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Letter from the Editor
 The Traut family went home for the holidays for the first time in 10 years. It takes 10 years for the memory of just how cold Minnesota in December really is to fade away! Despite the
-23° weather, being with family is always heartwarming. And it DID warm up enough for us to build snowmen (those white things in the picture on the right are short versions of my mom and dad that we – me; younger sister, Kris; and older sister, Teresa – crafted!).
The Entelechy family made a weekend in Boston to celebrate a very successful 2008 and to kick off the new year. Among other activities, we attended (participated in!) a
Blue Man Group show as illustrated in the picture on the left. We had a ball!
 Now it’s time to turn full attention to business and I keep hearing the same question that you are all hearing: “So, how’s business look?”
Frankly, business looks GREAT! Perhaps it’s Entelechy’s business model (customized training tends to be viewed as an investment rather than an expense to be cut.) Perhaps it’s the current mix of Entelechy clients with a diversity of industries. Frankly, I think some of it is just plain old attitude.
Do you remember the dot.com euphoria several years ago? I remember scratching my head with wonder: just what did some of these companies actually DO? What did they CREATE and what VALUE did they provide? Eventually the answer became clear to everyone – nothing!
If the dot.com days were marked by unjustifiably euphoric optimism, it FEELS like current times are fraught with unjustifiable pessimism. Sure, there’s a fair amount of correction that’s required in the financial sector – from the mortgage industry and credit to Wall Street and corporate greed. But I believe that we as humans (aided increasingly by the media that thrives on – CREATES – the hyperbole around us) tend to view things as better than they really are or as worse than they really are.
I don’t have any answers to today’s economic crisis. In fact, I won’t even claim to know exactly what the problems ARE. I will choose, however, to not let the hyperbole drag me down.
In fact, some may argue that NOW is the time to act. Stocks are down to their lowest point in history. Houses are selling at rock-bottom prices. NOW is the time to invest. NOW is the time to take action!
I’ve included in this newsletter some expert opinion about training investments – where to cut and where to invest. I hope that you find the information useful as you move forward confidently into the new year.
Here’s to a great 2009!!!!
Terry
Coaching and the Shrinking Training Budget
In Training Efficiency: Optimizing Costs, a 2008 survey referenced in the Jan 2009 issue of HR Magazine, 54% of trainers indicated that they were under “significant” or “intense” pressure to cut costs. Almost half had had budgets cut from the previous year. Berin & Associates, in their report,
Enterprise Learning, Recruiting and Talent Management 2009, state that: “Our trend research clearly shows that corporate learning is going to absorb much of the budget cuts in corporate HR. Over the last five years, L&D spending has steadily increased (since the 2000 recession). This naturally results in a proliferation of learning programs being developed and delivered by business units, sales and customer service, manufacturing locations, and corporate HR.” “Organizations,” they believe, “will focus on restructuring HR and L&D to increase efficiency and business alignment.”
Among the suggestions offered in the article comes from Tom Starr, principal at Booz & Co., is to determine what training is essential to the business. Starr suggests, “Build a taxonomy of what is critical and invest disproportionately in those areas. Be more selective in who it is you’re training. For instance, in retail banking, a pivotal role is the branch manager. You want to make sure to provide training for [pivotal employees.]”
Berin & Associates agree, stating that organizations should invest in those training programs that are strategic AND customized for the company – programs that will give the company a unique competitive advantage.
Furthermore, companies looking to thrive in this challenging economy need to take advantage of the knowledge and relationships that currently exist on the job. “Mentoring, coaching, and shadowing will all likely become more important during the downturn,” suggests Michael Grohs, research analyst for the Institute of Corporate Productivity.
Berin & Associates agree stating that, “We all know that formal training may accommodate 10 percent of the development needs of workers. How do we harness the informal and coaching needs of employees without spending millions of dollars on knowledge management projects (most of which fail)? The answer is to unleash the power of collective knowledge within companies. They suggest in their graphic that we need to optimize coaching on the job.
Coaching, it seems, will continue to play an increasingly important role in performance management. Berin & Associates state that, “while ranking, rating and calibration sessions continue to be vital parts of [the performance management] process, the real value of performance management is in the coaching and development areas. Approximately 60 percent of organizations tell us that they focus on coaching and development (versus competitive assessment), and
these companies are generating 20 percent to 30 percent higher returns from the process.
The information from Berin & Associate’s report was used with permission from the company. For your free copy of the Berin & Associates report, Enterprise Learning, Recruiting and Talent Management 2009, please contact us at
info@unlockit.com.
Choose Your Training Partner Carefully
It may seem contrarian to consider hiring a training partner during these challenging times, but training experts such as Berin & Associates warn: “Remember one important lesson – do not allow your organization to cut these strategic programs which, in many cases, include your strategic leadership development investments. During the 2000 recession, we talked with many companies that ‘blew up’ their entire training departments. Afterward, they found that it took three or more years to rebuild their internal expertise and strategic capabilities."
In these challenging economic times, it often makes sense to work with a training partner to leverage the expertise the training partner has while leveraging the shrinking training budget and resources. Identify those training programs to cut, those to consolidate, and those to outsource. THEN identify those strategic, custom programs that will help the company retain and engage employees and create a unique competitive advantage for your company. If you have the resources and expertise internally to create those strategic, custom programs, then move forward.
On the other hand, if you find yourself without the expertise or resources (or time) to create – for example – a company-wide coaching program, then you may need to select a training partner.
So, just what do you look for in a training partner? Training Industry, Inc. asked 552 training leaders the question, “What are the top characteristics of a great training company?” Use the following checklist to evaluate YOUR training partner:
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Training Partner Characteristics |
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Demonstrates a service orientation as a true business partner, flexibly and responsively serving both the client’s business needs and employees’ learning needs. |
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Advocates a learning culture that supports training through top-level leadership commitment, resources, and the integration of learning into daily work. |
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Provides content that is customizable, easy to use and access, and is current and practical. |
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Delivery that is innovative, engaging, and uses a blend of tools/technology by knowledgeable and skilled instructors. |
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Reputation or track record for serving others well. |
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Good value or reasonably-priced with ability to contain costs of project.
Results orientation and ability to follow up to measure the results.
Aligns and customizes training with business goals and audience needs. Avoids “canned” and “one size fits all.” |
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Uses high-caliber trainers with facilitation skills and current subject knowledge.
Expands the use of e-learning, as well as new technologies for audio, video, and webinars. Uses a variety of blended delivery methodologies, including instructor-led and a technology of choice. |
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Makes training interactive, engaging, and fun through role plays, case studies, experiential exercises, simulations, and games. Employs practical, real-world applications, and examples.
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We believe that Entelechy’s clients would check off each of the above characteristics when evaluating Entelechy. Give us a chance to be YOUR training partner and you won’t be disappointed!
Entelechy’s President to Speak at Training 2009 Conference
Get there early! If past performance is any indication, Terry Traut’s presentation on
Coaching for Talent Development and Employee Engagement will be standing room only when he speaks at the Training 2009 Conference and Expo.
Held in Atlanta, Feb 9-11, 2009, this event promises to be a training industry highlight since not only are there outstanding keynote speakers and breakout sessions, Training reveals their picks for the top 125 training organizations in 2008. Entelechy’s had the pleasure of helping some of previous years’ winners
 make the list for the first time or advance in ranking.
In anticipation of Entelechy clients making this year’s list, we will be featuring the ad to the right in Training’s special edition featuring the top 125.
Terry will be presenting on Monday, Feb 9 from 9:15-10:15. He’ll provide a comprehensive handout on coaching and give away three books,
What Got You Here Won’t Get You There, signed by Marshall Goldsmith.
If you want to hear first-hand of the value of coaching, Entelechy’s coaching model, and how you can implement a coaching culture and program throughout your company, you’ll want to catch this presentation.
If you cannot attend the conference or presentation but would like a complimentary copy of the handout, please contact Terry directly at
ttraut@unlockit.com.
And Now, Something Completely Different
Funny Pictures at hahastop.com
We live in a funny, funny world. If you want to waste a few moments looking at funny pictures, check out www.hahastop.com. Here are two funny samples:
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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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