1. Performance Consulting: Make Performance Your Business! (and Prove It)
Jack Phillips
Dick Handshaw

2. Manufacturing Plant Scenario
Safety violations are increasing within a manufacturing plant
Plant managers request safety training for operations and supervisors
Records indicate individuals attended safety training last year

3. Could you create a learning solution for this scenario?

4. Will a learning solution, by itself, bring about a sustained decrease in safety violations?

5. The Story Continued Multiple Factors Impact Upon:
Operators/Supervisors
Plant operations

6. Performance Consulting is …
“A strategic process that produces business results by maximizing performance of people and organizations.”
- Dana and James Robinson, Patti and Jack Phillips, and Dick Handshaw

7. The Performance Consulting Process

8. The Performance Consulting Process

9. The Performance Consulting Process

10. The “True” Client
The owner of the line of business who is experiencing the performance problem.

11. The “True” Client They know: Current business goals
Internal and external barriers
Strongest and weakest performers

12. The “True” Client They can:
Answer questions as you conduct Reactive and Proactive Consulting
Make the decisions that affect the final business results

13. 1 Two Key Principles Partner with clients who accomplish results:
Own the business and performance needs
Have the most to gain or lose
Have authority to make decisions
Can obtain needed resources 1

14. Two Key Principles
Use mental models to ask powerful questions and to accomplish results:
The Needs Hierarchy
SHOULD-IS-CAUSE Logic 2

15. Organizational & Individual
Needs Hierarchy
Business Needs
Performance Needs
Organizational & Individual
Capability Needs

16. Business Needs Strategic Business Goals Hard Data Revenue
Profitability
Market share
Customer satisfaction
Quality

17. Performance Needs Performance Needs On-the-job performance
Best practices
Following procedures
Supports Business Goal
Performance Needs

18. Organizational and Individual Capability Needs
Organizational Capability
Coaching and reinforcement
Incentives
Work systems and processes
Individual Capability
Required skill and knowledge
Internal motivation
Educational credentials
Organizational & Individual
Capability Needs

19. Organizational & Individual
Needs Hierarchy
Business Needs
Performance Needs
Organizational & Individual
Capability Needs

20. Proactive Performance Consulting is…
“The process of establishing a consulting relationship that will lead to a strategic approach to achieving business results.”

21. Reactive Performance Consulting is…
“Also referred to as ‘reframing’ is the process of assessing a client request through questioning to transition the discussion away from a focus on a solution and into a discussion about the business needs.”

22. Powerful Questions Are:
Open-ended
Focused to a specific need in the hierarchy
Solution- and cause-neutral

23. SHOULD Questions
Business SHOULDs Performance SHOULDs
Seeking desired operational numbers
“What is our goal for the percent of customers indicating service is very good or excellent?”
Seeking desired on-the-job accomplishments / behaviors
“What must our customer service representatives do more, better or differently to achieve this level of service rating?”

24. IS Questions Business IS Performance IS
Seeking current operational numbers
“What is our current customer satisfaction rating for service?”
Seeking current on-the-job accomplishments / behaviors
“What are customer service representatives typically doing now that yields this level of result?”

25. CAUSE Questions Organizational Capability CAUSEs
Individual Capability CAUSEs
Seeking root causes within the organization
“What factors, if any, within our organization are contributing to the disappointing customer satisfaction results?”
Seeking root causes within individuals
“What is your assessment of the capability of customer service representatives to provide high levels of service to our customers?

26. Root Cause Categories for Gaps
G:\PPTDATA\EP\ElecPres\Webinar2\Webinar_ pptG:\PPTDATA\EP\ElecPres\Webinar_ ppt
Root Cause Categories for Gaps
Successful On-the-Job Performance
(Accomplishments and Behaviors)
Factors EXTERNAL to Organization
Factors INTERNAL to Organization
(Organizational Capability)
1. Clarity of Roles and Expectations
3. Incentives
5. Access to Information, People, Tools, and
Job Aids
2. Coaching and Reinforcement
4. Work Systems and Processes
6. Supportive Culture
Factors INTERNAL
to Individuals
(Individual Capability)
1. Skill and Knowledge
2. Inherent Capability
DANA
Now I’d like to take us deeper into work environment and capability needs than we did in the prior webcast
This is critical if we are to move the discussion to a strategic level
Explain Gap Zapper and link back to the Zap the GAPS! Book
On the job performance is representing the performance need box of the need hierarchy
Performance is resting on a three-legged stool:
1)The first leg is capability needs with two categories of root cause
- acknowledge skill and knowledge and discuss briefly inherent capability
2)For work env needs, acknowledge that there are five categories of root cause, commenting on coaching and reinforcement as well as work systems and processes with the Geary Rummler quote.
3) External factors
When whole slide is up: acknowledge there is a total of 8 categories of root cause for why people don’t perform. Clients typically come to us with a single solution in mind such as training or reorganization.The probability that the single solution that is requested will, by itself, solve the problem is low. As Performance Consultants we must ask the powerful questions that will disclose root causes for the client’s current situation.
4.6. Supportive Culture

27. The ROI Methodology Evaluation Planning Data Collection Develop/Review
Level 1:
Reaction, and Planned Action
Level 3:
Application
Develop/Review
Objectives of
Program
Develop
Evaluation
Plans and
Baseline Data
Collect
Data During
Program
Implementation
Collect
Data After
Program
Implementation
Level 2:
Learning
Level 4:
Business Impact

28. The ROI Methodology Data Analysis Reporting Capture Costs of Program
Isolate the
Effects of
Program
Convert Data
to Monetary
Value
Calculate the
Return on
Investment
Generate
Impact
Study
Level 5:
ROI
Identify
Intangibles
Intangible Benefits

29. Matching Evaluation Levels with Objectives Exercise
Reaction and Planned Action
Learning
Application
Business Impact
Return on Investment

30. Developing Level 3 and Level 4 Objectives
Level 3 and Level 4 objectives provide:
Direction to designers and developers
Guidance to facilitators and coordinators
Goals for participants
Satisfaction for program sponsors
A framework for evaluators

31. Alignment and Measurement Model
Assessment
(the IS/Current State)
Objectives for Initiative
(the SHOULD/Desired State)
Measurement
(the RESULTS)

32. Data Collection During Program
Method
Surveys  
Questionnaires  
Observation  
Interviews  
Focus Groups  
Tests/Quizzes 
Demonstrations 
Simulations 
Level 1 Level 2

33. Data Collection During Program
Method
Surveys 
Questionnaires  
Observations 
Interviews 
Focus Groups 
Action planning/improvement
plans  
Performance contracting  
Performance monitoring 
Level 3 Level 4

34. Factors to Consider When Selecting Data Collection Methods
Time – Participant/Supervisor
Costs
Accuracy – Validity/Reliability
Utility
Type of data
Culture/Philosophy

35. Factors to Consider When Determining timing of Follow-Up
Availability of data
Ideal time for behavior change (Level 3)
Ideal time for business impact (Level 4)
Convenience of collection
Constraints on collection

36. International Sales

37. Methods to Isolate Program Effects
Use of a control group arrangement
Trend line analysis of performance data
Use of forecasting methods of performance data
Participant’s estimate of program impact (percent)
Supervisor’s estimate of program impact (percent)
Manager’s estimate of program impact
Use of experts/previous studies
Calculate/estimate the impact of other factors
Customer input

38. Isolating the Effects of the Program
Benchmarking Data
Method
Control Groups
Trend Line Analysis
Forecasting Methods
Participant Estimates
Manager Estimates
Sr. Management Estimates
Expert Input
Customer Input
* Survey of Users, N = 235

39. Control Group Method Experimental Group M1 Program M2 Control Group M1
$35,000
$45,000
Control
Group M1 M2
$40,000
$35,000

40. Data are Converted by:
Converting output to contribution – standard value
Converting the cost of quality – standard value
Converting employees’ time – standard value
Using historical costs
Using internal and external experts
Using data from external databases
Linking with other measures
Using participants’ estimates
Using supervisors’ and managers’ estimates
Using staff estimates

41. Design and Development Acquisition/Purchase (if applicable)
Cost Items
Prorated
Expensed
Needs Assessment 
Design and Development
Acquisition/Purchase (if applicable)
Delivery/Implementation
Salaries/Benefits-Facilitator Time
Salaries/Benefits-Coordination Time
Program Materials and Fees
Travel/Lodging/Meals
Facilities
Salaries/Benefits-Participant Time
Operating Expenses
Ongoing Operations Cost (if applicable)
Evaluation
Overhead

42. Typical Intangible Benefits
Adaptability
Awards
Brand awareness
Career minded
Caring
Collaboration
Communication
Conflicts
Cooperation
Corporate social responsibility
Creativity
Culture
Customer complaints
Customer response time
Customer satisfaction
Decisiveness

43. Typical Intangible Benefits Cont.
Employee complaints
Engagement
Execution
Image
Innovation
Job satisfaction
Leadership
Networking
Organizational climate
Organizational commitment
Partnering
Reputation
Resilience
Stress
Talent
Teamwork

44. The ROI Calculation Benefit Cost Ratio (BCR) = Program Benefits
Program Costs
ROI =
Benefits - Costs
X 100
Program Costs

45. The ROI Calculation Exercise
Costs per program (25 participants) – $80,000
Benefits per program (1st year) – $240,000
Benefit Cost Ratio (BCR) = ____________
ROI = X 100 =_____________%

46. Thank You Jack Phillips Dick Handshaw jack@roiinstitute.net

47. Performance Consulting

48. Training That Delivers Results