Why Coaching? A Leadership Perspective

Competitive advantage through people has always been a goal of modern leadership and becomes more critical as product and price differentiation narrow.  Traditionally, the role of creating more skilful and focused people has been given to HR and training.

Research tells us that classroom training (whether it be real or virtual) is only appropriate for 15% of development needs  (Rummler 1995).  Not only does this cause concern about the use and abuse of training events, it also raises the tantalising question of what is appropriate if training is not?

The broad answer is workplace rather than classroom development.  To explore this more closely, the researchers seem to indicate that regular interaction, rather than one off events, leads to enhanced skills and increased performance.

The diagramme above has been created as a result of applying a range of performance improvement techniques to varying organisations over a 20-year period (www.prosell.com).  It indicates that with a “clean sheet of paper” (i.e. no preconceptions or bad habits, as with new starters or new roles), people can more easily accept, in a training environment, that specific skills and approaches are correct and need to be mastered.

With individuals that already have a perception of what is right and wrong and in some cases extremely entrenched opinions, a different approach needs to be used.  Not only do we need to explain why new skills are needed, we also need to sensitively reassure people that they and their (old) skills are not redundant, but need to be adapted and updated.  If we are attempting to change behaviour, as opposed to initiating it, coaching is shown to be a more effective tool.

In order to develop further the rationale for this model and the positioning of coaching, we need to be familiar with the relationship between management intervention and performance/behaviour change.

The US organisation Technikron conducted research into the level of intervention needed to drive behavioural change.  (Technikron work with performance measurement and feedback systems in contact centres.  The research was conducted in 1997.)

They concluded that to change behaviour the manager needed to interact with the individual, on average, 2-3 times a week.  This raises serious concerns about the effectiveness of more traditional performance management tools, such as annual appraisal and performance reviews (Appraisals – A Good Investment?  Prosell Research, 1993).

Whereas we accept that most good managers talk to their people more often than just at appraisal time, our experience tells us that this is not a series of regular interactions which are carefully planned to reinforce changes in behaviour and provide input (coaching), when needed.

Coaching also has greater impact in terms of immediacy of resolution and as such, should be a primary development tool.

Danger of re-training 

There seems to be growing evidence that organisations accept that people will go through the same training (level and subject matter) at regular intervals (apart from compliance training).  This implies a number of unhealthy traits within the organisation:

  • there is no consequence for not applying skills in the workplace; and

Once this becomes accepted practice it also has an impact on the quality of training delivered.  If people are not measured in their application of what they have learnt, then the training does not need to ensure comprehension, let alone competence.

The other major implication is centred on who is nominated for training in the first place.  Research suggests that the primary reason for training is performance discrepancy or skill weakness.  Those with skill weaknesses or areas for obvious development are not those who implement training well and willingly in the workplace.  There is clear evidence that, “those who need it most use it least” (Dettaman and Steinberg, 1993).

Questions must therefore, be raised about both the economics of re-training and the validity of the practice.

The Skill Development model and its implications

The model opposite shows that individuals go through three stages when acquiring skills.  Typically, the first and last stages, those of awareness and application, are workplace activities and in the main, management responsibilities.

The two figures on the left hand side of the model above illustrate important points.  The 35%-40% marks the point where people end up after training (on a competence scale of 1%–100%).  This means that the majority of the acquisition of competence takes place in the workplace.

This is broadly accepted within the training fraternity.  Whereas training allows people to explore new ways of doing things and hopefully exposes them to “best practice”, it does not create experts.

If expertise is acquired in the workplace and not the classroom, then we must accept that specific things need to happen in the workplace.  Primarily, people need to be coached and given feedback on their competence.

Our 20 years experience tells us that, proportionately, the following time and effort needs to be expended to successfully take an individual through the skill development process:

  • Awareness     25%
  • Practice         35%
  • Application     40%

The second figure (5%-9%) is where the research tells us people end up if nothing is done in the application phase.  This is typically between unconscious incompetence and conscious incompetence.  This typically happens with 4 – 5 months.  This is a startling figure and perhaps explains why many people in business have a cynical view of the value of training.  It seems they are right.  Without specific application strategies, companies are wasting between 91 and 95 cents of every dollar they spend on training.

Practice and Feedback

It is commonly understood that people develop skills through one primary mechanism, practice and feedback.  Conventional training tends to be squeezed for time and it is inevitably the practice sessions that are sacrificed.  Too much content and not enough practice creates uncertainty in application, through issues of confidence and competence.  If a person cannot, through practice, feedback and practice again, achieve a point of competence (“I have practiced this to the point where I feel competent to do it in the workplace”), they have no confidence in applying skills.  The implications of this are that many people (over 75% in one study) actually avoid applying skills trained because they have no confidence that they will be effective.  Those organisations that use coaching as a development tool do not seem to face these issues.

Near and Far Learning

Noted behavioural scientists, Detterman and Steinberg, published a book in 1996 entitled Transfer on Trial.  The book focused on the issue of learning transfer (the measurable transfer of learning and skills from classroom to workplace).  Their research had concluded that 86% of training did not transfer effectively.  There were a variety of reasons for this – measurement, support, feedback (all key components of coaching).  They also spoke about the difference between near and far learning as a critical issue.

Far learning means completing exercises which are broad, generic and explore our understanding of principles.  Detterman and Steinberg’s research concluded that people found it difficult to relate broad principles to specific work situations – and as a result did not apply skills effectively.

Near learning produces significantly better results.  Near learning is practicing the specific skills needed, through customised and intelligently constructed exercises, so that the individual is practicing exactly what they are being asked to do in the workplace.  Coaching is the ultimate example of near learning – it says to the individual, “We are going to practice this until you feel you are doing it effectively and then evaluate as you do it live”.  As a result it is significantly more effective in ensuring learning transfer.

Performance Management and Coaching

Performance management practices (appraisal, review, goal setting, etc) all become uncomfortable, bureaucratic exercises if those responsible cannot add value and direction through coaching.  If neither party feels value is being added by the other, then both parties view the process as lacking in worth and tend to avoid it.

This also is reflected in a more serious deficiency that is commonly observed in management practice.  If a manager cannot rectify a performance deficiency they seem to imply that this is not their responsibility but solely that of the individual.

These situations end up with a management style of “I point out your weaknesses and you have to fix them”.  If one considers the fact that research tells us that the main reason people leave jobs is dissatisfaction with the way in which they are managed (Institute of Directors, UK survey, 2001), then managers’ inability to coach and develop may be having a much more serious impact.

Conversely, a good coach does more than just coach.  In order for a coach to be effective they must have a reasonable grasp of:

  • Performance management;
  • Motivation;
  • Counselling;
  • Development and support;
  • Evaluation and feedback;
  • Performance measurement;

Feedback also tells us that competent coaches add value to staff and have much better relationships with their people.  Creating a competent coach therefore, also creates competency in a number of essential areas.

Edward Johnson, one of the founding members of the Johnson and Johnson empire, was famously quoted as saying, ‘Leadership is cause, all else is effect.’  Leaders of people must all be aware that it is their behaviour, not the training department, which determines whether your people will out-perform the competition.

References

Douglas Detterman and Robert Steinberg, Transfer on Trial: Intelligence, Cognition and Instruction, Ablex Publishing, 1993

Geary Rummler and Alan Brache, Improving Performance: How to Manage the White Space in the Organisation Chart, 2nd ed, Jossey Bass, San Francisco, 1995.

Source:

Peter Fullbrook, Founder, Prosell

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Performance●Productivity●Profit

Counting the cost of e-mail

When it comes to e-mail, there is not a lot of things that shock me anymore.  I have seen inboxes with 28,000 e-mails in them. I have seen people who send e-mails to themselves to remind themselves that they need to action an e-mail already in their inbox. I have seen people who have given up and just deleted the lot!  But in a recent workshop on e-mail management at one of the big four banks, a participant shared how his team had been involved in a project to reduce the size (and therefore cost) of their mailboxes.  All of the support and maintenance for these was outsourced, so the costs involved were very tangible.  In the end, by decreasing the size of 100 mailboxes in the team, they have created a saving of $20,000 to $30,000 per year!  Staggering!  Imagine that across the broader organisation of 22,000 mailboxes.

That must be a drop in the ocean though, compared to the actual cost of e-mail in productivity terms.  Another recent conversation with a senior management team within a global financial institution uncovered the fact that these senior managers, who all wanted to spend more time with their people or working on strategic initiatives, were spending up to 5 hours per day just on e-mail.  They were drowning in a sea of CC’s, distribution lists and inbox noise.  And what about the cost of overfull and messy inboxes, the cost of searching for that critical but elusive e-mail you received last month, the cost of spending the first half-hour of the day deleting enough e-mail in response to the dreaded “Your mailbox is full” message.

E-mails cost time, and not just the recipient’s time, but also the sender’s time.  If the e-mail is internal the organisation may pay twice, if it is not adding value!  My goodness, I thought that e-mail was meant to be making us more productive.  The good news is though, it still can.  Although e-mail volumes have shot up for most workers, and become a large contributor to long hours and stress, it is still a fantastic way to communicate, and get information from A to B (or B, C,D and E all at once).  The trick to making e-mail work for you, rather than you working for it, is in understanding its traps and applying a set of principles to managing it.

The common e-mail traps and how to avoid them

E-mail is a core part of modern work life, and whilst it has improved the speed and efficiency of communication enormously, it comes with baggage attached (excuse the pun).  The common e-mail traps that I encounter with workers across the board are:

Making e-mail # 1 – E-mail has become our prime focus during the workday, and often outside of core work hours too.  We must remember that it is just a part of our role – a tube for getting information from one place to another.  It is not the main game, and not what we will be measured against come the end of the year.  We need to learn to make e-mail management a part of our day, to deal with it at regular intervals, and then to put it away to focus on our priorities and commitments. 

  • Turn off e-mail alerts and alarms, they are just distractions from other work
  • Check e-mail at regular intervals, between 3 and 6 times per day
  • Check handheld e-mail devices at appropriate times, but turn off when it is time to focus

 

Too many e-mails – 30, 50, 100 per day and counting.  I recently worked with two poor souls who were getting over 1000 e-mails per day! Ridiculous!  Many feel that they cannot control what is sent to them, but with some concerted effort and creativity you can slash the deluge to a more manageable flow.

  • Get off unnecessary distribution lists and e-mail subscription lists
  • Discuss your expectations with your team about when and what to CC you on
  • Set up e-mail rules to automatically delete or move (file) informational e-mails
  • Send less e-mails (you will receive less as a result)

Overfull Inboxes – Messy, overfull and back-logged inboxes cause stress, delays, confusion and rework.  Many workers use their Inbox as a to-do list, and the act of checking e-mail is often an advanced form of procrastination.  The inbox ends up as an unruly mix of stuff you have not looked at yet mixed in with existing e-mails that need action, or should be deleted or filed. For the truly in-control e-mail manager, the Inbox is a delivery dock.  And just like the delivery dock of a supermarket, it should be cleared, to zero, weekly, if not daily.

  • Set up a simple filing system (1 – 10 folders) to keep necessary e-mail

Poorly written e-mail – One of the stresses associated with e-mail is the irrational feeling that we need to respond to every e-mail.  We know this is not true, but it feels that way sometimes.  But, even with the percentage that we do need to respond to, time can be saved by learning to compose e-mails in a clear, efficient manner.  The clearer your e-mail is to the reader, the more cut-through you will have, and the more likely they are to action your e-mail in a timely way.  Remember, your e-mail for them is probably just one of 100 that day.

  • Write clear subject lines with impact – most people scan, so stand out from the crowd
  • State any actions required and due dates in the first line or two of the e-mail

In a world where time is money, and human resources account for the largest chunk of any organisations overheads, it seems a no-brainer to get better at managing the effect that e-mail has on our productivity.  Rather than organisations putting pressure on staff to work longer hours to get things done, why not focus on helping them make their core workday more productive.  The savings could be huge, and I promise you, everyone will be happier!

Source:
Dermot Crowley - Founder
Adapt Training

Flash Sale Sites – What to Expect in 2011

By: Cindy Almond 

One of the things 2010 will be remembered for within the eCommerce industry is being the year of the “flash sale” site. With the majority of these sites having restricted memberships and only offering limited time deals at a drastically discounted price, it’s no surprise that given the economic climate these sites are catching on. In fact, the three most visited flash sale sites, Hautelook.com, Gilt.com, and ideeli.com have all seen at least a 60% increase in traffic per month compared to last year with ideeli.com more that quadrupling their average monthly visits from one year ago.

But what will be the future of flash sale sites? The majority of the popular flash sale sites are currently geared toward apparel and luxury goods, targeted primarily at young adults. Not until recently have other flash sale sites in different industries started to emerge, showing that the flash sale site is far from an industry specific fad.

Here are a few examples…

Totsy focuses primarily on baby and children’s apparel, furniture, and accessories catering their membership towards young mothers. The site was founded in June 2009 and really started to gain traction in the summer of 2010. Totsy has seen their site traffic grow from approximately 20,000 visits / month to over 110,000 visits / month over the past year.

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Early consumer product winners in the developing world could score lasting gains

The developing world’s rapidly growing middle class, which includes about two billion people in a dozen emerging economies, spends $6.9 trillion a year. McKinsey research suggests that, during the next decade, their annual spending will rise to $20 trillion, a very big market indeed—twice current US consumption, in fact.

Such consumers will give early winners in the consumer product sector a chance to gain lasting advantages. Consider what happened in Europe and the United States at similar points in their development: in 17 product categories, McKinsey found that the 1925 US market leader remained the number-one or number-two player for the rest of the century. These companies include Kraft Foods (Nabisco), in biscuits; Del Monte, in canned fruit; and Wrigley, in chewing gum. To learn more, read “Capturing the world’s emerging middle class” (July 2010).

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Performance●Productivity●Profit

What's your Deal?

[DISCOUNT1]Bryan Derballa for The Wall Street Journal

A Gap store's 'buy one get one' deal, or BOGO, offers 60% off a second item.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tick-tock, watch the clock, stores are telling holiday shoppers.

Looking to inject a sense of urgency into the holiday shopping drill this year, many major stores are running their own versions of the online "flash sale," cutting prices, in some cases for just a few hours at a time.

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Creating value in the age of distributed capitalism

As mass consumption gives way to the wants of individuals, a historic transition in capitalism is unfolding.

Capitalism is a book of many chapters—and we are beginning a new one. Every century or so, fundamental changes in the nature of consumption create new demand patterns that existing enterprises can’t meet. When a majority of people want things that remain priced at a premium under the old institutional regime—a condition I call the “premium puzzle”—the ground becomes extremely fertile for wholly new classes of competitors that can fulfill the new demands at an affordable price. A premium puzzle existed in the auto industry before Henry Ford and the Model T and in the music industry before Steve Jobs and the iPod.

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Riding Asia’s digital tiger

Asia is the world’s hottest area of Internet growth, but the dynamics on the ground vary widely by nation.

Asia’s emerging markets are poised for explosive digital growth. The region’s two largest economies—China and India—already boast some 500 million Internet users, and we forecast nearly 700 million more will be added by 2015 (Exhibit 1). Other emerging Asian nations have the potential to grow at a similarly torrid pace. We estimate that within five years, this billion-plus user market may generate revenues of more than $80 billion in Internet commerce, access fees, device sales, and so forth

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Boosting the productivity of knowledge workers

Image Source

The key is identifying and addressing the barriers workers face in their daily interactions.

Are you doing all that you can to enhance the productivity of your knowledge workers? It’s a simple question, but one that few senior executives can answer.

Their confusion isn’t for lack of trying. Organizations around the world struggle to crack the code for improving the effectiveness of managers, salespeople, scientists, and others whose jobs consist primarily of interactions—with other employees, customers, and suppliers—and complex decision making based on knowledge and judgment.1 The stakes are high: raising the productivity of these workers, who constitute a large and growing share of the workforce in developed economies, represents a major opportunity for companies, as well as for countries with low birthrates that hope to maintain GDP growth.

Nonetheless, many executives have a hazy understanding of what it takes to bolster productivity for knowledge workers. This lack of clarity is partly because knowledge work involves more diverse and amorphous tasks than do production or clerical positions, where the relatively clear-cut, predictable activities make jobs easier to automate or streamline. Likewise, performance metrics are hard to come by in knowledge work, making it challenging to manage improvement efforts (which often lack a clear owner in the first place). Against this backdrop, it’s perhaps unsurprising that many companies settle for scattershot investments in training and IT systems.

Since knowledge workers spend half their time on interactions, our research and experience suggest that companies should first explore the productivity barriers that impede these interactions. Armed with a better understanding of the constraints, senior executives can get more bang for their buck by identifying targeted productivity-improvement efforts to increase both the efficiency and effectiveness of the interactions between workers.

 

  Toggle Sidebar  
 

About the research

 
     

Among companies we’ve surveyed (see sidebar, “About the research”), fully half of all interactions are constrained by one of five barriers: physical, technical, social or cultural, contextual, and temporal. While individual companies will encounter some obstacles more than others, our experience suggests that the approaches to overcoming them are widely applicable.

Physical and technical barriers

Physical barriers (including geographic distance and differences in time zones) often go hand in hand with technical barriers because the lack of effective tools for locating the right people and collaborating becomes even more pronounced when they are far away. While these barriers are on the wane at many companies given the arsenal of software tools available, some large, globally dispersed organizations continue to suffer from them.

One remedy implemented by some organizations is to create “communities of practice” for people who could benefit from one another’s advice—as the World Bank has done to help the 100 or so of its planners who focus on urban poverty to facilitate discussions on projects to upgrade slums. The communities feature online tools to help geographically dispersed members search for basic information (say, member roles and the specific challenges they are addressing) and sometimes use the latest social-networking tools to provide more sophisticated information, including whom the members have worked or trained with. By supplementing electronic tools with videoconferences and occasional in-person meetings, communities can bridge physical distances and build relationships.

Social or cultural barriers

Examples of social or cultural barriers include rigid hierarchy or ineffective incentives that don’t spur the right people to engage. To avoid such problems, Petrobras, the Brazil-based oil major, created a series of case studies focused on real events in the company’s past that illuminate its values, processes, and norms. The cases are discussed with new hires in small groups—promoting a better understanding of how the organization works and encouraging a culture of knowledge sharing and collaborative problem solving. (To benefit further from such approaches, companies should include knowledge sharing in performance reviews and ensure that team leaders clearly communicate acceptable response times for information requests. The communities of practice described above can help too: employees are far more likely to give timely and useful responses to people in their network.)

Contextual barriers

Employees who face contextual barriers struggle to share and translate knowledge obtained from colleagues in different fields. Complex interactions often require contact with people in other departments or divisions, making it hard for workers to assess a colleague’s level of expertise or apply the advice they may receive. Think of the disconnect that often occurs between a company’s sales department and its product-development team over customer data. The two groups frequently struggle to communicate because they think and talk so differently about the subject (sales staff devote attention to customer insights while developers focus on product specifications).

To overcome contextual barriers, organizations can rotate employees across teams and divisions or create forums where specialists in different areas can learn about one another’s work. The US National Aeronautics and Space Administration (NASA), for instance, holds a biannual “Masters Forum” to share knowledge across disciplines. About 50 employees from different parts of the agency attend the meetings to hear other NASA colleagues talk about the tools, methods, and skills they use in extremely complex projects. The sessions are lightly moderated and very interactive.

Similarly, managers at Ecopetrol, a Colombian gas and oil company, have found that technical forums not only break down the natural barriers between occupations but also facilitate knowledge sharing across geographic boundaries. Moreover, the forums build trust, which encourages employees to share information more freely.

The barrier of time

The final barrier is time, or rather the perceived lack of it. If valuable interactions are falling victim to time constraints, executives can use job roles and responsibilities to help identify the employees that knowledge workers should be interacting with and on what topics. In some cases, companies may need to clarify decision rights and redefine roles to reduce the interaction burden on some employees while increasing it on others.

Boston-based Millennium Pharmaceuticals, which develops drugs for cancer treatment, did just that. When it found that researchers didn’t have time to share lessons from their experiments, it created a small group of scientists to act as “knowledge intermediaries.” Based on meetings with company scientists as well as presentations, these employees summarize findings and submit them to an internal database. They also act as brokers by sharing knowledge across groups. The company reckons that this practice, combined with other initiatives, has boosted success rates for the company’s research and reduced the time needed to make key decisions.

About the Authors

Eric Matson is a consultant in McKinsey’s Boston office; Laurence Prusak is a visiting scholar at the University of Southern California Marshall School of Business and a former senior adviser to McKinsey.

Source:

McKinsey

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IT services: The new allure of onshore locales

Here is an article that IT and Communications providers are more regularly looking at...


 Many IT service providers are locating some operations in second-tier cities of their home markets.

Despite the steady march of IT services to offshore centers from India to Russia over the past 15 years, many IT tasks aren’t easily moved. Financial regulations, for instance, often demand that data such as bank records be processed in home markets. Privacy rules impose similar restrictions on health care data, while security guidelines require defense contractors to handle data analysis within national markets. By one estimate, more than 15 percent of data center jobs must remain there for these reasons.1 Even with work that’s not bound by such regulations, it isn’t uncommon for up to 25 percent of all IT service tasks to remain in onshore or at least close-shore locations (close to the home market, though not necessarily in it), simply because that’s where skilled software technicians are found or can be quickly deployed. (For simplicity’s sake, from now on, we shall refer to locations in or near the home market as close-shore locations.)

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A new idea in banking for the poor

 By teaming up with retail outlets in low-income, often hard-to-reach areas, financial institutions can create value both for themselves and their new customers.

Correspondent banking has become one of the most promising strategies for offering financial services in emerging markets. In this model, financial institutions work with networks of existing nonbank retail outlets—such as convenience stores, gas stations, and post offices—to deliver financial services. This approach can be especially powerful when serving the unbanked poor because of its ability to reduce banks’ cost-to-serve and reach low-income workers where they live. In Brazil, where the strategy has enjoyed its greatest successes, about 1,600 municipalities (approximately one-third of the total) are served solely by correspondent-banking outlets.

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