Category: Performance Management

  • Finding the Starting Point

    Finding the Starting Point

    Finding the Starting Point

    The optimization process for the people development system is no different than any other system improvement journey. Start by thoroughly understanding the current system. Mapping the current state of the PDS with all the stakeholders can help uncover the “why” and “how” parts and allow for more precise improvement efforts.  

    Here’s an article that I wrote about one company’s mapping efforts.

    https://tmep.cis.tennessee.edu/wire-company-creates-map-improve-their-people-development-system

    Image by TheAndrasBarta from Pixabay

  • Who’s in? – 4 Tips to Win a Competition You May Not Realize You’re in

    Who’s in? – 4 Tips to Win a Competition You May Not Realize You’re in

    An employer of choice makes better choices about who to bring on board because they have made good choices about their people development system and the culture they want to build.

    In this blog series, we’ve been exploring how all employers are competing to be an employer of choice, even if they don’t realize they are in the game. To improve their position in this race, the first tip is to learn about other competitor organizations they are up against. The second, is that the stakeholders of the organization’s people development system should realize that the potential employee they are after isn’t the only one making choices.

    In addition to hiring decisions, stakeholders of the company’s PDS make crucial choices about the way the system is administered and supported. Those decisions feed back into the employer of choice calculus.

    The third tip relates to the people who own the PDS.

    Let the whole team in on it.

    “That’s HR’s responsibility.” I often hear responses along these lines when I ask leaders about their internal workforce development efforts. It takes more than just the HR team to make the PDS work well.

    There are many stakeholders of an organization’s workforce development processes. These include frontline supervisors, line leads, department heads, and senior managers. Unfortunately, we sometimes forget to tell many of those stakeholders that we are aiming to be a preferred employer and that we need their help in doing it.

    They don’t know what they don’t know.

    Leaders at all levels influence the culture. A great example is their attitude toward training. If they are unwilling to give their team members time to attend training or if they complain about the process, their team will be negatively impacted. By extension, if they do not understand and appreciate the need for a learning culture, they will short circuit efforts to build such a culture.

    Stakeholders are important connectors across the five functional areas of the PDS – recruiting, onboarding, training, retention, and performance management. Do we let them know this? Do we train them to be good stewards of the PDS and the people that this system serves?

    Recruiting great potential talent is wasted when those new hires are passed on to team leaders who do not play their part well. Conversations that begin in the recruiting phase should continue through the onboarding and into the training and retention phase. The PDS should allow this communication to happen easily and consistently.

    If all stakeholders do not know the extent of their influence, and how to make that influence positive in nature, how can the company become an EoC?

    Help them see their part.

    Much of the leadership development that is offered to frontline and mid-level leaders is focused on the leader and their ability to engage people. Making good decisions, communicating well, and thinking strategically are all important learnings for leaders.

    It is just as important that all the leaders and stakeholders of the PDS see the system and understand their role in its performance. They also need the training and development to help them fulfill that part of their responsibilities.

    Building a healthy and vibrant company culture depends on the efforts of all the players. Get them involved in the competition for EoC by telling them who they are competing against and why winning (or at least moving up the rankings of employers) is so important to the company’s future and theirs.

    Once the stakeholders on board and collectively pushing to win the competition for EoC, the system must be able to sustain your new status. Which is the topic of our next post.

    Image by Gerd Altmann from Pixabay

  • The Flow and Pull of Human Inventory – A Lean Perspective

    The Flow and Pull of Human Inventory – A Lean Perspective

    It just sounds wrong to ask such a question. It feels insensitive, almost Orwellian in a way. Should people be considered inventory? Applying lean thinking to a system requires that we look at all the components, and inventory can certainly be a major factor. But, in this case, we’re not talking about a store of things, a list of items on shelves or in boxes. We’re talking about people.

    Inventory is one of the famous wastes in lean thinking. Usually, the goal is not to have too much or have it before it’s needed; this is because lean concepts originated from manufacturing. However, applying lean concepts to a people development system (PDS) can challenge the definition of inventory.

    Exactly Where are the People?

    I was talking to a colleague about helping organizations optimize their PDS by applying lean thinking. As we discussed how to analyze the traditional wastes of lean, my friend suggested that the stack of applications that an organization has for open job postings represents a type of inventory. That stack could be seen as an inventory of raw materials ready to be processed by the PDS. Potential, raw talent, waiting to be built up.

    Extending the analogy, perhaps these are other types of human inventories: 

    • Work in Progress – Those individuals involved in training and development.
    • Finished Goods – No one is ever fully finished learning, but these are reaching their peak in their role.
    • Reworks – those who recognize the need to change and are open to the idea of upskilling and retraining.
    • Obsolete Inventory – those people in the organization who refuse to change or whose roles are disappearing.

    There is also just the overall headcount. Donella Meadows, a leading contributor to systems thinking, often referred to stocks as the foundation of any system. She bolsters this assertion saying, “Stocks are the elements of the system that you can see, feel, count, and measure at any given time.” In the people development system, headcount is the stock, making it a type of inventory; one that can fluctuate by being acted upon by a system’s feedback loops, either a balancing loop or a reinforcing loop, or a combination of both. The PDS is responsible for maintaining the stock of people in all the organizational systems.

    Working Their Way Through the System

    Looking at people as inventory in some instances can be helpful. For example, two key lean principles are establishing flow and creating a pull system.

    Flow

    In this instance, flow represents people successfully moving through the system. It happens when the recruiting process is continually finding and developing acceptable/trainable talent at all key positions. It is created by constantly looking for valuable attributes and talents, even if there is no signal from internal customers. Then, creating the opportunity for those attributes and talents to “flow” into other parts of the organization; for the good of the individual and the organization.

    Flow is not just about people physically moving through the system though. It is also about intellectual movement, emotional movement, and cognitive movement. Flow implies progress and growth. The optimized PDS creates flow by ensuring that everyone is moving (upwardly, laterally) – progressing along their development path, career ladder, skill levels, etc.

    Pull

    Pull is demand. It is created in the organization when there’s a need for people to move up, take on new roles, or add their capabilities to another team. Pull is established when organizational systems have a need for people due to growth, expansion, and success. The Optimized PDS helps find the right types of human inventory, at the right place, in the right quantity.

    Pull is driven by more than just promotions. There’s also skill level advancement and growth in leadership abilities, cognitive training, personal goal attainment, knowledge acquisition, coaching ability, cross-training in other areas, concept understanding (such as lean, kata, systems thinking, etc.), and strategic thinking.

    Signals From the System

    Together, the lean concepts of flow and pull help PDS stakeholders identify where needs are greatest and the pulling forces are strongest. These signals get transmitted back through the PDS so that the demand is met, people are added, they get training, are moved, etc. They will have names and faces, of course. They won’t be known as Works in Progress, or Reworks, or Obsolete. They will, however, be seen in the system.

    There are places in the PDS where monitoring the levels of human inventory and their developmental progress can interject a sense of urgency to ensure that people are efficiently moving through the system and they are being served well along their journey. Just the idea of labeling people as inventory may be inflammatory or sound demeaning to some. If it is meant to value people only as so many interchangeable resources to be manipulated, then it would be offensive. However, observing the PDS through this lens can help us gain a more systems-oriented view and help us manage the organization’s most important inventory.

    Reference – D. H. Meadows, (2008). Thinking in Systems, A Primer.

    Image by Gerd Altmann from Pixabay

  • Change for the Change Maker

    Change for the Change Maker

    I believe we humans have gotten better at adapting to the pace of change. But the big, pressing changes often distract us from paying attention to other, less obvious adjustments that might make our systems work more effectively. In the last post, we looked at the internal people development systems of organizations and how they are all about change management. These systems manage change and can instigate change. They are also open to transformation to make them more effective.

    Seeing the system might be the first change needed

    The connections seem obvious; but it is easy for stakeholders to lose sight of them. The PDS is a complex, dynamic system operating at various times, in multiple places throughout the organization, and involving multiple people. The difficulty lies in seeing the whole system in operation.

    Change ripples through the system. The training function expands abilities and capacities. Recruiting alters team structure and makeup, while onboarding aims to change perspectives and motivations. Retention seeks to strengthen relationships and boost trajectories while the performance management function improves capabilities and potential. Together, these all work to sustain or change the organizational culture. Inefficiency in one area flows through the system and impacts the other areas.

    Weak, neglected connections still allow the system to operate, but with less effectiveness. On the other hand, enhanced connections share data, ensure consistent communication across the PDS, and use tools like training matrices and development pathways to engage teams.

    Constant change, aka continuous improvement

    It’s often easier to improve a visible, linear system like a production line that makes widgets than to improve a non-linear system that lives within larger systems. But lean thinking can be applied to the PDS.

    Adopting a continuous improvement mindset within the team can help ensure that the processes that make up the PDS are focused on delivering value to all of its customers.

    Lean thinking is about eliminating waste, which certainly exists within most PDSs. It might be the waste of time that occurs with outdated training methods or poor training tools. It might be wasted opportunities when performance management efforts are ignored. Wasted effort of underdeveloped trainers is another example.

    Learning organizations are always changing  

    Grow the individuals within the system, and the system itself will change. The optimized PDS appreciates and cultivates the love of learning throughout the organization. The effects of this level of improvement within the PDS show up as improved engagement, more ideas generated, and deeper relationships formed. This improvement radiates outward to all other organizational systems.

    Changes to chase

    Other changes that can impact the PDS. One is a change in expectations. Expect the system to operate better, then put in the work to make it happen. Changes in perception. Help the team see the system, understand its power, and challenge the status quo. There are also changes in the level of dedication to constantly improve the PDS. It takes concerted effort and determination to improve this system. This level of improvement requires strong leadership and commitment from all stakeholders.

    Some of the improvements we can make to our people development systems are subtle. But the system is open to continuous improvement. If it is restricted and ignored it will never be able to be the change maker it is intended to be.

    Image by Gerd Altmann from Pixabay.

  • Things that Move a People Development System

    Things that Move a People Development System

    “Are you sure about that?” It was a great question, simple and thought-provoking. After reading my last post, a good friend and mentor challenged me to consider my assertion that time was the most important element of the system used to develop an organization’s workforce. His questions are a favorite part of our visits, although the great lunches we typically share are pretty good too. On this occasion, his question helped me to realize that more clarity and definition are needed. If the system is really about people, aren’t they the most important element?

    Several things affect the behavior and the performance of the people development system. I see these three as the most prominent influences on the system – functional areas, elements, and customers.

    Functional areas

    As has been stated many times in this blog, these form the framework that promotes the activities necessary to find people, bring them on board, and sustain their development journey:

    • Training
      • Recruiting
      • Onboarding
      • Retention
      • Performance Management

    These functional areas of the system work together to provide various services, facilitate communication, and foster relationships, among other things.  

    Elements

    The empowering factors that influence the system’s behavior:

    • Internal elements
      • Time
      • Tools
      • Data
      • Leaders/stakeholders
      • External elements
        • Time
        • Market conditions
        • Social factors 

    System elements dictate what people are experiencing within the functional areas, how the areas are performing, and how the PDS reacts to opportunities and changes.

    Customers

    The people – individuals and groups – who rely on the PDS and are affected by its performance.   

    • Internal Customers
      • The people being developed. Those involved with the system components.
      • The teams that receive and work with those being developed.
      • The organization as a whole.
      • External customers
        • All the people that the organization serves as clients.
        • Families of internal customers.
        • Communities that these families belong to.

    Optimizing the functional areas is very important. There are plenty of other posts on this blog that discuss this. I do believe that time is the most important element that empowers the PDS. All of the other elements are critically important. But without valuing time and allowing enough of it for learning to occur, for relationships to be built, and for the culture to grow, they tend to be less impactful.

    On the other hand, the customers are the most important focus of the PDS and this should never change. In order to ensure that they are getting maximum benefits from the system, all of the components that make up the system and the elements that empower it must be understood and managed well.

    What other components of the PDS do you see?

    Image by Gerd Altmann from Pixabay 

  • What if Outsiders Saw Our People Development System?

    What if Outsiders Saw Our People Development System?

    If a group of strangers asked to visit your manufacturing facility to learn about your training and development efforts, what would they discover? How would you explain your organization’s approach to training and development? Would the collective attitude toward learning be evident as they walked around?  What would they learn from talking with trainees and trainers? Such a scenario could be exhilarating and validating. On the other hand, it could be challenging, possibly even embarrassing.

    Last month I was part of a group that visited six manufacturers, some large and some small, in Munich, Germany. Like so many before us, we wanted to learn about their much-vaunted dual training approach known as the Vocational Education and Training system. The companies welcomed us in, as did other system partners. They were gracious and eager to share.

    Switching Places

    The trip was co-sponsored by the American Council on Germany and by MAGNET. We were a collection of workforce development professionals mostly from a dozen Manufacturing Extension Partnership centers around the US. After the exploration, I wondered what would happen if the roles were reversed. What if it were my company and our people development system that a group of professionals wanted to see?

    Over our week-long exploration of these companies, we saw fully equipped, well-organized, and dedicated training areas with ongoing projects that young apprentices (some only 15 years old) had been working to complete. Conversations with several of these learners revealed a growing connection to the company and to the people investing in their futures. Would they see that level of investment if they came to my place?

    Seeing More

    We learned about requirements for trainers and how they are supported. We saw how the companies connected to the greater workforce development system. Leaders, from the C suite to the production teams were passionate about training the next generation. Would my visitors see such enthusiasm for developing people?

    Learning and development are valued at many different levels. In their view, this long-term endeavor connected individuals to teams and teams to industries. To our German hosts, these traditional educational efforts are important because, ultimately; they connect communities to the nation’s interests. Would such a level of appreciation for the overall impact of people development be evident in my facility?

    Walking around each factory, we experienced a bit of their cultures. In every instance, there were positive attitudes toward learning. In some cases, about half of the existing workforce had traveled the same type of career development path, which no doubt helps form bonds and provide encouragers for the apprentices. Clear development pathways were the norm. The level of commitment to learning was high and very consistent. Would my company culture send the same messages?

    Self-reflection

    These German companies let outsiders peek under the hood of their people development system. Undoubtedly, the whole German system drives the success of the VET process. However, inviting people in to see your operation is much more up close and personal. I don’t actually lead a manufacturing company, but I suspect it requires some serious self-reflection beforehand.

    Opening up your internal system for inspection and critique requires a certainty that the system is working well, that the tools are effective, and the performance is reliable. The confidence to throw open the cupboards would have to be based on clear successes and on knowing that the system is capable of serving future needs. It would take faith in your team as well. If visitors talked one on one with learners and trainers the strengths or weaknesses of the system could be exposed.

    Optimization of the PDS is the pursuit of answers to questions that force us to look closely at the whole system and its performance. Seeing it from the perspective of others is a good exercise. If it validates our beliefs and our actions, great. If sharing some aspects of our system makes us uncomfortable, these are the areas that need attention.

    What would other professionals see if they looked closely at our PDS? Maybe we should invite them in and find out. But, only after we’ve looked through the cupboard ourselves!

    Image by Tumisu from Pixabay 

  • Will Last Year’s People Development System do the Job in 2023?

    Will Last Year’s People Development System do the Job in 2023?

    It can mean transformation, modification, or alteration. It can also indicate an exchange, a swap, or an effort to trade out one thing for another. Change is a noun and a verb that usually means we have to do things differently. We most certainly have learned that we must do things differently when it comes to developing people.

    Organizations continue to wrestle with the unyielding changes in workforce development and workforce training, changes that come from so many directions. Whole economies are changing, global trade is changing, and even the idea of work itself is changing.

    Multiple systems, internal and external, are all in flux. And, as always, people are changing. Only now, it seems that these particular, people-related changes have more direct influences on all businesses.

    Improving the organization’s people development system requires that leaders and stakeholders look beyond the typical HR-centric goals set for the new year and look for leverage in other areas of the PDS.

    Some of the usual goals typically championed by or given to the HR team might include things like better recruiting efforts and the expansion of benefits to try and gain a competitive edge. There might also be some ill-defined declarations to increase training and maybe some focus on retention (which often means more team celebrations or events).

    All of these options offer some potential for improvement. However, with some determined curiosity, new and powerful modifications might be identified.   

    Ask: Where are other opportunities for improvement?

    Five functional areas make up the PDS. Can we:

    • Improve efforts to ensure data quality and accuracy?
    • More effectively leverage the connections between the five areas of the system?
    • Upgrade the design and/or delivery of Development Pathways (do we have these for every team member)?

    Think: Continuous Improvement.

    Optimization is an ongoing process.

    • Identify waste in the PDS and set about reducing or eliminating that waste.
    • Help all stakeholders become better at their role in the PDS. Does everyone know and understand the importance of the part they play in finding, training, and retaining people?
    • Improve communication (share goals and successes, celebrate progress)

    Look: Below the Surface

    Sometimes, the most impactful changes happen in the least visible parts of the system.

    • Engaged stakeholders bring energy to the system. Involve everyone.
    • 2023 promises to have a host of challenges. Is the PDS adaptable to shifting market conditions?
    • Ensure that the true purpose of the PDS is defined and communicated.

    The start of a new year embodies the idea of change. To optimize is to change. Intentionality is key to driving continuous improvement in an organization’s workforce development efforts. The challenge is to dig deeper – ask probing questions, think differently, and look more closely – to identify the changes that will empower a more effective people development system in 2023.

    Image by Gerd Altmann from Pixabay 

  • A System That Never Quits… or, Shouldn’t Anyway  

    A System That Never Quits… or, Shouldn’t Anyway  

    In some systems, processes can be easily followed from a beginning point to completion. For example, production systems tend to have a start-to-finish flow. Raw materials come in, modifications occur, and finished goods exit the process. Service delivery processes can often be easily traced within systems designed for that purpose. In these systems, it is fairly easy to understand what is happening at any given time. It is not so easy with the people development system. If leaders do not understand the dynamic behaviors of the PDS, opportunities could be missed, system performance could be limited, and poor decisions could harm the system’s effectiveness.

    Phases of Activity

    I have made the case that the PDS is difficult to see in operation. This is due to non-linearity and to multiple variables that come into play sight unseen. An important implication of this is the need to recognize what parts of the system are active and when those activities are taking place.

    As an open system, the PDS operates in and is influenced by its environment, taking feedback from other organizational systems and adjusting. The system is always active at some level. When headcount is unstable, recruiting and onboarding efforts are more active. Think of this as phase one system activity.

    When headcount is stable, the emphasis shifts to retention and performance management – phase two. Training processes support both phases of the PDS, with these activities fluctuating based on several system variables.

    Something is Always Happening

    No matter which phase is dominant, activity in the less dominant phase should still be present. Does the act of recruiting ever really come to a complete stop? In an optimized PDS, there is always some effort made to improve and refine sources, improve materials, and identify potential audiences, even if there are no current job openings to fill.

    Is the training program constantly evaluated for efficacy and efficiency? No matter where the greatest workforce development activity is focused, continuously improving training should be of paramount importance. Good training has far-reaching impacts on the organization.   

    Development pathways are a tool that should be used in all phases of the PDS and are especially important in bolstering retention and performance management. Are these pathways being actively managed? It doesn’t matter where the overall system emphasis is; this training map is most effective when used at the opportune time along the individual’s journey.

    Before or After

    Typically, when there is a contraction or spike in some system performance, stakeholders respond after the fact. For example, if attrition numbers change, attendance issues suddenly develop, or some quality issue points to the need to revisit the training processes.

    The optimized PDS proactively monitors data and interacts with stakeholders and the individuals served by the system to get out in front of any potentially harmful issues.

    Why it matters

    At any given time and at various levels, the PDS is active, or should be. These activities might involve both the initial phases of adding people or the secondary phases of training and retaining them. Or, it could include robust efforts in both. An awareness of the fluctuating dynamics of the system is vital to managing it well and improving overall system performance.

    Image by Gerd Altmann from Pixabay 

  • Four Important Characteristics of a People Development System

    Four Important Characteristics of a People Development System

    Some are open, some are closed. Some are simple, while others are complex, ranging from a mostly linear flow to interwoven layers of relationships and connections. Systems come in all shapes and sizes. An organization’s people development system is a great example of a complex and interrelated system. These internal efforts at workforce development have certain characteristics that make it challenging to optimize them.

    The People Development System

    Difficult to See the Action

    There are usually artifacts that help leaders see what the PDS is doing. Training matrices, development pathways, and performance management tools provide some visibility. However, the actual operations of the system, the functioning of various elements, are scattered around the organization and can happen at various times.

    The recruiting process occurs at different levels, at various locations, and in different ways. Training schedules share some insight; however, some valuable training activities may take the form of a one-on-one encounter on a production line. Other forms of training come from informal learning opportunities, mentoring or coaching interactions, or even self-directed learning.

    Retention might be strengthened through a simple conversation or in a review of a team member’s development pathway. Many of these important PDS functions are facilitated without schedules or plans and are done with little or no fanfare.

    Plays out Over Time

    When does recruiting, onboarding, performance management, retention, and training happen? When each one needs to. When other organizational systems send signals. When the market sends signals. All five functions could potentially be operating at different places and at different times due to a wide variety of factors that moves the system to act or to react.

    Several of the outcomes of these functions, although connected, sometimes develop slowly; for example, communication, relationships, and engagement. These can all happen unpredictably and at varying speeds.

    Results come at staggered intervals too. The impacts of training require follow-up to show effectiveness. Time to fill an open position is an important metric for recruiting. The effects of performance management become evident only after some interval of time has passed.    

    Multifaceted

    People entering the PDS, eventually work their way into all five functional areas of the system. Some of these interactions occur simultaneously in multiple parts of the PDS. For example, they will experience training at the same time as they experience retention efforts and at the same time that performance management support is given. Recruiting, onboarding, and retention are all tied together in the optimized PDS.

    Multiple stakeholders

    Many people play a role in the optimized PDS. As the system supports each team member, various leaders connect with those team members and with other leaders involved in worker development.

    Direct supervisors encourage training and influence retention. Department heads along with supervisors get involved in the early stages of recruiting and onboarding. Senior leaders make decisions based on the performance of the PDS. Essentially, everyone is involved with the human resource management function.

    ­­­­Let These Characteristics Guide

    Optimization requires making the invisible visible. Map the PDS and show how data flows, where communication should occur, and where leaders need to collaborate in support of the system and of the team members.

    Greater visibility gives stakeholders a more holistic view of the system and allows for better and more timely decision-making. Honoring the interconnectedness of the PDS helps team members experience a smooth development journey and it promotes deeper levels of employee engagement.

    Developing and maintaining an engaged workforce requires a dynamic and complex blend of processes that occurs across the whole organization. To continuously improve this internal workforce development system, it is imperative to appreciate how interdependent it really is.

    Image by Pete Linforth from Pixabay

  • 3 Reasons to Optimize Your Internal People Development System

    3 Reasons to Optimize Your Internal People Development System

    Practically all organizations practice workforce development. In many instances, these systems can be underdeveloped leading to less than stellar performance. Here are three compelling reasons to enhance this very important system.

    The PDS Supports Culture.

    “Talent acquisition and retention are as critical to culture as fuel is to a combustion engine.”

    Throughout their book, Culture Eats Strategy for Lunch, Coffman & Sorensen describe the attributes and qualities of high-performing cultures and how these are established and sustained. The tools and processes that enable and empower such cultures form a connected system; one that can be continuously improved.

    The optimized PDS understands that the people brought into this culture are on a journey that begins with recruitment, gains momentum at onboarding, is propelled by training, and enhanced by performance management. Retention begins at the recruiting stage and ushers those people along their journey.

    The PDS Supports all Other Organizational Systems

    “How we manage our people is the fluid that connects all the working parts and brings them the oxygen and nutrients to keep them all working as they should.” Toyota Culture; The heart and Soul of The Toyota Way

    Jeffrey Liker & Michael Hoseus explored Toyota’s HR philosophies and practices that support their famous Toyota Production System. These researchers described culture as the “blood flow” that makes the TPS operate.

    A reliable system to manage this “flow” hangs on a framework supporting systematic recruitment, robust onboarding, deliberate training, and dynamic performance management. Long-term retention anchors the whole process.

    The PDS Aligns

    “The visionary companies translate their ideologies into tangible mechanisms aligned to send a consistent set of reinforcing signals. They indoctrinate people, they impose tightness of fit, and create a sense of belonging…” Built to Last.

    Jim Collins and Jerry Porras follow this statement with a list of ways these visionary companies accomplish this. Their list describes training and onboarding practices, communication methods, and tools that include incentives and advancement criteria along with relationship-driven dynamics.

    All of these require a PDS that is visible to all stakeholders, clearly connected across the organization, and in lockstep with organizational goals and objectives.

    The system that organizations use to find, train, and retain people is a system within a system. This PDS serves as the connector and communication mechanism. It facilitates relationships and in so doing, directs the fuel that drives culture, provides needed substance and support to help sustain it, and ensures that important signals can pass through the system consistently.

    Such a critical system can offer great rewards from continuous improvement and optimization.