time, the severity of the inux of patients had slightly decreased. e
types of illnesses dramatically aected the length of stay. Analysts in the
business process improvement department developed a forecast showing
the eects of the provider reimbursement process and the change in the
illnesses of the patients upon admission. ey were able to develop mul-
tiple variable analyses to forecast the length of stay, as shown in the gure.
e post-program data show the dierence in the forecasted value and
the actual value. at dierence represents the impact of the new medical
procedures, because they were not included in the forecasted value.
A major disadvantage of this approach occurs when several variables
enter the process. e complexity multiplies; therefore, the use of sophis-
ticated statistical packages for multiple variable analysis is necessary. Even
then a good t of the data to the model may not be possible. Unfortu-
nately, some organizations have not developed mathematical relationships
for business measures as a function of one or more inputs, and without
FIGURE 11.3 Forecasting Example
F M A M J J A S O N D J F M
Months
Length of Stay (LOS)
Change in
Medical
Procedures
Forecast Based on
Two New Influences
Actual Data
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them the forecasting method is dicult to use. e primary advantage of
this process is that it can accurately predict what the business performance
measures would be if there had not been any solutions implemented.
Estimates from Credible Sources
If analytical approaches will not work, then the next option is to have peo-
ple estimate the impact from the solutions that were implemented. A vari-
ety of dierent inputs can be used to provide estimates of how much of the
improvement in a business measure is related to the solutions. e chal-
lenge is to nd the most credible sources to provide these estimates. Cred-
ible sources can include the employees whose performance is expected to
change as a result of the performance consulting initiative. Other possible
sources are managers of these employees, the client team and other senior
managers or customers. In each instance, it is important that the group
providing the estimate is familiar with all factors that could be contribut-
ing to the business outcomes.
Because of its credibility, we will focus on the option of obtaining an
estimate from employees in the target group(s). e eectiveness of this
approach rests on the assumption that employees are capable of estimating
how much of any change in their performance is related to the consulting
initiative and solutions. Although an estimate, this value will usually have
considerable credibility with management because they know employees
are at the center of the change initiative.
Here is how this approach works. Beginning with the fact that there
has been a change in the business measure, ask employees to identify (if
you don’t already know) how much of the improvement is due to the solu-
tions. en ask them to estimate the percentage of change they believe is
due to the solutions in which they participated. Improve on the credibility
of this estimate by asking employees how condent they are with their
estimate: 0 percent means no condence; 100 percent means certainty.
For example, an employee indicates that she believes 60 percent of her
enhanced performance is due to the solutions in which she participated.
e employee is then asked to estimate the percentage of condence she
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has with this estimate. e employee indicates she is 80 percent condent
with her response. e two values of 60 percent and 80 percent are multi-
plied. e resulting percentage is 48 percent, meaning that 48 percent of
the results can be attributed to the solutions that were implemented in the
performance consulting initiative. is percentage is then multiplied by
the actual amount of improvement that did occur. e result is the portion
of improvement attributable to the performance consulting initiative. is
adjusted improvement value is ready for conversion into monetary terms
and will be used in determining the return on investment.
is approach does have considerable accuracy and credibility and is
a good fallback technique when the other techniques are not feasible. e
credibility is increased when the following measures are taken to ensure a
conservative approach is applied:
Participants who do not provide usable data are assumed to have expe-
rienced no improvements.
Extreme data and incomplete, unrealistic, or unsupported claims
are omitted from the analysis, although they may be included in the
intangible benets.
For short-term consulting projects, it is assumed that no benets from
the consulting initiative are realized aer the rst year of implementa-
tion. For long-term projects, more than one year of benets are used
in the analyses.
e improvement in the measure is adjusted by the amount directly
related to the consulting project, expressed as a percentage.
e condence level, expressed as a percentage, is multiplied by the
adjusted improvement value to reduce the amount of the improvement
by the potential error.
e intent when reporting business results and ROI is to present these
results to a client so they are viewed as underestimated, rather than over-
estimated. Taking this approach will increase the probability that clients
will accept the results as both credible and accurate. Once the results from
the performance consulting initiative and the solutions are isolated, we are
ready to convert those results into monetary values.
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CONVERTING DATA TO MONETARY VALUES
Some performance consulting initiatives can be considered a success
without calculating the actual ROI. Consider initiatives that demonstrate
improvements in business measures, such as an improvement in customer
satisfaction or employee engagement. For many projects, this would be
sucient information as long as the improvement is directly linked to the
initiative. However for some clients and initiatives, more information is
required. We know that ROI is the language of business, used by many
managers for determining any initiative’s success. ROI Institute research
indicates that executives feel the return on investment data is the most
valuable. To determine the ROI of an initiative, the business measures that
have been improved as a result of the solution are converted to monetary
value. e monetary value is then compared to the costs. Calculating the
monetary value that will be input into the numerator of the ROI equation
requires you to follow ve steps.
Step 1: Focus on a unit of measure. For each business result dene the
single unit of output. Here are some examples:
Output data: e unit of measure could be one item produced, one
service provided, one project completed, or one sale consummated.
Time data: Time measures might include one hour of cycle time, or
one minute of customer-response time. e unit is usually expressed
in minutes, hours, or days.
Quality data: Quality is a common measure, with a unit being dened
as one error, one reject, one customer complaint, or one reworked item.
So data: So data measures vary, with a unit of improvement repre-
senting such things as one conict, a one-point change in the customer
satisfaction index, or one point on the employee engagement survey.
Step 2: Determine the monetary value of each unit. Now that the spe-
cic item to be measured has been identied, determine the mone-
tary value of a single unit. For measures of production, quality, cost,
and time, the process is relatively easy. Most organizations maintain
records or reports that can pinpoint the cost of one unit of production
or one defect. So data are more dicult to convert to money. For
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example, the value of one customer complaint or a one-point change
in employee engagement is oen dicult to determine. When more
than one value is available, the most credible or the lowest value is
used in the calculation. e symbol used to represent this value is (V).
Later in this chapter we provide some of the most accepted methods
for determining this value.
Step 3: Calculate the change in performance data. First determine the
change in output data for a single unit aer isolating the eects of the
performance consulting initiative and the solutions. e change that
is identied is the performance improvement that was obtained and
can be attributed to this initiative—your Level 4 business data. e
value may represent the performance improvement for an individual,
a team, a group of participants, or several groups of participants. e
symbol used to represent this change is (∆P).
Step 4: Determine an annual amount for the change. In this step, you annu-
alize the change in performance in the business measure for at least one
year (represented by the symbol A∆P). Using annual values is the stan-
dard approach for organizations seeking to capture the monetary ben-
ets of consulting projects, although the benets may not remain constant
throughout the entire year. Limiting annual benets to rst year only for
short-term projects ensures credible, reliable output. For long-term
initiatives, it may be important to consider benets for multiple years.
Step 5: Calculate the annual value of the improvement. Here you arrive
at the total value of improvement by multiplying the annual perfor-
mance change (∆P) by the unit value (V) of the measure. Table 11.1
presents the ve steps to convert data into money.
DETERMINING MONETARY VALUE OF
A UNIT OF MEASURE
Standard Monetary Values
Most hard data items (output, quality, costs, and time) have standard val-
ues developed, because these are oen the measures that matter to the
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organization. ese are measures that give evidence as to the organiza-
tion’s nancial health. A standard value is dened as a converted value that
is known by the key stakeholders in the consulting initiative. For example,
in the last two decades, quality programs have typically focused only on
the cost of quality. Organizations have been obsessed with placing a value
on mistakes or the payo from avoiding these mistakes. is assigned
value, the standard cost of an item, is one of the critical outgrowths of the
quality management movement.
In addition, a variety of process improvement programs, such as reen-
gineering, reinventing the corporation, transformation, and continuous
TABLE 11.1 An Example Illustrating the Steps for Converting Data to
Monetary Values
Setting: Labor Management Consulting Project in a Manufacturing Plant
Step 1 Focus on a Unit of Measure.
One grievance reaching step 2 in the four-step grievance resolution process
Step 2 Determine the Value of Each Unit.
Using internal experts (i.e., the labor relations staff), the cost of an average
grievance was estimated to be $6,500, when time and direct costs are
considered. (V = $6,500)
Step 3 Calculate the Change in Performance Data, ΔP
Six months after the project was completed, total grievances per month
reaching step 2 declined by 10. Seven of the 10 reductions were related to
the consulting project, as determined by first-level managers (Isolating the
Effects of the Consulting Project).
Step 4 Determine an Annual Amount for the Change, AΔPV
Using the six-month value of seven grievances per month yields an annual
improvement of 84. (AΔP = 84)
Step 5 Calculate the Annual Value of the Improvement, VAΔPxV
Annual Value = AΔPxV
= 84x$6,500
= $546,000
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process improvement, have included a component in which the cost of a
particular measure is determined.
Finally, the development of a variety of cost control, cost containment,
and cost management systems, such as activity-based costing, have forced
organizations, departments, and divisions to place costs on activities and,
in some cases relate those costs directly to the revenues or prots of the
organization. Bottom line: the preferred approach is to use standard values
that are known and accepted within your organization.
When standard values are not available, several other strategies for
converting data to monetary value are helpful. Some are appropriate for a
specic type of data or data category, while others may be used with virtu-
ally any type of data. e challenge is to select the strategy that best suits
the situation.
Historical Data from Records
Sometimes historical records contain the value of a measure and reect
the cost (or value) of a unit of improvement. is strategy relies on identi-
fying the appropriate records and tabulating the actual cost components
for the item in question. For example, a large construction rm initiated
a project to improve safety. e project improved several safety-related
performance measures, ranging from government nes to total worker’s
compensation costs. By examining the company’s records using one year
of data, the average cost for each safety measure was determined. is cost
included items such as medical, insurance, and lost-time payments.
Calculating monetary value using historical data should be done with
caution and only when these two conditions exist:
e client has approved the use of additional time, eort, and money
to develop a monetary value from the current records and reports.
e measure is simple and can be found by searching only a few records.
If these two conditions are not met, consider one of the other approaches
described next.
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Input from Internal and External Experts
When converting data items for which historical cost data are not available,
it might be feasible to consider input from experts, asking them to provide
the cost (or value) of one unit of improvement. Individuals with knowledge
of the situation and the respect of management are oen the best prospects
for expert input. Experts are oen located within the department where
the consulting initiative is being implemented. Or they may be an external
consultant or supplier with whom your organization has worked. Most
experts have their own methodology for developing these values. So when
requesting their input, explain the full scope of what is needed, providing
as many specics as possible.
Values from External Databases
For some so data, it may be appropriate to use cost (or value) estimates
based on the research of others. is technique taps external databases
that contain studies and research projects focusing on the cost of data
items. Fortunately, by searching the Internet, you can locate databases that
include cost studies of many data items related to performance consulting
initiatives. Data for cost of turnover, absenteeism, grievances, accidents,
and even customer dissatisfaction are oen available. e diculty is in
nding a database with studies or research appropriate to your specic
initiative. Ideally the data should come from a similar setting in the same
industry. Sometimes data on all industries or organizations are sucient,
perhaps with some adjustments to suit the project at hand.
IDENTIFYING INTANGIBLE BENEFITS
Performance consulting initiatives typically achieve both tangible and
intangible results. Intangible measures are the benets directly linked
to the initiative and its solutions that you choose not to be converted to
monetary values. is does not mean you cannot convert them to money;
rather, it means that given the cost to do so or the credibility risk they post,
it is better to report them as intangible. Also, some measures stand strong
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without the monetary connection. e range of intangible measures is
almost limitless. Typical intangible measures that may be associated with
a performance consulting initiative include the following:
Job Satisfaction
Organizational commitment
Climate
Engagement
Employee complaints
Recruiting image
Brand awareness
Stress
Leadership eectiveness
Resilience
Caring
Career-minded environment
Customer satisfaction
Customer complaints
Customer response time
Tea mwork
Cooperation
Conict
Decisiveness
Communication
While on occasion some of these measures have been converted into
monetary values, typically they are reported as intangible benets. e
challenge is to identify them eectively and report them credibly. For each
intangible measure to be reported, there needs to be some evidence of its
connection to the performance consulting initiative. In some cases, isolat-
ing the eects of the performance consulting initiative may be undertaken
using one or more of the methods outlined earlier in this chapter. is
step is necessary if clients need to know the specic amount of change
in the intangible measure linked to the initiative. Sometimes, intangible
benets are viewed as additional evidence and are presented as supportive
qualitative data.
DETERMINING COSTS OF A
PERFORMANCE CONSULTING INITIATIVE
Monitoring the costs of a performance consulting initiative is an essential
step in determining the ROI from that initiative. Essentially, an ROI is
determined by dividing the total monetary value of the results by the total
costs that were incurred. So accuracy of the cost gure is key. Cost gures
are oen more easily captured than benet values. It is wise to monitor
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A FUN FACT ABOUT PATTI PHILLIPS
In 1997, a mutual friend introduced Jack and Patti. Patti had recently
concluded a thirteen-year career in the electric utility industry and had
just completed her master’s in public and private management. Their
friend told her that Jack Phillips needed a marketing person to help
build his consulting practice. While one of Patti’s last positions at the
utility company was manager of market planning and research, her
team was responsible for creating electric utility rates, not marketing
brochures. However, since she had time on my hands, she decided to
meet Jack.
It was an early morning in May. They met at a local deli for coffee—
Chappy’s on Highway 280 in Inverness. It was like yesterday. They had
planned to meet an hour—it took four instead. Patti left with a stack
of Jack’s books and a new marketing job in spite of her telling him, “I
don’t do brochures.”
Jack’s 1983 Handbook of Training Evaluation and Measurement
Methods was the first of his books Patti read. It was the edition with
the statistics. She immediately fell in love with the methodology. The
book described how classic research methods (including isolating the
effects of programs and cost-benefit analysis) could be applied to
corporate training. No other work presented a framework or a model
like this; and to Patti, it was brilliant. She next actually went to the
library and researched the other person in the evaluation space—Don-
ald Kirkpatrick. Yes, she read his dissertation and the ASTD articles
describing the four steps to training evaluation (Don’s book on four
levels was not published at the time). While Don’s work was interesting
and certainly a major contribution to the training industry, Jack’s work
went deeper into methodology. It was more credible and executive-
friendly. Having worked on the business side of an organization, not
training, Patti appreciated the kind of depth Jack brought to training
evaluation and quickly saw how the process could be applied to mar-
keting, communication, and even public-private partnerships. She was
smitten—with the process, that is.
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After being a miserable failure at marketing (she told him so), Patti
was asked by Jack to run the business. But, her heart was in apply-
ing the process. She liked working with customers and conducting
research. She liked writing case studies and contributing to books.
She didn’t want to run “his” business; she wanted to do the work.
After a while, Jack began to grow on her (figuratively and somewhat
literally). On September 11, 1999, they were married. That month they
sold his company to FranklinCovey, and Patti started a new business.
Upon completion of his contract with FranklinCovey, Jack joined her
and together they have grown ROI Institute.
A mutual friend introduced them in 1997. Patti first fell in love the
ROI methodology and then, later, with Jack. His process became her
process; his company became her company. Her ROI increased and
his intangibles hit an all-time high.
Today, they both do what they love, love what they do, and they do
it together.
costs on an ongoing basis throughout the life of the initiative. Monitoring
cost activities not only reveals the status of expenditures, but also gives
visibility to expenditures and inuences the entire project team to spend
wisely. Monitoring costs in an ongoing fashion is much easier, more accu-
rate, and more ecient than trying to reconstruct events to capture costs
retrospectively.
When using a conservative approach to calculating the ROI, it is rec-
ommended that consulting costs be fully loaded. With this approach, all
costs that can be identied and linked to a particular consulting assign-
ment are included. e philosophy is simple: when in doubt, include the
cost item. When an ROI is calculated and reported to target audiences,
the process should withstand even the closest scrutiny in terms of its com-
pleteness and credibility. e only way to meet this test is to ensure that
all costs are included. Of course, if the controller or chief nancial ocer
insists on not using a particular cost, then leave it out.
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Cost Accounting Options
Table 11.2 shows the recommended cost categories for a fully loaded, con-
servative approach to tracking costs. We will rst discuss the four catego-
ries across the top of the table. ese represent the alternative ways for
allocating a cost.
Prorated. ese are costs that will be allocated, or distributed, over
multiple projects. An example would be a piece of equipment that
was purchased to address an organizational barrier. Perhaps this
TABLE 11.2 Consulting Cost Categories
COST ACCOUNTING OPTIONS
COST CATEGORIES PRORATED EXPENSED
CONSULTING
TEAM
EXPENSES
CLIENT
TEAM
EXPENSES
A Initial analysis and
assessment
� �
BDesign/development of
solutions
� � �
CAcquisition costs � � �
D Capital expenditures � �
EImplementation and
application
1. Salaries/benefits for
consultant time
� �
2. Salaries/benefits for
coordination time
� �
3. Salaries/benefits for
participant time
� �
4. Consulting materials and
supplies
� �
5. Travel/lodging/meals � � �
6. Use of facilities � �
F Maintenance and monitoring � � �
G Administrative support and
overhead
� �
H Measurement and reporting � � �
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equipment will be used by many people, not just those in the change
initiative. en the cost of it would be prorated between these two uses.
Expensed. e second column is for items that are being directly
charged to the consulting project. Usually, these are the most expense
costs in an initiative. An example would be the cost to purchase a
developmental program, sold by an independent consulting rm.
Consulting team expense. e third column includes any expenses
absorbed by the consulting team. Perhaps the consulting team reports
into the HR department of an organization. ere are costs that are
considered normative for that department to expense. An example
would be the costs of the HR team members, in terms of salary and ben-
ets, while they were working on the performance consulting initiative.
Client team expense. e last column is the cost to the client. Perhaps
the client team agrees to absorb the expense of the employees’ time
when they participate in a meeting or program that removes them
from their day job.
Cost Categories
ere are eight categories of cost items to consider.
Initial Analysis and Assessment
One of the most underestimated items is the cost of conducting the initial
assessment. As a performance consultant, you may be designing, imple-
menting and reporting ndings from a SHOULD, IS, and/or CAUSE anal-
ysis. e costs incurred include:
Travel (for focus group or one-on-one interviews)
Soware to design questionnaires that can be electronically tabulated
Time involved doing the multiple tasks associated with any assess-
ment (ese costs are typically fully charged to the initiative).
Design and Development of the Project
One of the more signicant items is the cost of designing and developing
the solutions that are implemented as part of a performance consulting
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initiative. ese costs include consulting time in both design and develop-
ment and the purchase of supplies, technology, and other materials directly
related to the solutions. Perhaps the CAUSE analysis indicated that a new
work process was required—a process that was purchased from a supplier.
Or training was created internally, requiring time of sta and supplies. As
with needs assessment costs, the design and development costs are usually
fully charged to the project. However, in some situations, major expendi-
tures may be prorated over several projects.
Acquisition Costs
In lieu of development costs, many organizations purchase hardware,
soware, equipment, or facility from other sources to use directly or in a
modied format. e acquisition costs for these projects include the pur-
chase price, support materials, and licensing agreements. Many consulting
projects have both acquisition costs and design and development costs.
Capital Expenditures
For expenses that represent signicant investment, such as a major remod-
eling of plant facilities, the purchase of a building, and purchases of major
equipment, the expenses should be recorded as capital expenditures and
allocated over a period of time. If the equipment, building or facility is
used for other projects, then the costs should be prorated among the dif-
ferent projects.
Implementation and Application Costs
Usually the largest cost segment in a consulting project is associated with
implementation and delivery. e major categories include the following:
Salaries and benets for consultant time. is includes all of the charges
for consultants assigned directly to the sta. is cost represents spe-
cic fees for the time they are involved in the project. ese are direct
charges only and are usually allocated to the HR, learning, OD or
other department that provided the consulting expertise.
Salaries and benets for coordination time. e salaries of those who
implement the performance consulting initiative should be included.
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If a coordinator is involved in more than one initiative, the time
should be prorated appropriately. If external facilitators are used, all
expenses should be included in the initiative. e important issue is to
capture all the time of both internal employees and external providers
who have worked directly with the consulting initiative. Your nance
or accounting sta can provide the benets factor that is used within
your organization. For most organizations, a value of 30 to 50 percent
is added to the salary of an employee to indicate the true and total cost
of that employee to the organization.
Salaries and benets for participant time. e fully loaded costs of
participants’ time, including salaries and benets, while participating
in the initiative and not doing their day job must be included. As you
can imagine, these costs are signicant and can be estimated using
average or midpoint values for salaries in typical job classications.
Consulting materials and supplies. Consulting materials and supplies,
such as eld journals, instructions, reference guides, case studies, job
aids, and participant workbooks should be included in the delivery
costs, along with license fees, user fees, and royalty payments.
Travel, lodging, and meals. Direct travel and lodge costs for consul-
tants, employees, facilitators, coordinators, and managers are included.
Entertainment and refreshments for events during the initiative are
typically included as well.
Use of facilities. e direct cost for the use of facilities for any meet-
ings, events, or activities associated with the performance consulting
initiative should be included. For external meetings, this is the direct
charge from the conference center, hotel, or motel. If the meetings are
conducted in-house, the conference room represents a cost for the
organization, and the cost should be estimated and included—even if
it is uncommon to include facilities costs in other reports.
Maintenance and Monitoring to Ensure Sustained Results
Maintenance and monitoring involves routine expenses to maintain and
operate a system, process, procedure, or solution implemented as part of
the consulting initiative. ese can also include meetings in which the
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initiative and the results are discussed. Although not always present, these
represent ongoing expenses to make the new solution continue to work.
Administrative Support and Overhead
Another charge is the cost of support and overhead and represents any
consulting cost not considered in the above calculations. Typical items
include the cost of administrative support, telecommunication expenses,
oce expenses, salaries of client managers, and other xed costs. A rough
estimate will usually suce.
Measurement and Reporting
Usually the total measurement cost is allocated against the consulting
team costs; it is part of the goal to report fully loaded costs. is cate-
gory includes the cost of developing the measurement strategy, designing
instruments, collecting data, data analysis, report preparation and distri-
bution, and communication of results. Cost categories include time, mate-
rials, purchased instruments, or surveys.
CALCULATING ROI MEASURES
We have now discussed how you obtain the two numbers needed to deter-
mine a return on investment: the monetary value of the benets that were
achieved and the monetary value of the costs that were incurred. Now, it’s
time to calculate the ROI from a performance consulting initiative and the
solutions that were implemented. Two approaches are the most frequently
used and have high credibility:
Benet/cost ratio (BCR)
ROI Percentage
When selecting the approach to use, it is important that your clients
and other stakeholders understand the formula used and the assumptions
made in arriving at the decision to use it. Ideally, your clients have actually
made the decision on this item—which greatly increases their condence
in the numbers that will be reported.
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Benefit/Cost Ratio (BCR)
is method compares the monetary benets from the performance con-
sulting initiative to the costs that were incurred. e formula for the ratio
is as follows:
Consulting Monetary Benets
BCR =
Costs of the Performance Consulting Initiative
In simple terms, the BCR compares the annualized economic benets
of the consulting project and solutions to the costs for this initiative. A
BCR of 1 means that the benets obtained are equal in monetary value to
the costs. A BCR of 2, usually written as 2:1, indicates that for each dollar
spent on the initiative, two dollars were returned in benets.
e following example illustrates the use of the benet/cost ratio
approach. e consulting initiative was designed to improve the eciency
of procurement within a nonprot organization. e measurement com-
pleted on the initiative captured data on both the direct cost savings and
the time savings. e rst-year payo for the project was $439,480. e
total, fully loaded implementation costs were $141,500. us, the ratio was
$439,480
BCR = = 3.1:1
$141,500
For every dollar invested in this consulting initiative, 3.1 dollars in
gross benets were returned. ere are no standards that constitute an
acceptable benet/cost ratio; it is possible that there is an acceptable stan-
dard within your organization. Certainly, it would be important to deter-
mine what your clients believe would be acceptable before obtaining and
reporting the ndings. Typically, a 1:1 ratio (break-even status) is unac-
ceptable. We have found that a 1.25:1 ratio is usually required, meaning
the benets are 1.25 times the cost of the initiative.
ROI Percentage
Perhaps the most appropriate formula for measuring consulting invest-
ments is the net benets (less the costs of the initiative) divided by cost
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of the initiative. e ratio is usually expressed as a percentage when the
fractional values are multiplied by 100. In formula form, the ROI becomes
the following:
Performance Consulting Monetary Benets – Costs of the Initiative
ROI (%) = x100
Costs of Consulting Initiative
You will note that the numerator in our equation reads “Performance
Consulting Monetary Benets (minus) Costs of the Initiative.” is is
actually the net monetary benets that occurred from the initiative. is
ROI formula is essentially the same as that which is used within organiza-
tions to measure return from all types of investments. When an organiza-
tion builds a new plant, for example, the ROI is determined by dividing
annual earnings generated from the plant by the investment that was made
to build and operate that plant. e annual earnings are comparable to net
benets (annual benets minus the cost). An ROI on a consulting project
of 50 percent means that the costs are recovered, and an additional 50 per-
cent of the costs are reported as “earnings.” An ROI of 150 percent indicates
that the costs have been recovered and an additional 1.5 times the costs is
captured as “earnings.” Another way to put it is for every $1 invested, that
dollar is recovered and $1.50 is returned in net benets.
e following is an example from a quality improvement initiative.
is initiative occurred in a small manufacturing company. e results
of the project were impressive. Quality improvements alone yielded an
annual value of $243,340. e total fully loaded costs for the project were
$79,400. To determine the “net monetary benets,” the $79,400 cost of the
initiative was subtracted from the annual value of $243,340. is resulted
in a value of $163,940. is value is input into the formula shown below.
e return on investment was
$163,950
ROI (%) = x 100 = 206%
$79,400
In other words, for each dollar invested, this company received $2.06
in return aer the costs of the consulting initiative had been recovered.
Essentially, using the ROI formula places consulting investments on a level
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playing eld with other investments using the same formula and similar
concepts. Key management and nancial executives who regularly use
ROI with other investments easily understand the ROI calculation.
Although there are no generally accepted standards, some organiza-
tions establish a minimum requirement or objective for an ROI. An ROI
objective of 25 percent is set by many organizations in North America,
Western Europe, and the Asia-Pacic regions as what is required when
investing in performance consulting initiatives. is target value is greater
than the percentage required for many other types of investments. e
rationale? e ROI process for initiatives designed to enhance human per-
formance is still relatively new and sometimes involves subjective input,
including estimations. Again, we encourage you to determine an ROI goal
with your client before reporting results from your performance consult-
ing and measurement eorts.
➥ SHORTCUTS TO DETERMINING THE ROI
1. Steps involved in the ROI analysis can sometimes be built into the perfor-
mance consulting initiative and implemented by members of the consulting
team. Sometimes this includes job aides to help isolate the effects of the
initiative or convert data to money.
2. Use estimates to save time. Estimates can be critical if they are provided by
the most credible source, collected in a nonthreatening, unbiased way, and
adjusted for the error in the estimates.
3. Share the responsibility. The ROI Methodology can take too much time if all
of these steps and analysis are left up to the consulting team. Sometimes
employees involved in the initiative can isolate its effects and even convert
data to money.
4. Don’t convert data to money if it cannot be converted credibly with the mini-
mum resources. Often individuals get distracted by trying to find monetary val-
ues for a measure that the organization has decided not to convert to money.
5. Planning is a critical part of the process that provides an opportunity to
determine the methods that will be used for analysis. Planning saves time
throughout the process and can reduce the time required to conduct an ROI
study by 20 to 30 percent.
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PERFORMANCE CONSULTING POINTERS
1. Determining ROI from performance consulting initiatives is possible
to do and being done with increasing frequency. It is the type of infor-
mation that clients are seeking.
2. To increase credibility of ROI results, isolate the e ects on business
results of the solutions from other factors.
3. Two gures are needed to determine ROI:
Monetary value of the bene ts that resulted from the initiative
Costs incurred to design, develop, and implement the performance
consulting initiative and all solutions
4. Two formulas are used when reporting return on investment:
BCR (bene t/cost ratio)
ROI as a percentage
DOWNLOAD
THESE
Tools that support content from this chapter are listed here.
ese tools can be purchased and downloaded from the
Berrett-Koehler website. Please see page 253 for
complete download instructions
ROI Analysis Plan
Guiding Principles for ROI Analysis
Selecting the Appropriate Method of Isolation
To Convert or Not Convert Job Aid
Cost Tracking Template
Report and Sustain Results
Report and Sustain Results
FOURTH PHASE
Report and Sustain
Results
9
Report Results
to Clients;
Determine
Next Steps to
Sustain Results
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is section contains the following chapter:
CHAPTER 12: REPORT RESULTS AND FORM PLANS
FOR SUSTAINING RESULTS
With data in hand, now it is time to share those results with our clients and
other stakeholders. Techniques to prepare for and manage a report meet-
ing are provided in this chapter. In addition, ve principles are discussed
for ensuring that the gains accomplished are sustained. We describe three
triggers that indicate a need to actively reengage with your client before
any gains are lost.
237
Report and Sustain Results
Report Results and Form Plans for Sustaining Results
12
Report Results and Form Plans
for Sustaining Results
Sustain: To cause or be prolonged for an extended period or
without interruption.
—Oxford Dictionary, American English
You have completed a performance consulting initiative and have nd-
ings for each of the ve levels you measured. Now you and your clients
have evidence that indicates the degree of success obtained from your col-
lective eorts. Aer all the investment that has been made in the initiative,
the worst course of action is to do nothing. Communicating results is as
important as achieving results. Achieving results without communicat-
ing them is like painting a beautiful mountain scene but never putting
the painting on display. Others will not be able to enjoy the beauty of the
painting. Likewise in organizations, distrust grows when people are asked
for their input, but never learn what results were achieved. Communicat-
ing results, both the good and not-so-good, is a necessity.
When meeting with clients to discuss results for the rst time, we
strongly encourage that you meet with your clients face-to-face or by
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videoconference—any medium where you can talk and see each other. e
goal is to engage your clients in a discussion regarding the results and the
implications for any required future actions. One-way communication,
which occurs when a report is sent with your conclusions and recommen-
dations, does not provide for a collaborative, facilitated conversation. You
want to discuss the ndings with your clients, not just report the ndings.
As the performance consultant, you must plan for the meeting, pre-
paring the ndings so they are easily understood and interpreted. Let’s
begin by discussing how to prepare for a meeting in which measurement
results will be discussed.
PREPARING FOR THE MEETING
e rst step in preparation is to study the ndings and develop an in-
depth understanding of what the results are indicating. To do this, we
return once again to the data funnel that was discussed in Chapter 8,
shown here as Figure 12.1.
e ndings that go into the top of the funnel are the specic data for
each of the ve levels of measurement. For a Level 1 (Reaction) evaluation,
the ndings could be the percentage of people who responded in the ar-
mative to each of the questions included in a questionnaire. For a Level 2
(Organizational and Individual Capability) evaluation, the ndings could
be the percentage of people who responded correctly to questions on a test.
FIGURE 12.1 Data Funnel
Performance
Consultant
Prepares
Do in
Partnership
with Clients
Findings
Patterns
Conclusions
SOLUTIONS
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As you might expect, you might have hundreds of data points from your
measurement initiative. It could be pages of computer printouts. Bringing
such a list to a meeting with clients would be laborious to review and dif-
cult to interpret.
As Figure 12.1 indicates, from ndings we form patterns. Part of your
meeting preparation is to organize the ndings, without interpreting
them, into logical data patterns. If you have conducted a Level 3 (Perfor-
mance) measurement, you might list the on-the-job behaviors that indicate
an acceptable level of frequency in one column, and list those behaviors
that do not show the desired frequency in another column. For Level 2
(Organizational and Individual Capability) measures, you could use this
column approach to report the degree to which organizational barriers
were eliminated. Factors that were eliminated and are no longer a barrier
could be displayed in one column, factors that are still in evidence and a
potential problem in a second column. Your goal is to place the data on a
type of “diet,” so the data become streamlined and your clients can begin
to observe the trends and patterns within the information.
e narrow part of the data funnel contains on the conclusions that
can be made from the patterns. When you form conclusions, you are inter-
preting the patterns. It is important as the consultant in this initiative to
study the patterns and form conclusions before you meet with your client.
However, in the meeting you facilitate a discussion with your clients, invit-
ing their perspective on conclusions that can be reached. Recall that an
eight-ounce cup with four ounces of water in it can be viewed as either half
full or half empty. Each of these conclusions is accurate. When discussing
the measurement results, you want to facilitate a discussion—not a presen-
tation. Once again, your talent at asking thought provoking questions is
key. Of course, you also need to provide input about patterns that you see.
Facilitating a discussion about the patterns, encouraging input from cli-
ents about conclusions drawn from the patterns, and having an in-depth
conversation about solutions will be important to the meeting’s success.
What other steps to take in preparing for this meeting?
1. Decide who to invite. Selecting participants for the meeting is impor-
tant. Clearly, any members of your client team need to be present. ere
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could be other stakeholders you wish to invite, particularly if ndings
are relevant to one or more of these stakeholders. For example, if your
measurement eort focused on improving safety within a specic
plant, you might want to invite people from the corporate oce who
are responsible for safety throughout the entire organization.
2. Decide how to format the report of ndings. Will you create a hard-
copy document to be shared with your meeting participants? Will you
need slides or other audiovisual support? Will the meeting be face-to-
face, in a videoconference, or in another format? ese matters need
to be decided and prepared for. One suggestion: Just as with assess-
ment ndings, we encourage that you do not send a report of ndings
ahead to the clients and then follow up with a discussion. By the time
you meet with clients, they will have read the report and formed their
conclusions. You will have lost much of the opportunity to guide a
discussion and provide insights into the ndings.
3. Forming purposes for the meeting and the agenda. Generally, a meet-
ing in which measurement ndings are discussed have the follow-
ing purposes:
Discuss and draw conclusions from the results.
Determine what additional actions are required to improve the
results that have been obtained to date.
Identify actions needed to sustain the results.
Agree on how results, and any future actions, will be
communicated to other stakeholders.
Are these your purposes? Any other purposes? Does your client
have other topics that should be included in the meeting? Table 12.1
provides a typical agenda for this type of meeting; modify it as needed
for your specic circumstances.
4. Provide primary clients with a preview of ndings. Sometimes the pri-
mary client requires this type of pre-meeting; other times you may
determine, given the results to be reported, that a “heads-up” brief-
ing with the primary client would be appropriate. In either case, it
is important to make a decision whether a client preview would be
REPORT RESULTS AND FORM PLANS FOR SUSTAINING RESULTS
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241
benecial. If it is to occur, all of the preparatory steps we have just dis-
cussed still need to be completed. You will be facilitating a discussion
with just one or two people about the ndings and, together, deter-
mining the implications of these ndings for the design of the meeting
you will have with a larger group of people.
CONDUCTING THE MEETING
From our years of participating in meetings where both assessment and
measurement ndings are discussed, we have identied the following
practices that lead to a successful outcome:
TABLE 12.1 Typical Agenda for a Meeting to Report and Discuss
Measurement Results
I. Overview of Initiative
Business and performance gaps to be addressed
Solutions that were Implemented
II. Measurement Methodology Used
Levels of measurement included
Sources and methods used to obtain information
III. Results and Conclusions
NOTE: List only those levels included in measurement initiative.
Level I: Reaction
Level II: Organizational and individual capability
Level III: Performance
Level IV: Business
Level V: ROI
IV. Overall Conclusions and Recommendations
Actions to address less-than-satisfactory results
Actions to sustain results
V. Communication Plan
Audiences to receive summary of findings and proposed actions
Responsibility assignments for communication to be done
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REPORT AND SUSTAIN RESULTS
1. Distribute the agenda ahead of the meeting and review it as you begin.
2. Review results in categories (i.e., Level 1 results, Level 2 results, etc.).
For each result category, rst assess whether your clients are accept-
ing the ndings as credible and authentic. A question such as “Are
there any surprises in these ndings for you?” is an example of how
to test for acceptance. If your clients are not accepting the ndings,
it is unlikely they will engage in drawing conclusions or identify-
ing required actions. eir goal instead may become discrediting
the results.
3. roughout the meeting, ask questions to facilitate insight and discus-
sion. is is a key technique if you want your clients to own the results
and the actions emanating from them. To ask eective questions, you
will need in-depth knowledge of the ndings and the patterns and the
themes within them.
4. Summarize the discussion as you move from one category of result
to another. Noting summary points on a ipchart or whiteboard can
be helpful.
5. Once all ndings have been discussed, agree on any areas where fur-
ther actions are required. Actions may be needed to address gaps that
still exist in performance and/or business results. Actions may also be
required to ensure that the gains already made will be sustained over
time. When discussing actions, also identify the individual(s) who are
responsible for the actions.
6. Discuss if and how measurement ndings and any actions agreed on
will be communicated to other stakeholder groups.
7. It is wise to summarize key points from the discussion and any actions
that were agreed on in a follow-up email to your clients.
roughout this chapter, we have discussed the need to take actions
to ensure that the results already achieved will be sustained over time. e
goal is to institutionalize the changes in performance and in the organiza-
tion so the business results can be retained. Key principles for sustaining
change are discussed next.
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SUSTAINING PERFORMANCE, ORGANIZATIONAL,
AND BUSINESS RESULTS
Sustaining results is highly valued, but very dicult to accomplish. Obtain-
ing the changes we seek is the relatively “easy” part of the Performance
Consulting Process; the tough part is maintaining those gains over time.
Unfortunately, once an initiative has concluded and the results have been
reported, the attention of both the performance consultant and our clients
frequently moves to other issues. It is as though we assume the gains we have
obtained will just remain over time. A survey involving 223 business people
indicated that most organizations focus more on training delivery than on
upfront and follow-up activities needed to sustain results (O’Connor, 2014).
But change is rarely institutionalized through an initial eort. is is
because two forces are always in play within organizations: (1) the force of
the status quo, which is very compelling; and (2) the force that comes from
changes of all kinds that are continuous within any organization. Change
is a constant. So how do we, as performance consultants, partner with
our clients to ensure the investment we have just made will be sustained
over time? ere are ve principles to consider when building any plan to
sustain changes and gains from your initiatives. e process of sustaining
results is actually a front-end process. By that, we mean you need to design
the initiative from the beginning with the intent of sustaining results over
the long term. e ve principles we note here are actually hardwired into
the Performance Consulting Process and must be embedded in the initia-
tive as it is launched—not just attached when the initiative has concluded.
1. Focus on change that matters.
As Darryl Conner (2014) has said, “Changes that matter are changes
that make a dierence in people’s lives.” In organizations, change that
matters is one that has a strategic and long-term benet to the busi-
ness and its results. In essence, change that matters is the very type of
change the Performance Consulting Process is designed to achieve:
strategic, long-term, and directly linked to one or more business
goals. is is why we indicate that without a direct link to one or more
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REPORT AND SUSTAIN RESULTS
business needs; the work is tactical—not strategic—and unlikely to
yield long-term benets. ese benets need to be translated into real
and practical benets for individual employees. As Peter Senge (2009)
has said, “People’s enthusiasm and willingness to commit themselves
naturally increase when they realize personal results from a change
initiative; this in turn reinforces their investment and leads to further
learning” (p. 47).
2. Involve clients and stakeholders, sharing accountability for results.
Performance and business results can only be achieved through a
partnership of the performance consultant and the client. e formula
we oer is that 1 + 1 = 3, meaning that the results we obtain working
together are greater than any results we would have obtained working
independently. is partnership means we step up to the plate and
share accountability with our clients for the results that need to occur.
is is one reason why the statement “client partnerships formed and
maintained” appears across the entire Performance Consulting Pro-
cess. Forming partnerships with clients is not a step; it must be in evi-
dence throughout the entire process if we are to be successful.
Sharing accountability for results is another part of this principle.
In our respective consulting practices, we have heard performance
consultants state that they should not be held accountable for results
because they do not “own” the work environment in which employees
are operating. We do not agree. ere are numerous actions we can
take to inuence those who do control decisions regarding the work
environment. ese actions begin when we assess root causes of the
current state. We can push back when a client indicates a plan to move
ahead without addressing these root causes. Without a strong partner-
ship with clients who are vested in the outcome of the initiative, and
without our willingness to share accountability, it is improbable that
results will be obtained or sustained.
3. Actively engage multiple levels of individuals in the initiative.
Essentially, there are three signicant stakeholder groups in any ini-
tiative, each of whom plays a role and needs to feel engaged:
REPORT RESULTS AND FORM PLANS FOR SUSTAINING RESULTS
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245
e clients are the decision makers and the people who provide the
resources needed to achieve the change. ese are the individuals with
whom you partner to design and execute the initiative.
e targeted group(s) of employees are those whose performance will
need to change. Clearly, these individuals need to understand the ben-
ets both to them and to the organization.
e supervisors and managers at the rst and second levels organiza-
tionally are typically between the targeted group of employees and
the clients in the organization. We refer to these individuals as the
line leaders.
Line leaders are vital to initiating signicant change. Experience
has shown again and again that without committed and talented local
line leaders, little signicant change ever gets initiated or takes root
(Senge, 2009). ese individuals are pulled in many directions on a
daily basis. ey are trying to do more with fewer people. ey are
focusing on short-term goals, while also keeping an eye on what needs
to be accomplished over the longer -term. It can be overwhelming
when yet another change initiative is headed their way. A technique
is to identify early adopters among this group and encourage them
to inuence their peers to engage in actively supporting an initiative.
Peer-to-peer inuence is a very strong force. Developing tactics to
engage line leaders is essential to initial and long-term success of a
performance consulting initiative. If we lose the front line, we lose
the battle.
4. Celebrate successes.
Nothing breeds continued success like success. ose actively engaged
in the eort are reinforced to continue because they already see a
payo. Skeptics begin to see that benets are possible. Small early
wins should be communicated to all stakeholder groups. Is the trend
line for business results moving in the right direction? Let everyone
know. Have you successfully removed a work environment barrier?
Make certain people are aware of this achievement. Has an individual
applied the new performance practices and had a positive result? Use
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REPORT AND SUSTAIN RESULTS
this experience as a testimonial from an employee and communicate
it to others. is is when your early adopters can be allies. Actively
seek out and widely communicate the benets that early adopters are
experiencing. Ask them to share their successes with others. You want
to create a positive buzz around the initiative and then keep that buzz
growing for some period of time.
5. Measure and communicate results early and oen.
Measurement is key. “I’ll know it when I see it” does not work with
sustainability. A theme among the principles for sustaining results is
that people need to know progress is being made and the results that
are being obtained. ey also need to know when there are bumps in
the road—and what is being done to remove those challenges.
Heightened interest in measurement and metrics, for any business strategy,
is driven by a new generation of clients and sponsors who are demanding
evidence that resources are allocated to programs, processes, and projects
that yield the greatest return and payback. Performance improvement pro-
fessionals . . . should not only report on results achieved but present nd-
ings about poor outcomes in order to surface problems and present lessons
learned for continuous improvement purposes.(Burkett, 2014, p. 6)
Utilizing the Performance Consulting Process ensures that this prin-
ciple is leveraged. Measurement is an integral part of the process. Forming
the measurement strategy is done at the time you are selecting solutions
with your clients; obtaining and reporting ndings occurs as the solutions
are implemented. Measurement ndings need to be reported to clients and
stakeholder groups in order to retain their energy and focus. A communi-
cation plan is one that should be integral to your measurement strategy so
that clients—and other stakeholders—know they will receive information
on results.
KNOWING WHEN TO ACTIVELY REENGAGE
No matter how thoughtfully you and your clients have implemented the
initiative, there are still times when the results you have worked hard
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247
to accomplish are threatened. We oer three triggers that require you
to actively reengage with your client(s) and form actions to address and
remove the possible threat.
1. Your client moves on—someone new moves in.
You have spent months working with your client on planning for and
implementing actions and solutions needed to obtain performance and
business results. Somewhere in the process, the person with whom you
have worked accepts a dierent assignment and vacates the position in
which he has worked. Now a person, who is new both to the role and to
the performance consulting initiative, becomes your client. is indi-
vidual needs to be brought up to date on the drivers for the project,
the solutions that were implemented, and the results obtained to date.
Communication with this person will be very important. It is also
critical to learn of the strategic goals that this individual has in mind
for the future of the business unit. Have the priorities shied? How
does this initiative t into the bigger picture of what this client wishes
to accomplish? It is important that you meet with this individual as
soon as possible aer the individual has moved into the position. You
actually have two goals: to ensure this client supports the ongoing ini-
tiative and to begin building a partnership with this individual that
will extend beyond this specic project.
2. e “water cooler” dialogues indicate discontent.
Informal communications are important to understanding how peo-
ple are responding to the goals, strategies, and tactics embedded in
a specic initiative. As you walk the hallways and meet people who
are part of the critical stakeholder groups (i.e., employees and line
leaders), inquire about how things are going. Are they experiencing
success in use of the SHOULD practices? Are they challenged by orga-
nizational barriers? Are they realizing benets from the investment
that has been made? If these sidebar and informal communications
begin to evidence a pattern of discontent, it is time to meet with your
client. Do not wait for this discontent to deepen with the resulting
disengagement of groups of people needed for success.
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REPORT AND SUSTAIN RESULTS
3. Business results focused on are disappointing.
Keep your eye on the business results that were the driver for the proj-
ect on which you and the client have worked. Ideally, your client is
providing you with access to business results as they are obtained. In
other words, you are among the rst to know how things are tracking
with regards to the operational measures focused on in your initiative.
If results are not improving within the rst month of launch, do not be
alarmed. But what if there are no changes three months following the
implementation of solutions? is could be an indicator that there are
problems to be addressed. Use these results as a type of burning plat-
form, and meet with your clients to discuss what actions to take. Per-
haps additional information will be required to determine root causes
for the lack of progress. ere could be extenuating circumstances, of
which the client is aware, that explain the current results. It is impor-
tant is to act with a sense of urgency to determine what, if anything, is
required to ensure the investment made will yield desired results over
the long term. An early response can oen nip a problem in the bud,
before it gets embedded in the system.
➥ SHORTCUTS FOR REPORTING RESULTS
Shortcuts can be pursued in the reporting of data. Although this chapter
focused on having a face-to-face meeting with the client, which is essential
if this is a new client, some more streamlined methods of communicating
are possible.
1. Executive summaries, one-page summaries, memos, blogs, downloadable
videos, and newsletter articles take less time because there is no organiza-
tion time or preparation time for the meeting. However, if it is a first-time
relationship with a client, then the briefing or face-to-face meeting is recom-
mended. If this is a return or repeating client, you may use shortcut methods.
2. Sharing the responsibilities of communicating the results with others is
another way to involve other team members and reduce the workload for any
single individual. As key stakeholders become aware of the project results,
they are able to help with the communication process as well.
REPORT RESULTS AND FORM PLANS FOR SUSTAINING RESULTS
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PERFORMANCE CONSULTING POINTERS
1. Measurement ndings must be shared with clients and other stake-
holders.
2. When reporting measurement results, use a collaborative approach,
involving your clients in drawing conclusions and forming recom-
mendations for additional actions that may be required.
3. Preparing for the reporting meeting is very important. You want
to become deeply knowledgeable about the ndings, patterns, and
themes within the measurement data.
4. For results to be sustained, the entire eort must focus on a change
that matters to clients, employees, and line leaders. Publicizing and
celebrating successes throughout the initiative increases the probabil-
ity that results will be achieved and institutionalized.
5. It is important to determine when you need to actively reengage with a
client because the initiative and/or results you seek are at risk.
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REPORT AND SUSTAIN RESULTS
PURCHASE AND
DOWNLOAD
THESE
Tools that support content from this chapter are listed here.
ese tools can be purchased and downloaded from the
Berrett-Koehler website. Please see page 253
for complete download instructions.
Sample Agenda for a Measurement Report Meeting
Data Reporting Meeting Best Practice List
e John Kravitz Story, a personal account of a brie ng to
top executives to present an ROI study
251
Performance Consulting
Commit Now to Make Performance Your Business
CONCLUSION
Commit Now to Make
Performance Your Business
Seems like many pages ago we discussed the jump-to-solution technique
that is utilized all too frequently today. We also reported ndings from
studies indicating that people in the HR, L&D, and OD professions are still
operating more tactically than strategically. In this book, we have shared
much of what we collectively know regarding how to work more eectively.
is includes how to partner with clients, identifying and addressing stra-
tegic needs, in a manner that yields sustainable results to the organization
and the business. We have provided tools and techniques used to form
measurement strategies and plans. In other words, we have shared tech-
niques for how to do performance consulting and measure the results.
e need for this work has never been greater. Our organizations are
bueted by competitive forces, global challenges, economic uncertainties,
and technology advancements that can render a product or service obso-
lete very quickly. e employees and managers working in these organiza-
tions, more than any other factor, ensure sustained success. Optimizing
and enhancing performance of these individuals is what we, in the people-
focused functions, are charged to do.
We must adopt this strategic way of working! We can no longer accept
excuses such as “We don’t have time to work this way.” We can no longer
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PERFORMANCE CONSULTING
rely on the comfort zone of doing what we have always done. e opportu-
nities to work strategically are numerous and signicant. How to work in
this manner is something that is known. Now is when we must transform
what we know into what we do. It is up to all of us to make that happen.
But where to begin? Mark Twain said, “e secret of getting ahead is
getting started.” Your start may be small in scope, but that is okay. Here
are some suggestions:
Perhaps you have a client with whom a strong partnership already
exists, albeit one that focuses mainly on solutions. Transition that rela-
tionship so that you are involved earlier in the process before solutions
are selected.
Is there an initiative about to launch but without any thought to mea-
surement? Are solutions being implemented before the root causes for
the problem have been identied? Inuence your clients on the ben-
ets of assessing and measuring, and then make it happen.
And hone your skill at asking powerful questions to a ne art, keeping
in mind that you inuence more by what you ask than by what you tell.
We also encourage you to seek ways to educate both your colleagues
and clients in what is required to enhance human performance and impact
business results. e logic of SHOULD-IS-CAUSE is fundamental to orga-
nizations. Help others adopt this mental model as they address needs. Be
transparent when you use this logic, indicating the rationale for why you
approach issues in this manner. And describe the actions necessary to sus-
tain results achieved from an initiative.
Ultimately, it is up to you to take the risk and demonstrate the courage
of working dierently than you may have worked in the past. is courage
begins with the resolve to keep your focus on the results that matter—
enhanced human performance, optimized organizational support, and
achievement of business results. Solutions are a means to the end; they are
not the end. Convert what you have learned from this book into your day-
to-day performance; then celebrate the successes that are sure to come.
253
Performance Consulting and Measurement Toolkit
Performance Consulting and Measurement Toolkit
Performance Consulting
and Measurement Toolkit
PURCHASE AND DOWNLOAD INSTRUCTIONS
roughout this book, we have referenced graphic and adaptable tools that
can be purchased and downloaded to support the performance consulting
work we have described. Tools are available through the Berrett-Koehler
website (www.bkconnection.com/pc). ese tools are in Adobe PDF or
Microso Word le formats. Some tools can be printed and shared; others
can be adapted to your specic needs and application requirements.
e toolkit includes the following tools:
Performance Consulting—The Process
Performance Consulting Process
Performance Consulting—The Mental Model and Logic
Need Hierarchy
Gaps Map Template
Gaps Map—Template for Data Input
First Phase: Identify Strategic Opportunities
Organization and Industry Knowledge Assessment Tool
Client Relationship Strategy Worksheet
Assessment of Performance Consulting Capability
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PERFORMANCE CONSULTING AND MEASUREMENT TOOLKIT
Assessment of Your Critical inking Capability
Starter List of Questions
Reframing Discussion Template
Checklist to Prepare for a Proactive Business Goals Conversation
Proactive Business Goals Discussion Template
Second Phase: Assess Business and Performance Needs
Prework for Star Employee Interviews
Starter Kit of Questions to Ask Star Employees
Tips for Managing Interviews with Star Employees
Comparing Performance and Competency Models
Checklist for Piloting Questionnaires
Template for a Gap and Cause Analysis Survey
Sources of Data and Methods for Performance Assessment
Conversion Table
Categories of Root Causes
Template for a Gap and CAUSE Analysis Survey
Possible Solutions for CAUSES
Solution Selection Worksheet
Third Phase: Implement and Measure Solutions
Alignment and Measurement Model
Data Collection Plan
Selecting the Appropriate Initiative for Impact and ROI Analysis
Tips on Improving Response Rates on Surveys and Questionnaires
Fourth Phase: Report and Sustain Results
ROI Analysis Plan
Guiding Principles for ROI Analysis
Selecting the Appropriate Method of Isolation
To Convert or Not Convert Job Aid
PERFORMANCE CONSULTING AND MEASUREMENT TOOLKIT
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Cost Tracking Template
Sample Agenda for a Measurement Report Meeting
Data Reporting Meeting Best Practice List
e John Kravitz Story, a personal account of a brieng to top execu-
tives to present an ROI study
257
Glossary
Glossary
Glossary
Alignment and Measurement Model: A model visually displaying the alignment
between the ve needs assessed on the front end of a performance consulting
initiative (the current state) and the ve needs measured following implemen-
tation of solutions. e objectives established for each of these ve levels of
need serve as the goals for the desired state results (the SHOULD).
Benet/cost ratio (BCR): e ratio of monetary benets divided by costs. A benet-
costs ratio of 2:1 means that for every $2 in benets, there was a cost invest-
ment of $1.
Business needs: e operational goals for a unit, department, or organization.
ese typically are measured in a quantiable manner (e.g., reduce waste by
5 percent).
Business results (Level 4) measurement: Determining the degree to which busi-
ness results, targeted for improvement, have changed as a result of a perfor-
mance consulting initiative.
Capability results (Level 2) measurement: Determining the degree to which both
individual capability (e.g., skill and knowledge) and organizational capability
(e.g., work environment factors) have changed as a result of a performance
consulting initiative.
Causes: e factors within individuals, within the organization, and exter-
nal to the organization that either enable performance or act as barriers to
performance
Client: e individual(s) who are accountable for achieving the business goal(s)
that a performance consulting initiative is supporting. ere are two catego-
ries of clients: sustained and project. A sustained client is someone whose
position in the organization requires that the performance consultant have a
partnership with the client independent of any project work; the relationship
is sustained and constant. A project client is the individual accountable for
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GLOSSARY
achieving the business goal(s) that are supported by a specic performance
consulting initiative.
Contact: e individual who initiates a request for services of the performance
consultant; this person may or may not also be the client.
Individual capability needs: e skill, knowledge, and inherent capability
required if people are to perform successfully on the job. e presence of
capability is an enabler to performance; insucient capability is a barrier to
successful performance.
Intangible measures: An impact measure that is not converted to monetary value.
If the result cannot be converted to monetary value credibly, with a minimum
amount of resources, it is reported as an intangible. Examples are improved
job satisfaction or heightened brand awareness.
IS: e current state for the organization in terms of business results as well as for
the typical performance of people in a specic job or workgroup.
Isolating the eects of solutions: Specic techniques used to sort out, from other
factors, the impact of the solutions upon the results that were obtained. is
step is critical in order for measurement results to be viewed as credible.
Mental model: e logic and framework used to interpret information and deter-
mine appropriate responses to a given situation. e logic used by performance
consultants is SHOULD-IS-CAUSE.
Organizational capability needs: e infrastructure in the organization that can
enable or inhibit performance of employees. is infrastructure includes clar-
ity of roles and expectations, coaching and reinforcement support, incentives,
work systems and processes, access to information, people, tools and job aids,
and a supportive culture. When the organizational factors are positive, they
enable desired performance to occur; when these factors are negative, they
become barriers to successful performance.
Payo needs: e desired return on investment from solutions that are imple-
mented. e goal is to have the monetary benets from the performance con-
sulting initiative outweigh the cost of the solutions.
Performance accomplishment: An outcome or result that people produce through
their day-to-day performance. Accomplishments are produced through the
collective set of behaviors that people are using. Example:
Accomplishment: Manage projects on time and within budget
Behaviors: (1) Ensure the project’s purposes and scope are agreed
upon with the client.
(2) Clarify roles of each person on the project team.
Performance consulting: A strategic process that produces business results by
maximizing the performance of people and organizations.
GLOSSARY
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259
Performance needs: e on-the-job accomplishments people must produce and
the behaviors they use to support an organization’s business goals. ese
are typically measured in behavioral terms (e.g., salespeople must overcome
objections).
Performance results (Level 3) measurement: Determining the degree to which
on-the-job performance of members of the target group(s) has improved
following implementation of the solutions in a performance consulting
initiative.
Preference need: e preferences of the targeted group(s) for both the solutions to
be implemented and the strategy used to implement those solutions.
Reaction (Level 1) measurement: Determining the degree to which members of
the targeted group(s) view the solutions and initiative in a positive manner.
Reframing requests: A discussion in which the performance consultant transi-
tions the focus of a discussion with a client away from a discussion of a solution
and toward a discussion of the business and performance results the client
seeks. To successfully manage this type of discussion, the performance con-
sultant asks powerful questions using the SHOULD- IS-CAUSE logic.
Return on investment (ROI) (Level 5) measurement: Determining the degree to
which the benets of solutions outweigh the costs incurred to implement those
solutions. ROI is measured as a ratio of net benets divided by costs and mul-
tiplied by 100. is is a standard nancial measure consistent with the ROI of
capital expenditures and noncapital expenditures.
Set-apart behavior: A practice used by star employees that contributes to their
success and is not used by more typical employees. e goal is to leverage the
set-apart behaviors so that more people within the workgroup are using these
practices in their day-to-day performance.
SHOULD: e goal, objective or destination for the business and for on-the-job
performance of people.
Star employees: Individuals who are exceptional in both what they produce
and how they do their work. e goal is to learn from these individuals what
practices and behaviors they are using and then to nd ways for more typical
employees to integrate these practices into their day-to-day performance.
Strategic work: Plans and eorts that directly support the business goals, and
ultimate success, of an organization.
Symptom: An indicator of a cause for a gap in the business or performance of
people, but not a root cause. When identifying solutions for a gap, it is critical
to form solutions based on known causes—not on symptoms.
Tactical work: Plans and eorts that support human performance solutions that
may or may not be linked to an organization’s business strategy and goals.
261
References
References
References
PREFACE
Block, P. (2011). Flawless consulting (3rd ed.). San Francisco: Pfeier.
INTRODUCTION
Bersin by Deloitte. Performance consulting. www.bersin.com/practice/subject/aspx?
s=Performance-Consulting.
CEB Corporate Leadership Council. (2014, April 29). Unlocking HR business
partner performance in the new work environment. http://hrexecutivesconnected
.blogspot.com/2014/04/tuesday-april-29-webinar-on-unlocking-html.
CorpU (Corporate University Xchange). (2010). Performance consulting: A criti-
cal strategy to building relationships. Research Brief, Findings from the CorpU
10th Annual Learning Excellence and Innovation Benchmarking Study.
Lawler III, E. E., and Boudreau, J. W. (2012). Eective human resource manage-
ment: A global analysis. Stanford, CA: Stanford University Press.
Lawler, E., Jamrog, J., & Boudreau, J. (2011). Shining light on the HR profession.
HR Magazine. www.shrm.org/publications/hrmagazine/editorialcontent/2011.
CHAPTER 2
Black, J. S., &Gregersen, H. B. (2003). Leading strategic change: Breaking through
the brain barrier. London: Financial Times/Prentice Hall.
Robinson, D. G., &Robinson, J. C. (2005). Strategic business partner: A critical
role for human resource professionals. San Francisco: Barrett-Koehler.
CHAPTER 3
Block, P. (2011). Flawless consulting (3rd ed.). San Francisco: Pfeier.
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REFERENCES
CHAPTER 5
Conner, D. R. (1992). Managing at the speed of change. New York: Villard Books.
CHAPTER 6
Covey, S. R. (1980). e 7 habits of highly eective people. New York: Free Press.
Elliott, P., & A. Folsom, A. (2013). Exemplary performance: Driving business re-
sults by benchmarking your star employees. San Francisco: Jossey-Bass.
Stolovitch, H. D. (2006, March). e exemplary performer. Workforce Perfor-
mance Solutions, 2(2).
CHAPTER 8
Rummler, G. A., & Brache, A. P. (1995). Improving performance: How to manage
the white space on the organization chart (2nd ed.). San Francisco: Jossey-Bass.
Stolovitch, H. D., & Keeps, E. J. (2006). Beyond training ain’t performance. Alex-
andria, VA: ASTD Press.
CHAPTER 10
Rummler, G. B., & Brache. (1995). Improving performance: How to manage the
white space on the organization chart (2nd ed.). San Francisco: Jossey-Bass.
CHAPTER 12
Burkett, H. (2013, April). Sustainable performance: e new agenda for adding
value. Performance Improvement, 52(4).
Conner, D. Changes that matter introduction. http://connerspartners.com/
darylconner.
O’Connor, C. (2014). www.boston.com/business/blogs/.
Senge, P. (2009). e dance of change. New York: Doubleday.
263
Index
Index
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About the Authors
About the Authors
About the Authors
Dana Gaines Robinson is a recognized
thought leader in the areas of perfor-
mance consulting and human perfor-
mance improvement. For almost thirty
years, as president and founder of Part-
ners in Change, Inc., she has assisted HR,
learning and development, and OD func-
tions in organizations to transition from a
traditional and tactical focus to one that
is performance oriented and strategic.
With her husband, she is the coauthor of
seven books and numerous articles; the
books have been translated into more than twenty languages. Dana has
received several awards, including the Distinguished Contribution Award
from American Society for Training & Development (ASTD/ATD) and the
omas Gilbert Award for Distinguished Professional Achievement from
the International Society for Performance Improvement (ISPI), and she is
a Fellow in the Leadership and Organization Development Hall of Fame.
She has also served on the ASTD board of directors. In 2008, Dana and her
husband sold the intellectual property for their skill-building workshops to
Exemplary Performance, which is now the sole distributor of these programs.
Dana currently resides in Raleigh, North Carolina, where she is living
her version of “retirement,” which includes consulting, coaching, speak-
ing, volunteering, attending classes at local universities, biking the many
North Carolina trails, traveling, and enjoying fun times with family and
James and Dana Robinson
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ABOUT THE AUTHORS
friends. Dana can be reached at drobinson@partners-in-change.com; her
rm’s website is www.partners-in-change.com.
James C Robinson is a leader in the areas of performance consulting and
human performance improvement. For more than two decades, Jim served
as chairman of Partners in Change, Inc., and consulted with hundreds of
organizations, assisting them in achieving business goals through the use
of the Performance Consulting Process and techniques. Jim has received
several awards and acknowledgments throughout his career, including the
Distinguished Contribution Award from ASTD and the ought Lead-
ership Award from the International Society of Automation (ISA). Most
recently, in 2013, Jim received the omas Gilbert Award for Distinguished
Professional Achievement from ISPI. Prior to joining Dana at Partners
in Change, Jim was vice president of Development Dimensions Interna-
tional (DDI), where he was the chief architect of Interaction Management,
DDI’s renowned supervisory development program. Jim and Dana have
coauthored several books, including two previous editions of Performance
Consulting (1995 and 2008), Strategic Business Partner (2005), and Zap the
Gaps! (2002), a book coauthored with Ken Blanchard.
Jim retired in 2008 and is currently residing in Raleigh, North Caro-
lina, with his wife. He can be reached at jrobinson@partners-in-change
.com and the rm at www.partners-in-change.com.
Dr. Patti P. Phillips is president and CEO
of the ROI Institute, the leading source of
ROI competency building, implementa-
tion support, networking, and research.
A renowned expert in measurement
and evaluation, she helps organizations
implement the ROI Methodology in y
countries.
Since 1997, following a thirteen-year
career in the electric utility industry,
Patti has embraced the ROI Methodol-
ogy by committing herself to ongoing Patti and Jack Phillips
ABOUT THE AUTHORS
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279
research and practice. To this end, she has implemented ROI in private
and public sector organizations. She has conducted ROI impact studies
on programs such as leadership development, sales, new-hire orientation,
human performance improvement, K–12 educator development, and edu-
cators’ National Board Certication mentoring. She has authored or edited
more than thirty books.
Patti teaches others to implement the ROI Methodology through the
ROI Certication process, as a facilitator for ASTD’s ROI and Measuring
and Evaluating Learning Workshops. She is also a professor of practice
for the University of Southern Mississippi–Gulf Coast campus’s PhD in
human capital development program. She serves as an adjunct faculty
member for the UN System Sta College in Turin, Italy, where she teaches
the ROI Methodology through the college’s Evaluation and Impact Assess-
ment workshop and Measurement for Results-Based Management. She
serves on numerous doctoral dissertation committees, assisting students
as they develop their own research on measurement, evaluation, and ROI.
You can reach Patti at patti@roiinstitute.net; her rm’s website is www
.roiiinstitute.net.
Dr. Jack J. Phillips is a world-renowned expert on accountability, mea-
surement, and evaluation. Jack provides consulting services for Fortune
500 companies and major global organizations. He is the author or editor
of more than seventy-ve books and conducts workshops and presents at
conferences throughout the world.
Jack has received several awards for his books and work. On three
occasions, Meeting News named him one of the 25 Most Powerful People
in the Meetings and Events Industry, based on his work in the area of
return on investment (ROI). e Society for Human Resource Manage-
ment (SHRM) presented him with an award for one of his books and hon-
ored an ROI study with its highest award for creativity. ASTD/ATD gave
Jack its highest award, Distinguished Contribution to Workplace Learn-
ing and Development for his work on ROI. Jack’s work has been featured in
the Wall Street Journal, BusinessWeek, and Fortune magazine. He has been
interviewed by several television networks, including CNN. Jack served as
president of ISPI from 2012 to 2013.
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ABOUT THE AUTHORS
His expertise in measurement and evaluation is based on more than
twenty-seven years of corporate experience in the aerospace, textile, met-
als, construction materials, and banking industries. Jack’s professional
experiences include serving as the training and development manager for
two Fortune 500 rms. He has also worked as a senior human resource
ocer in two rms, as president of a regional bank, and as a management
professor at a major state university. is background led Jack to develop
the ROI Methodology—a revolutionary process that provides bottom-line
gures and accountability for all types of learning, performance improve-
ment, human resources, technology, and public policy programs.
Jack can be reached at jack@roiinstitute.net; you can learn more about
his rm at www.roiinstitute.net.
Dick Handshaw is chairman of Handshaw, Inc.,
a rm he founded in 1985. Dick is a consultant,
speaker, author, and champion for innovation
and quality in instructional design. He is a pio-
neer in the eld, having been one of the rst
instructional designers to create computer-based
training with interactive video in 1980. With
thirty-ve years of experience as a learning and performance improve-
ment professional, Dick has served as a consultant to many organizations,
assisting them in establishing a results-oriented training practice. Dick
and his sta developed the Handshaw Instructional Model, which is used
by many organizations today. He has served in local politics and has held
positions on two bank boards. He has also served on the Charlotte ASTD/
ATD chapter board and was the founding president of the Charlotte ISPI
chapter. Dick has presented at various international conferences such
as Training Magazine, ASTD, and ISPI. He earned a master’s degree in
instructional systems technology from Indiana University in 1979. His
book Training at Delivers Results: Instructional Design at Aligns with
Business Goals was released in 2014.
You can reach Dick at dick.handshaw@handshaw.com and learn more
about his rm at www.handshaw.com.
Dick Handshaw
ABOUT THE AUTHORS
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