Title: Human Performance Improvement in Asia
1 West Meets East
- Human Performance Improvementin Asia
- ASTD International ConferenceSan Diego, CAM322
June 2, 2008 - Donald J. Ford, PhD, CPT
- Phyllis Liu Ford
- Koko Nakahara
- Mario del Castillo, PhD
2AGENDA
- Overview of HPI
- Key local influences that affect HPI
implementation in Asia - Stories of successful introductions of HPI in
China, Japan and The Philippines - Best practices and key success factors for
implementing HPI in Asia - Global challenges Facing HPI
3Learning Objectives
- Identify key cultural, political, social and
business influences that affect the
implementation of HPI in Asia - Apply human performance improvement concepts and
practices in the Asian context - Apply best practices for implementing HPI in
Asia and other non-western nations.
4Donald Ford Biography
- Donald J. Ford, Ph.D., C.P.T., is president and
owner of Training Education Management LLC, a
training and performance improvement consulting
firm in Redondo Beach, California, USA. - Contactwww.trainingeducationmanagement.com
info_at_trainingeducationmanagement.com - Dr. Ford is also Director of the Center for
Workforce Development at Antioch University, L.A.
- His consulting clients include ASTD, Toyota,
Nissan Motors, Rockwell International, U.S.
Marines Corps, Bank Negara, Egyptian Banking
Institute, and Sempra Energy, among others. He
has worked in the field of human resource
development for 22 years, including training
management positions at Sempra Energy, Magnavox,
Allied-Signal and Texas Instruments. - He holds a B.A. and M.A. in Asian history and a
Ph.D. in education, all from UCLA. - He has published 35 articles and four books on
topics in training, education and business. His
books include Bottom-Line Training
Performance-based Results (TEM, 2005), In Action
Designing Training Programs (ASTD, 1996) and The
Twain Shall Meet English Study in China
(McFarland, 1988).
5Introduction to HPI
- Definition
- A systematic, results-based approach to
analyzing, improving and measuring human
performance at work - William Rothwell, Professor, Penn State
- ASTD Models for Human Performance Improvement
(ASTD, 1999)
6The HPI Model
73 HPI Implementation Models
- Portfolio of Services
- Add to existing services (HR HPI)
- Separate Function
- Create separate HPI group within HR
- Radical Transformation
- Replace Training/Organization Development
Departments with Human Performance Department
8Portfolio of Services Model Easy Go Slow
Approach
- Train Performance Consultants (PC)
- Introduce HPI services to organization
- Identify HPI opportunities
- PCs analyze and implement HPI projects
- PCs measure results
- Add more HPI services
- Organizational Examples Thai Airways, Toyota
9Separate HPI Function Front End Analysis
Gatekeeper
- Train Performance Consultants (PC)
- Create separate department in HR
- PCs build business partnerships
- PCs conduct analysis identify needs
- PCs tap HR expertise as needed
- HR supports HPI function
- Organizational Examples Bank Negara, Bank
Mandiri
10Radical Transformation Replace the Old,
Embrace the New
- Organizational Readiness Mindset Expertise
- Abolish traditional OD/Training functions
- Reorganize into Human Performance Dept.
- Analysts
- Intervention Specialists
- Change Managers
- Evaluators
- Request for services based on business results
- Organizational ExamplesUS Navy(Not used in
Asia too radical)
11Map of Asia
- Asia is the worlds largest continent (1/3 of the
worlds total land area) - Total population of Asia in 2000 was 3.7 billion
(60 percent of the world's total) - 4 major regions East AsiaSoutheast AsiaSouth
AsiaWest Asia
12Key Cultural Influences
- Religion Islam, Buddhism, Hinduism,
Christianity, Confucianism, Atheism all present
in Asia - Society Family is basic unit, social hierarchy,
multicultural/multiracial - Tradition Revered source of wisdom
- Harmony With nature and other people
13Key Political Influences
- Nationalism Colonial History
- Emerging democracies and enduring dictatorships
- Unequal power (elites in control)
- Sub-group self-interest
14Key Business Influences
- Many types of business organizations
- Asian management philosophy
- State capitalism
- Global economy
15Asian Management Concepts - Foundations
- Sun Tzu (Art of War)
- Strategy
- Loyalty
- Training
- Discipline
- Confucius
- Importance of education
- Harmonious relationships
- Mutual obligations
- Hierarchy and social order
16Western Management Influences
- Colonialism Multinationals as Catalyst
- Scientific management
- Human relations
- Quality improvement
17Types Of Asian Business Organizations
- Local small family business
- Local large business
- State-owned enterprise
- Government-linked company
- Foreign joint venture
- Multinational
18Human Resource and Performance Improvement
Practices Vary in Asia
- National differences due to
- History, culture, politics, stage of economic
development - Ownership/Leadership of company
19Successful HPI Case Studies
- China Toyota Financial Services Phyllis Liu
Ford - Japan Glass Chemical Company Koko Nakahara
- The Philippines Smart Cellular Mario
del Castillo
20Phyllis Fang Meng Liu-FordBiography
- Phyllis Fang Meng Liu-Ford, M.A., is a training
and performance improvement consultant
specializing in training project management,
program design and eLearning development. She has
worked in the field of training and development
for over twenty years. As a training specialist
and curriculum development manager for the past
15 years at Toyota Financial Services, including
the last seven years at the University of Toyota,
she has managed many training projects including
document imaging system training, credit
application system, collection system, customer
service center training, wholesale system
training. For these training programs, she has
developed custom classroom, self-study and
web-based training, conducted performance and
needs analyses, facilitated groups, managed
improvement projects, taught courses and
evaluated results. Most recently, her
accomplishment included designing a comprehensive
training program for Toyota Financial Services
China. - Phyllis Ford holds a B.A. in French from Beijing
Language University and an M.A. in French from
Stanford University. - She is a positive, people-oriented leader who is
results-driven. In her spare time, she enjoys
photography, golf and travel. - She lives with her two children in Harbor City,
California. - She may be reached at phyllis_ford_at_toyota.com
21Toyota Motor Finance China Training Project
- Case Background
- Explosive car market
- Brand new financial service industry
- Tight talent pool and a wide open job market
- Toyota Motor Finance China geared up for faster
growth - 300 plus associates, aged from early 20s to late
30s - Young managers with huge responsibilities
- An international executive management team from
global Toyota Financial Services - Huge training needs
22Business Problem
- How to become profitable within 3 years?
- Challenges
- Highly government-regulated business environment
- Inadequate IT infrastructure
- Inefficient work processes
- Wide job skill gaps and knowledge deficiencies
- Low retention rate
- Lack of training strategy, personnel and programs
23Management Support
- Executive Management learned from a job market
study - Salary is not number one concern for the Chinese
job seekers. - Chinese job seekers valued training above and
beyond anything else. - Executive Management sought partnership from
University of Toyota USA - Management decided to leverage training as a
strategy to attract and retain talents. - Management supported the training strategy.
24Why Employees Stay? source DDI and SHRM
25Current Situation
- Workforce
- Many young university graduates highly educated
but little experience - Employees quick to job hop
- Huge skill gap in mid-level management
- New associates were hired in large numbers in
short period. - Associate and manager turnover both high
- 15 in 2006, 17 in 2007
- 19 average in banking industry
- Geographically dispersed workforce
- Dozen locations scattered around China
- A lack of training programs and training
personnel in China.
26Performance Problems and Causes
- Performance problems
- Ineffective front line management
- Inefficient work processes
- Lengthy processes
- Work duplications
- Long work hours
- Causes
- Culture
- Skill gaps
- Knowledge deficiency
27Gaining Buy-in on Training Strategy
- Build a strong training infrastructure
- Set up a learning management system that can
administer the learning activities - Build a consistent curriculum that can be
delivered to different locations - Blend online learning, on the job learning and
classroom learning - Build a knowledge sharing culture
28Interventions Designed and Implemented
- TMFCN Campus - a comprehensive training platform
with enrollment, tracking, course development and
assessment capabilities - Curriculum designed to fit the need
- Corporate Culture Toyota Way
- Professional Development
- Technology Learning
- Job Specific Learning
- Curriculum track by audience
- New Hire Track
- Associate Track
- Manager Track
29Interventions Designed and Implemented
- TMFCN Campus was rolled out within 6 months
- 50 eLearning courses and
- a management training program
- a new hire training program
- Over 200,000 words translated
- A knowledge management system was put in place.
30Results
- Consistent eLearning course content at each
location - offerings available throughout the year
- Blended learning environment was created, using
eLearning and classroom
31Results
- company intranet and learning management system
are integrated - Training system and intranet combined in one,
generating the traffic and creating a habit for
associates to regularly access the system for
learning - A gathering place for companys latest news and
associates news, new hires, even new babies
32Results
- Managers rated the TMFCN Campus very favorably
- Associates wanted to see more job skill training
- New hires appreciated learning at own pace and in
timely manner - Company Intranet became a central focus for
information sharing - Reduced cost for new hire program
- Reduced individual time spent on New Hire
Orientation
33HPI to Suit Local Chinese Conditions
- Be sensitive to competency drivers
- Be sensitive to communication styles
- Back-up plan for frequent process and personnel
changes - Plan well, but be prepared to adjust quickly
based on actual conditions
34Lessons Learned
- Dont assume anything. Ask, confirm and follow
through - Have a good business partnership with your key
vendors - Over communicate rather than under communicate,
especially with the key sponsor - Adapt to the local culture and circumstances
35West Meets East
- Toyota Motor Sales, Inc. USA
- University of Toyota
- Curriculum Development Manager
- Phyllis_Ford_at_Toyota.com
- 310-468-3550
36Koko Nakahara Biography
- Heads Instructional Design, Inc. in Japan, a
human recourse development and organizational
development consulting firm in Yokohama, Japan. - Instructional Design Inc. in Japan, provides
developing training and performance management
solutions for leading Japanese and Foreign
companies in Japan. - She is a HRD Advisory Committee member of Japan
Management Association, and an associate
researcher of Environmental Information of KEIO
University. - Contact Information
37Japanese Manufacturing IndustryMajor Trends
- Case Background
- Big demand for innovation and cost cutting
- Population demographics in Japan creating urgent
need for human resource development - Customer satisfaction is key to market success
- Turnover is growing among younger workers less
life tenure
38Demand for Innovation and Cost Cutting
- Business performance of companies in Japan has
improved in these few years mainly due to drastic
cost cutting in the following phases - Information technology has enabled access to
information and cutback in telecommunication
costs - Improvement of financial environment(finance at
low rates has become possible) - Cut of labor costs has been made possible by
utilizing cheaper workforce from Asia and for
retirement of employees with high-wages. - However, companies are subject to fundamental
changes under the circumstances.
Analyze
Plan
Action
Assumption Future is always going to change
Assumption "Future is extension of present
Basic strategyFind a differentiated market and
efficiently produce new products
Basic strategymake decisions as things go and
develop products based on changing needs
39Population Pyramid of Japan
Employment unbalance and cost cutting effect on
human resource development in 19922002
Referred from Daiichi Seimei Economic Research
Report Nov 2005 by Kazunori Sudo
40Growing focus on business challenges in 3 years
(Enterprise investigation N1,291)
HRD Enhancement
Profitability Improvement
Customer Satisfaction Improvement
Cost Reduction
Quality management improvement
CSR
Front Line Work Enhancement
Enhancement in corporate governance
Financial Strength
Development of new products and services
Employment flexibility
Enhance market share in volume and percentage
Restructuring of business operations
Advancement in shareholder value
Referred from Japan Institute for Labor Policy
and Training HRM Strategy and Trend Research
Report July 2007 JILPT Researchers Survey Series
No.38(Chosa Series No.38)
41The most valued items as market competitiveness
source
(Enterprise investigation N1,291)
Quality, Technological capabilities
Stable customers
Sales force
Price
Low costs
Financial Strength
Excellent human resources
Planning and proposing ability
Organizational Capability
Reduce Cycle Time of Development and Delivery
Innovative products or services which other
companies cant produce
Corporate governance
Intellectual property such as patents
Referred from Japan Institute for Labor Policy
and Training HRM Strategy and Trend Research
Report July 2007 JILPT Researchers Survey
Series No.38(Chosa Series No.38)
42The most valued items in human resource
development/career building
(multiple answers allowed)
(Enterprise investigation N1,291)
Selected trainings for certain employees
General trainings for all employees
Support for self-development
Developing and conducting special education
programs for nurturing executive managers
Trainings for nonpermanent employees
A Clear distinction between managerial career and
professional career
Introduction of mentoring program
Referred from Japan Institute for Labor Policy
and Training HRM Strategy and Trend Research
Report July 2007 JILPT Researchers Survey Series
No.38(Chosa Series No.38)
43Outline of the Case
- Industry Glass Chemical Company
- Corporate Profile
- Founded 1907
- Incorporated 1950
- Capital 100,000 million yen ( 1,000 mill USD)
- Employees 6,000 (2006)
- Net Sales 1,700,000 million yen (170,000mill
USD) - (2007)
- Major business units
- Flat Glass, Automotive Glass, Display, Chemicals,
- Electronics Energy
44Business Issues Chemical Business Unit
- While Automobile Glass and Solar Cell Business
Units grew, the Chemical Business Unit has been
facing higher turnover rate, especially among the
younger generation. - 70 of young engineers leave the company within 5
years - Employee Satisfaction Rate of Chemical Business
Unit was lowest among the companys units. - Customer Satisfaction rate was going down last
few years. - Compared with other Business units, Chemicals
rate of revenue growth was lowest.
45Performance Issues
- No consistency in people development strategy
across the Chemical Company units. - Career development communication was supposed to
be routine work of managers during the appraisal
meeting. - Even though recording of employees career
development plan has been a requirement of
managers, very few managers used the system. - Strategic leadership development plan didnt have
common understanding across the business
departments. - Dependency on individual manager for employees
personal development plan - HRD programs were not understood as a part of
organizational strategy. - Employee motivation not well understood by
managers, especially in their communication
regarding young peoples career development and
recognition of the value of their work.
46Interventions Designed and Implemented
- Career Map and Capability Development plan
designed by working group of Department Heads. - 3 month intensive weekly meetings on the
development strategy agreement and
co-understanding of capability development plan
across each department. - Career Pass feedback tool enhancement and career
pass consulting system implemented. - Appraisal meeting and career development meeting
training for managers. - OJT plan and feedback tool developed for
strategic personal development and talent
management. - Manager coaching on the implementation of the
development plan.
47Results
- After only a year of implementation, the turnover
rate became very low. - none of the young employees quit in the last
year. Monetary benefit is under investigation. - Employee survey results show
- Career communication became more active.
- However, overall satisfaction rate has not shown
big improvement yet.
48Modifications to HPI to Suit Local Conditions
- No specific modification required for the HPI
approach due to cultural aspect. - It is observed that HPIs data-driven,
results-based approach matches the culture of
manufacturing companies in Japan.
49Lessons Learned
- Retaining the capable young generation is one of
the very common issues in Manufacturing-based
Japanese companies. - Population structure of Japan compounds the
problem. - To fulfill the career communication gap between
the young employees and their older managers - education program on the career development and
talent management for the managers is important
element. - career planning systems must be revamped for
younger generation. - Continued dialogue sessions with managers as well
as young people will be key to success. - HRD people need to act as a change agent.
- Thank you !
- ???????????
50Mario del Castillo, Ph.D. Biography
- Dr. del Castillo is Senior Consultant for the
Institute of Training and Development (ITD) in
Kuala Lumpur, Malaysia. He has an MA and PhD in
Organization Development from SAIDI School of OD,
Philippines. Dr. del Castillo created the
ITD-ARTDO Certified Training Professional Program - Dr. del Castillo has been active in Southeast
Asian training and organizational development
work for over 20 years. He consults with
Malaysian and other Southeast Asian clients on
issues regarding performance improvement, change
management and human capital management. - He is also Leadership Dynamics Facilitator,
University of South Australia, International
Graduate School of Business MBA - He is Past President Asian Regional Training
and Development Organization (ARTDO) and also
Past President Philippine Society for Training
and Development (PSTD) - He may be reached at mario_at_itd.com.my
51SMART Cellular (Philippines)
Case Background
- SMART Cellular recruits and trains agents for its
call center on a year-round basis. - Only 50 of trainees recruited as agents for the
call center pass the 17-days training program.
This results in huge avoidable costs - The training department was being held
responsible for the large dropout rate.
52Business case
- The project aims to increase the number of
successful trainees from 50 to 100 to minimize
cost incurred during training. - Sample calculation
- P400.00training allowance/agent/day
- 17 days length of training
- TOTAL P6,800
- Ave group size of training 20pax P136,000
- 50 dropout spending P 68,000 for unfit agents
per batch. - 20 training groups per year P1,360,000 cost of
dropout
53Cause analysis
ROOT CAUSE
54Intervention description
- Revise-selection recruitment strategy and action
- Shift from newspaper / internet ads to campus
recruitment - Shift from one-step to two-step interviews, last
interview before a panel including rep from
training - Change management strategies used to get HR
Recruitment to accept revisions
55Evaluation
- Compare dropout rate for next three batches with
historical 50 dropout rate - Result reduction of the dropout rate from 50
to 16 even if training and testing procedures
remained the same (annualized savings of approx.
P900,000) - Added benefit Improved trend in first year
retention at call centers
56Summary of Culturally Modified Actions
- At problem analysis stage, adopt conflict
avoidance approach by not denying accountability. - At cause analysis stage, a save-face approach of
partnering with HR Recruitment (rather than say
Its your problem, say, Please help us) - At implementation stage, secure higher management
sponsorship before roll out
57Philippines Smart Cellular Case Lessons
Learned
- Use of HPI OD in Asia can be problematic
- Theory doesnt always work in Asia
- Must make culturally-appropriate modifications to
see results from HPI
58The Question Can a Western Invention such as
HPI work in Asia?
TECHNIQUES
STRATEGIES
THEORIES
VALUES
59Underlying Assumptions of HPI
PROBLEM
SOLUTION
HPT follows the classic linear, episodic problem
solving paradigm
60Global Change Management Experience
High Acceptance
Low
Acceptance
Denmark Sweden
USA Israel
India Taiwan Great Britain
Canada Japan
Chile
Traditional approaches used
Geocentric approaches used
Jaeger, 1986
61Asian Change Management Experience
Wider range of interventions
Narrower range of interventions
Western multinationals
Local, Japanese companies
Individual development interventions less used
Lau and Ngo, 2001
62Malaysian Experience
Systems-Strategy-Structure
Staff-Style-Shared
More preferred
less preferred
Use more interventions Use less
interventions
Foreign-owned
Local
Use more interventions Use less
interventions
Business Non-profit Govt.
Academic
63Conclusions
- Culture influences the selection and use of
interventions. - Asian organizations, in general, use less
interventions - System-wide, strategic, process interventions are
popular - Personal interventions focused on knowledge,
motivation and capacity are generally unpopular - The change expert in Asia must choose
interventions carefully that suit the culture - The HPI model needs to be modified to work in Asia
64Possible explanations
- Cultural explanation OD ( and HPT ) is
value-based works better in countries whose
cultural values fit with OD values - Development explanation OD ( and HPT ) works
better in countries where individuals have an
experience of self-determination
65 Human Performance Improvement Suggested
Modifications
Business goals
Gap Analysis
Cause Analysis
Intervention Selection
Gap
Use discrete data gathering methods
Implementation
Evaluation
Change management
66 Human Performance Improvement Analysis
Modifications in Asia
Business goals
Gap Analysis
Cause Analysis
Intervention Selection
Gap
Face-saving approach for Cause Analysis
Implementation
Evaluation
Change management
67 Human Performance Improvement
Intervention Modifications in Asia
Business goals
Gap Analysis
Cause Analysis
Intervention Selection
Gap
Avoid interventions with potential for losing
face, disrespect
Implementation
Evaluation
Change management
68 Human Performance Improvement
Implementation Modifications in Asia
Make adjustments in smaller, evolutionary steps.
Maintain balance
Business goals
Gap Analysis
Cause Analysis
Intervention Selection
Gap
Implementation
Evaluation
Change management
69Human Performance ImprovementEvaluation
Modifications in Asia
Have longer time frame. Allow adjustments to
blend with culture. Measure both objective and
subjective results.
Business goals
Gap Analysis
Cause Analysis
Intervention Selection
Gap
Implementation
Evaluation
Change management
70Cultures Impact on HPI
NATIONAL CULTURE
INTERVENTION TYPES
USE OF HPI
ORGANIZATION CULTURE
MODIFICATIONS TO MODEL TO FIT CULTURAL NORMS
71Change is the Nature of the Universe.
I
Ching
72Global Challenges Facing HPI
- Is HPI inherently a North American concept?
- Analytical approach rooted in scientific
management - Tradition-bound, hierarchical societies may
prefer other approaches - What is the compelling case for human
improvement? - Global competition
- National development
- Human capital development
- What cultural factors facilitate HPI
Implementation? - Collective approach
- Belief in human potential
- Quality improvement culture
- Analytical, measurement-driven management
73Success Factors for HPI in Asia
- Build strong business partnerships with senior
leadership drive HPI from the top - Emphasize communication
- Adapt the model and techniques to the culture
- Partner with outside experts
- Start with projects that are likely to succeed
- Evaluate results and fine tune over time
- Commit to continuous, long-term improvement
74HPI Best Practices in Asia
- Go top down with strong senior management
- Tie to important organizational and social
initiatives - Build consensus across HR and Operations
- Obtain state-of-the-art training and support
- Communicate broadly and deeply
- Measure both subjective and objective results
- Promote evolutionary change, not revolutionary
75Thank you for attending
- Questions?
- More information
- www.trainingeducationmanagement.com
- www.itd.com.my
- http//www.instructionaldesign.jp
- www.toyota.com