LEADERSHIP DEVELOPMENT

Transcription

1 RESEARCH RESULTS 1 LEADERSHIP DEVELOPMENT INDUSTRY Toys, Games, and Recreational Goods ORGANIZATION Mattel, Inc. DDI PRODUCTS USED Interaction Management : Tactics and Strategies for Effective Leadership RESULTS OVERVIEW Training was valuable and applicable to leaders jobs. Knowledge of the training issues improved by 21 percentage points. Skills improved by approximately 40 percentage points. Leaders and observers noted improvements in communication, interpersonal relationships, and clarity of work objectives. In the first year the program will yield a human capital return on investment (ROI) of 350 percent and a return of more than $100,000. BUSINESS NEED Mattel is the world s #1 toy maker with more than 30,000 employees and more than $4 billion in sales. Its products include Barbie, Fisher-Price toys, Hot Wheels and Matchbox cars, American Girl dolls and books, and licensed Disney and Sesame Street items. Although Mattel leads the industry, it acknowledges the difficulty of staying on top in a highly competitive and changing business. While keeping their sales outlets current, toy companies must constantly seek to score the next big hit. In addition the growing influence of big-box retailers, the Internet, and catalog sales has affected the direction of the industry. Mattel recognized that maintaining industry leadership requires forward thinking and strong individual leadership in all areas of the organization. In particular Mattel hoped to improve leaders ability to guide and support employee performance. These skills included setting performance expectations, managing ongoing performance, and dealing with changes and conflicts arising over time. To meet this need, Mattel worked with DDI to design a comprehensive training program that included several DDI courses. Together, DDI and Mattel created a solution focusing on skills related to maximizing employee performance. SOLUTION The company began by offering training to leaders in headquarters, retail services, and distribution. In total six training modules were delivered. This multifaceted solution was designed to help leaders recognize and follow through on opportunities to coach people in a

2 2 variety of situations. Leaders learned to handle performance problems and poor work habits through effective discussions and followup. Additionally, leaders discovered the appropriate level of involvement for guiding employees through conflict and change. The training program included these DDI courses: Core Skills for Building Commitment Preparing Others to Succeed Facilitating Improved Performance Performance Planning: Reviewing Progress Helping Others Adapt to Change Guiding Conflict Resolution RESEARCH DESIGN Thirty-four leaders and 27 of their supervisors and direct reports provided responses to a variety of measures used to evaluate the leadership skills training program. Mattel wanted measures to focus on learning, behavior change, and return on investment. A multiple-choice learning test was administered to leaders before and after training. In addition leaders and their coworkers provided ratings of behavior change and related variables approximately three months after completing the training program. ROI calculations were based on estimates provided approximately three months after training was completed. RESULTS Program Reactions Leaders found the training to be valuable and applicable to their jobs. Reactions to the training program were extremely positive. Almost all leaders felt that the skills and concepts were valuable for their job and found opportunities to apply the skills. Additionally, almost all leaders expressed personal motivation and confidence after participating in the training. AGREEMENT ITEM 100% Since participating in the training, I have had opportunities to apply the trained skills on the job. 100% The training has increased my confidence in applying the skills or concepts on the job. 97% I am personally motivated to apply the skills or concepts learned in training. 97% The skills and concepts addressed in training are important for my job. Learning Leaders improved knowledge of the training issues by 21 percentage points. Before training, leaders correctly answered approximately 54 percent of the knowledge check questions (Figure 1, Training Group A). After training, they answered 75 percent of the questions correctly. A second group of leaders (Training Group B), who did not complete a pre-training knowledge check, also answered 75 percent of the questions correctly after the training. Behavior Change Leaders improved their skills by approximately 40 percentage points. Figure 2 shows the percentage point improvement leaders experienced after participating in the training program. Both leaders and observers agree that the leaders showed a marked improvement in skills that could be attributed to the training program. Leaders reported the greatest post-training improvement (more than 45 percentage points) in the skills they learned in Facilitating Improved Performance, Preparing Others to Succeed, and Core Skills for Building Commitment.

3 FIGURE 1: LEARNING Training Group A 75% Training Group B 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PERCENTAGE CORRECT AFTER TRAINING BEFORE TRAINING FIGURE 2: BEHAVIOR CHANGE Core Skills for Building Commitment Preparing Others to Succeed Facilitating Improved Performance Performance Planning: Reviewing Progress 38% 35% 40% 44% 46% 46% 51% 56% Helping Others Adapt to Change 26% 30% Guiding Conflict Resolution 28% 33% 0% 10% 20% 30% 40% 50% 60% PERCENTAGE POINT IMPROVEMENT OBSERVERS SELF 3 SUPERVISOR COMMENTS EXAMPLES OF APPLICATION My direct report used her training in conflict resolution in a situation that had immediate positive results. Addressing problems with damaged product in the warehouse, employee called everyone together and insured a positive and constructive ending by not placing blame and having everyone contribute to solution. She looks for ways to mentor and provides more coaching than she did before taking the classes. She has also become more adept at handling personnel situations that arise in her area. He communicates with his staff more and ensures they are aware of projects and strategies happening at the Distribution Centers we work with, so they are informed and prepared for handling things that may impact their workload. He has also improved his working relationships with his staff through listening and understanding.

4 Work Environment After training, leaders and observers noted improvements in communication, interpersonal relationships, and clarity of work objectives. The training improved leaders skills, and application of those skills had positive effects on the work environment. Specifically, leaders and observers were asked to indicate improvements in a variety of work outcomes that might be attributed to the training intervention. Both groups noted specific improvements in the work environment and at least half of the improvements were attributed to the training program. A large proportion of leaders (82 percent) saw improvements in the openness of communication and more than half of the observers (54 percent) noted an improvement in their relationship with the individual attending training. PARTICIPANT RATINGS OF TRAINING IMPACT Improvement 82% 52% Training Produced Effect 84% 57% OUTCOME Openness of communication Department productivity 48% 52% Respect shown to employees 45% 52% Employee Morale 28% 32% Consistency of management behavior across the organization 51% 55% AVERAGE SUPERVISOR AND DIRECT REPORT RATINGS OF TRAINING IMPACT Improvement Training Produced Effect OUTCOME 67% 64% Your working relationship with the individual attending training Clarity of work objectives in your department 46% 63% Work environment 38% 50% Your personal job satisfaction 23% 22% Your personal productivity level 43% 53% AVERAGE 4

5 CONTACT INFORMATION WORLD HEADQUARTERS Return on Investment In the first year the program will yield a human capital ROI of 350 percent and a return of more than $100,000. Calculating ROI requires the conversion of observed improvements into dollar values. Using this method, gains observed from the training intervention (such as behavior change) are converted into monetary values and compared to the costs of the program. Leaders who experience behavior changes in critical skills become more valuable for the organization (i.e., an improvement in human capital). One way to determine the value of an employee is to use the person s overall salary. Employees should return to the organization a level of value in proportion to what they are paid. When employees improve their skills, their value increases in proportion to their salaries. The behavior change ratings made by observers (i.e., supervisors and direct reports) were converted into dollar values based on salary. Then, program costs were subtracted and an overall percentage return on investment was computed. Total return (per participant based on behavior change and salary): $3, Fully loaded costs (per participant): $850 In the first year, net benefits for the program were $101,167 (total benefits minus total costs). This calculation yielded a first-year ROI of 350 percent. Over a four-year period, the cumulative return on investment is 237 percent. This longterm return considers the fact that leaders will retain their skills over time, but that some leaders might leave the organization or stop using their skills. CONCLUSIONS Mattel s extensive training program effectively addressed leaders needs to improve performance management, conflict resolution, and change management skills. Program participants appreciated the training, improved their knowledge levels, changed their behaviors, and observed improvements in the work environment. The strength of these changes is notable given that they were observed by leaders supervisors and their direct reports. Although not the only method for assessing value, return on investment analysis shows that the training yielded a high positive return beyond what would have been gained by spending the same funds on other ventures. Investment in human capital is an important business strategy for Mattel. The quality and performance of employees directly relates to the success of the organization. By making an investment in the capabilities of leaders, Mattel has taken an important step in strengthening its presence in the market. MKTLDRR Development Dimensions International, Inc., MMII. All rights reserved.