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Performance Consulting at Hyundai-Kia Motors:

Linking Training and Business Results

Hyun-Suk Kim Hyundai Motor Company Ronald L. Jacobs, Ph.D. The Ohio State University ASTD 2011 - M117 May 23, 2011

Session Introduction Hyundai-Kia HRD Center Business Challenge Performance Consulting Project HRD Solution Team & Projects Summary and Future Challenges Questions and Answers

Session Introduction
Partnership R&D project between a global corporation (HKMC) and a university (OSU) The process of improving HRD practice through scholarly research and informed development practices (Jacobs, 1996; 1997).
Corporation provides the problem context and staff expertise University adapts theory, research, and practice to the context Together: corporation achieves goals and advances the field Outcomes could not be achieved alone

The Workforce Development and Education graduate program seeks to prepare advanced practitioners, leaders, and scholars to address the following societal issues:
Prepare to enter or re-enter the workforce Undertake formal, informal, and non-formal learning opportunities to improve workforce performance Adapt to changes that affect workforce competitiveness Undergo life transitions related to workforce participation

HMC Corporate Philosophy

Realize the dream of mankind by creating a new future through ingenious thinking and continuously challenging new frontier
Customer Challenge Collaboration People Globality

Corporate Philosophy

Core Values

Together for a better future Vision The Hyundai Motor Group aims to create ultimate value and promote harmonious growth for all stakeholders through eco-friendly management and respect for mankind.


HKMC HRD Center was established in 2003 by integrating the training units at HMC and KMC. Job-oriented training programs offered to employees who belong to specific units such as R&D, production, and maintenance. For the structured training and professional development of our overseas employees, the Global Human Resource Development Standards (GHRDS) was established in 2007.



The Best HRD Engine Leading the Future Growth

Developing globally competitive talent that shares our value and culture Supporting global operations


Directions For 2011

Contributing to business performance Building a boundary-free corporate culture Establishing the HRD Center as the corporate hub for learning and developing competence

HKMC HRD Center Business Challenge

Change was driven by leadership of the HRD Center

The HRD Center should be a tool to help the organization achieve its strategic objectives. Thus, HRD programs must be linked to our business performance.
Seong C. Lee, Ph.D. Senior Executive Vice President

HKMC HRD Center Business Challenge

Org. Issue
Mgt. competence Senior executives Managers Staff competence Sales, production, R&D

HRD Response
Leadership Development programs

Org. Results

? ?

S/K/A Development programs

Transform Learning to Performance Improvement


HKMC HRD Center Business Challenge

Do our training programs actually contribute to improving performance in our workplaces? Are there ways of improving performance beyond the use of training alone? Can our training programs be made more efficient and effective? Can we document our impacts of our work on the organization?

Performance Consulting Project

The intent of the Project was to capacitate a pilot group of HKMC HRD staff in using a performance consulting process. It was anticipated that the process will be disseminated throughout HKMC and be considered as a global standard for the organization.


Performance Consulting Project

A. Adapt current models of performance consulting and human performance technology to the HKMC context. B. Provide a professional development program to HRD staff focusing on the HKMC Performance Consulting Process. C. Provide coaching and feedback support to HKMC HRD staff in their initial use of the Process.


Performance Consulting Project

D. Evaluate and recommend improvements to the HKMC Performance Consulting Process. E. Disseminate information about the experience and its results to both HRD practitioners and scholars.


Performance Consulting Project

Expected Outputs Program
Framework for performance Consulting Models and processes Performance consulting practice/feedback Competency based curriculum Training design/Training transfer Performance support OD Framework and Process Interventions and Process Facilitation Organization Diagnosis



HKMC ISD Model Intervention Manual Diagnosis Tool


Kick Off (4/15, 2010)

1st Phase Project(KOREA) (4/15~6/19)

2st Phase Project(OSU) (7/5~9/10)

Conduct Project (9/13~11/30 )

Present Initial Outcomes (1st W of Dec)

Reflect on Outcomes (May 2011)


Performance Consulting Project

Date April 16 - 17 May 14 - 15 July 6 Sep 2 Activities Project Overview, Fundamentals of HPT and PC Performance Consulting OSU Training Management System (TMS) Implementing Performance Consulting SCID Workshop Visit Hyundai Motor Manufacturing Alabama Cross-Cultural Management (CCM) Evaluation Performance Analysis Case Study Organizational Issues and HRD Implication S-OJT Developer Workshop

Location Seoul, Korea Seoul, Korea OSU Campus

Performance Consulting Project

Performance Analysis Performance Consulting

Training Design

Organization Development

Performance Support


Performance Consulting Project

Human Performance Technology . . . is the field of study that combines several bodies of knowledge, including system theory, economics, education, psychology, and organization behavior, to form a set of principles and practices that seek to improve and sustain human performance in organizations.


Performance Consulting Project

Organizations are systems Performance problems (existing or anticipated) are a function of disconnects in the aspects of the system. To improve organizations, we must find where disconnects are occurring or are expected to occur. Decisions about the solutions should be based on psychological, economic, and system considerations, but not always equally. We live in a rational world . . . well, maybe.

Performance Consulting Project

Performance consulting is a process in which a client and consultant partner to accomplish the strategic outcome of optimizing workplace performance in support of business goal.

Robinson & Robinson (1994)


Performance Consulting Project

Our working definition . . . An approach to working with clients that emphasizes the use of a system approach for understanding and solving human performance problems in organizations.
(Jacobs, 2010)

System approach Considering all aspects of the problem situation first, before focusing on how it will be solved


Performance Consulting Project

Phase 1. Pre-Entry Phase 2. Entry and Contracting Phase 3. Analysis and Action Planning Phase 4. Design and Implement Solution Phase 5. Evaluate and Revise Phase 6. Project Close Phase 7. Project Learning

Performance Consulting Project

Performance Analysis is the process of 1) identifying the existence of problem situations, either current or anticipated, 2) determining the causes of the problem situations, and 3) proposing solutions on how the problem situations might be addressed. Problem situations
Existing performance problems Future changes in mission, product, or service Future changes in operational context

Performance Consulting Project

1. Describe problem context 2. Identify gaps in performance 3. Facilitate problem identification 4. Analyze problem causes 5. Propose problem situation 6. Forecast financial benefits 7. Obtain management commitment

1. Link changes in strategic plans and operational context with likely organizational impacts 2. Describe anticipated problem context 3. Facilitate visioning of anticipated gaps in performance 4. Facilitate anticipated problem identification 5. Analyze problem causes 6. Propose problem solutions 7. Forecast financial benefits 8. Obtain management commitment

HRD Solution Team

HRD Division

HRD Plan.

Value Edu.

Competency Dev.

Leader Dev.

Global HRD

(1 Division 5 teams 2 Divisions 6 teams)

HRD Strategy

Leadership Dev.

HRD Plan.

Global HRD

Digital Learn. 24

HRD Solution

Value Dev.

Leader Dev.

HRD Solution Team

Client: Customer Satisfaction unit Goal: Increase competitiveness of CS to align with management value of Customer is First
Traditional HRD Center Response
Accept the clients perspective of the problem Develop training solution based on that perspective

HRD Solution Team Response

Help the client understand the problem and determine causes Suggest both training and nontraining solutions


HRD Solution Team

HKMC adopted a performance consulting process consisting of four phases:


Performance Assessment

Intervention Design

Implementation & Feedback


HRD Solution Team

Entry (Current Status Analysis): Reached agreement with the CS unit based on the clients concern, and conducted company, customer, and competitor analysis Performance Assessment : Identified principal causes preventing desired performance, outcome through interviews (n=40) and survey (n=2,398) Intervention Design: Selected interventions according to the cause analysis results, acceptability to client, and efficiency considerations

HRD Solution Team

A. Training Interventions Establishing the CS Learning Center Establishing a CS development system Developing customized CS programs B. Long-term Non-Training Interventions Improving channels of communications Documenting CS operations and processes Establishing CS Council to discuss issues with senior management

HRD Solution Team

C. Short-term Non-Training Intervention Documenting and sharing the CS mission/vision Responding to customer feedback Improving CS evaluation systems Formalizing the performance appraisal system Developing criteria for recruiting CS professionals


Summary and Future Challenges

Traditional HRD Center
Focus is on providing training programs Develops and delivers training programs on topics based on the requests of clients HRD is viewed as a nice-tohave support function, often referred to as a cost center.

HRD Solution Team

Focus is on improving organizational performance Analyzes problems, develops solutions, and evaluates results based on the problem situation HRD is beginning to be viewed as a business partner that contributes to the organizations mission

Summary and Future Challenges

Professional development: system thinking, consulting skills, performance problem solving, needs assessment, evaluation - ROI, among other topics Convince HRD staff of the importance of performance consulting Document successes, be open about challenges Educate clients about the process Obtain management commitment to the process

Questions and Answers

Hyun-Suk Kim Hyundai Motor Company pobistar@hyundai.com

Ronald L. Jacobs, Ph.D. The Ohio State University Jacobs.3@osu.edu

! Thank you!