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Human Performance Improvement in Asia

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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

2
AGENDA
  • 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

3
Learning 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.

4
Donald 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).

5
Introduction 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)

6
The HPI Model
7
3 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

8
Portfolio 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

9
Separate 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

10
Radical 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)

11
Map 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

12
Key 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

13
Key Political Influences
  • Nationalism Colonial History
  • Emerging democracies and enduring dictatorships
  • Unequal power (elites in control)
  • Sub-group self-interest

14
Key Business Influences
  • Many types of business organizations
  • Asian management philosophy
  • State capitalism
  • Global economy

15
Asian Management Concepts - Foundations
  • Sun Tzu (Art of War)
  • Strategy
  • Loyalty
  • Training
  • Discipline
  • Confucius
  • Importance of education
  • Harmonious relationships
  • Mutual obligations
  • Hierarchy and social order

16
Western Management Influences
  • Colonialism Multinationals as Catalyst
  • Scientific management
  • Human relations
  • Quality improvement

17
Types Of Asian Business Organizations
  • Local small family business
  • Local large business
  • State-owned enterprise
  • Government-linked company
  • Foreign joint venture
  • Multinational

18
Human Resource and Performance Improvement
Practices Vary in Asia
  • National differences due to
  • History, culture, politics, stage of economic
    development
  • Ownership/Leadership of company

19
Successful HPI Case Studies
  • China Toyota Financial Services Phyllis Liu
    Ford
  • Japan Glass Chemical Company Koko Nakahara
  • The Philippines Smart Cellular Mario
    del Castillo

20
Phyllis 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

21
Toyota 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

22
Business 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

23
Management 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.

24
Why Employees Stay? source DDI and SHRM
25
Current 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.

26
Performance 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

27
Gaining 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

28
Interventions 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

29
Interventions 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.

30
Results
  • Consistent eLearning course content at each
    location
  • offerings available throughout the year
  • Blended learning environment was created, using
    eLearning and classroom

31
Results
  • 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

32
Results
  • 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

33
HPI 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

34
Lessons 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

35
West Meets East
  • Toyota Motor Sales, Inc. USA
  • University of Toyota
  • Curriculum Development Manager
  • Phyllis_Ford_at_Toyota.com
  • 310-468-3550

36
Koko 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

37
Japanese 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

38
Demand 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
39
Population 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
40
Growing 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)
41
The 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)
42
The 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)
43
Outline 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

44
Business 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.

45
Performance 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.

46
Interventions 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.

47
Results
  • 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.

48
Modifications 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.

49
Lessons 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 !
  • ???????????

50
Mario 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

51
SMART 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.

52
Business 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

53
Cause analysis
ROOT CAUSE
54
Intervention 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

55
Evaluation
  • 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

56
Summary 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

57
Philippines 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

58
The Question Can a Western Invention such as
HPI work in Asia?
TECHNIQUES
STRATEGIES
THEORIES
VALUES
59
Underlying Assumptions of HPI
PROBLEM
SOLUTION
HPT follows the classic linear, episodic problem
solving paradigm
60
Global 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
61
Asian 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
62
Malaysian 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
63
Conclusions
  • 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

64
Possible 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
69
Human 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
70
Cultures Impact on HPI
NATIONAL CULTURE
INTERVENTION TYPES
USE OF HPI
ORGANIZATION CULTURE
MODIFICATIONS TO MODEL TO FIT CULTURAL NORMS
71
Change is the Nature of the Universe.
I
Ching

72
Global 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

73
Success 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

74
HPI 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

75
Thank you for attending
  • Questions?
  • More information
  • www.trainingeducationmanagement.com
  • www.itd.com.my
  • http//www.instructionaldesign.jp
  • www.toyota.com
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