Measuring the Effect of Your Training Dollars

“I want to buy some training from you!”

Cool. I’m always ready and willing to engage a prospect or client; yet, I pushed back from the table and said, “Sorry. You’re not ready.” This executive wasn’t used to having vendors express reticence at taking an order.

A little background first: the other person in this scenario is a foreign, corporate exec in charge of turning around a troubled US business unit. He described years of tumult, turnover and missed promises to its customers. The leadership team had failed to perform its function and the corporate office had taken over daily direction of the team.

When he described the symptoms, it was clear he had no idea what the root causes of the failure were and whether they still persist; and, more importantly, whether intensive training of any type is the solution. Neither did I.

The root cause of the problems he described is systemic. A review of a handful of Predictive Index® Profiles showed the company had promoted tacticians to strategic roles. When challenged to make risk decisions on their own, they stutter-stepped, hesitated, let important decisions wait and deadlines pass.

It’s a common occurrence. Highly-skilled, dedicated, exquisitely-trained employees who excel in their execution of the details are promoted in strategic, results-oriented roles where they are ill-suited to perform.

Earlier in the week, a manager expressed his frustration when trying to get a tactical employee to make more decisions, “When she asks a question, I push back, telling her to take a risk; and, she doesn’t.”

Soon the employee who was once vaunted for his/her performance becomes “the problem employee” and the talk turns to managing difficult people, improving employee morale and “performance plans”, code for putting the employee on the path out the door.

If this describes some of your frustration with your managers or sales people, don’t look first to buy training. Get at the root cause with a simple, 10-minute assessment that can provide that insight.

If you’re in Michigan, Indiana and western Ohio, don’t hesitate to call or email. I can help.

John P. Ranalletta

317-578-3676

jranalletta@advisausa.com

 

 

 

Dancing with the passengers

The cruise ship captain may not want to dine and dance with the passengers, but meeting their personal needs and wants makes for a more highly profitable cruise.

In a recent study I conducted to identify personality traits of successful sales people, the findings showed the most successful revenue generators are:

  • Quick to connect to people;
  • Comfortable making risk decisions; and,
  • Optimistic

If your response is “go figure”, I understand. Who wants to deal with pessimistic hard liners who send calls to voicemail?

On the other hand, you may not think “go figure” when you see the results of a more recent study of global operations managers. Why? Because the most successfull ops managers had the same three success traits as sales people in the earlier study.

What’s the lesson?

The differences between the higher performers and their peers on the lower end of the performance rankings lay in how they behave; and, any of us can learn those success behaviors. To impart those lesssons, new manager training programs should include the Predictive Index ManagementWorkshop™ in establishing how to supervise people; and, PI® is the pre-employment assessment clients use to identify these traits in job candidates.

In you’re in Michigan, Indiana or western Ohio, call or email to set up a Predictive Index® demo with your leadership team.

John Ranalletta

jranalletta@advisausa.com

317-578-3676

The Hardest Change

Corporate Culture

In a recursive cycle, corporate culture favors certain personality types and sorts out others. On the other hand, the organization’s culture reflects incumbent leaders’ profiles. In plain speaking, “We get more of what we’ve got.” When getting more of what we’ve got limits our business prospects, it’s time to change.

Metrics drive accounting, supply chain, R&D, inventory and production management functions. Inputs and outputs are measured, weighed and counted. Statistics are captured and outcomes analyzed. Managers of those functions apply their experience and education, but they rarely rely on “gut” reactions, the right chemistry or appearances to make critical decisions. A similar objective, data-based approach to talent management is in order.

The talent manager’s biggest challenge appears when s/he identifies the need to bring about culture change. That can be accomplished by recruiting people who will change the culture by their very presence or they can set about to train current managers to behave in ways that promote the desired culture.

Predictive Index® provides objective data for planning, acquiring, identifying and developing the next generation of leaders and raising the game of your current leaders. We appreciate and applaud the tenacity our clients exhibit in working toward these goals. We also welcome the opportunity to provide the talent management strategies and tools that can positively impact your business unit results.

If you’re in Michigan, Indiana or western Ohio, call or email:

John Ranalletta

317-578-3676

jranalletta@advisausa.com

Burning Day Light and Money!!

The Cost of Decisions Delayed

Some of our clients can be pretty outspoken when struck by a revelation. A few years ago, while reviewing Predictive Index® Profiles of key department heads, I pointed out that one of them (let’s call him Seth) was AD Conflict. The team hadn’t yet attended the PI Management Workshop and were unfamiliar with the term.

When I explained that some people are strategic; some tactical; and, the rest reside betwixt the two and how that effected their decision making, almost in unison, they asked, “Is that why Seth takes so long to make decisions and sometimes doesn’t make decisions at all?”

I replied that it was highly likely to be the case. The CEO leaned back and exclaimed, “No wonder his department seems to be burning day light and money!” In just a few minutes, the leadership team had identified a major pinch point in its decision making processes; and, one that had huge costs because the individual was entrusted with evaluating all commodity purchases for the organization.

The leadership team was unanimous in its praise for Seth, his dedication, intelligence and his ability to work 80-hour weeks. On the other hand, they were quick to say Seth could also be very argumentative when his decisions were questioned; and his staff had frequently complained about Seth’s inconsistent direction, back-and-forth, decisions. Employees with AD Conflict can and often do exhibit all of those behaviors.

Managers trained in Predictive Index® know that PI® measures each person’s need to make decisions “their way” and/or the “right way”. In most employees, one of those needs is much stronger than the other; and, the employee’s decision making is predictable. AD conflict is produced when those needs are equally strong and pull the employee in opposite directions, i.e. “I want to make my own rules, but I also need to follow someone else’ rules, too.”

This graphic shows the difference and the result. When caught between these conflicting needs, the employee is often seen engaging in analysis paralysis, gathering more and more data, spending hours doing and redoing the work.

AD conflict isn’t abnormal. Preparing to meet the leadership team of a prospective client recently, I found that 9 of the 19 people on the leadership team, including the president, are AD conflict. While that ratio is unusual, AD conflict is quite prevalent. When leaders know which managers are AD conflict, they can manage them differently, optimizing the employee’s strengths and minimizing wasted time and money . We have very successful C-level managers and owners of companies who understand this about their own decision making and want their teams to understand it, use it to the company’s benefit and not let it get the team mired in rounds of second-guessing and changing directions.

By the way, the company with 9 AD conflict managers hasn’t decided to become a client yet. They’re still thinking about it!

PI clients can see this data in the recruiting metrics where Predictive Index is an integral part of a well-designed suite of pre-employment assessments.

Are some of your leaders stuck in neutral, taking more time than necessary to make decisions critical to your success? Why guess when you can know? If you are in Michigan, Indiana or western Ohio, we can help.

jranalletta@advisausa.com

317-578-3676

Riffed, Downsized, Fired or Let Go

Doesn’t matter what we call it because it means the same thing: Some one decided that our cost exceeded our contribution. It really doesn’t matter whether we agreed or knew we weren’t really pulling our weight. The fact is, you’re out of work; income has ceased or will run out shortly; and, you have to prepare to face a very different world tomorrow morning.

Unfortunately, about once weekly, someone I know calls to let me know it’s happened to them and they want to “build their network”. The first question that comes to mind is, “Where have you been the last few years when you didn’t need me in your network?” Nevertheless, because I know what it means to be out of work with kids in private school and facing a dwindling savings account and a suddenly obscene mortgage payment, I never turn down the request to talk and to help if I can.

Coming fresh off one of those calls just a few hours ago, I made of list of my recommendations below. If you’re offended or believe my advice is too drastic, think again. The job market is simply brutal, especially for people whose skills are more generalized and generally over-supplied.

Here goes:

1. You will panic but that will go away as the reality sinks in. This isn’t the end of the world. It only feels like it.

2. Involve your family from the get-go. Don’t hide your situation from them. This is a family problem and the family will have to contribute to its resolution.

3. Create a budget listing your current expenses. Project payments, i.e. credit card, mortgage, insurance premiums, etc. Estimate how much time you have before your cash runs out. Now, cut it in half.

4. Cut your expenses to the bone. If sissy’s tuition at Notre Dame is $50k a year and you can’t make the payments, she may have to go to the community college. Again, that’s a family decision. If keeping Sissy at ND means other family members have to give up stuff, they should be consulted.

5. Apply for unemployment. You paid the premiums and you’re entitled (under most downsizing situation) to collect the benefits.

6. Come to grips with the reasons you were let go. While you may disagree, the fact is that the employers who interview you know that another company couldn’t rationalize the value proposition in your retention.

7. FIND WORK! ANY WORK! This advice is certainly based on your cash flow situation, but more so, you should try to eliminate or minimize gaps in your resume; even if the work isn’t in your primary occupation. Refusing to work while you wait for the perfect or near-perfect situation to come along can really damage your chances of getting that near-perfect job. Stack lumber at Home Depot or take the closing manager’s spot at your neighborhood McDonalds. Work bestows dignity. If your pride can’t take it, just guess how much pride you’ll have to swallow living on the kindness of friends and relatives. Prospective employers will want to know what you did and what you were willing to do to help yourself.

8. Swallow your pride. Your survival is at stake; so, don’t risk it to maintain others’ glowing opinion of you. Keeping your kids in of private school to keep up with the neighbors while your retirement funds circle the drain just doesn’t make sense.

I wish someone had given me this list in the late 80s. I resigned a really good position to avoid moving my family across country. We’d just moved into a new house I designed and our kids were in private secondary schools.

In three short years, I went from flying in corporate jets to laying under desks, fixing computers to make the payments. You may have to take a similar path, but you can shorten the interlude between the big fall and the first steps back.

Good luck.

 

“Personnel” to “Human Resources” to “Talent Management”

The Personnel Department

eyeshadeI remember those days. Our department was tucked away in a dark corner. We were tasked with making safety inspections, doing payroll, issuing discipline and dealing with the union. We hired hourly employees and planned the annual summer picnic, retirement celebrations and holiday parties.

Frankly, it didn’t take a genius to be successful. Just keep your head below the trenches, make sure the reports were issued on time and make the payroll balance while all of the glamorous, high level recruiting and decision making were handled at corporate.

The Human Resources Department

Finally, I graduated to the glamorous corporate human resources department where we made sure others filed their reports on time and inspected and guided the work of the personnel departments we oversaw. We were given some added responsibility as talking heads at arbitrations and negotiations; and, we participated in the interview process for plant personnel managers to assure their capacity to file reports, plan parties, balance their payrolls and make their safety inspections.

While there exists the absolute need for the administrative facets of managing and workforce, i.e. payroll, safety, union negotiations, benefits administration, compensation management and running a hiring process; really successful companies understand that’s not enough to meet their growing needs.

Talent Management Department

Three of the clients I serve are making quantum leaps into sophisticated talent management. Not surprisingly, each is exceedingly successful in its market niche. Their strategic business plan relies heavily on their talent management function. They know their top line objectives to become partner, supplier and employer of choice in each of their geo and market areas depends on having the right people in the right places.

They are using pre-employment assessments, new manager training and teaching managers new ways to supervise people, identify and nurture talent.

If you have a talent management regime in place or need help to formulate and implement one for you organization; and, you are located in Indiana, Michigan or western Ohio, we can help.

Predicting Success/Avoiding Failure

A new client collected the Predictive Index®Profiles of its 49 sales people.  Sales managers gave a rating to each sales person based on his or her sales performance.  Once all the data was collected, we started the analysis.  Here is a record of that exercise and the results.  If you have a group of employees doing essentially the same work, we can apply this process to help you predict and insure success.

  • On a large table surface, we sorted the profiles into 5 rating categories, from 1 (best) to 5 (worst).
  • An initial visual overview did not provide any conclusive information, but one trend appeared: using Predictive Index® terminology, more of the least successful sales people have formal profiles.  That means they are pessimistic by nature and skeptical of new people, things and idea
  • Since this informal statistical analysis is best completed using the best and the worst, we concentrated our analysis on the top and bottom rated groups.
  • The next step was to add tenure data to the sales ratings.  Doing so revealed that most of the sales people in all groups had more than 3 years of tenure,yet there were sales people with less than 3 years tenure in top and bottom groups.
  • Our experience tells us it often takes 3 years for a new sales person to mature and perform at a high high level.  Super stars can be successful in one; stars in two; but most blossom in the third year.  To make the analysis relevant, we removed sales people with less than 3 years from both the top and bottom groups.
  • A thorough analysis of the two groups showed obviously but not unexpected differences shown below.

Sixty-six percent (66%) of the top group have Predictive Index® Profiles that demonstrate the ability and propensity to connect to people; compared to the bottom group wherein only 25% had possessed this marker.

connecting to people

Sixty-six percent (66%) of the top group have Predictive Index® Profiles that demonstrate the ability and propensity to be comfortable taking risk; compared to the bottom group wherein only 25% had possessed this marker.
risk
Finally, 63% of the bottom group have formal Predictive Index® Profiles while only 23% of the top group’s profile possessed this characteristic.

formal
Conclusion:

In this client’s unique culture, product/service mix, management style and pay schemes, a sales person is more likely to be successful if:
  • S/he is quick to connect to people;
  • Is comfortable making risk decisions; and,
  • Is optimistic

This information can and will impact their recruiting metrics, selection criteria and on boarding strategies.  It also informs sales management how to manage all the sales people, regardless of their Predictive Index® Profile.  How?  Well, if we know that sales people who display the behaviors as shown above, then, they should expect and coach all of their sales people to display those behaviors.  Some will and some won’t, but that’s the starting point.

Contact me for more information about our services.

jranalletta@advisausa.com
317-578-3676

Broken promises and abandoned trucks

En route to New York, I paused at a truck stop for fuel and coffee. The lavatory was located down a narrow hallway decorated with pay phones on each side.   Truck drivers hung from each phone. As I passed a young fellow who was talking on one of the phones, I overheard this:

“I’m going to leave the truck right here with the keys locked in the cab. They can come pick it up.  They promised me I’d be home for my daughter’s birthday and for your wedding. They lied to me.  As far as I’m concerned, they can kiss my…”

Wow, I’m glad it’s not my truck with my customer’s  merchandise abandoned and unattended in eastern PA. How expensive is that?  When I tell this story, fleet managers look at me, surprised that I didn’t know that abandoning rigs is a fairly common occurrence.

Competition for drivers has been very intense. Every trailer carries a sign enticing drivers to leave their current jobs for a better one.   They advertise “home most weekends”; and even “Home every weekend” on many.

Our database of long-haul driver Predictive Index® personality profiles tells us that the most successful are motivated by a sense of fairness and knowing that their employee really cares about them as people, not just labor input.

They expect the company to keep its promises and resent it when the company decides to rewrite the rules that govern their work arbitrarily.  If promised they will be home weekends, they fully expect it to happen.

It’s not fair!

The young driver I overheard seems to have expected his driving assignments would have allowed him to be home for certain special events.   He perceived he’d been treated unjustly. Of course, we don’t’ know the whole story, just his side; but, the key thing to remember is that it matters not whether he was treated unfairly in fact as long as he perceived he was treated unfairly; and the perception is reality.  I’d offer his thinking was, “If they break their promises to me, why should I keep my promises to them? It’s not fair.”

Would you do this to someone you really cared about?

It’s predictable, regrettable, preventable and expensive.  What’s more expensive for this driver’s employer, getting him home for his daughter’s birthday or retrieving a
abandoned tractor trailer full of merchandise and finding a new driver to take his place?

Solving this problem and understanding these aspects of human behavior are seldom topics in new manager training handbooks; and they’re often not included in driver recruiting metrics.  In fact, the industry is acclimating itself to these events by staffing “retrieval crews” to fetch abandoned equipment.

DriversImproving employee morale isn’t rocket science, but understanding what good drivers need and how to satisfy those needs should be an integral part of teaching fleet managers and dispatchers how to supervise people.

If you’re located in Indiana, Michigan or western Ohio and interested in increasing driver efficiency and reducing turnover, contact me at 317-578-3676 or jranalletta@advisausa.com.

Email me for a real example of a long-haul driver validity study (right).

What if the mentor is a turkey?

Jack Welch is no hero of mine, but I agree with this:

“Pairing up a young employee with a single mentor is one of the stupidest ideas around in management because the mentor may be a turkey.”

I wrote the following to a client who inquired about mentoring a young exec on his team:

The primary issue that we take with most mentoring pairings is that the result of the mentoring is not defined in advance. We’d prefer that a person be assigned to a mentor once we’ve identified the exact, measurable results we want the pairing to achieve. That starts with a frank evaluation of the junior exec’s needs. That would include an evaluation of his professional assets as well as his Predictive Index® personality profile.  Mentoring is not coaching or training.  It is the act of serving as a role model.

The creation of a mentoring relationship should be based upon a clear understanding of which of the mentors behaviors the mentee should and will learn to reproduce.  Are they values based or behavioral?

What specific skills or attributes does the person need to advance? If the deficit or area to be mastered is in the professional assets group, i.e. specific skills, learning the corporation’s methods and practices, certification, etc., then assign the person to some-one who has that area mastered and can impart it to the junior – but that’s not mentoring, it’s training, pure and simple. We would establish balanced scorecard metrics to tell us whether the person is learning or not.

On the behavioral assets side, if the the odds are low that the mentee can ever behave like the mentor, e.g. be assertive in the sales process; acclimate himself to long hours of intensive data analysis; deal with an ever-changing schedule rife with interruptions, etc.; don’t waste money and human effort in mentoring.

Mentoring should be a targeted activity of defined duration with specific objectives and follow through. Too often, companies will make these matches; and, they can work very well, but often they fail to satisfy because the outcomes are too vaguely defined or not defined at all.

Some questions to consider if you’re thinking about your mentoring efforts:

  • What do you want to this mentoring episode to achieve?
  • How do you expect the mentee to behave differently when it’s over?
  • What will the mentee know that sh/e doesn’t know now?
  • Are the mentee’s needs at a career level or talent level?
  • Do you expect the mentor to provide answers or validate the answers you’ve already developed?

Not satisfied that your mentoring pairs are not producing the results you want?  Need information about behavioral assets to make the pairings?  Whatever your need, if you are in western Ohio, Michigan or Indiana, contact me for more information and a demonstration.

jranalletta@advisausa.com
317-578-3676

Working at the car wash

Some stereotypes are hard to shake, none more so than that of the typical car wash operation of our youth.  Typically, it was in a poor section of town; a simple, see-through tunnel, built of cinder block and staffed by ever-changing crew of low-paid employees who depended on tips to survive.

In the US Midwest, including Indiana and Ohio, Mike’s Car Wash is the exception.  Every one is located in a prime location.  Employees are dressed in spiffy uniforms; the employees are trained to create a welcoming environment for customers; the premises are spotless; and, the they handle high throughput with apparent ease.

While state-of-the-art equipment promotes efficiency, Mike’s has concentrated its attention, efforts and capital to increasing employee engagement and tenure.

We analyzed the reasons people left, exit surveys, information that was uncovered and documented in interviews, as well as scores on pre-employment testing. It became apparent that our managers needed more training in the area of applicant screening, interviewing and hiring practices. We developed a program called Hire the Best. This program consisted of a full day of training for our managers, follow-up training in their workplace, the identification of 12 behavioral red flags that can be uncovered in the selection process, and new pre-employment testing benchmarks.”

Better hiring led to a 25-percent reduction in turnover, which saved a ton of money and, among other things, allows them to make investments in training pay off.

Improving employee morale and teaching managers how to recruit, interview and supervise people produced results for this car wash.  If your employee candidate assessment and selection processes need a tune; and, you’re located in Indiana, Michigan and western Ohio, call or email me.

It’s Saturday morning and I’m off to Mike’s for a car wash.

jranalletta@advisausa.com
317-578-3676