BY KEVIN NOURSE, PHD

Transcription

1 August 2012 BUILDING SUPPORT FOR LEADERSHIP DEVELOPMENT: AN ANNOTATED BIBLIOGRAPHY BY KEVIN NOURSE, PHD

2 Introduction The challenging economic conditions currently facing organizations have caused many senior leaders to evaluate capital investments with even more scrutiny. This presents a unique challenge to HR leaders interested in establishing leadership development programs, calling forth a greater need to think and act strategically as well as effectively influence upward. HR professionals who are skilled influencers are able to build support for leadership development programs by building a solid business case using qualitative and quantitative data from internal and external sources. Internal sources include, including turnover rates, the cost of employee relations investigations, productivity, morale survey data, and needs assessment data. External sources include best practice research from professional associations, white papers, and scholarly articles particularly those articles based on evaluative research. This bibliography contains useful information from a variety of sources that can be used by HR professionals who are attempting to build a business case to justify investments in leadership development. Although it is not an exhaustive literature review, it does include information I have found useful from a number of sources including: Books that focus on assessing performance needs, evaluating the impact of leadership programs, and strategic impact Research studies from the Society for Human Resource Management (SHRM) and the American Society for Training and Development (ASTD) that document current best practices and industry standards White papers developed by external consultants and evaluative research studies that have identified the return-on-investment for various leadership development programs The combination of internal data as well as external sources can help HR professionals create well-supported business cases as a means for successfully influencing skeptical senior leaders to make critical investments in developing current and future leaders. Kevin Nourse, PhD Page 2

3 Books Barnes, B. K. (2000). Exercising Influence. Berkeley, CA, Barnes and Conti. Bourne, L. (2011). Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders. Burlington, VT, Gower. Hale, J. (1998). The Performance Consultant's Fieldbook. San Francisco, Jossey-Bass. Kirkpatrick, D. L. (1998). Evaluating Training Programs: The Four Levels. San Francisco, Berrett-Koehler. Phillips, J. J. (1997). Handbook of Training Evaluation and Measurement Methods. Burlington, MA, Elsevier Science. Robinson, D. G. and J. C. Robinson (2005). Strategic Business Partner: A Critical Role for Human Resource Professionals. San Francisco, Berrett-Koehler. Robinson, D. G. and J. C. Robinson (2008). Performance Consulting: A Guide for HR and Learning Professionals. San Francisco, Berrett- Koehler. Rothwell, W. J., R. K. Prescott, et al. (2008). Human Resource Transformation: Demonstrating Strategic Leadership in the Face of Future Trends. Mountain View, CA, Davies-Black. Ulrich, D. (1997). Human Resource Champions. Boston, MA, Harvard Business School Press. Kevin Nourse, PhD Page 3

4 Journal Articles and Whitepapers Avolio, B. J., J. B. Avey, et al. (2010). "Estimating return on leadership development investment." The Leadership Quarterly 21(4): These researchers provide a useful framework for computing the return-oninvestment (or as they suggest, return on development investment) for different development scenarios. For example, they provide two scenarios for a 1.5-day leadership development program compared to a 3-day program. The article is a really excellent read for anyone who may be attempting to determine the return on investment for a leadership program and needs guidance on suitable methodologies. Broad, M. L. (2006). "Improving performance in complex organizations." Industrial and Commercial Training 38(6): As a noted writer, researcher, and performance consultant, Broad makes a strong case for challenging the old assumption of training being the most effective way to produce performance given the number of autonomous workers. She argues that in order to influence these autonomous workers to learn, the credibility of new knowledge and skills is essential. Further, autonomous workers must perceive a need to improve their performance. The new assumption Broad presents recognizes that the a combination of interventions based on Rummler & Brache's six levers of performance are most effective including: 1. Clear performance expectations 2. Resources and support including the time to do the required work 3. Meaningful and timely consequences for performers to do the desired task 4. Feedback that is relevant and timely 5. Capacities within the individual to perform the desired the task 6. Right knowledge and skills to perform the task Ultimately, the management chain of a performer has responsibility for all six of these elements. Brumwell, I. and P. Reynolds (2006). "How coaching cuts costs and saves time at BT Retail." Strategic HR Review 5(5): This study consisted of evaluating the impact of a coaching and training for 12,000 British Telecommunications retail online employees. The outcomes of this Kevin Nourse, PhD Page 4

5 intervention were an increase in productivity of 11.2% and an estimated cost savings of 20 million British pounds. The year-long program consisted of training on time and change management for 1100 managers, training for site performance managers who would then provide performance coaching to front-line managers, and a change management program to guide implementation. While the study is a useful look at the impact of a multi-faceted management development program and resulting organizational impact, there are two limitations. First, it is unclear how the productivity gains were computed. Unlike a typical research study, detailed findings were not presented. Second, because the same consultant who designed the intervention conducted the ROI study, it lacks the objectivity of a ROI study conducted by a researcher without a stake in the outcome. Chidiac, M. (2006). "Getting the best out of executive coaching: A guide to setting up a coaching process." Development and Learning in Organizations 20(3): A management consultant presents some useful strategies for setting up an organizational executive coaching program in a way that maximizes its success. Collins, D. B. and E. F. Holton (2004). "The effectiveness of managerial leadership development programs: A meta-analysis of studies from " Human Resource Development Quarterly 15(2): Researchers Collins and Holton have compiled a useful meta-analysis of 83 evaluative studies of leadership development programs. This meta-analysis is the first substantial study to review efforts to evaluate the impact of leadership development since Burke and Day (1996) published their widely regarded meta-analysis of leadership programs. Among the key findings of this study: Measurement of the impact of leadership development on the organization is very infrequent; most studies examine learning outcomes Relatively few evaluation studies have focused on non-training interventions (e.g., mentoring, job assignments, coaching, feedback) Three factors are critical for ensuring a positive impact of leadership development: (1) right development program, (2) appropriate audience, (3) right timing of the development effort Upfront needs assessment for leadership development is critical to ensure the intervention creates organizational value Training objectives should be aligned with organizational strategic goals Kevin Nourse, PhD Page 5

6 Giber, D. (2009) Improving ROI: Three Leadership Best Practices. Retrieved from Giber_Improving_ROI_Three_Best_Practices.pdf Giber identifies three best practices he claims improve the return on investment for leadership development: (1) integrate training experiences with application to job tasks, (2) link leadership development with strategic priorities, and (3) ensure appropriate timing of leadership development at the right career point. Hayward, I. and S. Voller (2010). "How effective is leadership development? The evidence examined." Ashridge Journal (Summer). A useful summary of what is known about evaluating the effectiveness of leadership development, including challenges and opportunities. Building on past research, Hayward and Voller identify the seven potential outcomes that can be examined including: reactions to the learning experience, subjective and objective learning outcomes, subjective and objective behavioral outcomes, and subjective and objective organizational outcomes. Hernez-Broome, G. and R. L. Hughes (2004). "Leadership Development: Past, present, and future." Human Resource Planning 27. Two researchers from the Center for Creative Leadership (CCL) have written a compelling article that summarizes past and present trends in leadership development, as well as their predictions for the future in approaches to developing leaders. For those interested in developing leaders, the article provides a terrific 30,000 view of the research. Whereas past efforts to develop leaders have focused on classroom-based training to address gaps in knowledge and skills to help them become transformation leaders, the current focus in practice is oriented toward helping leaders take action by tapping their strengths. In addition, the writers argue that current best practices of developing leaders continue to rest upon competency modeling to define what constitutes leadership at various levels, use of leaders to develop other leaders, and moving beyond random development events to a more integrated and systematic approach. Finally, Hernez-Broome and Hughes argue that the future holds greater focus on four key competencies (strategy, managing change, building relationships Kevin Nourse, PhD Page 6

7 and developing others), globalization of leaders' skillsets, an emphasis on integrity and character, and measurement of return on the investment in development. Missing from their analysis are several key aspects of leadership that are more critical than ever: Given ever-increasing use of teams in organizations, the ability of leaders to create and sustain a high-performing team, Increasing complexity and adversity for organizations translates to a greater need for leaders to function well in the midst of crisis, and Importance of organizational sustainability that reflects awareness of political, financial, environmental, and human factors McGuffin, A. A. and E. Obonyo (2010). "Enhancing performance: a case study of the effects of employee coaching in construction practice." Construction Management and Economics 28(2): The study examined the impact of coaching on a sample of employees in a construction management firm and found support for positive impacts on retention, loyalty, and productivity. This study was based on a survey administered to 52 employees in a single construction company, 28 of which actually participated in a coaching program. The coaching program consisted of a 4-day program that included coaching, training, and team activities. Participants applied to a program manager in order to be accepted into the program. The survey reflected the perspectives of those who participated in the program, as well as those who didn't. According to the study, "93.5% of the attendees stated that participating in the coaching program increased their desire to remain employed by XYZ." There are several limitations of this study. Because the intervention included coaching, training and team activities, it is difficult to attribute these results to only the coaching component. Also, the research design was cross-sectional and based on self-assessment data. Ideally, participants would be surveyed before their participation in the coaching program to provide baseline data with regard to participants loyalty to the company. Finally, the data collected was self-report data that is subject to personal bias. Kevin Nourse, PhD Page 7

8 Parker-Williams, V. (2006). "Business impact of executive coaching: Demonstrating monetary value." Industrial and Commercial Training 38(3): A well-written article that describes a ROI study of an executive coaching program Virgina-based Booz Allen in which coaching generated a 689% return on investment. Coachees were surveyed, as well as their direct reports managers who estimated the value produced. Three primary impacts of participation in the coaching program were identified: (1) improved teamwork, (2) team member satisfaction, and (3) increased retention, productivity and quality. The researcher identified very specific data in the article associated with the cost and value created for the organization. In addition, under the guidance of a well-known evaluative research consultant (MetrixGlobal), the study used very conservative methods for estimating the value created for the organization. Rohs, F. R. (2004). "Return on investment (ROI): Calculating the monetary return of a leadership development program." Journal of Leadership Education 3(1): This study determined a 286% ROI for a leadership development program for new employees in the Cooperative Extension Service. The leadership program included assessment using a video-based computer simulation to assess participants baseline proficiency in 12 key competencies (e.g., time management, goal setting, coaching, delegating, etc.). Participants then attended competency-based workshops to strengthen the weaker competencies for each participant. In this regard, it was a true criterion-referenced program where participants only attended workshops based on how well they performed on an assessment. Simmonds, D. and O. Tsui (2010). "Effective design of a global leadership programme." Human Resource Development International 13(5): This evaluative research study of a leadership development program in a multinational program identified the extent to which 282 participating managers adopted new behaviors. The program consisted of four elements: (1) workshops lead by senior executives, (2) 360 degree feedback and personal development planning, (3) action learning, and (4) book reviews. The six targeted leadership competencies included: (1) performance management, (2) organizational commitment, (3) setting direction and driving accountability, (4) innovation management, (5) networking and relationship building, Kevin Nourse, PhD Page 8

9 and (6) self-development. The study found that at least 80% of the participants successfully adopted the following targeted leadership behaviors: networking, commitment, and performance management. In addition, the researchers identified five top factors that prevented participants from using what they learned on the job including: (1) lack of time, (2) changes in role, (3) insufficient support from their supervisor, (4) insufficient support from senior management, (5) insufficient on-going support (e.g., from HR). Further, they identified a number of factors that supported the transfer of the learning to performance: (1) support and interest from the direct supervisor, (2) supervisor's participation in the program, (3) networks developed with other program participants, (4) peer's attendance at the program, and (5) support from the leadership team and HR. Unknown. (2003) The Real ROI of Leadership Development: Comparing classroom vs. online vs. blended delivery. Retrieved from AmericanExpress.pdf A training supplier case study/evaluative research study that examined the impact of three training modalities on learners: (1) web-based only, (2) classroom-based, and (3) blended delivery. The study results suggest that blended learning was the most effective with an ROI of 1599%, followed by classroom-based (972%), and online (923%). Of particular note in this white paper is the addition of a sixth level of measurement: transfer climate. Beyond the return-on-investment of the leadership development interventions, this sixth level rightly evaluates the factors in the work environment will help or block the transfer of learning to workplace performance. Three transfer climate factors associated with high improvement participants were identified: (1) participants had conversations with their boss on how to apply their newly developed skills, (2) the boss supported the training, and (3) the expectations of participants that they will be rewarded for participating in the program. Kevin Nourse, PhD Page 9

10 Professional Association Research Reports 2011 Employee Job Satisfaction and Engagement: Gratification and commitment at work in a sluggish economy. Alexandria, VA, Society for Human Resource Management. The Society for Human Resource Management produced a useful report about employee satisfaction and engagement that identifies a number of important findings for leaders and managers. According to the study, the top factors of job satisfaction most important to employees in 2011 includes: (1) job security, (2) opportunities to use their skills and abilities, (3) financial stability of their employer, and (4) the relationship with their immediate supervisor. The study goes on to suggest that these findings suggest that organizations should better leverage the talents of their people, partner with their employees and set clear direction. SHRM Workplace Forecast: The top workplace trends according to HR professionals. Alexandria, VA, Society for Human Resource Management. Leadership development is critical for helping organizations successful respond to emerging workplace trends. According to this study, there are a number of trends impacting human resource issues in the workplace have significant implications for organizational leaders. Thus, these trends suggest a need for increased investments in leadership development, as well as adapting the focus of leadership development efforts. Among the top workplace trends of greatest relevance to leadership development efforts are: Increased global competition for jobs and talent as a result of increasingly innovative and dynamic non-us based organizations Many baby boomers leaving the market into retirement, resulting in substantial loss of knowledge and talent needed to guide organizations Other baby boomers remaining in their roles because they cannot afford to retire, reducing the availability of career options for younger workers and potentially increasing turnover Need for cross-cultural understanding and interaction skills given the increasingly global nature of most organizations The study consisted of the views of 1,500 HR professionals was conducted in May Kevin Nourse, PhD Page 10

11 ASTDs Annual Review of Workplace Learning and Development Data. Alexandria, VA. A comprehensive research report that explores three major topics: (1) organizational expenditures on training, (2) content distribution including training topics, and (3) training content delivery methods. According to the study, statistics for 2010: Average direct training dollars spent in 2010 were $1,228 Training expenditures as a percent of revenue: 1.1% Direct expenditure as a percent of payroll: 2.7% Learning hours per employee: 32 Learning hours per employee for best practice organizations: 56 Cost per learning hour: $72 Management and supervisory learning represented 13% of content delivered 70% of all training delivered in 2010 was classroom-based This report is well supported and a useful source of information for HR directors interested evaluating their own organization's investment in training managers and employees. Kevin Nourse, PhD Page 11

12 Professional Biography for Dr. Kevin Nourse Dr. Nourse is a research-based executive coach and organizational development consultant with over 20 years of progressive experience in both for-profit and governmental organizations. He focuses his work on creating resilient leaders, teams, and organizations. He is also on the faculty of the Georgetown University Coaching Certificate program. Kevin has a Ph.D. from Fielding Graduate University where he conducted research on crisis leadership among middle managers during Hurricane Katrina in New Orleans. In addition, he has an MA degree in human resource development, an MA in human, and a BS degree in Information Science. Some of Kevin s former and current clients include Abbott Pharmaceuticals, American Association of Port Authorities, American Psychological Association, Eli Lilly, Federal Housing Finance Agency (FHFA), Federal Reserve Board of Governors, Fannie Mae, Freddie Mac, National Cancer Institute, Port of Los Angeles, Texas Instruments, and the U.S. Food and Drug Administration (FDA). Prior to launching his practice in 2001, Kevin worked as an HR director, financial analyst, CPA, instructional designer, training manager, and software developer. Kevin can be reached at kevin@nourseleadership.com or Kevin Nourse, PhD Page 12