Ideas@work Vol. 1

VOLUME 1
BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT
WHITE PAPERS FEATURED:

Making the Business Case for Learning and Development: 5 Steps for Success
Ready, Aim, Coach: How HR Can (and Should) Coach Managers on Problem Employee Behaviors
Putting Success Back in Succession Planning: The Role of Learning and Development
Passing the Torch: 5 Steps for Turning the Baby Boomer Brain Drain into a Brain Trust
Unlocking the Potential of On-Demand Learning in the Workplace
A message from the President and Associate Dean of Executive Development at UNC Kenan-Flagler Business School
About ideas@work
Greetings from the University of North Carolina at Chapel Hill and welcome to the first edition of ideas@work, a new journal designed specifically for business leaders who are involved and interested in talent development issues. Here at UNC Executive Development, we partner with organizations to help them solve real business challenges while developing their top talent. Our approach to program design and delivery draws upon the power of realworld, applicable experiences from our faculty and staff, integrated with the knowledge our client partners share about the challenges they face. ideas@work was created to share some of the ideas and experiences weve gained from working with our partners, and to highlight best practices from other organizations. This issue includes five papers covering a variety of topics which I hope youll find to be interesting and thoughtprovoking. One paper offers suggestions to help you measure and demonstrate the value of learning and development. Another addresses the importance of succession planning and includes suggestions to identify and develop talent to fill key leadership positions. A third paper tackles the challenges caused by a rapidly aging workforce with tips to leverage valuable knowledge and experience before the baby boomer generation starts to retire. I sincerely hope that youll find some useful, actionable ideas that you can apply in your own organization, and I encourage you to share ideas@work with your peers and colleagues as you see fit. Our goal is to feature topics that are relevant to you, so please feel free to email me any ideas that you have for future topics at unc_exec@unc.edu. Thank you for your interest in UNC Executive Development. Warm regards,
Consistently ranked one of the worlds best business schools, UNCs KenanFlagler Business School is known for experiential learning and teamwork, superior teaching, innovative research and a collaborative culture.
Our commitment to developing socially responsible, results-driven leaders distinguishes our programs. We educate people at every stage of their careers and prepare them to manage successfully in the global business environment.
At UNC Executive Development, we believe that managing employee talent is vital to the success of any organization, and we provide unique learning and development experiences for our partners.
ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011
www.uncexec.com
Inside this issue
page 4
page 16
page 26
page 38

page 50
(Note: The information or conclusions expressed in the following white papers are the authors review of findings expressed by the organizations. All brand representations are registered trademarks owned by the respective companies or organizations.)
Susan N. Palmer, Ph.D Program Director UNC Executive Development
Introduction
Human resource and talent management professionals can turn todays economic challenges into opportunity and become true strategic partners by creating strong business cases for their learning and development initiatives. To do so, HR can no longer measure the return on investment (ROI) of learning and development after the programs have been implemented. Instead, they should calculate and anticipate the returns these initiatives will have on their organizations bottom line. This white paper explores how organizations can retool their learning and development programs to reflect how they should be doing business and provides steps you can make to show your CEO and CFO the top and bottom-line value and the ROI of learning and development initiatives. With the proper focus and understanding of how learning and development programs contribute to corporate profits, spending on training and development will be viewed as an investment with the potential for strong returns rather than as a disposable business cost.
Our Promise
This white paper draws lessons from our work with a range of organizations. It outlines steps you and other learning and development leaders can take to show your CEO and CFO the top and bottom-line value and the ROI of learning and development initiatives. These steps can change your own and your senior managements perception of learning and development programs and of the value these programs provide to the organization: 1. Know your organizations strategic priorities. 2. Understand how the learning and development function can contribute to those priorities. 3. Determine what learning and development programs will support the organizations strategic direction. 4. Build it with metrics. 5. Pitch it like youre the CFO. With the proper focus and understanding, you can have leaders view training and development as a worthy investment instead of as a cost.
www.uncexec.com
MAKING THE CASE FOR LEARNING & DEVELOPMENT
Step 1: Know Your Organizations Strategic Priorities

The turbulent economy of the past few years has put even seemingly recession-proof industries like health care and utilities on edge. Such volatility often makes it easier to think in terms of short-term survival, rather than long-range strategy. Yet it is crucial to focus on what is important (long-term strategic priorities), rather than on what is urgent (todays employee relations problem). Make it your businesseven a job dutyto know and understand your organizations strategic priorities and keep these priorities in mind when developing your learning and development programs: 1. Read about your industry and organization on the Internet. 2. Learn about your competition. 3. Understand how your organization is rewarding its executives and how this compares to others in your industry. 4. Learn how your company is viewed externally and what your customers are saying about you both positive and negative. This environmental scan will help you understand and anticipate where your organization needs to be in three to five years, and how effective talent management can push your organization in this direction. Gathering this knowledge will help you to communicate better with your top management and improve your ability to ask the right questions. These enhanced communication skills will also put you in a better position to offer human capital recommendations that align with your organizations strategic priorities.
Learning and development professionals who can show how their organizations top and bottom lines ultimately improve from investing in training and development will grab the attention of senior management and quickly become a valued strategic business partner.
Example:
Top management at Duke Energy understands the value of long-term planning. At a time when most organizations slashed their training budgets, Duke Energy actually increased its spending on leadership development. In 2008, the company launched the Strategic Leadership Program, intended to develop the next generation of leaders to be more strategic and less tactical in their thinking and actions. The two-week program focused on developing the leadership skills of mid-level managers. Participants learned how to evaluate business decisions, how to execute business strategies, and then how to put the theory to practice: It started with in-depth sessions on understanding the industry and the business. D uring the first week, participants identified actual business challenges in their own business units and then developed solutions to address these challenges. D uring the second week, they worked on emerging company challenges identified by the senior executives.
The challenges had measurable bottom-line impact for the organization, and they piqued the interest and generated ongoing support of senior management.
According to a recent Bersin & Associates survey, corporate learning and development budgets were cut by 11 percent in 2009, and by a total of 22 percent since 2008.
ource: OLeonard, K. (2010). The Corporate Learning Factbook: Benchmarks, Trends S and Analysis of the U.S. Training. Oakland, CA: Bersin & Associates
www.uncexec.com
Step 2: Know How Your Department Contributes to Those Priorities

Understanding your organizations strategic initiatives will help you better focus on how the learning and development function can contribute to achieving these priorities. Two key questions to ask are: 1. How can your existing learning and development programs help support the business strategy? 2. What new learning and development programs may be needed to assist in achieving those goals?
Two Examples
For example, if your organization plans to expand its business internationally within the next several years, determine how the training and development function can support this goal. Will current employees need to do work overseas? If so, then evaluate the training that employees will need to succeed in these new business environments. Will the organization need to hire new employees in other countries? If so, then careful thought should be given to the training needs of these employees, as well as to how to deliver the training efficiently and effectively overseas. Also, understand how those employees who do not work overseas will support the strategic objectives and develop training programs that align with those global priorities. The impact of training and development on a strategic priority, such as expanding globally, can be multilayered, so it pays to think outside of the box. Providing a clear picture of how work will change and preparing employees for these changes can be an invaluable contribution. Knowing what learning and development opportunities are needed to help employees adjust to new or changed roles can offer great results and pay back.
Once senior leadership understands that your focus is the same as theirs, it leads to better support to obtain your goals.
Lori Antieau Vice President, Human Resources Talecris Biotherapeutics
Step 3: Determine What Programs Will Support the Strategic Direction

Now that you understand your organizations strategic priorities and how the learning and development function can help make them a reality: What specific learning and development opportunities are needed? What existing training programs should be included or excluded moving forward? What new training programs may be needed? Except for those required by law, evaluate how your existing learning and development programs support your organizations strategic direction. Keep those that support the strategic direction and discontinue the rest. And even with programs that are required by law, evaluate them to make sure they are working and getting the results your organization expects and needs. For example: Is your organization developing a new product, service, or solution? If so, do you have the knowledge and skills in-house to design and deliver it? If not, can you help develop the knowledge and skills that will be critical to bring this new offering into a highly-competitive marketplace? Examples for training and development may be preparing the sales force to sell the new product or building a customer-focused organization that can deliver it, particularly if it is outside your organizations normal offerings.
Example:
Caterpillar, the worlds leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, has done exactly this. Caterpillar has hundreds of locations worldwide to serve and support their customer base and to respond quickly to their needs. Jose (Pepe) Brousset, regional director for Americas South at Caterpillar, focuses on how Caterpillar can maintain its leadership in the industry. According to Brousset, While we continue to invest in the differentiation of our products, we recognize that we need to change the (85 year-old) organization to become much more customercentric. We need to understand, really, the solutions that our customers are seeking. Our talent development efforts are designed to drive this organizational change; to become more customer-centric, starting with top leadership and continuing down through the operating managers. In this way, were able to transform the organization and impact the bottom line.
www.uncexec.com
To be successful, talent development needs to start with the leadership; they need to be committed to driving the culture change down through the organization. They also need to empower their managers and provide support. From there, it will cascade through the organization. At the operating manager level, our talent development efforts are designed to provide the training and tools to enable organizational change. We help our executives throughout the organization see their roles in supporting this strategy so they will better understand how their contribution drives results. As a result, we have a direct impact on market performance by imparting knowledge that drives the behaviors which will change attitudes.
79
of CEOs who responded in a recent PricewaterhouseCoopers survey said they intend to increase focus and investment on how to manage people through change. This includes redefining employee roles within their organizations.
79
of CEOs in that same survey said they want to change their strategy for managing talent.
68
said they intend to increase investment in leadership and talent development as a result of the global recession, suggesting that existing people practices did not support businesses when the global recession hit.
Source: PwC Saratoga (2010). Managing People in a Changing World: Key Trends in Human Capital. PricewaterhouseCoopers
Step 4: Build It with Metrics

Too often, CEOs and CFOs view employees as depreciating assets, and frankly, learning and development professionals have given them little reason to change their minds. A recent McKinsey Quarterly report found that only 8 percent of respondents said they track the return on investment of training and development programs. Learning and development professionals must be prepared to show at the planning stage the top and bottom-line impact learning programs will have on the organization. Measuring outcomes that have a real and demonstrable effect on the organizations top and/or bottom line is not as hard as it sounds. Learning programs can have measurable results such as increased sales or improved productivity. Reductions in recruiting costs from lower employee turnover and improved customer service also can have positive and very measurable impacts on corporate results. However, no single set of metrics will apply to every program, so talent management professionals must be prepared to develop specific measurements for each program.
Example:
According to a recent McKinsey Quarterly report (July 2010), officials with the Boys and Girls Clubs of America (BGCA) analyzed and created a set of metrics when developing a leadership training program for more than 650 volunteers. In 2007, BGCA management realized that an anticipated wave of retirements among local club leaders would leave them with a severe leadership shortage. With the changing demographics, this leadership gap is a consistent theme seen today in many for-profit and non-profit organizations. BGCA management also found themselves in a situation not uncommon among non-profit organizations; donors preferred that their money go directly to those in need and not to overhead costs like training and development. BGCA quickly understood they would have to make the business case for the leadership training at the outset and ensure that they could demonstrate how the training would pay for itself. First, BGCA officials narrowed the focus of its leadership training down from 50 to 4 key aspects. They accomplished this goal by analyzing which leadership traits contributed the most to job performance. By designing a program based on leadership aspects tied directly to performance, BGCA officials found that developing metrics and assessing the success of the program was straightforward and tied directly to the associations strategic priorities. BGCA compared the pre- and post-training results of leaders who completed the training program. The BGCA officials also gathered benchmarking data from a control set of member organizations that had similar characteristics, such as budget size and operating revenue; however, the leaders in the control group did not receive the training. The results for leaders who participated in the training programs were markedly better than leaders in the control group on every outcome measured.
10
www.uncexec.com
Boys & Girls Clubs of America (BGCA) training attendees performance before and after training
Difference between performance gains of highest-quartile training participants1 and average ones, 2009 vs 2007 Values in percentage points. Mission metric: Increase in club membership Financial metric: Increase in total revenue raised Mission metric: Increase in % of members with club tenure of 2 years or more
1
+10-12 +8-10 +3-4
efined as 75th percentile. D Source: BGCA; McKinsey analysis
Officials estimated that if all 1,100 member organizations matched the success level of the groups whose leaders participated in the training programs, then the BGCA would have added 350,000 new members and increased revenue across all its organizations by $100 millionor approximately a 3 percent increase in the average local organizations budget.
Estimated impact of Boys & Girls Clubs of America (BGCA) training program
Impact of advancedleadership program on revenues, $ million Increase, 20082009 30-35 Future annual increase 15-20
Source: BGCA; McKinsey analysis
Cost of advancedleadership program, $ million All-in cost, 20072009 7.3 Future annual cost 2.5
Return on investment (ROI)
4-5X
6-8X
The BGCA officials also calculated that the training programs generated more than four times the return on the programs costincluding the cost of time and travel for all the participants.
11
Example:
Duke Energy also measures the success of its leadership program, but takes a venture capitalist view; if just one of the business plans generated from the program comes to fruition, the cost savings to the organization or the increase in revenue will pay for the program and more. This is a lesson we can all be reminded of: Dont be afraid to think unconventionally. According to Atul Nerkar, associate professor of strategy and entrepreneurship at the University of North Carolinas Kenan-Flagler Business School, who was involved in the development of the Duke Energy program, We wanted activities that lead to either cost savings or an increase in revenues. We wanted to show where [the program] impacts the top and bottom lines. This is a unique approach which we believe helps make the program pay for itself. According to Mark Short, managing director of organizational development at Duke Energy, this venture capitalist approach to its leadership program has paid off. We wanted to create an environment of innovation and empowerment; an environment where our leadership talent is encouraged to think outside of the box when seeking solutions, and they feel safe in pushing those solutions forward. The impact from the program has been tremendous, both culturally and on the bottom line. You know the program has made an impact when every new participant in the program knows the successes of the preceding class, and they all strive to top.
Getting a seat at the table is imperative; however, you have to be a respected voice at the table or you are doing nothing more than keeping the chair warm. Business is the key word, not the kumbaya-hold-hands-and-sing-the-praises-of-people approach. Business means putting your numbers up and presenting your viewpoint or proposal from a quantitative instead of a qualitative approach.
Carrie Alden, SPHR-CA Human Resources Manager Sierra Nevada Brewing Co.
12
www.uncexec.com
Step 5: Pitch It Like Youre the CFO

Its time to change your mindset and think like a finance person. As you identify how future learning and development programs can affect your organizations strategic priorities, you need to be able to make the business case to obtain and retain program funding. This principle applies to both for-profit and notfor-profit organizations. The key to success for any organization is how to get the best returns from its available resources.
Talent management professionals must be prepared to develop specific measurements for each program.
Your Assignment
This will require you to shelve your HR or training and development role for a while and start thinking about how your job and your department create organizational value. While HR professionals stress the need to get senior management support for training and development programs, it is unlikely that they will get or maintain this support without being able to demonstrate the effect on the organizations key performance metrics. At the end of the day, training and development programs should not be seen by the CEO or CFO as a cost, but rather as an investment in the organizations human assets. An investment that you can demonstrate has a real, positive top and/or bottom-line impact. In most cases, other departments or divisions within organizations have been doing this for years. Marketing and operations directors normally can make strong business cases and have measures in place to show how their functions and programs directly affect the organizations bottom line. CFOs are not likely to support what appear to be disposable costs which offer no measurable positive impact to corporate profitsespecially in tough economic times when resources are limited. However, a positive return on a cash outlay will elicit a completely different response from most finance officers.
We have aligned our HR efforts more closely with the business strategy. Although there was some resistance from managers at the beginning, early and frequent communication and involvement of staff and managers in the development of new, more effective talent management processes has substantially reduced the resistance to change.
Milton E. Barrios Assistant Senior Personnel Manager International Monetary Fund
13
The challenge that many learning and development professionals face is calculating the return from what some call a soft set of measures. A basic rule of capital budgeting is to only fund investments where the net present value is positive; the challenge to HR and learning and development managers is how to calculate the real value that training and development programs add to the bottom line, said Robert A. Connolly, associate professor of finance at the University of North Carolinas Kenan-Flagler Business School. Since HR and learning and development projects generate human capital, change management processes, affect job satisfaction and have a direct impact on other hard-to-measure outcomes, these types of investments tend to be much more difficult but not impossible to quantify, Connolly says. For example, how might one measure the impact of a cross-cultural training program for a business
planning to enter the international market? Many times organizations tend to chalk up such a training exercise as a direct but necessary cost. However, even a training program which appears to support a soft set of skills can have a hard and measurable impact on corporate profits by improving external and internal customer satisfaction. This satisfaction can be measured through customer or client retention, which in turn can directly affect corporate profits and costs savings.
The challenge that many learning and development professionals face is calculating the return from what some call a soft set of measures.
Conclusion
An organizations financial officer will be much more likely to fund learning and development proposals that project a return on the initial investment. Metrics such as customer retention and the positive impact repeat customers have on the bottom line can be ways to illustrate the efficacy of a learning and development program. The trick is learning to use a financial perspective to view the possible outcomes of learning and development programs and then apply the appropriate metrics to project the possible returns. As most any financial professional will tell you, its not an exact science. No one can predict the future with 100 percent accuracy, so cost and return projections which provide best and worst-case scenarios and the probabilities of success are what CFOs think about and want to see. Simply put, do your homework. And if that homework clearly shows how learning and development programs offer a strong return on investment on the organizations performance metrics that matter, then a business will be much more likely to provide the resources. Its a formula for success that many top organizations (both profit and not-for-profit) are now using.
OLeonard, K. (2010). The Corporate Learning Factbook: Benchmarks, Trends and Analysis of the U.S. Training . Oakland, CA: Bersin & Associates.
PwC Saratoga (2010). Managing People in a Changing World: Key Trends in Human Capital. PriceWaterhouseCoopers.
14
www.uncexec.com
If youre ready to
take the next step in your career, make a quick trip back to the classroom first.
E X E C U T I V E
D E V E L O P M E N T
I N S T I T U T E
At UNCs Executive Development Institute, youll gain the core knowledge of an MBA program without the long-term time commitment. Youll also learn how to view the business world from a senior executives perspective. And youll develop the key leadership characteristics that lead to effective strategic performance. The result? In two weeks, youll be fully prepared for that next step.
UNC EXECUTIVE DEVELOPMENT
The Power of Experience.
To learn more, visit www.edi.uncexec.com.
15
Melodie Howard Program Director UNC Executive Development
A Common Problem
Weve all been there. Its Monday morning. Youve had a good weekend and arrive in the office ready for a new week. Carol had a good weekend too. She had plenty of time to mull over the situation with her direct report, Joe. Hes good at what he doesreally good. But Joe has to go. Hes a thorn in her side and is lowering morale in the IT department. She cant wait to share her news with you and walks into your office shortly after you arrive. Its time, she announces, that you fire Joe.
16
www.uncexec.com
COACHING MANAGERS ON PROBLEM EMPLOYEES
Introduction
Problem employees are the bane of everyones existence in an organization. They cause productivity to plummet and damage morale. Because few people enjoy conflict, managers often go to extremes to avoid addressing the problem behavior. It seems inevitable that it winds up in the HR department. Unfortunately, by the time it does, the damage has already been done and the clean-up can take months. This white paper will show HR and talent managers how to use coaching skills to help managers handle problem employee behavior and reduce the workplace costs associated with problem employees.
According to one 2004 study, executive coaching at Booz Allen Hamilton returned $7.90 for every dollar the business consulting firm spent on coaching.
The High Cost of Problem Employees

Problem employees and toxic workplaces are, unfortunately, more prevalent than ever. A 2008 SHRM/ Ethics Resource Center survey found that 57 percent of respondents said they had witnessed abusive or intimidating behavior (excluding sexual harassment) toward co-workers. Nearly half of all respondents to a survey conducted by the Employment Law Alliance reported that they had worked for abusive bosses. The Workplace Bullying Institute estimates that approximately 54 million U.S. workers have been bullied at work. When bystanders are included, workplace bullying affects nearly half of all full and part-time employees in the United States (SHRM, 2010). Problem employees add stress to the workplace which costs U.S. employers an estimated $300 billion annually in lost productivity and turnover. In terms of productivity, 80 percent of employees who reported being insulted or bullied at work said they lost work time worrying about the incident and 78 percent said their commitment to their employer decreased (Porath and Pearson, 2009). Lower productivity and morale are not the only costs associated with problem employees. Employees who experience or witness uncivil behavior are more likely to quit, taking their talent with them and costing employers an estimated 150 percent of a mid-level managers salary to replace (Porath and Pearson, 2009, SHRM). To make matters worse, bad behavior and attitudes are like the common cold; they are easily spread to co-workers. If problem behavior is not checked, other employees (consciously or unconsciously) perceive that the employer accepts the behavior and will tend to adopt it as well. Problem behavior can undermine an organizations culture.
17
Types of Manageable Problem Behavior in Employees

Lets take the example of Carol, the IT professional who believes her direct report, Joe, must go. Carols background is probably not in human resources, social services or psychology. She is probably a technical professional who was promoted into a position where managing others is required. Carol may know that Joe irks her and others around her, but she simply may not be able to articulate why making the opportunity to coach her with her problem employee all the more challenging. In my experience as an organizational development professional, manageable problem employee behavior generally falls into one of eight categories:
1. Technician-Turned-Managers:
Their high proficiency in their technical areas of expertise (e.g., IT, Finance, R&D) probably led them to be promoted into a management position. Unfortunately, what made them great technicians may not match the skills they need as a manager. They are used to doing their work as individual contributors and are unclear on how to get work done through others. They earn a reputation of being a micromanager because they cannot delegate and are often heard saying that they cant get anything done because of all these people showing up at my door and asking questions. Because their previous roles were so insular and their expertise so specialized, they are ill-equipped for managing others and being more extroverted.
2. The Oblivious:
This category includes any and all permutations of a lack of self-awareness. These employees are generally unaware of their surroundings or themselves and as a result, clash with others in the workplace. These are the employees who think they are better, smarter, more productive than everyone else. They simply dont understand that their behavior is disruptive to co-workers or why others react to them in such an exaggerated manner (Im just a straightforward type guy. Its not my problem that they cant handle the truth.). This category includes employees who dont show up in appropriate ways; the senior leader who has no executive presence or the customer service supervisor who uses inappropriate speech.
3. Naysayers:
These employees generally have bad attitudes or an underdeveloped ability to solve problems. If there is a challenge at hand, they tend to add to it. They can give you all the reasons it wont work, but seldom offer a solution. They are constant kvetchers who tend to bring the entire units morale down a few notches. Beware of the cheerful naysayersthe ones whose discouraging comments are delivered with a cheerful smile or sotto voce. They are likely to express their disapproval outside the meeting versus directly in the meeting.
18
www.uncexec.com
It is important to note that these categories are not mutually exclusive. It is entirely possible to have an employee or manager who is an oblivious naysayer with a bad attitude. However, all of these categories can offer coachable moments that can lead to real behavioral improvement.
4. People Pleasers:
Believe it or not, people pleasers can get in the way of employee morale and productivity. These people are incapable of saying no and because of that, they tend to feel and act overwhelmed and victimized. Their inclination to over-promise and under-deliver earns them a reputation of being untrustworthy. People pleasers are frequently fence sitters. They are the leaders who cant or wont make a decision for fear of upsetting people. Their inability to make decisions can leave subordinates feeling frustrated, confused and stressed out.
5. The Passive-Aggressive:
Passive-aggressive employees avoid addressing problems at all costs but can inflame them by stirring the pot with negativity or innuendo. Like naysayers, they prefer to stir the pot outside of meetings.
6. Poor Communicators:
We all know how critical good communication is to organizational success, but few employees are actually trained in what good communication is. Bad communicators either fail to pass on critical information, fail to do so effectively, or do so in a manner that is perceived as ineffectual or abrasive.
7. Credit Hogs:
Credit hogs may be the antithesis of the oblivious employee. They are absolutely aware of themselves and others and are quick to use others to raise themselves up. They tend to claim credit for everything and share credit for nothing. They are corporate climbers in the worst sense of the term.
8. Volatiles:
These are the tightly wound, overly emotional and unpredictable employees. They can be bullies or simply highly unpleasant to work with.
19
The Un-Manageables
Unfortunately, there are some problem behaviors that are simply un-manageable. In most cases, these behaviors lead to termination of employment.
Incompetents:
These employees are simply bad hires who cannot meet the requirements of the job.
One-trick ponies:
One-trick ponies have been extremely successful at something but cant or wont learn something new as job requirements and company demands shift and change.
Liars/cheaters:
Liars and cheaters are fundamentally flawed individuals who will break an organizations code of ethics and perhaps even the law to get ahead.
Coaching the Manager

ou would never hire someone to be an engineer Y who lacks an engineering degreeyet organizations constantly hire or promote managers who dont have the needed people skills. Employers will promote an introverted number cruncher to head the finance department because he raised his hand for the job, thinking that was the only way to get ahead in the organization. It should come as no surprise, then, that he is completely unprepared for the human interaction the new job requires. He lacks the skills needed to manage people, so when his former (and now disgruntled) co-worker starts acting up because she was passed over for the promotion, he ignores it. Suddenly, the requests for internal transfers and departmental turnover spike. Unfortunately, HR often becomes aware of the problem far too late. Traditional HR methods to handle (or head off) problem employees, like performance improvement plans, should be the last step in any disciplinary process. Before it reaches that point, managers should be taught the tools needed to address problem employee behavior. They must be coached, and this is where HR and talent management professionals can truly contribute. Coaching is simply moving valuable people from where they are to where they want or need to be. Some of the most effective coaches are also exemplary modelsthey walk the talk. As it applies to addressing problem employees, HR and talent management professionals can help managers identify the problem behavior, analyze it, develop approaches to discuss it with the employee, create an employee contract to address the behavior, and in general, develop a culture that is supportive of open dialogue.
20
www.uncexec.com
The Benefits of Coaching Managers for Organizations

Costly and time-consuming problems overcome. I ncreased employee skills so managers can delegate more tasks, allowing managers to focus more on managerial responsibilities like planning. I mproved productivity by helping people work smarter. B etter retention; employee loyalty and motivation are improved when their supervisors take time with them to help them improve their skills. M ore effective use of company resources; coaching costs less than formal training.
Source: HBS Press Book, 2006
Step 1: Help the Manager Identify the Problem Behavior

ood coaches ask good questions. Ask some variation G of the following questions to help the manager articulate the problem behavior (consider using some of the types of problem behaviors as a framework): Lets focus on the employees behavior. What types of behavior is she exhibiting? Has this happened before? Was it a one-time incident or is it ongoing? When does it happen? What do you want her to stop doing? What do you want her to do differently? Have you discussed this behavior directly with the employee before? Have you or previous managers documented this behavior in any previous performance reviews? hese questions will help managers identify the problem T behavior. By asking if the behavior has happened before, you are establishing a baseline for the behavior. Managers also tend to focus on recent events, so asking if the behavior has happened before will allow them to focus on broader themes rather than one-time events. Finally, the last two questions will establish if there has been any communication with the employee regarding the behavior. There is a good chance the answer to both of these questions will be no, and for now, thats fine. Your job is to coach the manager to acquire the skills and confidence to have a constructive conversation with the employee focused on behavior.
21
Step 2: Help the Manager Analyze the Behavior

nce youve helped the manager identify the problem behavior, analyze it. Ask the manager what he or she thinks the O implications would be if nothing was done to address the problem behavior. Help them establish a decision tree. s the problem behavior important enough to address? I Encourage the manager to analyze the costs and benefits of addressing the behavior. If it is not affecting the productivity or morale, addressing it may do more harm than good. Assess with the manager his or her patience with the employee in terms of giving the employee the time to change the behavior. sk the manager to consider how doing nothing about A the problem may affect the rest of the departmental team, customers, clients and organizational profitability. Is it really an ingrained problem behavior that is affecting productivity and morale? Is it affecting organizational profitability? Is it endangering others? If the answer is yes to any of these questions, intervention is needed. These questions should be considered at this stage: I s the employee aware that his or her job performance is not meeting expectations? I f the employee is meeting job expectations, is it how he or she accomplishes it thats the problem? D oes the employee clearly understand his or her roles and responsibilities? H as the employees roles and responsibilities shifted in the recent past (e.g., promotion, new boss, different projects)? Is he or she having personal issues outside of work (e.g., death, divorce, illness)? Could these changes be affecting work performance and/or attitude?
Step 3: Develop Approaches on How to Discuss it with the Employee

Unless the behavior is clearly against the organizations policies or code of conduct or is illegal, then it is most likely an opportunity to manage the employee towards better behavior. It is important to let the manager know that the objective of the discussion with the employee is not to terminate employment but to work together to address the problem behavior. The reason for this is twofold. First, it is highly likely that the manager entered your office with his or her mind already made up; its time to fire the employee. Reframing the context of the meeting from termination to an employee development opportunity is vital at this stagethe manager has to support the new approach. Secondly, it reframes the meeting with the employee from confrontation to conversation. A conversation isnt nearly as daunting to all parties involved. Now that the manager can articulate the problem behavior, coach him or her in the ways to deliver behavioral feedback. Try role playing with the manager to analyze different approaches to take. Encourage the manager to provide concrete examples to help the employee identify the issue. Coach the manager to include how the employees behavior is affecting others (Joe, youve been late to work four times last week. Other employees had to cover for you, causing them to get behind in their own work.) and what the manager can do to help the situation. Be sure to discuss possible reactions the employee may have (denial, embarrassment, defensiveness) and how to handle them.
22
www.uncexec.com
Ask the manager to identify desired outcomes of the meeting.

What goals will the manager and employee mutually agree to that will address the problem behavior? What will success look like? What timeframe will be established for successful resolution? At the end of the meeting, will the employee clearly understand the implications of not correcting the problem behavior? Will the employee understand that the outcomes of the meeting will be documented and why?
Step 4: Show the Manager How to Create a Contract with the Employee
The meeting with the employee to address the problem behavior will no doubt be emotional for both parties, and it may be easy to forget some of the desired outcomes and timeframes agreed to during the meeting. The manager should put this all in writing to help the employee and to establish a good legacy for future managers regarding the employees development. Unfortunately, for many managers, writing is a stumbling block. Remember the introverted number cruncher? He hates to write and has never heard of the term behavioral descriptors. Its all HR speak to him. Hes going to need some more coaching to learn how to effectively document the discussion. Coach him in how good behavioral descriptors provide detail on the problem behavior, including instances when it occurred, and a recommendation on how to effectively address it. Bad behavioral descriptors (You are just not a team player. You are rude in meetings. You are too negative.) fail to provide the employee context and a solution. Good behavioral descriptors (When bringing concerns forward about project implementation, you focus on what will not work. In the future, Id like for you to focus on bringing some positive aspects or potential solutions to these issues as well as your concerns.) will help the employee identify when the behavior likely occurs and how to effectively address it.
23
The Benefits of Coaching Managers for Managers

Enhanced skills and knowledge to advance their careers. Feeling of organizations support and encouragement. More pride and satisfaction that comes with surmounting new challenges.
Source: HBS Press Book, 2006
Follow Up with the Manager: Youve Been Coached

Follow-up with the manager to see if the employees behavior has improved and review the steps you and the manager took together to address the problem. Let them know that they were coached and learned valuable skills (you may want to recap them) that you hope they will apply to future employee behavioral problems. In fact, let them know you may call on them some day to help another manager through a similar situationeach one, teach one. This will not only help them become effective coaches, it will help move your entire organization toward a more developmental culture.
Bergman, A. (2009, July 30). It Pays to Be Nice: Rudeness in the Workplace Comes with a Hefty Price Tag. Newswise. Retrieved February 17, 2011 from www.newswise.com/articles/view/554773.
HBS Press Book (2006, November 23). Coaching People: Pocket Mentor Series. Cambridge, MA: Harvard University Press.
Porath, C. & Pearson, C. (2009). The Cost of Bad Behavior: How Incivility Is Damaging Your Business and What to Do About It. London: Portfolio Hardcover.
SHRM (2010, December 23). Managing Difficult Employees and Disruptive Behaviors. SHRM Online. Retrieved February 15, 2011 from www.shrm.org.
24
www.uncexec.com
Lead your HR organization

B U S I N E S S A N D H U M A N R E S O U R C E S
into the future.
Now more than ever, senior HR leaders need the knowledge, skills and experience to respond to emerging trends that are shaping the future of global business. Offered in partnership with the Society for Human Resource Management (SHRM), UNCs Business and Human Resources program is designed to equip senior HR leaders with the most up-to-date business knowledge and skills needed to succeed in the rapidly changing business environment today and tomorrow. To learn more, visit www.bhr.uncexec.com.
25
David Leonard, Ph.D Program Director UNC Executive Development
Promise
Do you believe that your organization is developing the talent it needs to reach business objectives and meet future challenges? If not, you are not alone. This white paper will show you how successful succession plans are more than filling out forms. They are real, living programs that combine learning and development opportunities and experiential learning to prepare leaders at all levels for tomorrows business challenges. If you, as a learning and development professional, dont have succession planning on your radar, you should. A recent Towers Watson survey found that similar to the 2001 recession and recovery, high performers plan to jump ship as soon as the economy and job market revives. The same survey found that employee engagement has dropped nearly 10 percent since 2008 and approximately 25 percent for high performers.
Introduction
After nearly two years of economic gloom, there is some good news these days. According to the National Bureau of Economic Research, the worlds worst recession in 70 years ended in June 2009. Most experts agree that the recovery will be slow and arduous, but if history is any indication, talent management and learning and development professionals must start planning now to staunch the anticipated loss of their organizations top talent.
L ess than half of all organizations have succession plans at any level. Among those that do have them, the plans are likely to be at the department director level and above, ignoring leaders at lower levels. 3 7% of succession candidates fail. A bout half of all organizations have a process in place to identify high potential leaders, but less than two in five have a program to accelerate their development.
Source: Howard & Wellins, 2008
26
www.uncexec.com
PUTTING SUCCESS BACK IN SUCCESSION PLANNING
Today, most employers are more concerned about retaining their top performers and skilled employees than before the economic crisis of 2007 and 2008 began (Towers Watson, 2009). Another issue organizations must factor into their succession-planning equation is the imminent retirement of baby boomers. In a 2009/2010 report on trends in executive development by Executive Development Associates (EDA), respondents named the lack of bench strength as the second most influential factor in executive development for the next two to three years, primarily because of the expected number of baby boomers who are set to retire as the economy recovers (Hagemann & Chartrand, 2009). If you combine all these factors, this can add up to a huge opportunity for learning and development professionals who are in a unique position to shape learning programs that develop leadership skills and identify employees potential leadership abilities.
Employee engagement and leadership development work hand-in-hand. Research has shown that employers with the most engaged and satisfied workers are those who provide their employees with meaningful learning and development opportunities. Learning and development specialists who understand how leader development programs can merge with and support succession planning will be in the position to shape and direct the future success of their organizations. Adequate succession plans identify high potential employees who will assume key leadership roles left vacant by departures or retirement. Successful plans not only prepare employees for those roles but also prepare them to meet the challenges of tomorrows workplace. Learning and development professionals have a crucial role in these processes and in putting success back in an organizations succession planning process.
The Impact of an Integrated Approach to Talent Management Companies that Take an Integrated Approach to Reward and Talent Management Are
25% 20% 18% 33% 18%

Less Likely
to experience problems attracting top-performing employees
Less Likely
to experience problems attracting critical-skill employees
Less Likely
to report having trouble retaining top-performing employees
Less Likely
to report having trouble retaining critical-skill employees
More Likely
to be highperforming organizations
Source: Towers Watson 2008/2009 Global Strategic Reward Report
27
Look Forward When Developing a Talent Management Program

Succession planning is not just about recognizing the talent gaps that exist in your organization today but identifying future talent needs and creating solutions to address those needs. The challenge most learning and development professionals face is how to craft programs that adequately address the leadership skills needed in tomorrows rapidly changing workplace. Although future talent needs will vary according to an organizations industry, some common leadership skills and talents necessary for success have emerged. Employers realized during the recession that most managers could communicatea skill that has been a focus of executive development for yearsbut few could handle ambiguity well or were able to deal with rapid change. Organizations are now concerned with developing a new set of competencies and skills in tomorrows leaders. These include strategic thinking and planning, crisis management, judgment and decision-making, tolerance of ambiguity and the ability to implement rapid change (Towers Watson, 2010). The EDA survey showed similar results. EDA researchers found that employers were looking for strategic thinkers and those who could inspire others. The survey respondents identified weaknesses of the next generation of leaders, including the ability to think strategically, lead change, create a vision and rally others around that vision (Hagemann & Chartrand, 2009). By focusing on these competencies, leader development professionals can have profound and lasting effect on their organizations succession plans and their companies leadership bench strength.
Example: Thinking Ahead

Operating in 60 countries with 35 distinct business units and 76,000 employees, 3M, the maker of Scotch-Brite cleaning products and Post-it Notes, is a prime example of how effective good succession planning can be. Early in the design of their succession planning program, 3M identified a common set of leadership attributes they will need in tomorrows workplace. For 3M, high-potential employees in their organization must: Think from the outside in. Drive innovation and growth. Develop, teach and engage others. Make courageous decisions while holding themselves and others responsible. Lead with energy, passion and urgency so that teams can respond quickly to innovation. Live 3M values of integrity, honesty and professional ethics. These leadership attributes underlie 3Ms succession planning process and inform leaders about what they need to know and do and what kind of employees the organization needs to succeed (SHRM Foundation, 2008).
28
www.uncexec.com
Example: Evaluating Leadership Potential

For aerospace manufacturer Lockheed Martin, succession planning begins with a leadership assessment program that not only evaluates business achievements, but also examines personality traits such as ethical behavior, integrity and the ability to foster teamwork. The assessment also evaluates potential, including the ability to assume roles with increased complexity and accountability, the capacity to make future contributions and aptitude for continuous learning. Based on the outcome of the assessment, employees are identified as high potential, moderate potential or well-placed. These more broadly defined (yet measurable) talent needs were identified because an analysis found that Lockheeds leadership was stove-piped, and its leadership bench resembled Swiss cheese (SHRM Online, 2007).
Succession Planning Is Not Just for the C-Suite Anymore

Although most employers have traditionally focused succession planning on the top levels of management, there is evidence that they are expanding their plans to a broader employee base. According to a December 2007 Novations Group survey, nearly half of large organizations have expanded their planning to include mid-level managers. Learning and development professionals have an opportunity to add value to succession planning by designing and delivering leadership development programs to mid- and low-level employees. As with Lockheed, when designed and implemented correctly, succession programs can help identify high-potential employees, which can further strengthen organizational succession plans.
Developing Future Skills at Multiple Leader Levels

When looking at their succession planning results, a global energy company realized they had significant gaps in their leadership pipeline at multiple levels across their organization. Based on a talent analysis, they realized that senior leaders, mid-level directors and front-line managers lacked key capabilities that would be required to execute their business strategy. To address those skill gaps, the company created three unique leader development programs. Their ongoing senior-level development intervention spans eight months and includes face-to-face learning, immersive experiential learning and robust action learning team projects. The leadership capabilities addressed include strategic thinking, strategy execution, innovation, team effectiveness, polarity management and constructive conflict.
75
Of Employers
said that increasing leadership bench strength was a priority.
69
Of Employers
said that accelerating the development of high potential employees was a high priority for their organizations.
Source: Hagemann & Chartrand, 2009
29
The mid-level leader group participates in a shortened version of the senior-leader program, with the content and learning methods tailored to the challenges mid-level leaders encounter on a daily basis. The front-line managers participate in a four-day program that focuses on implementing change, team effectiveness and constructive conflict.
Where and How Is Talent Identified In Your Organization? Employee Segments Considered Talent
Senior leadership Those with leadership potential at mid-level High performers Key contributors / technical experts Those in roles critical to delivering the business strategy Those with skills in short supply and high demand The entire workforce 36% 42% 46% 49% 58% 62% 66%
Those with leadership potential at an entry level 33%

Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009 October)
Build Leadership Development Programs to Meet Organizational Needs

Organizational capabilities may include innovation, the ability to effect rapid change or providing excellent customer service. While many organizations may share the same goals in terms of developing talent for the future workplace, many will identify talent gaps that are unique or more pressing in their industry or organization. 3Ms award winning leadership development program includes the following characteristics: Leadership participation (more than 300 3M leaders teach in the succession planning program annually). Business-needs focus. Relationship building with executives. Incorporation of business-critical content. Action learning. Development of customized training.
30
www.uncexec.com
3M keeps their business strategy in mind when planning their leadership development activities. Business strategy plays the central role, according to Sandra Tokach, Ph.D., Vice President of HR at 3M. Without the strategic direction or without understanding the strategic direction, its hard to discuss succession planning. (SHRM Foundation, 2008).
What Are Your Talent Development Priorities? Talent Management Priorities Over the Next 18 Months
High Priority Medium Priority Low/No Priority
Assessing/developing high potentials and top talent
66%
Recognizing exceptional performers
27%
7%
57%
Performance management
36%
7%
55%
Assessing/developing senior leaders
37%
8%
55%
Strengthening the talent pipeline and succession management
33%
12%
54%
Training managers
35%
11%
42%
Measuring/increasing employee engagement
41%
17%
42%
Deploying key talent across roles/functions/regions
35%
23%
41%
Mentoring of key talent
43%
16%
38%
Identifying and integrating competencies
39%
23%
30%
Career pathing and planning
39%
31%
25%
Onboarding
45%
30%
24%
Developing/implementing an employee value proposition
44%
32%
14%
45%
41%
Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009, October)
31
The Value of Action Learning in Talent Development

Including action learning in learning and development programs really helps employers identify high-potential employeesthose you want to groom for future positions, says Susan Cates, Associate Dean of University of North Carolina Executive Development. We use this approach quite effectively with many of our clients. Action learning is about integrating real work challenges into learning and development programs and can be tailored to meet each groups needs. For example, when dealing with low-level managers, micro-projects can be assigned where they are challenged to solve actual workplace issues. Employees may be assigned to work through the challenge individually or in small teams and can be required to report their solutions to senior leaders. Mid-level leaders are often given more challenging issues with the same reporting structure. Requiring them to report their solutions to senior management gives them exposure to higher levels in the organization and allows senior leaders to identify employees they feel may benefit from further leadership development activities. Senior leaders may be challenged even more by being assigned stretch action-learning projects that challenge them to really think strategically. These action-learning work challenges may not have any real clear resolution, but the goal is to have senior leaders think at an enterprise level and in more strategic, innovative ways.
Action Learning at an International Professional Services Company

Action learning is a key component of an international professional services companys succession planning and leader development processes.
Mid-level leaders identified as high potential are assigned to small project teams and are assigned tasks designed to test their critical thinking and leadership skills. They are given the freedom to complete their work and in the end, present their findings to the executive operating team, where they are required to defend their findings and recommendations. The executive team often provides resources to the teamincluding new leader role assignmentsto further develop and implement their recommendations. Examples of projects include identifying new markets, developing new products and services, and redesigning existing business processes and methods. Projects typically take six to twelve months to complete.
Action Learning Through Assessment Centers

Other employers use this action-learning approach through assessment centers. Assessment centers can evaluate an employees future performance through real-world scenarios either in person, over the phone or even online. Interpersonal, decision-making and criticalthinking skills can be assessed using these scenarios. UGI Corp, a Valley Forge, Pa-based distributor of energy and energy services, used the assessment center model when the company teamed with Development Dimensions International (DDI) to get a strategic view of their talent management system. The assessment process included creating a leadership simulation and developing leadership personality inventories. The process helped UGI realize that they could be making better decisions about who their high-potential employees were and the existing capabilities of their leaders. (SHRM Online, 2007).
32
www.uncexec.com
Where is the Highest Turnover Risk in Your Organization?

Turnover Risk for Employee Segments
Data in percentages | Scale = 100% High Risk Moderate Risk Low / No Risk
Those with skills in short supply and high demand 55 High performers 38 Those with leadership potential at mid-level 29 Key contributors/technical experts 28 Those with leadership potential at an entry level 25 Those in roles critical to delivering the business strategy 2323 Senior leadership 13 13 The entire workforce 5 5 41 54 27 61 47 30 45 30 51 21 40 31 47 15 35 10
Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009, October)
33
Executive Buy-In and Participation Is Key

It can be daunting to get senior leader buy-in for the leader development programs needed to support succession planning, but starting that task can be as simple as starting a conversationand executive buy-in is absolutely critical for succession planning. Ask senior leaders to not only support the succession planning program but to be a part of it. Ask them to share their knowledge with others, and then follow up and ask them about their impressions of particular employees. We see the hesitancy many talent management professionals have about having a conversation with their CEO or other senior leaders. It really doesnt have to be difficult. Start the conversation by explaining to the CEO what you think about the employee and ask them what they see. Is the person a match? The key is to know what questions to ask to keep the conversation going, says Keri Bennington, Account Director for University of North Carolina Executive Development. 3M firmly believes that executive-level support of the succession planning process can help motivate managers and make the process a priority. More than 300 senior leaders teach in their program annually, sending a message to all participants that succession planning matters. This has carried over into the companys corporate culture. I have a philosophy that our business will grow at the rate we grow our leaders, says H.C. Shin, Executive Vice President of 3Ms Industrial & Transportation Business. First of all, I set aside my time for the customers. Then, my second priority is people development and leadership. Everything else can wait. (SHRM Foundation, 2008.) This leader as teacher philosophy has become a best practice in the talent management industry and is growing in popularity.
We see the hesitancy many talent management professionals have about having a conversation with their CEO or other senior leaders. It really doesnt have to be difficult.
Keri Bennington, Account Director UNC Executive Development
34
www.uncexec.com
Talk About It
Should employees know theyve been identified as key players in a succession plan? Some business leaders believe that it can be detrimental to do so, potentially pigeonholing employees into certain roles or responsibilities. Others believe it can discourage other high-potential workers to apply for promotions or to learn new job skills, or worse, it can lead employees to believe that a particular promotion is guaranteed. The answer and solution to this issue is not as clearcut as you might hope. Much of the communication of succession plans can depend on corporate culture. More and more employers are choosing to let people know they have been identified as one of several employees selected for a particular role, simultaneously communicating to workers that their leadership skills have been identified and valuedbut that the future position is in no way ensured. The key is to let employees know that their skills and experience are highly valued and needed. Employees who feel underappreciated and unvalued tend to be the most dissatisfied in their jobs and more likely to move on to other organizations when opportunity knocks. Providing the opportunities to develop leadership and work skills is the most effective way for a business to demonstrate that it values employees talent and leadership potential. Research has shown repeatedly that the most engaged and satisfied employees are those who feel their employers offer them opportunities to grow and develop their work and leadership skills. There is more to communication, however, than letting employees know they have been identified in a succession plan. A successful succession plan must encourage communication among executives and managers at all levels. Top-level executives should be clear about the type of talent and leaders the organization wants and needs, while lower-level managers should feel comfortable identifying potential leaders and discussing leadership potentials with their bosses. Clear two-way communication and understanding how to best use communication channels not only will support the success of a succession plan, it also can be an excellent indicator of leadership potential. Learning and development professionals should be keenly aware of this fact and use it to their advantage in demonstrating the value that leadership development programs add to succession planning.
Measure It and Report It

Once communication channels are in place and a plan is put into motion, many learning development specialists struggle with how to measure and report the success of the leadership development and how it supports organizational succession plans. Probably the easiest and most common measure is to track turnover numbers. Businesses can easily track the number of employee resignations, new hires, promotions and success in role placements. Reducing turnover and improving retention in skilled positions and managerial level jobs will be the result of a successful succession plan and therefore a result of welldefined leadership development programs. However, tracking those numbers alone may not show the true value of the programs. By comparing costs of new hires for leadership and skilled positions versus the cost of developing talent internally and promoting from within you can demonstrate the bottom-line value of an effective succession plan that is achieving its strategic objectives.
35
Other metrics can include productivity, innovation and employee engagement. Improved productivity can be one of the easiest measures to track, while innovation and engagement are often called more soft measures. However, by tracking sources of improved productivity through employee satisfaction and improved processes (innovation), organizations can get a clear picture of how well a leadership development program is working and aligning with their strategic business goals. Reporting and communicating these successes in a manner that clearly shows the bottom-line value of succession plans and leadership development will strengthen the buy-in factor from top-level executives and help ensure the success of your organizations succession plans and leadership bench strength for years to come.
Nearly half of human resource executives responding to a 2010 Society for Human Resource Management poll said the biggest investment challenge facing their organizations over the next 10 years was obtaining human capital and optimizing human capital investments.
Hagemann, B. & Chartrand, J. (2009). 2009|2010 Trends in Executive Development: A Benchmark Report. Oklahoma City, OK: Executive Development Associates. Howard, A. & Wellins, R. (2008). Global Leadership Forecast 2008|2009. Bridgeville, PA: Development Dimensions International. Minton-Eversole, T. (2010, June 21). Most Companies Unprepared for CEO Succession. Alexandria, VA: SHRM Online.
Palmer, S. (2010). Making the Business Case for Learning and Development: 5 Steps for Success. Chapel Hill, NC: University of North Carolina, Kenan Flagler School of Business. SHRM Foundation. (2008). Seeing Forward: Succession Planning at 3M. Retrieved in September 2010 at http://www.shrm. org/about/foundation/products/Pages/ SeeingForwardDVD.aspx.
SHRM Online. (2007). Succession Planning: Tie Talent Needs to Current, Future Org Direction. Retrieved in September 2010 at http://www. shrm.org/hrdisciplines/staffingmanagement/ Articles/Pages/CMS_016356.aspx. Society for Human Resource Management. (2010). SHRM Poll: Challenges Facing Organizations and HR in the Next Ten Years. Alexandria, VA: SHRM.
Towers Watson. (2010). Five Rules for Talent Management in the New Economy. New York, NY: Towers Watson. Towers Waston. (2009, October). Managing Talent in Tough Times: A Tipping Point for Talent Management? New York, NY: Towers Watson.
36
www.uncexec.com
develop executive talent while tackling real-world challenges.

U N C E X E C U T I V E
We help you
(Now thats multi-tasking.)

D E V E L O P M E N T
CUSTOM EXPERIENCES
Businesses today face many distinctive challenges. We listen to your needs and develop a thorough understanding of your business and industry. Then we create unique executive learning experiences designed to develop your executives as they address and overcome these challenges. Multi-tasking at its best.
To learn more, visit www.uncexec.com.
37
Kip Kelly Director of Marketing UNC Executive Development
Promise
As aging baby boomers reach retirement age over the next two decades, many organizations face a potential mass exodus of their senior leaders. While the economic downturn may have delayed retirement for many baby boomers, these valued employees will retire eventually, taking with them a lifetime of knowledge and skills that are difficult, if not impossible, to replace. This paper discusses the five steps you should take now to avoid the baby boomer brain drain and create a brain trust.
Introduction
The statistics of an aging workforce tell the story. As of January 1, 2011, a baby boomer turns 65 every eight seconds -over 7,000 per day. While many may delay retirement for financial and personal reasons, employers are worriedand rightfully sothat they will face a shortage of experienced workers over the next five years. A recent Ernst and Young survey of Fortune 1000 companies found that 62 percent of employers believe future retirements will result in a labor shortage (Johnson, 2010). With every passing year there will be fewer workers with the knowledge and experience to lead effectively. For some industries like health care, energy and construction,
38
www.uncexec.com
PA S S I N G T H E T O R C H : B R A I N D R A I N T O B R A I N T R U S T
this talent gap is already acutely felt (Davis, 2008). Few industries, however, will be unaffected. Research indicates that employers are unprepared for the inevitable departure of these workers: A Sloan Center on Aging and Work survey found that 68 percent of employers had not analyzed the demographics of their workforce and that 77 percent had not analyzed the projected retirement rates of their employees (Pitt-Catsouphes, 2009). A series of AARP surveys found that few employers (between 19 and 37 percent) had taken active steps to prepare for baby boomer retirements (Johnson, 2010).
The brain drain resulting from retirements in key business functions can be devastating. Organizations that ignore the looming crisis will suffer the consequences later. The good news is that many senior leaders want to give back and create a legacy in their organization. You can seize the opportunity and engage your most senior leaders before they retire and harvest their collective experience to shape the next generation of leaders in your organization. If you want to take action, here are five steps to avoid the brain drain and turn your baby boomers into a brain trust.
Step 1: Conduct a Strategic Workforce Analysis

Nearly half (48 percent) of the employers surveyed in a SHRM-AARP poll (SHRM, 2009) said they had no plans to conduct a strategic workforce analysis to see how their organizations would be affected by the loss of retiring workers. This could be a huge oversight with potentially catastrophic consequences for an organization. The ability to accurately forecast when you will lose top talent across the organization is critical to succession planning and business continuity. A strategic workforce analysis should be conducted internally to anticipate the effect of retirement over the next five and 10 years and beyond. Questions for a strategic workforce analysis should include: 1. How many of your employees will become eligible to retire? 2. How many of your senior leaders will become eligible to retire? 3. How many skilled technical workers and individual contributors will become eligible to retire? 4. How many front-line managers will become eligible to retire? 5. Do you have a succession plan in place for key positions that are most at risk?
Example: Workforce Assessment Tool

ARP offers a free online workforce assessment tool. The tool helps employers assess how the A aging of their workforce will affect their organizations. In addition, it maps out an organizations current employer practices, identifies areas of improvements, and makes recommendations on ways to create an age-friendly workplace. Nearly 2,000 employers have used the tool since its launch in 2007 (Jackson & Rand, 2010).
39
Step 2: Refine Your Retention Strategy

Although retirement is inevitable, keeping senior workers in the labor force a little longer will provide more time to transfer knowledge. Baby boomers, however, arent looking for business as usual. They want flexibility. To keep them in the labor force, employers must offer flexible work options that will appeal to them. In recent testimony before the U.S. Equal Employment Opportunity Commission, Cornelia Gamlem, president and founder of the Herndon, Va.-based GEMS Group, offered these suggestions for recruiting and retaining older workers: Offer part-time employment and hire retired employees as consultants or temporary workers. Encourage employees with specific expertise to mentor or coach others and to remain on call after they retire. Establish forums where older workers can discuss how the employer can make the workplace more accommodating to their needs. B ase layoffs on organizational needs and employees skills, knowledge, ability, reliability, performance and length of service. O ffer retirement savings plans or pension plans with specific provisions for older workers. (Source: Gurchiek, 2011.) In addition to these recommendations, consider offering other benefits of interest to mature workers such as long-term care insurance, pre-retirement planning, health and wellness programs, comprehensive medical coverage, health coverage for retirees and part-time workers, and pro-rated benefits for employees on flexible work schedules. Many employers are already taking these and other steps to keep their valued older employees working longer and in some cases, luring retirees back.
Example: Freedom-to-Work Program

New York-based Abbott Laboratories created a Freedom to Work program that allows employees to reduce work schedules to four days a week or to take up to 25 more vacation days a year. The program is open to employees with 10 years of service and who are 55 years of age or older. Although overall pay is reduced, 401(k) contributions are still made as a percentage of their full salaries and pension formulas remain intact. Abbott Laboratories also allows senior technical staff to take on emeritus status, giving up some of their management and administrative responsibilities to return to full-time scientific endeavors. This opens up management opportunities for rising leaders while keeping older staff working and available to advise or share insights as needed (McGregor, 2009).
Example: Bridges Program

Energy giant Chevron Corporation has established its Chevron Bridges Program for former employees who are interested in continuing a working relationship with the corporation. Former technical and professional Chevron employees can enroll in the program through the Chevron Alumni Community Web site. Applicants are considered for specific contract assignments that may include working on projects as technical specialists, partner representatives, guest speakers, recruiters, mentors, peer reviewers and advisors on focus areas (Chevron Bridges Program, undated).
40
www.uncexec.com
Step 3: Identify, Prioritize and Engage Potential Retirees

There was a time when predicting the retirement of your senior leaders may have seemed relatively straightforward. However, attitudes about retirement are changing, and there will be an ongoing shift as baby boomers transform expectations about retirement. This shift is compounded by recent changes in the political and economic landscape. Employees have pushed back retirement an average of nine years because of the recession, which ravaged 401(k) accounts and caused home values to plummet (Hewlett, 2009). In addition, high unemployment rates, ongoing economic instability and potential changes to social security and health care coverage have created a great deal of uncertainty. All of these factors make it difficult--but not impossible--to anticipate and prepare for the departure of your senior leaders. Employers face retirement from all parts of the organization, from top to bottom. Efforts to identify the individuals who represent the greatest risk of knowledge loss will differ from one organization to the next, and how they prioritize and respond to this risk will also vary. In general, the employees who present the greatest immediate risk include those closest to retirement age who serves in vital roles, and possess unique, irreplaceable knowledge and skills. Once youve identified the employees who represent the greatest retirement risk, talk to them about their future plans and aspirations within the organization. This is not, strictly speaking, a conversation about retirement. This should be a voluntary conversation designed to recognize the individuals unique value and contributions to the organization and explore ways to transfer and retain their knowledge and experience. Ask them what knowledge they feel is most critical; the answers may surprise you. Explore how they might contribute to the development of future leaders. Be prepared with a range of options such as mentoring, coaching and direct involvement in training and development efforts. You may find that your employees actually appreciate the opportunity to discuss their future plans. It should come as no surprise that loyal, long-serving employees would welcome the chance to transfer their knowledge and skills to the next generation. As leaders in your organization, they want to take an active role in creating a legacy and ensure the future success of the organization.
41
Example: Knowledge Retention Program

The Tennessee Valley Authority (TVA), headquartered in Knoxville, Tenn., identifies employees planning to retire through two annual surveys, one designed for line managers and one designed for all 13,500 employees. To alleviate anxiety, HR makes it clear that while the survey is necessary to collect data about workforce planning, it is voluntary. Nearly 80 percent of TVA employees complete the annual questionnaire (Leonard, 2003).
The line manager survey asks three questions: 1. What knowledge will be lost when an employee retires? 2. What are the consequences of losing this knowledge? 3. How can the organization retain this knowledge? These surveys help the TVAs HR staff identify those employees who, according to their supervisors, hold critical knowledge and skills. HR staff members then interview both the supervisor and the employee to learn about the employees specific knowledge and skills. Jerry Landon, senior consultant for assessment and evaluations at TVA University, realized early on that these conversations are not as difficult as you may think. This interview process is very important, because we foundthat retiring workers really care about TVA and their jobs, reports Landon. They have devoted a good part of their lives to this organization, and many are very concerned that their knowledge of what makes this utility run will be lost or, even worse, just ignored when they retire. (Leonard, 2003). After the interview, HR assesses each employees skills and knowledge on a five point scale, with a five meaning that transferring and retaining the employees skills and knowledge should be a top priority. Those with high scores receive special attention and are asked to take on some new roles as consultants, instructors and mentors. In some cases, capturing knowledge is simply a matter of writing down procedures or processes. In other cases, reports Langdon, the interviews shed light on where processes could actually be improved, saving TVA money. For example, there might be one worker who has a very specialized skill in how to operate or repair an ancient type of electrical switch at a power station, Landon says. Well, the answer here may not be to keep doing this the same old way. The answer might be, lets upgrade the switch. In the long run, were going to save the organization a lot of money by finding solutions like this. (Leonard, 2003). TVAs knowledge retention initiative has also had some unexpected benefits. TVA senior leaders say the process has improved team building and made employees more cohesive, enhanced employees selfesteem as they realize that what they do counts, and lowered stress levels among supervisors who were concerned about losing valuable knowledge with employee retirements (Leonard, 2003).
42
www.uncexec.com
Step 4: Prepare Senior and Emerging Leaders

Your efforts to engage senior leaders before they retire will be more successful if you provide the skills and tools they need to be effective. For example, a senior engineer may possess a lifetime of technical expertise but may lack the ability to share that knowledge effectively. Even the most seasoned, successful business leaders will benefit from some guidance and preparation. The type of preparation they require will depend on the individual and how you plan to engage them in the organization. Developing specific skills can mean the difference between their success and failure. As you prepare your senior leaders to make a more significant impact, do the same with your emerging leaders. These future leaders should know that they have been selected because of the talent and potential they have demonstrated. They should also understand that the transfer of knowledge and experience is critical to the long-term success of the organization, and that they should appreciate the value it represents. Finally, they should recognize that absorbing and applying the knowledge and experience shared by the senior leaders will lead to their own success in the company. This is an invaluable opportunity, and they should be properly motivated to take full advantage of it. (If you want more information about identifying and preparing future leaders, you might be interested in the white paper, Putting Success Back in Succession Planning: The Role of Learning and Development found under the White Papers heading at www.uncexec.com.)
43
Myths about Older Workers

1. Older workers are less productive than younger workers. 2. Older workers cost more to employ. 3. O lder workers are not really motivatedtheyre just biding their time until retirement. 4. Older workers are preoccupied with the past and have little interest in the future. 5. O lder workers have old-fashioned values and are traditional thinkers. They are overly conservative. 6. Older workers are mentally and physically impaired. 7. Older workers are often ill and absent from work. 8. Older workers are resistant to change. 9. Older workers are unable to learn new skills and new ways of doing things.
The Truth about Older Workers

1. O lder workers have lower absenteeism rates than younger workers, making them more dependable. 2. Because of their life experience, older workers can better relate to others. 3. Older workers are, in fact, highly productive. 4. Older workers often require less supervision. 5. Older workers are less likely to abuse drugs and alcohol. 6. Older workers have stability that comes with maturity. 7. Older workers are willing to work part-time and flexible hours. 8. Older workers have a strong work ethic. 9. Older workers waste less time on the job. 10. Older workers have higher writing and math skills. 11. Older workers are highly motivated to do a job well. 12. Older workers are willing and able to learn and acquire new skills. 13. Older workers are less distracted by outside interests. 14. Older workers have a lifetime of experience dealing with people and changing conditions.
Source: Davis, 2008
44
www.uncexec.com
Step 5: Create Knowledge Transfer Opportunities

There are a number of ways to facilitate the transfer of critical knowledge in your organization. There is no one size fits all approachit will depend on your organizations capabilities and culture. Regardless of the method or combination of methods you employ, it is critical to identify the outcomes and objectives you hope to achieve to ensure that the investment of time and effort provides real value to everyone involved.
Proven Methods Of Knowledge Transfer 1. Formal and Informal Mentoring and Coaching Programs
Coaching and mentoring programs provide an effective way to transfer knowledge and skills as well as the wisdom gained from years of experience. Coaches and mentors can share valuable information on a one-on-one basis, sharing personal insights and professional advice that lead to greater individual and organizational success. Your senior leaders are stewards of your organizations history, culture and values. The stories they pass on to the next generation of leaders can be more meaningful and powerful than any corporate mission statement.
Example: Mentoring Program

The YMCA of Greater Rochester, New York, a non-profit organization with more than 2,700 employees, has been recognized by AARP for five consecutive years as an outstanding place to work for older workers. For the past several years, the YMCAs HR team has made a concentrated effort to recruit and retain older workers. A full-time staff member serves as a liaison with a group of 40 retirees in its workforce, managing employee support and relation activities. In addition, the organization keeps a roster of outside retirees who are interested and available for work and calls on them for temporary jobs, consulting projects and part-time work. The YMCA also offers phased retirement and works with recruiters from outside agencies to identify qualified older job seekers (SHRM, 2010). As part of its professional development programming, the YMCA gives employees the opportunity to participate in their Mentoring Across Generations program (also known as Generation YMCA), in which baby boomer employees are paired with Gen X and Gen Y employees to exchange information and skills (AARP, 2009).
45
Coaching Characteristics
1. Managers coach their staff as a required part of the job. 2. C oaching takes place within the confines of a formal manager-employee relationship. 3. The focus is to develop individuals within their current job. 4. The interest of the relationship is functional, arising out of the need for individuals to perform the tasks required to the best of their ability. 5. Managers tend to initiate and drive the relationship. 6. The relationship is finite, ending when an individual has learned what the coach is teaching.
Mentoring Characteristics
1. Mentoring occurs outside of a line manager-employee relationship, at the mutual consent of a mentor and employee. 2. Mentoring is career focused or focused on professional development that may be outside the employees area of work. 3. Relationships are personala mentor provides professional and personal support. 4. Relationships may be initiated by mentors or created through matches initiated by the organization. 5. Relationships cross job boundaries. 6. Relationships last for a specific period of time (nine months to a year) in a formal program, at which point the pair may continue in an informal mentoring relationship.
Source: Management Mentors
46
www.uncexec.com
Proven Methods of Knowledge Transfer (continued)
2. Intergenerational Work Teams

Like mentoring and coaching programs, pairing older, more experienced workers with emerging leaders can greatly facilitate both the transfer of knowledge and the development of future leaders. Though communication between the generations can sometimes be challenging, it can also be vastly rewarding to all parties involved. This is what LaRhonda Edwards, an HR manager for a large office supply distribution center in Alabama, has learned. In an article for SHRM Online on employee relations trends for 2011, Edwards noted that one of her most productive work teams includes a 63-year-old employee with more than 20 years of experience in the company and a 25-yearold employee just starting his career. The team works well because the skills sets of the older and younger worker complement each other. The older worker has a deep knowledge of processes and procedures and how to complete work projects on time, while the younger worker uses technology to the best advantage. The result is that as a team, they are very productive and enjoy learning from each other, Edwards says. They have taught me a lot, too, about finding the right role or niche for workers and how crucial that is to successful and effective employee relations. (Leonard, 2011).
3. I nvolve Senior Leaders in Learning and Development Opportunities as Instructors or Participants

Senior leaders can also serve as valuable instructors, speakers and facilitators because they can offer knowledge and a unique perspective that can enhance learning and development programs. 3M, the maker of Post-it Notes and ScotchBrite cleaning products, has tapped into its senior leadership base through the companys Leaders Teaching Leaders program. More than 300 senior leaders teach in 3Ms program annually, sharing their knowledge, experience and 3Ms values with employees who have been identified as future leaders. Consider including those senior leaders who would prefer to stay off the podium but still want to contribute their knowledge in action learning projects. Action learning is about integrating real work challenges into learning and development programs. By pairing experienced senior leaders with emerging leaders in action learning projects, you can facilitate the transfer of critical knowledge and skills while developing future leaders and addressing real business challenges.
4. Web 2.0 Technologies

Many employers are turning to technology to preserve valued workers knowledge. Web 2.0 technologies such as blogs and wikis provide useful tools for employees to develop a detailed library of knowledge, processes and procedures that can be updated, expanded and shared throughout the organization. While most experts agree that knowledge transfer cannot be conducted through technology alone, employees can use these inexpensive Web tools to complement other efforts. Internal websites provide employees with online retirement planning tips and tools to ensure a successful transition to the next stage of their lives. This is a simple and effective way to provide useful information, while also collecting accurate, real-time data about retirement intentions. Voluntary and anonymous surveys can capture useful data that provides insights you can use to plan and prepare. An internal website is also a great platform to solicit volunteers for coaching and mentoring, provide them with valuable resources to do so, and then organize these efforts.
47
Conclusion
You can turn the impending baby boomer brain drain into a brain trust by developing programs that will transfer critical knowledge and skills to the next generation of leaders. In doing so, you can ensure your organizations future success and prevent the loss of valuable knowledge and experience. Follow the five steps outlined in this paper and proactively approach baby boomer retirement: 1. Conduct a strategic workforce analysis 2. Refine your retention strategy 3. Identify, prioritize and engage potential retirees 4. Prepare senior and emerging leaders 5. Create knowledge transfer opportunities
As the global economy recovers from the deepest recession in 70 years, organizations need every competitive advantage they can find to survive and thrive. Employers that explore and develop ways to leverage the knowledge and experience of employees approaching retirement age will discover that these workers offer a lasting legacy of outstanding corporate performance.
Anonymous (undated). Chevron Bridges Contract Positions. Chevron Alumni Community. Retrieved December 2010 from http://alumni.chevron.com/index.aphp. Barnhart, M. (2009). Keeping Top Talent: The Value of Employee Retention. Katz, Sapper & Miller. Retrieved on December 2010 from http://www.touchpointrecruiting.com/ doc/KSMTPRAdvisor2009.pdf. Cauchon, D. (2010, December 14). American Workforce Growing Grayer. USA Today. Retrieved December 2010 from http://www. usatoday.com/money/workplace/2010-12-14older-workers-employment_N.htm. CEO Consultant (2010, August 12). Aging Workforce10 Key Points on Training. CEOConsultant.com. Retrieved December 17, 2010 from http://www.ceoconsultant. com/business/aging-workforce-10-key-pointstraining/. Davis, D. (2008, September 24). Strategies to Employ and Retain Older Workers. Forum on North Carolinas Aging Workforce. Raleigh, NC: National Council on Aging. Delong, D. & Mann, T. (2003). Stemming the Brain Drain. Accenture. Retrieved January 2011 from http://www.accenture.com/Global/ Research_and_Insights/Outlook/By_Alphabet/ StemmingTheBrainDrain.htm.
Evans, P. (2010, December 15). Baby Boomer Retirement: Is Your Data Center Ready? CIO Network. Retrieved January 2011 from http://blogs.forbes.com/ciocentral/2010/12/15/ baby-boomer-retirement-is-your-data-centerready/.
James, B. (2008, April 8). Capitalizing on the Baby Boom Brain Drain. The HR Edge. Retrieved December 2010 from http:// thehredge.wordpress.com/2008/04/08/ capitalizing-on-the-baby-boomer-brain-drain/. Johnson, R. (2010). Phased Retirement
Moore, J. (2009, April 17). Knowledge Retention Helps Agencies Retain Employee Expertise. Federal Computer Week. Retrieved January 2011 from http://fcw. com/articles/2009/04/20/tips-for-knowledgeretention.aspx.
Gallagher, J. (2010, September 14). Older Workers Can ShineBut Will They Get a Chance? Michigan Business. Retrieved December 2010 from http://www.freep.com/. Gurchiek, K. (2011, January). Older Workers Need More Flexible Policies. HR Magazine. Alexandria, VA: Society for Human Resource Management. Hastings, R. (2008, October 2). Global Employers Lauded for Support of Workers Over 50. SHRM Online. Retrieved December 2010 from http://www.shrm.org/hrdisciplines/ diversity/articles/pages/globalemployerslauded. aspx. Hewlett, S. (2009, September 4). Reward Older Workers with What They Really Want. Bloomberg. Retrieved on December 2010 from http://www.bloomber.com/news/200909-04/reward-older-workers-with-what-theyreally-want.html. Jackson, H. & Rand, A. (2010, October). HR and the Aging Workforce: Two CEO Points of View. HR Magazine. Alexandria, VA: Society for Human Resource Management.
and Workplace Flexibility for Older Adults: Opportunities and Challenges. Focus on Workplace Flexibility. Retrieved December 2010 from http://workplaceflexibility.org/ images/uploads/program_papers/johnson_-_ phased_retirement_and_workplace_flexibility. pdf. Leonard, B. (2003, July). More than 2,500 Employees Riding the Age Wave. HR Magazine. Alexandria, VA: Society for Human Resource Management. Leonard, B. (2010, January 10). Economic Uncertainty Shaping Employee Relations Trends for 2011. SHRM Online. Retrieved January 2011 from www.shrm.org. McGregor, J. (2009, November 13). How Older Workers Can Lighten the Load. Bloomberg Businessweek. Retrieved December 2010 from http://www.businessweek.com/managing/ content/nov2009/ca20091111_435788.htm. Management Mentors (undated). Corporate Mentoring vs. Corporate Coaching. Management Mentors. Retrieved January 2011 from http://www.management-mentors. com/resources/coaching-and-mentoring/.
Nichols, M. (2008, October 22). Americas Aging Workforce: Its Time for Employers to Accept Reality. Citizen Economists. Retrieved December 2010 from http://www. citizeneconomics.com/blogs/2008/10/22/ americas-aging-workforce-its-time-foremployers-to-accept-reality/. Pitt-Catsouphes, M. (2009, October). Talent Management Study: The Pressures of Talent Management. Boston, MA: The Sloan Center on Aging and Work at Boston College. Roth, R. (2010, September 5). How BMW Deals with an Aging Workforce. CBS News. Retrieved December 2010 from http://www. cbsnews.com/stories/2010/09/05/sunday/ main6837469.shtml. SHRM (2009, November 17). SHRM-AARP Poll Shows Concern About Aging Workforce. SHRM Online. Retrieved December 2010 from http://www.shrm.org. Smith, D. (2010, Dec. 22). Leading Edge of U.S. Baby Boomers Content Survey. Washington, DC: Reuters. Tennessee Valley Authority (undated). Knowledge Retention. TVA. Retrieved January 2011 from http://www.tva.gov/ knowledgeretention/.
48
www.uncexec.com
grow your greatest asset: your people.

U N C E X E C U T I V E D E V E L O P M E N T
OPEN ENROLLMENT PROGRAMS
Helping you
Our executive development open enrollment offerings combine powerful continuing business education content with real-world work experience. Through action learning and business simulation activities, we challenge participants to think, reflect, and grow as leaders.
GENERAL BUSINESS MANAGEMENT HUMAN CAPITAL MANAGEMENT
Executive Development Institute Negotiation Skills for Effective Managers Change Management Sales Management Strategic Planning and Business Decision Making
LEADERSHIP AND EFFECTIVENESS
Business and Human Resources: Leading HR and Your Organization into the Future
FINANCIAL MANAGEMENT
Financial Analysis for Non-Financial Managers

STRATEGIC BUSINESS INNOVATION
Leadership Effectiveness Workshop Project Leadership: Build a Best-in-Class Project Team Women in Business: Transitioning to Leadership
Strategic Innovation for the New Business Environment

CORPORATE SUSTAINABILITY
Becoming Green: Effective Sustainability Strategies for You and Your Organization
To learn more, visit www.uncexec.com.
49

Jessica Brack Managing Director UNC Executive Development
Promise
Employees and employers face the same dilemma these days when it comes to keeping skills sharp; neither have the time nor the money to spend on long-term learning and development opportunities. Most training and human resource professionals know, however, that there is a direct, positive link between providing meaningful learning and development opportunities to employees and job satisfaction--when you train employees, job satisfaction increases, as does employee retention.
Introduction
One solution to the dilemma of providing quality training opportunities as corporate resources continue to dwindle is on-demand, online learning programs. Many training and development professionals shelved earlier E-learning prototypes because they lacked key components to the transfer of learningthe ability to interact and collaborate with instructors and fellow students. Over the years, E-learning programs have matured into interactive experiences that engage all types of learners. Todays E-learning takes what worked from earlier versions of distance learning (such as video conferencing) and combines it with new Web technologies, to provide richer, more dynamic learning experiences than ever before. This white paper will discuss the evolution of online, on-demand learning and what to look for when designing or purchasing E-learning programs for your organization. Through case examples, it will also provide training and development professionals with ideas about how to apply on-demand learning in their workplaces to meet strategic objectives and succeed in todays fast-paced global marketplace.
E-learning Benefits
Reduces costs Saves time Offers flexibility Allows social interaction with other participants and instructors Engages all types of learning styles
50
www.uncexec.com
ON-DEMAND LEARNING POTENTIAL IN THE WORKPLACE
The E-learning Explosion

E-learning in the workplace has evolved rapidly over the past 10 years, growing from a traditional, transferof-learning approach to include new technologies, such as discussion boards, blogs, wikis and other social interaction tools, which allow program participants to engage with each other and their instructors. A recent Ambient Research study found that the U.S. market for self-paced E-learning products reached $16.7 billion in 2009, an unprecedented growth rate in the last decade. This emerging E-learning format, known as E-learning 2.0, addresses concerns about earlier E-learning technology that there was little interaction among instructors and learners and, therefore, wasnt as effective as face-to-face instruction. Increasingly, E-learning models are taking a more blended approach to presenting content, encouraging social interaction among students using new social media technologies. As the technology has improved, the demand for online learning has increased exponentially. Today, more than one in four students are taking at least one course online and while the demand for face-to-face courses increased by 1.2 percent in 2009 (due in no small part to the 2008-09 recession), the growth in demand for online courses was far greater at 17 percent (Allen & Seaman, 2010). The trend toward providing more E-learning and/or blended learning opportunities is gaining more acceptance among training and development professionals; a 2008 survey by the American Society of Training and Development found that nearly one-third of all training content is now delivered electronically. Given the overall satisfaction rates regarding the quality of online learning versus face-to-face instruction, it is highly likely that this number will continue to increase (Allen & Seaman, 2010). As technology continues to evolve and improve, most employees will likely participate in some form of E-learning during their academic and professional careers. These employees will expect on-demand, online learning programs from their employers, particularly when time constraints and geographic boundaries are challenging.
51
{ e- lrn-ing }
Negotiating E-learning Jargon
E-learning is the general term used for all varieties of electronic teaching and learning.
Varieties of E-learning include Web-based learning, computer-based learning and virtual classrooms. Content can be delivered through the Internet, intranet or extranet, audio or videotape, satellite TV or CD-ROM. It can be self-paced or instructor-led and includes media in the form of text, image, animation, streaming video and audio.
E-learning 2.0 emerged with the launch of Web 2.0 technologies, which emphasized
information sharing and collaboration. E-learning 2.0 technologies supplement E-learning by adding social learning components such as discussion boards, wikis, blogs, podcasts and virtual worlds.
Blended learning integrates computer-based learning with practical or classroom

based interactions.
Computer-based learning refers to the use of computers as the primary

component of the educational environment.
Computer-based training refers to the use of computers as the primary component

of the training environment. Computer-based training activities are usually self-paced and present content in a linear fashion (e.g., Unit 1, Unit 2, etc.).
Web-based training is similar to computer-based training, however the delivery

differs. In computer-based training, the content is usually delivered by CD-ROM. In Webbased training, content is delivered via the Internet.
52
www.uncexec.com
E-learnings Evolution to a Dynamic Learning Environment

On-demand, online learning can be a powerful tool used on its own but can be extremely effective when combined with a blended-learning strategy. The concept of blended learning has been around for decades but more recently has evolved to mean a combination of traditional face-to-face learning and technology. For example, E-learning used alone can be a costeffective way to teach introductory concepts like business basics or sales techniques to get people on the same page quickly and efficiently. The value of this learning is real and could stop there, but when used as a prelude to instructor-led training, provides a foundation for the next level of development. This same program or course can precede instructor-led sessions, allowing class time to be spent on more advanced concepts where face-to-face discussion is critical. This blended-learning approach uses time and dollars more effectively. A 2006 Bersin & Associates study found that self-paced study helps prepare learners for later interactive learning and can reduce time investment by nearly 50 percent. E-learnings evolution is leading training and development and HR professionals to re-evaluate its potential as an efficient, flexible and cost-effective method to deliver quality learning and development opportunities to employees. Todays high quality E-learning content includes video conferencing, interaction, creative story lines and exercises developed by recognized subject matter experts (Avalon Consulting, 2008).
Getting Employee Buy-in

Despite the fact that a recent U.S. Department of Education study found that students participating in E-learning conditions actually out-performed their peers learning the same material in a traditional, face-to-face classroom, some employees may be reluctant to engage in online learning opportunities (Means et al, 2010). Training and development professionals are well aware of this reluctance and as a result, may be hesitant to embrace E-learning. A key to achieving buy-in from all employees is to provide them with a quality E-learning experience that includes interaction, videos and exercises designed to engage adult learners. The reasons people resist online learning run the gamut, from I dont learn well without a class to Ive tried it in the past and didnt like it, reports Mike Cain, program and student services manager of UNC Business Essentials, an online business training program. We find that most of these excuses melt away once we show them part of our online Business Essentials program. In fact, that resistance usually changes to enthusiasm. On-demand, online learning is much more exciting than in the past. Done right, it can be very effective. Flexibility is also a key selling point when it comes to E-learning. Since on-demand, online, learning can occur any place and at any time, participants can work at their own pace and on their own schedule.
53
For training and development professionals considering incorporating E-learning into their training offerings, seeing a demo of the product is an absolute must. Develop a checklist listing the benchmark features you are looking for in an E-learning environment. Items on the checklist may include: I f the training is to be asynchronous, does it allow participants easy entry and exit points? How easy is it for participants to stop and pick up later where they left off? D oes it offer learning checkpoints along the way to assess learning? These checkpoints can include quizzes but may also involve video conferences or collaborative bulletin board postings where students work on a project together or discuss a particular subject. W hat other interactive features are included to help students learn? Is there tutor or instructor support available? W hat reports are made available to the employer to ensure employee participation and completion? Is the technology easily accessible by all participants? F or the less technically adept, are there clear, simple directions and tutorials for use? A re there case studies included to help bring the learning into the workplace and real-life situation? If possible, consider piloting the E-learning program with a smaller group of employees and ask for their feedback at the end of the training. These employees can provide excellent testimonials and help support a wider launch of the E-learning activity.
I was impressed with the comprehensiveness of the UNC Business Essentials program. The coursework provided a well-rounded set of tools that I can use for thinking and acting in business situations. The level of personal attention by the tutors challenged me to approach discussion questions with depth and clarity. The material was practical and urged me to connect my working experience with the themes presented in the lectures. Lastly, the delivery format is very accommodating to students schedules and timely in the light of emerging work practices. I began the coursework in Chapel Hill and finished in Buenos Aires, Argentina.
Andrew Cary Co-founder of Infused Industries, Inc. Raleigh, N.C. Recent UNC Business Essentials graduate
54
www.uncexec.com
Example: On-Demand Learning for Corporate Education

Existing E-learning programs can offer excellent examples of how on-demand, online learning may be applied in workplace training and development situations. Educational institutions and innovative businesses have developed programs that clearly demonstrate how E-learning can deliver flexible and high-quality training opportunities to employers and their workforces. Designed to provide basic business skills to people without a business degree, the University of North Carolina at Chapel Hill launched its online Business Essentials certificate program in mid-2009. Today, nearly 200 people have enrolled in this comprehensive online learning system. Programs like UNCs Business Essentials may offer training professionals and their employers the educational solution they are searching for by providing flexible and meaningful career development opportunities to employees in a cost-effective package. The certificate program is self-guided and includes a mix of audio, graphics, quizzes, discussion boards and live tutors, making it attractive for corporate education because of its flexibility and interactive features. The program works much like Microsoft Outlook. Individuals can work online or download the application onto a local hard drive which automatically syncs with a server the next time they have Internet access. This flexibility allows people to work on the program from virtually anywhere, such as an airplane while in flight. Checkpoints along the way and application exercises help participants stay interested and connect their learning to the workplace. At the end of the six-course program, successful participants earn a certificate of completion from UNCs Kenan-Flagler Business School. The Business Essentials program is affordable, which is certainly important in todays economy, but more important, it is flexible. By allowing participants access to the courses at anytime and anywhere, it is designed to fit the variables in their life not force them to fit their lives around it, says Susan Cates, associate dean of University of North Carolina Executive Development. Corporate education programs like Business Essentials are not an online-or-nothing proposition. Online courses can be paired with traditional learning opportunities or interactive video sessions to accommodate geographic constraints. Instructors can spend significant time during a three-day executive education program laying out the basics to get everyone up to speed. On-demand, online courses covering those basics can be developed and assigned as pre-work for participants. That way, instructors can start an executive development program at a higher level and spend more class time engaging the participants to push their thinking in ways that relate to the challenges they face at work, says Cates. The program has been so successful, UNC Kenan-Flagler expanded the offering to allow businesses to customize it to their organizational goals. A leading global entertainment content company recently partnered with UNC to offer the Business Essentials program to their human resource staff. While most of the business content remained the same, staff from Kenan-Flagler worked with the company to customize parts of the program to meet its organizational goals and to facilitate multiple program checkpoints where application is discussed. UNC and their client already plan to customize the program further for future participant groups with mini-case studies specific to the companys industry.
55
Example: E-learning for the Health Care Profession

Saint Elizabeth Health Care (SEHC) has served Canadians across Ontario for more than a century. The system began with four nurses who went by foot or streetcar to care for patients. Today, SEHC has more than 4,500 employees and delivers 3.8 million health care visits annually. SEHC also provides health care services to 200 First Nation (or native Canadian) communities in British Columbia, Manitoba and Saskatchewan. With such a large service area, SEHC began investigating online learning technology in the late 1990s to help educate their patients about their own health care. They soon realized that the E-learning technology could be applied to staff training as well. EHC developed @YourSide Colleague, a 24/7 accessible training program for their employees. S Employees from any location with Internet access can go to the site and access training and support, including discussion forums monitored by experts who can offer advice on specific case issues, which can then be viewed by the entire SEHC community. Health care professionals can upload images to the system, allowing for virtual consultationsa great benefit for nurses working in remote locations. These consultations make a real difference in patient care since nurses can immediately apply the feedback they get. They dont have to wait for a physician to fly to their location. Access to expert consultation literally brings care closer to home for patients, reports Linda Forster, SEHCs product manager. The online program allows SEHC to track usage and performance. These metrics help SEHC determine what topics may require additional training opportunities. SEHC reports that their online training portal has improved confidence and performance of field staff and has reduced costs, travel and lost clinical time associated with live training. Other benefits include standardization of training content throughout the organization and streamlined distribution of HR policies and procedures because they have been added to the platform. SEHCs experience and success with the program illustrates how organizations are finding new and innovative uses for on-demand, online learning initiatives.
Example: Online Sales Training Goes Virtual

Automatic Data Processing, Inc. (ADP), with nearly $9 billion in revenue and about 550,000 clients, is one of the worlds largest providers of business outsourcing solutions. With more than 60 years of experience, ADP offers a wide range of HR, payroll, tax and benefits administration solutions from a single source.
A key element to ADPs success has been the companys commitment to continuous learning for sales associatesa process that starts from the day they are hired. Until 2004, new sales associates were given two weeks of face-to-face training at ADPs Atlanta training center, followed by two weeks off and then another two-week training period, also in the Atlanta training center. According to Tim Dewey, ADP employer services sales distance learning manager, the process was effective but, with 7,500 sales associates nationwide, extremely costly. ADP decided to rein in costs by piloting an online training program. The results were so positive that ADP quickly adopted it for all new sales associates.
56
www.uncexec.com
ADP Benefits from Online Learning

Nearly $1.6 million savings in training expenses. 60-day increase in sales productivity for trainees. 12 percent increase in first-year annual sales. Increased retention. Increased comprehension. Increased engagement. Improved grades.
Source: Blackboard.com
The online training program has reduced the time spent in Atlanta from four weeks to one, a benefit to not only ADP but to employees as well. The companys new sales associates enjoy the process more because it is less intrusive in their family lives and they are more productive right off the bat, reports Dewey. The online training program has increased comprehension, retention and even final grades. The program was initially designed for new hires, but has been expanded to include every aspect of training for the sales organization. n addition to a better-prepared sales force, ADP saw I substantial cost savings. The organization saved $1.2 million in travel and accommodation expenses the first year alone. Additional benefits have included more than $1.5 million in annual savings, a 12 percent increase in first-year annual sales per sales associate, and a 10 times faster time-to- deployment of new content.
Emerging Evidence of Bottom Line Impact

The development and delivery techniques of online learning solutions for businesses are new, leading-edge ideas, yet evidence is emerging that the cost-to-benefit ratio now surpasses most traditional instructor-led and in-person training programs. While reductions in travel and accommodation expenses are the most obvious and easily measured cost savings, other cost benefits can include improved productivity, increased innovations and reduced turnover. Research has found that employees who are offered substantive career development opportunities tend to be more engaged, and therefore more loyal and more productive. New and improved skills also equate to a more innovative and responsive workforce. These factors often arent easy to quantify; however, the benefits are certainly real and can have a long-term positive impact on an organizations bottom line. Organizations with the best and most innovative management development programs are always ranked among the most successful businesses. On-demand, online learning clearly offers training and development professionals a tool for crafting the flexible and highquality learning programs that their organizations need to meet strategic objectives and succeed in todays fastpaced global marketplace.
Allen, I.E. & Seaman, J. (2010). Learning on Demand. Online Education in the United States, 2009. Babson Park, MA: Babson Research Group. Bersin & Associates. (2006). Blended Learning in Leadership Programs. Retrieved October 2010 from www.bersin.com.
Bersin & Associates. (2003, May). Blended Learning: What Works? Retrieved October 2010 from www.e-learningguru.com/wpapers/ blended_bersin.doc.
Howard, C. (2008, March 21). Learning OnDemand: A New Role for Enterprise Learning. Oakland, CA: Bersin & Associates. Means, B., Toyama, Y., Murphy, R., Bakia, M.,
Rossett, A. & Marshall, J. (January 2010). E-learning: Whats Old Is New Again. Alexandria, VA: American Society for Training and Development. Retrieved November 2010 from http://www.astd.org/TD/Archives/2010/ Jan/Free/1001_eLearning_Whats_Old.htm.
Blackboard. Corporate Case Studies. Retrieved November 2010 from http://www.blackboard. com/Solutions-by-Market/Corporate/CaseStudies.aspx.
Jones, K. (2010). Evaluation of Evidence- Based Practices in Online Learning. Washington, DC: U.S. Department of Education.
57
Build the Essentials Online.

ONLINE BUSINESS C E R T I F I C AT E P R O G R A M
Business Basic Training
U N C
B U S I N E S S
E S S E N T I A L S
Companies need employees to do more within the organization, and employees need a strong foundation in business to be more effective. The UNC Business Essentials program is designed to help employees gain this essential business knowledge in a flexible e-learning environment that limits associated costs and time away from work. Taken on an individual basis or customized to meet an organizations specific needs, UNC Business Essentials provides the best in business basic training. To learn more, visit www.uncbusinessessentials.com.
58

Managing employee talent is vital to the success of any organization. At UNC Executive Development, we provide unique learning experiences to create solutions for our partners. We listen to the needs of our partners and develop a deep understanding of their businesses and industries. We also make a commitment to the organizations we work with to meet their goals and objectives while providing ongoing support and client management. We call our approach The Power of Experience. We combine traditional with experiential and unique learning. Through action learning and business simulation activities, we challenge participants to think, reflect, and make decisions differently. Our goal is to provide unique, memorable, and transformational learning impacting individuals, as well as the organization itself.
Nonprofit Organization U.S. Postage
PAID
The University of North Carolina at Chapel Hill Kenan-Flagler Business School Executive Development Campus Box 3445 Rizzo Conference Center Chapel Hill, NC 27599-3445 Permit Number 177 Chapel Hill, NC
In this issue:
Making the Business Case for Learning and Development: 5 Steps for Success Ready, Aim, Coach: How HR Can (and Should) Coach Managers on Problem Employee Behaviors Putting Success Back in Succession Planning: The Role of Learning and Development Passing the Torch: 5 Steps for Turning the Baby Boomer Brain Drain into a Brain Trust Unlocking the Potential of On-Demand Learning in the Workplace

Ideas@work Vol. 1

Transféré par

Informations du document

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Ideas@work Vol. 1

Transféré par

Droits d'auteur :

Formats disponibles

VOLUME 1

BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT

WHITE PAPERS FEATURED:

Unlocking the Potential of On-Demand Learning in the Workplace

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

Inside this issue

Unlocking the Potential of On-Demand Learning in the Workplace

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

MAKING THE CASE FOR LEARNING & DEVELOPMENT

Step 1: Know Your Organizations Strategic Priorities

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

MAKING THE CASE FOR LEARNING & DEVELOPMENT

Step 2: Know How Your Department Contributes to Those Priorities

Step 3: Determine What Programs Will Support the Strategic Direction

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

MAKING THE CASE FOR LEARNING & DEVELOPMENT

Step 4: Build It with Metrics

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

MAKING THE CASE FOR LEARNING & DEVELOPMENT

+10-12 +8-10 +3-4

 efined as 75th percentile. D Source: BGCA; McKinsey analysis

Return on investment (ROI)

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

MAKING THE CASE FOR LEARNING & DEVELOPMENT

Step 5: Pitch It Like Youre the CFO

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

The Power of Experience.

To learn more, visit www.edi.uncexec.com.

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

COACHING MANAGERS ON PROBLEM EMPLOYEES

The High Cost of Problem Employees

Types of Manageable Problem Behavior in Employees

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

COACHING MANAGERS ON PROBLEM EMPLOYEES

Coaching the Manager

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

COACHING MANAGERS ON PROBLEM EMPLOYEES

The Benefits of Coaching Managers for Organizations

Step 1: Help the Manager Identify the Problem Behavior

Step 2: Help the Manager Analyze the Behavior

Step 3: Develop Approaches on How to Discuss it with the Employee

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

COACHING MANAGERS ON PROBLEM EMPLOYEES

Ask the manager to identify desired outcomes of the meeting.

The Benefits of Coaching Managers for Managers

Follow Up with the Manager: Youve Been Coached

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

Lead your HR organization

into the future.

The Power of Experience.

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

PUTTING SUCCESS BACK IN SUCCESSION PLANNING

25% 20% 18% 33% 18%

Source: Towers Watson 2008/2009 Global Strategic Reward Report

Look Forward When Developing a Talent Management Program

Example: Thinking Ahead

ALL CONTENT UNC EXECUTIVE DEVELOPMENT 2011

PUTTING SUCCESS BACK IN SUCCESSION PLANNING

Example: Evaluating Leadership Potential

Succession Planning Is Not Just for the C-Suite Anymore

Developing Future Skills at Multiple Leader Levels

Source: Hagemann & Chartrand, 2009

Those with leadership potential at an entry level 33%

efined as 75th percentile. D Source: BGCA; McKinsey analysis

3. I nvolve Senior Leaders in Learning and Development Opportunities as Instructors or Participants

Financial Analysis for Non-Financial Managers

Strategic Innovation for the New Business Environment

Example: E-learning for the Health Care Profession