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Letter from the Editor
I hope you all had a great Thanksgiving. Thanksgiving is officially the day of “The Big Rocks,” identifying and giving thanks for those meaningful things and people in our lives. (For the “Big Rocks” story, refer to the previous issue of
The Key.) You, readers and clients, were on my list of things I’m thankful for!
I’m also thankful that I’ve been through a couple of recessions, several rounds of layoffs, and otherwise tough times. For first-timers, the uncertainty that comes with a struggling economy can be frightening. Especially if you’re in training!
Training is one of those budget items that is often viewed as discretionary. And, let’s face it, some training much of the time IS discretionary. Part of the problem is that the results of training are not immediately apparent. Another part of the problem is that the results of the training may not be solely attributable to the training itself. And finally, we may be our own worst enemies when it comes to justifying training.
For the past ten years or so, I’ve noticed a trend in training advertising, especially related to technologies such as asynchronous (standalone) web-based training (WBT) and synchronous WBT/web-conferencing (like WebEx and Centra). Training advertising has focused on the
cost of training – specifically on reducing the costs associated with training.
Using cost reduction when talking about “better training” is a slippery slope since the ultimate cost reduction is elimination. Instead of talking about cost reduction, we as trainers should focus – ALWAYS – on performance improvement.
I recall my last corporate position as training design/development manager at a Fortune 100 company. When we were struggling – as many high tech companies struggled back then – my stance then was to call a general halt to training. We didn’t need more training; we needed more sales. How could we in training help generate more sales? How could we roll up our sleeves and offload some of the tasks that our sales professionals were burdened with?
The benefits of rolling up your sleeves and getting in the trenches are many:
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Instead of creating training that may take folks away from doing what they need to do, you help focus their attention.
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You may contribute in meaningful, pragmatic ways.
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You gain an understanding of the specific challenges your constituents are facing; aside from empathy – which is a good thing – you may be able to provide insights and solutions that they hadn’t thought of.
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You gain credibility from your constituents.
In tough times especially, keep your focus on the performance of your constituents. Act as a performance consultant, not a trainer. If you’ve been acting as a performance consultant rather than a trainer, if what you do contributes directly to increasing sales, reducing errors, improving quality, increasing efficiency or productivity, or some other important business outcome, you are likely to survive – and even thrive – in today’s economy. If the above suggestions are even slightly foreign, you need to stop training and start helping improve performance. The difference makes the difference.
Terry
P.S. While we didn’t write the book on performance consulting (Dana Gaines Robinson did that several times), we did put together
Entelechy’s Approach to Performance, a downloadable eGuide that provides performance consulting tips, techniques, and tools in 60 pages. Check out
http://unlockit.com/eGuide-Intro.htm. If you don’t find it everything you expected, let me know and I’ll give you your money back!
Training versus Performance Consulting
The differences between training and performance consulting are
 subtle but critical. Whereas a trainer focuses on skills and knowledge, design, and delivery, the performance consultant focuses on business and on-the-job performance. The performance consultant is “in the trenches” figuring things out.
The trainer’s role is to provide the best training possible: interactive, engaging training, complete with assessments, engaging presentations and graphics, and a training environment conducive to learning. The performance consultant sees his or her job as improving on-the-job performance by whatever means possible – usually the cheaper and quicker, the better!
The trainer is concerned about filling classes (butts in seats), scheduling, and making sure that the training is enjoyable so participants encourage other participants to attend. The performance consultant is worried about the effect that the new computer application is going to have on order processing, reducing turnover, shortening the ramp-up time for new hires, and taking the employee away from the job for any reason – including training.
The performance consultant is NOT simply worried about a bigger picture; the performance consultant is worried about the ONLY picture – performance and how to increase it. Training becomes one of the many tools the performance consultant uses to increase performance. Other tools include mentoring, coaching, quick-and-dirty job aids, an email clarifying the expectations, a discussion with the manager about the possibility of rearranging the seating to make it easier for employees to share information, a contest to refocus effort and have some fun.
There’s a saying: “To the hammer, everything looks like a nail.” To a trainer, every problem looks like an opportunity for training. To a performance consultant, training is only one of many tools available to address performance problems.
Are YOU a trainer or a performance consultant? Take Entelechy’s Performance Consulting Self-Assessment to find out if you have what it takes (see below).
This information comes from Entelechy’s eGuide, Entelechy’s Approach to
Performance. For your copy (or a copy of any of our other pragmatic eGuides), head to
http://unlockit.com/eGuide-Intro.htm.
Performance Consulting Self-Assessment
Are you a performance consultant? Or simply a trainer?
Rate yourself in each of the areas to determine your area(s) of greatest need for development in performance consulting. Read the statement as it applies to you and your job. Rate your ability in this skill from low (1) to high (4). Then rate how important this skill is to your success. Make notes or comments as you go along.
|
Performance Consulting Skill |
Ability
Low High |
Importance
Low High |
|
Business Knowledge
|
|
1. I am able to read the organization’s
reports (i.e., annual report, quarterly business status
report) and understand them.
|
1 2 3 4
|
1 2 3 4
|
|
2. I am able to discuss knowledgeably with
managers and others in the organization the financial ratios
used to measure the operational health of the organization.
|
1 2 3 4
|
1 2 3 4
|
|
3. I am able to interpret data from various
sources (i.e., auditing, sales performance records, service
reports) and discuss their meaning with managers.
|
1 2 3 4
|
1 2 3 4
|
|
4. I know the primary forces outside the
control of the organization (i.e., competition, economy,
market forces) that will challenge the organization’s
ability to meet its business goals.
|
1 2 3 4
|
1 2 3 4
|
|
5. I am able to discuss strategies and actions
being taken by competitors and the implications of those
actions for the organization.
|
1 2 3 4
|
1 2 3 4
|
|
6. I can use the terminology of the
organization.
|
1 2 3 4
|
1 2 3 4
|
|
Performance Knowledge
|
|
7. I understand the compensation system in
place in the organization.
|
1 2 3 4
|
1 2 3 4
|
|
8. I am able to describe how incentives are
intended to motivate people to achieve desired business goals.
|
1 2 3 4
|
1 2 3 4
|
|
9. I am able to distinguish possible reasons
why people aren’t performing as expected. These reasons
could be: lack of clear expectations, lack of resources, lack
of positive consequences for desired performance, lack of
skills and knowledge, etc.
|
1 2 3 4
|
1 2 3 4
|
|
10. I am able to recommend non-training
solutions (e.g., setting clear expectations) to managers as
the most practical way to address their performance issues.
|
1 2 3 4
|
1 2 3 4
|
|
Partnering Skills
|
|
11. I am able to meet and work with managers;
they give me the time and effort I need.
|
1 2 3 4
|
1 2 3 4
|
|
12. I have ongoing business relationships with
the managers in the organization I support.
|
1 2 3 4
|
1 2 3 4
|
|
13. I meet regularly with key organization
personnel to discuss business strategies and challenges, and
the impact on human performance.
|
1 2 3 4
|
1 2 3 4
|
|
14. I network skillfully throughout the
organization and outside the company to increase my ability to
help increase performance in my organization.
|
1 2 3 4
|
1 2 3 4
|
|
15. I can act as broker helping managers find
the resources they need; in fact, I provide as much
non-training support as training support.
|
1 2 3 4
|
1 2 3 4
|
|
Consulting Skills
|
|
16. While I sometimes act as an extra “pair
of hands” to managers, I am mostly regarded as a
collaborative business partner.
|
1 2 3 4
|
1 2 3 4
|
|
17. When managers discuss their needs with me,
it is usually in the form of a problem-solving session. Rarely
do managers say something like, “I want you to schedule some
of that training you’ve got; my people really need it.”
|
1 2 3 4
|
1 2 3 4
|
|
18. I feel comfortable in requesting that
managers perform certain tasks or gather specific information
I need.
|
1 2 3 4
|
1 2 3 4
|
|
19. I am able to get the manager physically
involved in creating and implementing the performance
solution.
|
1 2 3 4
|
1 2 3 4
|
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20. I feel comfortable in establishing a
contract with the manager outlining what is required from both
of us to increase performance.
|
1 2 3 4
|
1 2 3 4
|
 Scoring for Performance Consulting Self-Assessment
Determine your Ability for each competency area by adding your responses for the questions indicated; do the same with Importance.
Then subtract your combined Ability from your combined Importance to determine the difference/delta. The higher the number, the greater the difference – and the more you should focus your development in this particular area.
| Competency Area |
Ability |
Importance |
Importance
- Ability |
| Business Knowledge: Being able to speak the language of your clients; understanding what drives them. |
1+2+3+4+5+6 =
____ |
1+2+3+4+5+6 =
____ |
|
| Performance Knowledge: Knowing why people perform (or don’t perform) and being able to determine best interventions. |
7+8+9+10 =
____ |
7+8+9+10 =
____ |
|
| Partnering Skill: Being able to build a credible business relationship with clients; being accepted as an integral partner. |
11+12+13+14+15 = ____ |
11+12+13+14+15 = ____ |
|
Consulting Skill: Being able to provide insight outside of your perceived role as trainer; having your opinions and insights accepted.
|
16+17+18+19+20 = ____
|
16+17+18+19+20 = ____
|
|
This information comes from Entelechy’s eGuide, Entelechy’s Approach to Performance. For your copy (or a copy of any of our other pragmatic eGuides), head to
http://unlockit.com/eGuide-Intro.htm.
Justifying Skills Training When Budgets are “Frozen”
The following information is provided with permission from Entelechy’s training partner,
SalesEngineering.com, leaders in increasing pre-sales performance. Phil Janus, president of SalesEngineering.com, presents ideas for helping you work with the financial folks who are tightening their purse-strings. Check out
www.salesengineering.com. – Terry
With the economic winter now upon us, budgets are freezing everywhere. Nonetheless, spending does not stop. The CFO organization can almost always release funds given a compelling enough executive business case. Below, we show how a skills investment can:
Minimal Impact on the Income Statement
Training need not be expensed as one large lump; rather it can be treated as an asset and written down over many quarters.
Training licenses are Intellectual Property assets that can be amortized over years.
Delivery fees can be acquired as a Pre-Paid Expense which is an amortizable asset. The accounting team decides the license to delivery fee ratio (often 67/33 or 50/50).
Suppose you have 100 sales engineers (SEs) receiving a five-day skills program costing about $250,000. Instead of a one-time $250,000 expense, the asset amortization would average $31,250 for each of eight quarters for a huge difference on the income statement!
Revenue Growth Potential
Suppose the skills initiative includes manageable post-training goals to improve key metrics just 5% each. In our example above, the improvements are:
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Avg Qualified Deals per SE: 20 to 21
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Win Rate: 50% to 52.5%
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Avg Deal Size: $50,000 to $52,500
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Avg Decision Days: 180 to 171
Annual revenue grows from $100M to $122M.
In fact, 5% key metric improvements always yield a 22% revenue gain, and 10% improvements always yield a 48% revenue gain.
High Payback and High Consequences
In our example, $22M more revenue results from a $250K skills investment. What would be the consequences of doing nothing?
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5 days of selling instead of training would normally yield ~$2,000,000.
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In one year, for not amortizing $31K each quarter, the potential Opportunity Cost is $20M in missed revenue, which impacts margin contribution and bonuses.
The business case for skills improvement can be compelling, even when budgets are “frozen.”
The preceding information is provided with permission from Entelechy’s training partner, SalesEngineering.com, leaders in increasing pre-sales performance. Check them out at
www.salesengineering.com.
Meet Entelechy’s Webmaster
I asked Joe Engleson, founder of JE Web Design and Entelechy Webmaster extraordinaire if we could feature him and his company in our newsletter because his company is, well, simply amazing! JE Web Design has been Entelechy’s web designer and master since our inception back in
1995 when I was looking for a web presence. Since then we’ve added new features as Entelechy’s needs expanded. JE Web Design’s leading edge design coupled with a classic professionalism has enabled us to direct prospects with pride to our website at
www.unlockit.com. Their stellar design and development capabilities are only exceeded by the personal attention they give us. – Terry
JE Web Design has been providing web site development and support, and web hosting services since 1995, to businesses of all sizes - from small startups to large international corporations. We design, develop, and support business web sites that address the unique business requirements of our client companies.
Our reputation has been built on our history of delivering effective, client-maintainable web sites that support a wide range of ecommerce, customer service, database, professional services, and marketing objectives, and for providing our clients with timely, dependable, and very personal support. We provide flexible, affordable cPanel web hosting services, and enlist the support of local graphic artists, videographers, and Internet marketing experts as our clients and projects require.
Check out our web site at http://jewebdesign.com. Talk to our clients about our support and services. We want to help your company with its business web site and Internet marketing; our goal is simply to help you become successful.
If you are looking to start your own business and need a website, or your company’s website is in need of a makeover, contact Joe at JE Web Design at
joe@jewebdesign.com or 760-720-0230. – Terry
And Now for Something Completely Different
Trunk Monkey Videos
I’m not sure how to describe these ads for an auto dealership….
http://www.youtube.com/watch?v=MkZcG_pgp0Q
Snow + Dog = Fun
It was during a blizzard in the late 1990’s where 54 inches of snow fell in 48 hours near Ward, Colorado. And this dog loved every moment of it. No snow hill was too deep for him to run around in.
Guaranteed to put a smile on your face, especially if you’ve already got a dusting of the white stuff…
http://maniacworld.com/dog-having-a-blast-in-the-snow.html
Mailing and Privacy Information
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The Key. If you've received this email in error, please click on
http://unlockit.com/newsletter.htm
to be removed immediately from our mailing database with our apologies. (If you have trouble with the optout link, please reply to this email directly and I'll personally remove your name.)
Send this email to your friends and colleagues who may be involved in training and the performance of others and could benefit from FREE performance tips, tools, and techniques.
Entelechy will not sell, rent, or otherwise provide anyone else your membership information for any reason. Period.
Terence Traut, President of Entelechy "unlocking potential"
ttraut@unlockit.com
phone: 603-424-1237
fax: 603-424-6361
http://www.unlockit.com
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