Engaging Managers To Drive Employee Performance and Development

CLC Learning and Development Engaging Managers To Drive Employee Performance and Development

Effective manager-led development leads to increased employee performance, engagement, and retention. MANAGER-LED DEVELOPMENT: WHAT IT IS, WHY IT MATTERS 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 2

Although managers invest significant time into the development of their direct reports, their time investments are not resulting in increased effectiveness. TIME DOES NOT EQUAL EFFECTIVENESS No Connection Between Time Spend and Effectiveness at Development 40% Daily Manager Time Spend On Development at New Zealand Police Percentage of Employees Benchmark 30% 20% 30% 25% 20% 10% 0% 9% 11% 4% 1% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 3

Although most managers believe development is an integral part of their jobs, managers are not effective at it. BELIEVING RESULTS Managers Believe Development is an Integral Part of Their Jobs Percentage of Managers at Employee Rating of Manager Effectiveness Percentage of Managers 1 at 30% Development Is Not Integral to Job 70% Development Is Integral to Job 69% Ineffective 31% Effective Benchmark 75% of managers believe development is an integral part of their job Benchmark 45% of employees rate their managers as effective at developing them 1 Managers scoring 5.5 or above on a 7-point effectiveness scale. Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 4

At the average organization only 46% of managers are effective at driving the performance and development of their direct reports the majority of organizations have room to run. MANAGERS GENERALLY INEFFECTIVE AT MANAGER- LED DEVELOPMENT Room to Run Percentage of Managers Effective At Participating Organizations 100% Percentage of Managers 50% 65% Mean = 46% 31% 28% 0% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 5

EFFECTIVENESS OF MANAGERS AT NEW ZEALAND POLICE AT KEY DEVELOPMENT ROLES Previous CLC Learning and Development research identified 15 manager activities that have the largest impact on employee performance and development. Critical Manager-Led Development Activities Percentage of Managers Effective at Each Role 1 and Activities 2 Contained Within the Roles Performance and Development Strategist Solutions Enabler Learning-Experience Architect Opportunity Broker Honest Appraiser 34% 36% 36% 27% 39% 1. Explain Performance Evaluation Standards 4. Help Employees Apply New Skills & Knowledge 7. Ensure Projects Are Learning Experiences 9. Help Employees Find Training 12. Assess Development Progress - 42% - 32% - 29% - 34% - 31% Benchmark - 50% Benchmark - 45% Benchmark - 49% Benchmark - 43% Benchmark - 49% 2. Create Individual Development Plans 5. Teach New Skill or Procedure 8. Provide Experiences That Develop Employees 10. Pass Along Job Openings 13. Give Feedback on Personality Strengths - 33% - 28% - 37% - 25% - 40% Benchmark - 50% Benchmark - 42% Benchmark - 51% Benchmark - 30% Benchmark - 54% 3. Ensure Necessary Skills and Knowledge 6. Give Advice from Own Experience 11. Pass Along Development Opportunities 14. Give Feedback on Performance Weaknesses - 38% - 47% - 35% - 39% Benchmark - 49% Benchmark - 60% Benchmark - 45% Benchmark - 55% 15. Give Feedback on Performance Strengths - 47% Benchmark - 60% 1 Managers scoring 5.5 on a 7-point effectiveness scale comprised of all the activities within the role. 2 Managers scoring 6 or 7 on a 7-point effectiveness scale 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 6

SURVEY RESPONSE RATES Employee Survey Participation Rates Employee Survey Benchmark Employee Survey Surveyed 2786 46101 Responding 1854 22619 Response Rates 67% 49% Manager Survey Participation Rates Manager Survey Benchmark Manager Survey Surveyed 399 8004 Responding 321 3917 Response Rates 80% 49% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 8

EMPLOYEE SURVEY PARTICIPANT BREAKDOWN Representation by Region Employee Survey Benchmark Employee Survey Asia 0% 20% Australia and New Zealand 99% 13% Central and South America 0% 2% Europe 0% 13% Middle East and Africa 0% 5% North America 0% 47% Representation by Time Working for Current Manager Employee Survey Benchmark Employee Survey Less than 6 Months 8% 12% 6-11 Months 14% 14% 12-23 Months 20% 26% 2 to 3 Years 30% 30% 4 to 5 Years 16% 10% 6 to 10 Years 10% 7% More than 10 Years 2% 2% 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 9

EMPLOYEE SURVEY PARTICIPANT BREAKDOWN (CONTINUED) Representation by Function Employee Survey Benchmark Employee Survey Corporate Functions (excluding IT) 14% 17% Engineering and R&D 0% 4% Information Technology 1% 17% Operations 26% 13% Sales 0% 9% Quality, Procurement, & Supply Chain 2% 5% Other 56% 35% 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 10

MANAGER SURVEY PARTICIPANT BREAKDOWN Representation by Number of Direct Reports Manager Survey Benchmark Manager Survey 1 to 2 2% 10% 3 to 5 21% 25% 6 to 10 39% 33% 11 to 20 16% 20% 21 and over 23% 11% Representation by Tenure In Current Managerial Position Manager Survey Benchmark Manager Survey Less than 12 Months 13% 13% 1 to 2 Years 31% 39% 3 to 4 Years 24% 21% 5 to 10 Years 24% 20% More than 10 Years 8% 7% 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 11

The most effective managers set clear and measurable goals for their direct reports and integrate organizational context into development planning. MANAGERS STRUGGLE TO SUPPORT HIGH IMPACT DEVELOPMENT PLANNING Two Keys to Effective Planning Impact of Each Key on Manager-Led Development Effectiveness 1 1 Each bar represents a statistical estimate of the maximum impact each Key can have on managerled development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Key. The impact of each Key is modeled separately. 2 Managers scoring 5.5 or above on a 7-point effectiveness scale. Managers Ineffective at Connecting Development Planning to Organizational Objectives Percentage of Managers 2 at Benchmark: 44% 31% Effective Managers Effective as Setting Clear and Measurable Goals Percentage of Managers 2 at Benchmark: 77% 74% Effective Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 13

CONNECT DEVELOPMENT PLANNING TO ORGANIZATIONAL OBJECTIVES What do managers struggle with? Organizations should aim to help managers be effective at both clearly identifying individual development needs and explaining the link between organizational strategy and individual goals. Although most managers are effective at one or the other, they struggle to be effective at both. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 14

MANAGER EFFECTIVENESS AT CONNECTING DEVELOPMENT GOALS TO ORGANIZATIONAL OBJECTIVES Connect Development Goals to Organizational Objectives at New Zealand Police Percentage of Managers 1 at Benchmark Understand Employee's Development Needs 73% 74% Identifying Skills and Behaviours Employee Will Need In The Future Tailor Performance Standards To Employee's Development Areas 32% 41% 49% 53% Clearly Identify Individual Development Needs Emphasize Long Term Career With Organization 30% 40% Ensure Employee Feels Development Plan Is Focused On Them 50% 58% Explain Connection Between Individual Performance And Organization Success Explain Link Between Individual Perf ormance And Team Perf ormance Align Development Plan To Business Needs 50% 51% 58% 68% 73% 80% Explain The Link Between Organizational Strategy and Individual Goals 1 Managers scoring 6 or 7 on a 7-point effectiveness scale. Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 15

Sydney Water involves managers in a strategic workforce planning workshop to help them understand organizational talent objectives and align development solutions with divisional business goals. CONNECT ORGANIZATIONAL OBJECTIVES TO INDIVIDUAL DEVELOPMENT PLANNING 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 16

Managers work towards aligning talent strategies with business goals by participating in the strategic workforce planning session. CREATE SHARED UNDERSTANDING OF BUSINESS OBJECTIVES AND DEVELOPMENT NEEDS 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 17

CHARACTERISTICS OF DEVELOPMENT PLANS Number of Goals Per Development Plan Percentage of Employees Benchmark CLC L&D Recommendation 40% 30% 20% 10% 14% 16% 28% 26% 8% 4% 4% Managers should help the employee focus on a few goals instead of being overwhelmed by too many objectives. Limit the IDP template to no more than 3 5 goals. 0% 0 * 1 2 3 4 5 5+ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% * I have a development plan but it does not have any goals Focus of Development Plans 44% On-the-Job Learning Relationship-based Learning 20% 19% Formal Training 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version Benchmark 13% Other CLC L&D Recommendation Managers should help the employee balance their development plan across the 70:20:10 guidance: 70% of the development plan should be focused on on-the-job learning 20% of the development plan should be focused on relationship based learning 10% of the development plan should be focused on classroom-based learning Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 18

Although managers day-to-day interactions drive their effectiveness at developing employees by to up to 40 percent, the majority of managers are ineffective at these interactions. MANAGERS STRUGGLE WITH DAY-TO-DAY DEVELOPMENT INTERACTIONS The Three Keys to Effective Execution Maximum Impact of Each Key on Manager-Led Development Effectiveness 1 Managers Ineffective at Driving Day-to-Day Development 1 Each bar represents a statistical estimate of the maximum impact each Key can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Key. The impact of each Key is modeled separately. Leverage Work to Accelerate Development Percentage of Managers 2 at 28% Effective Articulate Personal Development Value Percentage of Managers 2 at Unlock Learning Impact Percentage of Managers 2 at 22% 29% Effective Effective 2 Managers scoring 5.5 or above on a 7-point effectiveness scale. Benchmark: 41% Benchmark: 37% Benchmark: 42% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 20

Providing day-to-day development is not a large undertaking. NOT AS DAUNTING AS IT SOUNDS Managers do not need to pass along development opportunities monthly. Doing so once a quarter is just as effective. Managers should provide frequent informal feedback on employee work, but this does not have to be a weekly occurrence. A few times a month is often enough. Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 1 Informal feedback: feedback outside of the formal performance review process that your manager is not required to give. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 21

FREQUENCY OF MANAGER INTERACTIONS Frequency of Passing Along Development Opportunities Frequency of Passing Along Informal Feedback Benchmark Benchmark 70% 64% 30% 60% 24% 24% 50% 40% 20% 21% 16% 15% 30% 20% 22% 14% 10% 10% 0% 0% Once every six months or less Once every 2-3 months Once a month or more Once every 6 months or less Once every 2-3 months Once a month Once a week Twice a week or more Frequency with Which Manager Informs Employee of Relevant Development Opportunities Frequency with Which Manager Provides Informal Feedback on Work Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 22

LEVERAGE WORK TO ACCELERATE DEVELOPMENT Leverage Work to Accelerate Development Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness 1 Leverage Work to Accelerate Development Percentage of Effective Managers 2 at Benchmark Ensure Work is Aligned with Development Needs 32% 45% Ensure Work Helps Learn New Skills/Knowledge 32% 44% Create Projects that Support Development 15% 33% 1 Each bar represents a statistical estimate of the maximum impact each Manager Action can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Manager Action. The impact of each Manager Action is modeled separately. Inform Employess of Relevant Development Opportunities 38% 43% 2 Managers scoring 6 or 7 on a 7-point effectiveness scale. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 23

Boeing s How Developmental Is Your Job? checklist can be used to identify and plan high-impact onthe-job development activities. QUICKLY IDENTIFY A JOB S DEVELOPMENT VALUE 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 25

ARTICULATE PERSONAL DEVELOPMENT VALUE Articulate Personal Development Value Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness 1 Articulate Personal Development Value Percentage of Effective Managers 2 at Benchmark Clearly Explain Why New Concepts Are Important 43% 56% Clearly Explain New Concepts' Development Value 23% 36% 1 Each bar represents a statistical estimate of the maximum impact each Manager Action can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Manager Action. The impact of each Manager Action is modeled separately. Clearly Explain How New Concepts Will Benefit Career Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 26 19% 34% 2 Managers scoring 6 or 7 on a 7-point effectiveness scale.

Use this checklist to help enfranchise employees in their work. MANAGER GUIDE: ARTICULATE PERSONAL DEVELOPMENT VALUE 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 27

UNLOCK LEARNING IMPACT Unlock Learning Impact Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness 1 Unlock Learning Impact Percentage of Effective Managers 2 at Benchmark Help Plan How to Use Learning 23% 40% Provide Feedback on Use of Learning 31% 41% Connect Employee to Others for Application Support 27% 41% 1 Each bar represents a statistical estimate of the maximum impact each Manager Action can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Manager Action. The impact of each Manager Action is modeled separately. Clearly Explain How to Use New Concepts Discuss How Lessons from Own Experience Apply 32% 2 Managers scoring 6 or 7 on a 7-point effectiveness scale. 39% 48% 44% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 28

State Farm s L&D function provides a list of debrief questions to facilitate (constructive) reflection on key lessons learned from development experiences. STATE FARM S LEARNING EXPERIENCE QUESTION DEBRIEF INVENTORY 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 29

American Express helps managers identify networking partners based on observed successes to ensure actionable employee learning. IDENTIFY NETWORKING OPPORTUNITIES BASED ON DEMONSTRATED, NOT GENERAL, EXPERTISE 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 30

The most effective managers accurately assess employee performance and conduct constructive feedback discussions. EFFECTIVE MANAGERS DIAGNOSE AND DISCUSS Two Keys to Effective Evaluation Maximum Impact of Each Key on Manager-Led Development Effectiveness 1 Only Half of Managers Effective at Assessing Performance and Delivering Constructive Feedback Percentage of Managers 2 at 1 Each bar represents a statistical estimate of the maximum impact each Key can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Key. The impact of each Key is modeled separately. 2 Managers scoring 5.5 or above on a 7-point effectiveness scale. Accurately Assess Performance Diagnose Benchmark: 53% Conduct Constructive Feedback Discussions Discuss 37% 38% Effective Effective Benchmark: 51% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 32

ACCURATELY ASSESS PERFORMANCE How to Accurately Assess Performance Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness 1 Accurately Assessing Performance Percentage of Managers 2 at Benchmark Accurately Identify Performance Strengths 53% 63% Accurately Identify Performance Weaknesses 26% 44% Listen To Employee's Perspective 61% 71% Identify Weaknesses Within Employee's Control 25% 44% 1 Each bar represents a statistical estimate of the maximum impact each Manager Action can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Manager Action. The impact of each Manager Action is modeled separately. 2 Managers scoring 6 or 7 on a 7-point effectiveness scale. Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 34

The most effective managers accurately assess employee performance and conduct constructive feedback discussions. HELP MANAGERS DIAGNOSE KEY ROOT CAUSES OF PERFORMANCE ISSUES 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 35

CONDUCT CONSTRUCTIVE FEEDBACK DISCUSSIONS How to Conduct Constructive Feedback Discussions Maximum Impact of Each Manager Action on Manager-Led Development Effectiveness 1 Conducting Constructive Feedback Discussions Percentage of Managers 2 at Benchmark Conduct An Open Discussion 57% 65% Conduct An Evidence-Based Discussion 48% 57% Conduct A Forward Looking Discussion 36% 48% 1 Each bar represents a statistical estimate of the maximum impact each Manager Action can have on manager-led development effectiveness. The maximum impact is calculated by measuring the predicted difference in effectiveness between the lowest and highest value on each Manager Action. The impact of each Manager Action is modeled separately. 2 Managers scoring 6 or 7 on a 7-point effectiveness scale. Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 37

FORMAT OF PERFORMANCE REVIEW DISCUSSIONS Distribution of Feedback During Performance Review Discussion Percentage of Managers at 100% 80% 60% 40% 20% 10% 14% 21% 20% 22% 24% 47% 41% Personality Weaknesses (10%) Personality Strengths (21%) Performance Weaknesses (22%) Performance Strengths (47%) 0% Benchmark Order of Feedback Discussions Percentage of Managers at Performance Strengths Performance Weaknesses Personality Strengths Personality Weaknesses First Second Third Last I Don't Discuss This 88% 5% 2% 5% 0% Benchmark 92% 4% 2% 2% 0% 6% 58% 29% 6% 1% Benchmark 3% 61% 31% 5% 1% 4% 33% 36% 23% 5% Benchmark 4% 31% 42% 18% 4% 2% 3% 26% 50% 18% Benchmark 1% 3% 20% 66% 10% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 38

The most effective managers accurately assess employee performance and conduct constructive feedback discussions. COMMON COACHING PITFALL #1 DELIVERING FEEDBACK 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 39

Most managers do not feel they receive continuous support or that they are held accountable for employee development. UNSUPPORTED AND UNACCOUNTABLE Few Managers Find L&D Resources to Be Fully Supportive Percentage of Managers Who Agree or Strongly Agree at I find L&D resources to be effective at helping me develop my direct reports. Few Managers Are Held Accountable for Employee Development Percentage of Managers Who Agree or Strongly Agree at I am held accountable for employee development on my performance review. 19% 25% Agree to Agree to Strongly Strongly Agree Agree Benchmark: 29% Benchmark: 42% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 42

Few managers find the resources for developing their employees to be targeted, accessible, timely, or relevant. CURRENT RESOURCES LACK SPECIFICITY, ACCESSIBILITY, TIMELINESS, AND RELEVANCE Targeted? Percentage of Managers Who Agree or Strongly Agree at To what extent do you agree that the tools and resources you use are effective at helping you address the specific needs of your direct reports? Accessible? Percentage of Managers Who Agree or Strongly Agree at To what extent do you agree that the tools and resources you use are easy to find? 12% 12% Agree to Strongly Agree Agree to Strongly Agree Benchmark: 15% Benchmark: 19% Timely? Percentage of Managers Who Agree or Strongly Agree at To what extent do you agree that the tools and resources you use are important to getting your day-to-day work done? Relevant? Percentage of Managers Who Agree or Strongly Agree at To what extent do you agree that the tools and resources you use are relevant and useful? 20% 9% Agree to Agree to Strongly Strongly Agree Agree Benchmark: 15% Benchmark: 14% Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 44

To get a pulse on current needs, Fidelity monitors which resource types and topics managers access most. TIMELY: TRACK RESOURCE UTILIZATION AND EFFECTIVENESS 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 45

Compliance-based accountability methods drive managers to aimlessly spend more time on employee development. COMPLIANCE-BASED ACCOUNTABILITY DRIVES ACTIVITY, BUT NOT QUALITY 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 47

MANAGER ACCOUNTABILITY AT NEW ZEALAND POLICE Distribution of Manager Accountability Measures Percentage of Managers Who Agree or Strongly Agree Benchmark 80% 70% 70% 67% 60% 50% 49% 40% 30% 28% 30% 20% 19% 10% 0% Developing Employees Is An Integral Part of My Job Description To Be Promoted, I Need To Be Effective At Developing Employees I Cannot Be Good At My Job Without Being Effective At Developing Employees Senior Executives Serve As Good Examples Of How Leaders Should Develop Employees Managers At My Level Expect Their Managers To Develop Them Managers Effective At Employee Development Are Respected By Their Peers Source: CLC Learning and Development, Manager-Led Development Effectiveness Survey. 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 48

Cadbury United Kingdom and Ireland (Cadbury UK&I) measures the quality of manager-led development to emphasize effectiveness over activity completion. ASSESS MANAGERS FOR ONGOING EMPLOYEE DEVELOPMENT EFFECTIVENESS 2010 The Corporate Executive Board Company. All Rights Reserved. CATnumber/version 49

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