May 4, 2010

Credit Union Management’s online-only “HR Answers” column runs the first Tuesday of the month.

Many credit unions carry concerns about levels of employee engagement, talent pool development and the ability and capacity of its leadership team to effectively respond to a series of unplanned events. A major concern we hear from our clients is how to achieve important strategic goals with leaner staffs and employee engagement issues. An additional complexity is the possibility of mass employee flight once the economy warms up and companies start hiring again. If you have an employee base that feels largely unsupported and unengaged, you could risk high turnover.

Let’s move toward a different future and use human capital resources to educate employees, improve morale, develop desperately needed skills and be ready for what is around the corner and still unknown. This article covers basic considerations regarding how to build a leadership and management development program that produces sustainable results. Whether you decide to use an external resource to build your program or do it yourself, there is value in the following high-level summary.

In our research we find that many executives succeed in building the skills and competencies to achieve that senior position but then stop their learning and development. A recent ClearRock survey indicates that 67 percent of companies believe senior executives need to improve their leadership skills, 53 percent need to improve strategic planning skills, and 53 percent need to improve communication skills. With unprecedented issues and challenges facing us every day as we open up the paper or tune into the news, we all need to keep learning. People who exercise their muscle for learning and development are best prepared to be creative and innovative, think out of the box and problem solve.

Getting Started

There are four basic steps to consider in developing your own internal leadership development program; two lead up to the decision of whether your organization should develop its own leadership development program and two address next steps after the decision is made to move forward.

1. front-end needs analysis,
2. core design,
3. implementation and
4. continuous improvement and updating.

Front-End Analysis

This article sets the stage for the front-end analysis, which serves as the basis for developing your program, establishing criteria for success and opportunity for customizing the program to meet strategic needs, while addressing the challenges facing your organization. The first question to ask is “What is the strategic context to frame the conversation moving forward?” We need to understand the strategic vision before we decide what to teach. If we launch right into action without relating it to our strategic needs, the program will fall flat and be a waste of precious resources and time.

Your front-end analysis project manager needs a strong sense of self, a commitment to research and exploration, to move without a predetermined agenda, and depth in organizational development skills. Effective listening skills and the ability to gently probe beneath the surface should be complemented by strong analytics, writing and presentation skills. You may find an internal employee ready to lead the project or decide to use an external trusted resource for this work.

The first research step is to identify the organizational context. Questions to ask the executive team might include:

• What is the vision for the organization?
• What is the mission/purpose?
• What are the strategic initiatives?
• What external issues are driving change or need for change?
• What internal issues are driving change or need for change?
• What is your biggest concern?
• What is your vision for a successful leadership program?

Next, establish conditions of success so every constituent generates buy in and believes their needs will be met. Conditions of success are observable and measurable. Some examples include:

• improve employee engagement by 10 points in 18 months;
• develop competency in executives so they readily enter into courageous conversation, which reduces stress and enhances problem solving;
• improve implementation of strategic initiatives (average is 1 of 10 implemented);
• increase average results from mystery shops from 82 to 95 in 12 months; and
• reduce turnover from 42 percent to 18 percent within two years.

After understanding the required conditions of success it is time to collect quantitative and qualitative data. There is value in using assessments and current surveys to determine patterns in the organization that need attention. There are two parts to this step.

1. Use current surveys, assessments and existing internal information as the starting point for data collection. Places to look are diverse and quite revealing depending on the analytical skill of your project manager.

2. People like to talk, making individual and small group interviews rich sources of information. Listen to the mood, passion and level of engagement as these questions are answered. Notice that the questions are open-ended to invite more disclosure of individual and group needs.

• What is the greatest challenge you face as a leader?
• What are typical situations or projects you manage?
• What training have you received to prepare you for this role?
• In what areas do you need support?
• What do you enjoy most about your role?
• How do you know you are doing a good job?
• What type of feedback do you receive about your performance?
• How often do you receive this feedback?

Making Sense of the Information: Analyzing the Data

The project manager should perform a content analysis for the qualitative data generated from the open-ended questions. Sort it categorically and present it with minimal interpretations. Conduct statistical analysis for quantitative data (close-ended questions), assessments and survey instruments. Keep the analysis simple (mean, mode, median). You may find that the quantitative data verifies the qualitative data.

Presenting the Results

The results need to be presented twice, first in a written report and second in an oral presentation to primary stakeholders, the ones who sign the check and authorize allocation of resources. The written and oral report includes:

Both presentations need to include the strategic context and statements around why the front-end analysis was completed. It is important to keep driving the relevance, why we do what we do, as a stepping stone for cultural embodiment of the desire to learn, apply and relearn.

Conclusion

Credit unions that have implemented effective and relevant leadership development programs do experience a material difference in employee engagement, increased collaboration and employee retention. There is an increase in promotions from within and a more robust talent pool of resources. Use this template to start your own learning culture and be amazed at the richness the front-end analysis produces and the potential of transforming to a learning culture with your credit union.

Deedee Myers is founder and CEO of CUES Supplier member DDJ Myers, Ltd. and co-founder of the Advancing Leadership Institute. For the past 20 years she has been passionate about establishing and developing humans to thrive in any economic environment.