People Development Blog » Performance Management

Personal Development Plans – make them work

Andy H — Wed, 17 Jun 2009 12:01:13 +0000

If you think your performance appraisal process leaves something to be desired and probably sits somewhere between “never done” and “done under duress” just take a look at a few Personal Development Plans! Or should I say “pointless de-motivating plans”.

Creating A PDP That Achieves Something

So, by our title you can assume that we mean the vast majority of PDPs don’t achieve anything, quite right. In my experience most PDPs end up as highly aspirational, one-sided documents which do little to move anything forward. Why is this so? It is because the vast majority of managers still don’t believe in the value of them, pay little attention to them once the annual appraisal review is out of the way and therefore reduce them to one-sided “some day” pieces of paper full of courses and coaching that often fails to materialise.

I have also met many management teams who claim that they take personal development very seriously but who can do little to substantiate this claim without calling on cohorts of HR staff.

So why bother?

Why, because it’s one of the best motivators of employee performance you can get and one of the best business improvement tools available and it’s free!

Let me be clear firstly what I mean by a PDP or Personal Development Plan as they are commonly known. I do not mean those soft and fluffy, nicey nicey, lots and lots of courses type PDPs. I mean the specific, measurable, achievable, relevant, trackable PDPs that link the development of an employee to improving themselves and the business. What do I mean by improving the business? Pounds and pence! Improvements in efficiency, productivity, quality or good old hard cash.

Yes, it really is one of the best mechanisms available for improving your business. But, you need to get it right. Creating a PDP in ten minutes flat probably won’t do much to change anything.

So what are the ingredients of a good PDP?

It is not difficult to create a really good PDP. What tends to be difficult is differentiating between good and bad PDPs. So let us get to the point of making a good PDP. Below we have outlined the key aspects of a PDP and what turns each section into a good element.

Objective Setting

This is the crux of any good PDP, get the objective right and your half way to building an effective PDP. When creating a development objective remember the following key points:

Make it relevant to the business. I have experienced many attempts to enhance PDPs by adding lots of nice to do things like courses in French, Tai Chi, Yoga, Cooking which rarely do anything to build motivation or enhance the business. What is far more valuable is to set a development objective that is geared to helping an individual stretch their ability to do their job much more effectively. Better still, stretch them to be able to do more than their current job and voila you grow your talent organically.

Make the objective specific. The example below is a real copy of an objective taken from a PDP of a middle manager in a FTSE100 company. See if you can guess what’s wrong with it.

“Improve my influencing skills”

Yes, it is lacking in a few areas. Firstly, one could assume from this objective that the manager needs to improve their ability to influence people in all aspects of their role which isn’t actually true. This manager is very effective at influencing her direct reports and within her peer group. The problem area lies more in influencing senior managers. Secondly, the objective doesn’t describe the context of the problem. Is the cause of the development a lack of confidence in verbal communication or is it a lack of evidence and facts supporting the influencing process that’s the problem. Finally, this objective is so broad it has the potential to overwhelm. The individual may not really know where to focus first and may therefore struggle to commit to action.

So the key to making the objective a good one is to ensure that:

· The objective is specific to the particular problem area.

· Include the context of the development need

· Make it something realistic and achievable.

Apply the above and see what it does to our example objective.

“To influence senior managers more effectively by ensuring I have sufficient data and evidence to support my proposals and presentations”

At this stage we are only interested in making the objective give us the best possible start. We have still yet to develop actions and timelines etc.

Creating Actions from Objectives

The next thing to do is create the actions that will lead to the achievement of the overall objective or goal. These actions are in essence are mini objectives. Each should be a step along the path to achieving the major objective. Again these should be SMART in their make up. For a PDP objective you should expect to have around 4-5 actions.

Setting the Timeline

Once you have your objectives and actions in place you should commit them to a timescale. There are a few things to be wary of when setting timescales for your PDP. Don’t create them in isolation of each other. There is a bit of a tendency to end up with timescales that all converge at the same point. Once you’ve set each of the dates go back over them and sense check that they fit together and make it still realistically achievable. Also, take into account any known pieces of work or projects that may have an impact on the individual’s ability to achieve the objectives. There is nothing worse than setting someone objectives that can’t be achieved. Thirdly, you need to diarise regular reviews with the individual. Ideally these should be monthly. Each review gives you the opportunity to check that the PDP objectives are still achievable against the current workload. The PDP is a work in progress and, just as with other business objectives should be reviewed and adapted when needed.

Measures of Success

Now, the most crucial part of all; the measures of success. There is a saying that I have come to love over the years because even though it is simple, it holds the key to great achievement. “Start with the end in mind”.

To produce or build something we must first create the prototype. Our prototype becomes our measure of success. It is the thing we know to be a correct and true representation of what we want to ultimately achieve. It is the end.

So, start with the end for each objective. Define what success will look like. How will the individual be doing things differently once they have developed? Where possible make the measures as tangible as possible. Think of the improvements to targets, efficiency, quality and examine how these can be shown in financial terms. Good, tangible measures help to show that the development is making a difference.

If you implement the above, whether it be on a crude sheet of paper or with the aid of a computer software package, you will see aspects of your business improve. Imagine everyone in your business going into work tomorrow and doing their jobs just 10 mins quicker and getting things 10% more correct the first time. How much would that be worth to your business? Well, you can easily achieve more than this with good well written PDPs.

If you are keen to have a go at implementing the above but are unsure where to start or have some questions that need answering please do give us a call. We’ll be only too pleased help you.

Using Q12 to Develop Great Teams

Andy H — Thu, 23 Apr 2009 10:23:17 +0000

I’ve been in the business of developing teams for a fair number of years now and I am pretty sure I’ve seen most forms of team development, team building and whatever else you want to call it. But it’s a very true saying that there are many ways to skin a cat (not that I’d recommend this as a past time!). If I am to learn anything from all these years of experience it is this; just as people are different, so are the ways in which they learn and therefore this suggests that the approach I use to coach, train and develop people should be a range of different styles and approaches.

I have experienced this need in providing a range of different ways to deliver the same learning. I had the opportunity to do some work for a friend’s client a few years back but unfortunately couldn’t fit it in around other commitments. I had, however, spent some time with the client in order to understand their need and determine what solution would best suit the need. The solution was largely about being able to undertake activities, self review and apply the learning in the next situation. From my point of view the key to the success of this piece of work was not the activities or reviews, or even the application of the learning to the next activity. It was about having the right facilitator working with the team to drive and challenge them in the right way.

I put together a programme and earmarked an individual I thought would be great in my place. My friend decided to use somebody else, much to my protest and rationalised explanation. My concern was that this other person (whom I knew) did not have the right style of facilitation to support the client. Anyway, long story short, my friend used her anyway and sure enough the client’s feedback was that she wasn’t anything like as challenging as she needed to be and they got little out of the work.

One solution, but two very different styles which would produce two different sets of outcomes. Which is right? In reality it is often a judgement call based on experience, understanding of a client and their team and knowing your capabilities.

There are indeed lots of different ways to develop teams with different styles, from outdoor team activities to weekend retreats designed to bring people closer together. I have seen teams likened to animal types to understand themselves better, drawing rich pictures from their lives, shouting beliefs at the top of their voices to rid themselves of their limited thinking and I’ve even seen them scared witless on the brink of a breakdown in order to better themselves.

The truth is, any one of these things could work if it is the right approach for the right team of individuals. Invariably, the more extreme the approach the more mixed the results can be based on people’s personal preferences, phobias and levels of comfort (ah the good ole comfort zone!).

So, on to the real subject of this post, Gallup’s Q12. If you want to develop a great team and you want something which everyone is going to be able to understand, get involved in and make it link to workplace effectiveness, you could do worse than to utilise the Gallup Q12.

Gallup have been in the survey business for many years and are pretty much the leaders at doing this sort of stuff. My gripe for many years is that most of these employee survey tools are pretty woolly, have lots of influencing factors that limit the accuracy of the results and are hugely open to interpretation. Therefore it’s an ok picture of the big areas to focus on, but we shouldn’t use the results as a tablet of stone.

However, Q12 survey has been researched and tested with organisations and Gallup have some pretty compelling evidence that suggests this is one survey tool to take note of. That for me is what makes this a great tool for thinking about your own team’s development. Gallup have made tangible links to improved financial performance for those organisations that do well in the Q12 areas. Having now worked with a number of organisations that have or do use Q12 I believe it is a great vehicle for benchmarking your team and focusing development activity on areas that really can make a tangible difference.

So what is the Q12?

Gallup’s Q12 is a set of core statements that, if an organisation works on and does well in, will be really effective in improving performance financially. Below are the 12 statements.

Do you know what is expected of you at work?
Do you have the materials and equipment you need to do your work right?
At work, do you have the opportunity to do what you do best every day?
In the last seven days, have your received recognition or praise for doing good work?
Does your supervisor, or someone at work, seem to care about you as a person?
Is there someone at work who encourages your development?
At work, do your opinions seem to count?
Does the mission/purpose of your company make you feel your job is important?
Are your associates (fellow employees) commited to doing quality work?
Do you have a best friend at work?
In the last six months, has someone at work talked to you about your progress?
In the last year, have you had opportunities at work to learn and grow?

Copyright © 1993-1998 Gallup, Inc. All rights reserved. Reprinted with permission. You may not distribute, modify, transmit, reuse, re-post, or use the Q12® questions for public or commercial purposes, without the written permission of Gallup, Inc. Gallup® and Q12® are Trademarks of Gallup, Inc.”

As an example of what Q12 claims, if we take the first statement “Do you know what is expected of you at work?”. Gallup claim that organisations who ensure people understand not only what they are meant to be doing but also how it fits into the overall goal of the business could expect to see up to a 30% improvement in profitability. Even if your organisation or department say profitability or effieciency savings of half that amount it’s got to be worth it, hasn’t it?

Gallup’s website has lots on information about how to use the Q12 in an organisation but it basically comes down to this.

Be open to recieving the feedback
Use it as a starting point to develop your understanding
Talk about the results openly
Engage your team in identifying the things that will improve things
Create an action plan that dovetails into your business plans
Remember, it’s tool for improving performance not just creating warm fluffy places to work

Alongside using Q12, you will be able to identify other tools and approaches that can help you tackle areas of concern on the Q12 results but remember to make sure not only the solution is right but that the person working with you is right for you too.

Obviously this is just a short snippet about team development and specifically how Q12 can provide a great insight to your team’s development needs. It’s not intended to go into Q12 in detail. If you want to know more about the tool, look at Gallup’s website, there is a whole bunch of information there. If you want to talk to me about how I’ve used Q12 with other team’s then drop me an e-mail.

Likewise, if you have experience of using Q12, including success or pitfalls then please do post a comment for others.

Using P&L thinking to improve people management

Andy H — Fri, 13 Feb 2009 16:40:13 +0000

So what is a people P&L

It’s a focusing of attention on the real cost of an organisation’s people. For any of you out there who employ staff I would like to ask you a question.

“Do your managers know the real cost of people to your organisation”?

Unless you are already operating a people P&L your answer will probably be no. The reality is that most managers in organisations we work with really can’t tell you anything about turnover other than what is contained in the board report from HR. If they don’t see the board report then chances are they have no idea at all.

So why do your managers need to know the real cost of their people? Well, let’s consider for a moment that you are just setting up your new business and you have £50k to invest in employing a sales person or administrator. You employ them and they leave 8 months later. Your board report would probably show that one person left the business and the cost is 8 months of salary. Wrong.

What you have actually invested is more along the lines of:

· Some of your time in interviewing candidates

· Some of your time on administering CVs and letters or phone calls

· The cost of agency fees or adverts used to attract candidates

· The 8 months salary costs for the individual

· The lost opportunity cost of not having someone in the role whilst re-recruiting

· The NI, holiday and sickness costs associated with employing staff

· The cost in time and reduced efficiency of training the new employee

If you add up the typical costs associated with each of the above and you will soon start to see your £50k being eaten away. Now multiply this by the number of starters and leavers you get in your business and the number starts to become very large indeed.

What is the impact of knowing this?

If you are a small organisation that employs less that 10-15 people then your turnover probably means the costs associated with the above are relatively small. They are, however, probably still a significant portion of your organisation’s investment. The key here is to use this information to help focus on getting the recruitment and management of your staff right and so reducing potential turnover and the associated costs.

If you are an organisation of 20+ people then the costs start to become much more significant. If you are running with your turnover on the high side then the associated costs can be very large. The biggest problem is not the associated costs it’s the lack of management awareness. If your managers don’t fully understand the commercial impact of this information then they can not be expected to act any different to normal.

So how do we use a People P&L

Ok so, when you do realise that using a People P&L makes good sense then you need to know how to put it in place. So that we are clear, our primary aim here is not to produce a small forest worth of stats and beat your managers over the head with them until they say the right things. Nor is it to spend countless hours analysing every bit of cost. This is a sure and fast way to turn people off to the whole concept. This is not a quick fix! The People P&L is as much about commercial education as it is about identifying true cost.

Right then, before you get all eager and start defining the measures you are going to put in place to create your People P&L you need to start letting your managers and your people know what you are planning to do. This is absolutely crucial, miss this out and you’ll start on the back foot with a mountain to climb. I kid you not, if you let people know in the right way, you’ll be halfway to success.

Getting the communication right

Before you tell everyone about your grand plan you need to be absolutely 110% convinced yourself. You need to know what objections you might get along the way and have the answers ready. You need to know the advantages and disadvantages in your head like you’ve always known them. If you believe it, you’ll be in a better position to convince others. Create a mix of communication routes. Use the list below as a guide to finding the right mix of media and develop a plan that carries communication from start to end. Keep communication going even when you think everyone is bought in and on-board.

· Communication Methods

· Manager briefing sessions

· Factsheets/Newsletters

· Company Intranet site

· Frequently Asked Questions information

· Video Comms

· SMS Messaging or WAP media

· Screensavers

· Posters

There is no substitute for face-to-face communication and this should always be your primary route, especially with something so business critical. Ok, time to move on.

Defining Your Measures

You are now ready to define the actual metrics for your People P&L. Your metrics should be the key areas that will tell you and your managers how well they are leading and managing the Human Resource aspect of their role. You can choose whatever metrics you like but you should bear something important in mind. Your people metrics are partly about understanding what financial impact getting the metrics right or wrong is having on your business and partly it is about improving the way in which people are managed in your business.

Your understanding of the financial impact alone is not worth anything unless you choose to do something with it. This is where the quality of your management teams will start to shine through……or not. Those managers who “get it” will start to use the People P&L to influence their actions in relation to their people. This in turn will see their People P&L results improve whilst at the same time making it a better place to work for staff. The result is an improvement in operating performance and a reduction in costs. Everyone wins.

I have outlined below some of the most common Human Capital Measures that can go into making your People P&L.

· Labour turnover

· Sickness & Absence

· Stability

· Retention

· Employee Satisfaction

· Internal Appointments

· Cost of recruitment

Can you spot the odd one out in the list above? It is Employee Satisfaction. It is the only one of the group that cannot be directly linked to a tangible financial value. However, when you consider how much influence your staff have over quality, efficiency and economy it makes great sense to measure how satisfied they feel with your business. I can guarantee you that if you get this metric going upwards your business will show evidence of improvements.

You should probably limit your People P&L to 4 or 5 metrics. Any more and you start to make it a cumbersome job to produce and distribute.

Along with your measures you need to define what is and isn’t acceptable i.e. if a department’s turnover is 25%, how do you define if that is ok or not? Something to be aware of here and I’ve experienced this before on more than one occasion. Some idealists decide that the goal for things like turnover should be 0%. It is perfectly acceptable an aspiration but it is highly likely that you’ll never achieve it. So once again, be realistic and set the goal so that it can be achieved within the year. The aim is to motivate managers to achieving the goal, not to depress and demotivate them with an aspirational goal that is not achievable. A little movement in the right direction will do wonders to build motivation and commitment. It is also interesting to note that some recent research showed that it takes up to 5 times more effort to remotivate people once you’ve switched them off so it makes sense to get it right first time.

Educating People

Ok, so we have let managers and staff know that this is going to happen and what the benefits are. We have also defined some measures. We now need to educate all of the managers who are going to be expected to do something with the People P&L. By educate, I mean that they need to understand what the measures are and how they are calculated. If there are inconsistencies in how a measure is calculated then your information will be wrong from the start. This is very feasible thing and so needs to be a key part of training managers.

For example – one manager classes turnover as everyone who leaves the department. Another manager classes turnover as those people who leave the business through a forced nature i.e. they were fired or made redundant etc. The second managers results will not take into account staff moving internally or choosing to leave of their own accord. It doesn’t matter which one is right or wrong, just that they are the same.

You also need to help your managers understand what they are expected to do if a measure is not improving. Now, a friend of mine one introduced me to the “sunshine method of management” for dealing with people when things go wrong. To demonstrate this he reached out and pulled me towards him by my suit jacket and said “now listen here sunshine”. Not a tactic I would ever recommend you try.

Your education of your managers should include training to understand the measures, tips and tools to help improve on them and how to recognise when things are not improving. Below is a list of different routes you could use to develop a programme of education. As before, try to use a mix of different methods.

· Classroom training sessions

· E-learning

· Shadowing expert users

· Training workbooks

· Drop in seminars/demonstrations

· Video-based demonstrations

· User manuals

· Roadshows

When you have a training plan in place, ensure you measure the level of people’s understanding against your expectation of where they should be once you’ve carried out the training. By doing this you can identify where extra support is needed for those who struggle with the concept.

Implementation

Right, if you have followed all the above stages you should be ready to begin operating your People P&L. I have said this a number of times and I make no apology, be realistic. Expect some teething problems as you go live. There is likely to be a hard core of people who will try and resist as well as the odd problem with the numbers, calculations and reporting methods. If you expect these to occur then you will be well prepared to take them in your stride.

We have talked here about the implementation of the People P&L, more from the people perspective than a systems and procedures one. You can, of course, improve the efficiency and consistency of your People P&L by automating the recording and production of reports. If you create a standard template for recording the data and a standard set of reports you will minimise problems through inconsistencies.

How to create a PDP that actually achieves something

Andy H — Fri, 13 Feb 2009 15:57:14 +0000