Puhleeeeze – cut the jargon and do some training!!

This article is intended to give the line manager or small business owner a user friendly, jargon free guide to the identification of training needs and the steps necessary to implement training which focuses on solving specific business problems.  

Let’s cut the jargon – give us some training!!

At a recent industry business convention the guys responsible for the education and training slot were given a prize for having the most jargon in their presentations. Over the years this is an area in which a unique language has developed which is largely incomprehensible to those outside of it.

Be that as it may, as normal business people we need to ensure that our people are in possession of the skills, knowledge and, hopefully, attitudes necessary to function productively. As normal business people we are also concerned about the rapid pace of development which seems to characterise most businesses, meaning that we need to be training all the time if we are to remain competitive. 

Whilst this may be all well and good at a strategic corporate level, how can I, as either a line manager or small business owner, cut through all this jargon and address the skills needs of my unit or my business?

To be focused and effective, training needs to change behavior. Training must be targeted at areas of the individual’s function so as to remove constraints to performance, to improve productivity and/ or to give the individual additional/ different skills to accommodate change. 
Training is all about changing behavior: many of the problems we encounter in the functions we manage revolve around a lack of skills. 

The process which we need to adopt in solving these problems looks like this:

Analyse

A performance problem needs to be objectively analysed to find its real cause or causes. This phase is essential in gaining an understanding of the problem and determining the scope of the project before attempting to solve it.

Skipping this step by simply implementing an off the shelf training programme which seems to fit the requirement generally results in junk-training, which is just like junk-food - it provides no nutritional value and too much of it is harmful 

This phase is best accomplished by a team comprised of those who are effected by the problem and those who will need to develop the necessary training programme. It may well involve observation of the actual function(s) being carried out.  

At the end of the analysis phase the behavior changes required should have been defined as measurable performance goals, e.g. “Individuals will be able to produce error free invoices within defined timelines”, “Individuals will be able to produce defect free XYZ model  components at a rate of NN per hour”. 

Well thought out, measurable goals ensure that the training will have a positive impact upon the problem.

Design

Designing training is like building a sandwich: the top slice of bread is the defined training objectives, the bottom is the tools which are used to assess whether those who have been trained can carry out the defined training objectives.

In between is what will be used to bring about the required changes in behavior – can be contact training, group case studies, demonstrations, video clips, interviews or maybe even reference material to be studied. Given the richness of resources out there, it is strongly suggested that reference material should be but one of them. 

Depending on the number of objectives and the complexity of the subject, this content needs to be interspersed with exercises which are used to determine individual progress and to give encouragement and feedback.  

Who should be involved in this phase? Three types of people: those who established the objectives (and who are feeling the pain of the problem), those who will be doing the training and those who will develop the course. The first two types should come from within so that the training can be relevant to the situation. The third type may come from outside but this need not necessarily be the case. 

At this stage we need to identify our sandwich components: putting it all together comes next.

Develop

By the end of this phase we will have the following:
• The training objectives: what problems is the training intended to solve? What must individuals who undergo this training be able to do on successful completion?
• The training plan: who is going to do what, where are they going to do it and how long will each step in the process take so that training objectives are achieved?
• The information resources which will be used to convey the knowledge required.
• The assessment tools which will be used to determine progress and finally whether each individual has achieved the training objectives. 
The development of these products requires input from subject matter experts as well as those who are qualified to develop training interventions. 

Implement

Now is the time to get the bang from the buck. 
All the preparation carried out so far leads up to this stage: provided the previous steps have been followed meticulously then we have a training product fit for purpose.
Successful implementation of a training course revolves around the following factors:  
• The professionalism of the arrangements – scheduling, venues internet access and other facilities as required. This is all to do with making participants not only comfortable but also eager
• The enthusiasm and preparedness of course facilitators – self-evident, really
• The way in which the course is administered and any problems dealt with

Evaluate

Conventional wisdom says that a smiley face form at the end is course evaluation. Not so if we are going realize a full return on our investment.

Consider this 1:

Level 1: Reaction
How individuals reacted to the training. 
How well the training was received: helps improvement of future training, including important elements to be added to the training.

Level 2: Learning
What individuals have learned. To what extent have the learning objectives been achieved as a result of the training? 

Level 3: Behaviour (application)
Extent to which individuals apply the concepts, processes and procedures which were taught. Are the newly acquired competencies being used in the occupational environment of the learner?

Level 4: Results
The results of the training in terms of business metrics, for example -increased production, improved quality, decreased costs, reduced accidents, increased sales, higher profits or enhanced return on investment.

1. Source: http://www.kirkpatrickpartners.com/OurPhilosophy/tabid/66
If this is how training should be carried out, then two major questions arise (hopefully readers will have some of their own):

Q 1: What about all those courses to which we have been subjecting our people over all these years? 

So why wouldn’t we want to slash our tax liability and increase business?

In an uncertain environment then are some certainties on which South African businesses can base their strategies 

ANC Government and its transformation agenda will be around for a considerable  time;
Constant pressure to reduced permanent employees;
 Limitless pool of potential young talent.

How to use this to substantially reduce our tax liability and open the doors to more business?

Government aims to achieve industry transformation through the Broad- Based Black Economic Empowerment (B- BBEE) scorecard. Businesses relying on Government or State Owned Enterprises (SOE) are required to maintain their B-BBEE scorecard Contributor status Level: companies whose goods or services are purchased from companies engaged in Government or SOE work also need to have favourable B- BBEE scorecards.

The easiest area on the B- BBEE scorecard in which to achieve maximum points is that of training:  this is also where the potential to minimise both tax liability and permanent headcount lies.

A scheme known as Learnerships was introduced to address the gap between unemployed youth (who lack the skills and experience needed for employment) and business (whose growth is severely hampered by a lack of skilled and experienced people). A Learnership is a fixed term employment contract in which an employer agrees to give an individual training and experience over a defined period (usually a year, could be more).

Let’s consider a case study:

Our company employs 155 people whom we paid a total of R 9 300 000 last year. In that same period we achieved a pre-tax profit of R15 million. 

How can we use Learnerships to achieve maximum B-BBEE scorecard points AND minimise tax liability?

For the maximum B-BBEE scorecard points available in the training pillar we need to engage learners in accordance with the following profile:

Number of learners: 5% of the permanent headcount of 155 =  8 Learners

These must all be Black, 50% of them need to be women and 50% of those women need to be disabled.

So:

8 learners, 4 of whom need to be women, 2 of whom need to be disabled.

Provided that the Learnership expenditure on the above  group meets or exceeds 3% of our payroll, we achieve the maximum 20 B-BBEE scorecard points available in the training pillar.

3% of R 9 300 000 = R 279 000

In my experience this will be more if there are 8 learners.
Learnership expenditure will be made up of training fees and learner subsistence allowance. The annual figures below represent industry averages, could be slightly higher or lower:

Course fees per learner                                         R 30 000
Learner subsistence allowance                            R 24 000
                                                                                   R 54 000

R 54 000 X 8 learners =  R 432 000

Don’t panic! most of this money comes from external sources:

1.     For each learner, there is a R60 000 tax allowance, that is, we are allowed to reduce our pre-tax profit by R 60 000 per learner.
At a 28% corporate rate, this equates to cash       R   16 800
2.     Average SETA funding (cash)                        R     5 000
3.     Recruitment fee saved                                     R   10 000
                                                                                     R   31 800

R31 800 X 8 learners                                R  254 400

Net effective expenditure (R 432 000 – R254 000)  R 177 600

So, by effectively spending R 14 800 per month, we achieve maximum B- BBEE points and gain an extra 8 pairs of hands for 50% of the day. There is no legal commitment to employ anyone at the end of a Learnership but, since we’ve had a year or so to train and assess them, we may well do so.

So, why wouldn’t we want to use this opportunity?

Open Letter to President Barak Obama- a Partnership for Africa to build Africa, for Africans

Dear Mr President,

The United States has and will be a major strategic partner of Africa for a long time.

In that context your recent visit is a good opportunity to analyse how the mutual interests of the USA and Africa can best be served.

You will have noticed that not everyone in Africa was happy to see you. In addition, certain factions operating on this continent represent a threat to your security interests. Those who are deprived (especially the young) see the United States as an oppressor whilst those who have, or are aspiring to, a better life find great inspiration in the American Way. 

Trade between USA and Africa is characterised by the export of commodities (mainly oil) from Africa to the USA and the import of manufactured goods and intellectual property in the opposite direction. This is not sustainable because it is heavily imbalanced, not in terms of value, but in terms of value added.

A striking feature of the post 2008 downturn is the path of the US recovery. Since 2009 the US has added 7 million jobs to the payroll, is now only 2 million jobs below the all-time 2008 peak, and is steadily raising employment levels monthly in excess of its labour force growth. The way in which this has happened represents a lesson for Africa in particular.

Despite an adverse investment climate, small to medium enterprises (SME’s) in post 2008 USA contribute just over 50% of your country’s GDP. Significantly, SMEs provide important opportunities for US citizens to develop entrepreneurial skills. In the USA the SME is a realisation of the American Dream for millions and SMEs are celebrated for their contribution to the development and growth of efficiency in the country, particularly where innovation, job generation, and international competitiveness are concerned.

Compare this to Africa where SMEs and the informal sector cannot participate in local, intra Africa, and international trade. On a continent where half or more of the population is under 25 years of age, in which Africa remains at 2.7 % of global trade whilst about 15% of the world's human population live here, this is a socio economic powder keg.

It is the extent to which the African economy is capacitated to celebrate, nurture and grow SMEs that will determine whether that powder keg can be defused.

And this, Mr President, is where you come in. The potential of SMEs to promote domestic-led growth in new and existing industries and to strengthen the resilience of the African economy in a competitive and challenging environment is inarguable. Growth in African employment leads to increasing markets for your country’s products and decreasing threats to your security. Key to this growth is the type of “yes we can” entrepreneurship which the hallmark of American SME’s. The abundance of African natural resources indicates that entrepreneurial efforts on this continent should be focussed on beneficiation. 

Whilst the African Growth and Opportunity Act (AGOA) is significant, what it vividly reveals is the need for greater trade capacity assistance and the need to address "supply side" issues in Africa. The greatest potential to build local economic capacity which the US could make is in sharing technology through training to empower young entrepreneurs to convert our raw materials into products needed by American businesses to better serve their markets. This means that the AGOA ship needs to change course in the direction of business to business partnerships based on capacity building.

How about it, Mr President?

A Confluence of Opportunities

“One of the striking features of modern times is the emergence of men and women who have chosen the entire world as the theatre of their operations: we are the beneficiaries of this inspiring phenomenon”

Nelson Mandela, 9 April 1998 

Today’s global supply chains – a confluence of opportunities

Three trends provide significant opportunities for those in the business of managing global supply chains:

1. Pace of world economic recovery

Global recovery is a flat “U”, not a sharp “V”.

For those managing supply chains, this steady but slow upward trend means that cost effectiveness has become key. More than ever, winners are those who are able to achieve more with less.

If successful supply chain management is the optimal combination of infrastructure, processes, technology and people, then winners are those who bring these elements together with maximum output for minimum input.

Establishment of robust infrastructure, the harnessing of appropriate technology and the implementation of innovative and effective processes all require high levels of competency. As a result, salaries, wages and benefits are one of the most significant overheads for the supply chain manager, irrespective of the supply chain cluster or trade lane.

These high levels of expenditure on human capital mean that those who thrive are those who achieve the highest returns in this area.

2. Increasing pace of globalisation

Borders to international trade are crashing all around us. According to the World Trade Organisation, the value of world merchandise trade increased from USD 5.2 billion in 2002 to USD 17.2 billion in 2012 - a 231% increase. Considering the way individual country economies have slowed down, this is quite staggering.

To what may it be attributed?

Markets are seeking out the most competitive sources of supply. Any manufactured item –computers, motor vehicles, underwear for example – will be sourced from widely scattered global sources whist the end products may be sold in a number of other countries.

As expressed in a recent research paper:

“Supply chain execution and responsiveness require the tight synchcronisation of supply and demand, as well as the orchestration of the three flows of commerce – the movement of goods, information and funds – across an increasingly large number of logistics and trading partners spanning wide geographical areas.”

Aberdeen Research

Global trade is a highly specialised field: globalisation of supply chains creates an increasing demand for those who have the expertise and the systems to manage that inventory from the time an item is ordered from a supplier’s supplier until the time the manufactured product it is delivered to the final consumer in the manufacturer’s market or another country.

3. Increasing political, social and economic uncertainty

Strategic planning is no longer based on 3 – 5 year horizons (if it ever really was).

The agility needed to meet market demands that will constantly change at short notice is what distinguishes the winners in this dynamic environment.

The competitive edge thus resides in those organisations whose people are capacitated to achieve maximum flexibility from the supply chains which they manage.

The confluence of opportunity brought about  by these three trends can therefore only be exploited by those who have implemented a policy of continuous improvement through training.

Such a policy is:

•  designed and built for alignment to the organisation’s strategic objectives;
•  integrated throughout the organisation: across all divisions and at all levels;
•  visible to every employee as the pathway to advancement;
•  informed by individual gap assessments, the findings of which are consolidated into an annual plan and whose progress and achievements are reported and reviewed at top level;
• the responsibility of a C level executive.

Is there any higher priority needed to hone and sustain your organisation’s competitive edge? 

Important Milestone: Competencies for Competitiveness

In a previous post the table below was suggested as a framework to build the competency requirements of the organisation.   

	Technical	Soft Skills	Management	Company In house Systems and Procedures
Aware
Basic
Operational
Expert

Each column needs to be unpacked so that an individual company can select those competencies which are key to its competitiveness.

Some experience and more research have suggested the following “menus”:

Technical	Soft Skills	Management	Company in house Systems and Procedures: Role Specific
Contract Management	Strategic thinking	Enterprise Management	Accounting/ Finance
Compliance Management	Critical thinking	Group Management	Inventory
Risk Management	Thinking agility	Business Management	Payroll
Intellectual Property Management	Decision making	Functional Management	Customer Relationship Management
Logistics/  Return Logistics Management	Problem solving	Manage Managers	International Logistics
Financial Management	Negotiation	Manage Others	Statutory Compliance
Marketing Management	Emotional intelligence	Manage Self	End user computing (e.g. Microsoft Office etc.)
Warehouse Management	Self awareness
Procurement and Materials Management	Self-belief
Financial Management	Self-promotion
Human Capital Management	Stress management
	Communication
	Presentation / public speaking
	Technical writing
	Facilitating
	Mentoring / coaching
	Active listening
	Interviewing
	Selling
	Quality client service
	Team work
	Conflict resolution
	Networking/ Collaboration
	Cross-cultural intelligence

Each business is different: every company maintains and grows its competitiveness in different ways.

Now comes the interesting part:

• These menus need to be verified in terms of our own organisation. Best recommendation is to workshop. 
• Copy and paste these menus on to as many separate documents as there are position in the organisation. Then, for each position, tick off the competencies needed and ADD any which have been left out. These additions will most likely be needed under the “Technical” and “Company in house Systems and Procedures” pillars because these tend to be specific to a particular postion (i.e. role specific). There will be blurring between each pillar: this should not be a concern – what is more important is to capture all the competencies for each job under one of the pillars. Some of the competencies listed may need further unpacking (example: Warehouse Management may need to be specified in much more detail). There may well be competencies which have been listed here but which are not required. 
• The question which needs to be asked during these workshopping sessions is “In order for us to be as competitive as possible, what competencies does each person holding this position need?”
• In capturing these competencies try to ensure that, as far as possible, requirements do not only reflect the NOW of the position but what it will be in the next TWO TO THREE YEARS.
• Once all the competencies have been captured for each position, by indicating against each competency the LEVEL (Aware, Basic, Operational, Expert) at which that competency is required for that position, a competency profile for each position is created. 

This is an important milestone: the competency requirements have been objectively established for each position and they reflect our organisation.

Having obtained this vital information about the organisation, we need to find out, in future posts, how it can be used to turn our people into super performers. 

Does a methodology for creating competency hold values for your organisation?

If so, is it worth spending time in developing these?