Applying a Proven Learning Strategy in Bank Acquisition Environments

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1 in Bank Acquisition Environments Nan Orth Lisa Schramm FIS Education and Training

2 Executive Takeaways Effective training has a direct impact on individual performance. In turn, an organization s ability to achieve performance excellence is directly related to the efficacy of employee training. Successful bank mergers depend on a training methodology that creates empowered, skilled and knowledgeable employees. Poor training, or a lack of training, is costly in terms of rework, errors and employee morale. Changes brought about by the implementation of new products or services, such as those due to system conversions or industry consolidation, create additional performance pressures. Training takes on even more importance in these situations. A proven methodology is a key factor in designing and developing effective training programs for the financial institution. The value of experience in applying a proven training development methodology is measurable; training development time decreases and employee performance increases. Designing a Program to Meet the Needs of a Financial Institution Managing employee performance in a financial institution today presents unique challenges. Frequent industry changes, including regulatory requirements, technology updates, process re-engineering and consolidations, make retraining on policies, procedures and technologies mandatory. The organization that can respond quickly to change with effective training will have considerable opportunities to gain efficiencies with minimal disruption to operations. Conversions Accentuate Training Needs In addition to keeping pace with ongoing changes within an organization, industry dynamics such as system conversions and organizational consolidations increase the need to manage employee performance. Training becomes absolutely critical to a smooth conversion. Tight timelines increase the pressure on employees and managers who must ensure that their staff is prepared on conversion day. This paper will highlight the importance of a sound training methodology in bank merger and consolidation situations. While critical to merger and acquisition (M&A) activity, the methodology also applies in situations where custom training development and delivery is integral to a bank-wide initiative s success. The Need for a Proven Training Methodology Use of a proven methodology is key to designing a training program that meets the needs of a financial institution. This is especially important during conversions and consolidations, when accessible, timely and effective training options are essential to employee performance FIS and/or its subsidiaries. All Rights Reserved. 2

3 The consequences of undertaking major organizational change without a tested training methodology are significant and measurable. Employees who are not comfortable using new technologies, who do not understand new workflows or who are uninformed about process changes are unable to perform at optimal levels. The frequency of rework and error increases. These impacts reach far beyond the bottom line. Both client satisfaction and employee morale can quickly become casualties of poor (or nonexistent) training programs. The adverse impacts of poor or inadequate training programs include loss of focus, decreased productivity and diminished motivation. When the success of a conversion or consolidation is at stake, these behaviors become significant performance issues. Conversion and consolidation events typically require extensive organizational change that is simultaneously exciting, stressful and confusing. An effective training program that addresses these changes by supporting the unique learning needs of the organization is a key factor in ensuring successful conversion and consolidation initiatives. Using a proven training methodology that includes a role-based needs assessment and a proven instructional design and development process will result in accessible, timely and effective training. Training Needs Assessment A conversion or consolidation requires long hours and hard work. It s a time of uncertainty and significant, fast-paced change. Transition teams focus on multiple priorities, including the significant training needs that must be met. And a proven method for successfully planning and delivering employee training starts with a sound assessment. Mapping Roles A training needs assessment that is related to conversion or consolidation initiatives begins with a clear understanding of the roles individuals will have within the new organization. Key contacts within the existing and new organizations need to begin early to map current roles to new roles. Templates can be used to streamline comparisons of functional areas. For example, a template can be used for each department or functional area within the organization. For a large department, listing by job function, or for a smaller department, listing by names, will enable training planners to list the activities and applications that will be required. Understand that the mapping will not necessarily be a simple process of comparing old to new. Rather, during this step, redundant processes can be identified and process improvements considered. Mapping Workflows It is important for individuals developing the organization s training program to understand the scope of the new work flows from a high-level perspective. After the new workflows and processes are defined, analysis shifts from the high-level view to specific functional areas that support these processes FIS and/or its subsidiaries. All Rights Reserved. 3

4 This step involves identifying functional roles and the software applications that will be used to perform various tasks. The next step is mapping individuals who perform the various roles to courses that provide role-based training on the software products used in the process. Finally, individual learners are mapped to classes. Practice Sessions The timeline for training consists of more than scheduling classes based on a target date. In addition to mapping role-based training schedules, the successful training program must provide adequate opportunities for learners to practice to reinforce the learning that occurs in a traditional or virtual classroom. To be successful, training planners must place the same priority on scheduling practice as they do on scheduling classes. Often, when large numbers of learners must be trained, classes need to start many weeks before the organization s go-live date. As with any new skill, practice is necessary to reinforce learning. The length of time between the initial training and the time the new workflow is implemented determines the number and frequency of practice sessions needed. Software simulations and practice training environments enable individuals to become comfortable with, and to develop confidence in, using new processes or tool in a risk-free setting. Allowing time for individuals to practice on a regular basis is an effective way to ensure that individual performance and related customer service levels are maintained at optimal levels. Proven Instruction Design Methodology Identifying the target audience and planning the training and practice schedule are just the first steps in applying a structured training methodology. In many cases, a custom approach to developing training content is also a requirement of a successful training program. When the business need calls for training that reflects an organization s policies and procedures--or includes content based on a unique software configuration course content developed specifically for the consolidation or conversion is the best approach. One proven model that will deliver results within an acquisition environment is the ADDIE Model. ADDIE Model Within the instructional design model another proven methodology exists the ADDIE Model. The ADDIE Model is the basis for creating effective training content that is relevant to the performance of the learner regardless of whether training is traditional or e-learning 2013 FIS and/or its subsidiaries. All Rights Reserved. 4

5 The methodology consists of five phases which flow into each. Each stage feeding the subsequent stage as depicted in the following diagram: The use of a structured approach such as the ADDIE Model is critical to the success of the instructional design effort. An instructional design methodology makes it possible to develop custom content within the tight timelines of a complex consolidation or conversion project. Base content can be used as source material, which is then modified to reflect the learning objectives for the specific project. Unique Skill Sets Required For Instructional Design Instructional design is a complex process. It requires specialized resources, skill sets, and tools. When adult education for the financial institution is the focus, instructional designers must be experts in human performance technology, adult learning processes, and effective information design. They must also be skilled project managers with outstanding communication skills. And they must be creative, visual designers with proven technical abilities and an understanding of the financial institution s specific training needs. In many organizations, individuals with this combination of skills and experience may not be readily available. Given many competing business needs, organizations may not prioritize staffing of a dedicated, in-house, training department FIS and/or its subsidiaries. All Rights Reserved. 5

6 Specialized Instructional Design Resources Deliver Best Results Instead, when a need for training is identified, organizations turn to experienced staff. Leaders who are typically knowledgeable subject-matter experts may be asked to take on an additional role as a trainer. Although this appears to be a logical and reasonable alternative, it is in fact a risky alternative. The risk increases dramatically when training is related to large and complex initiatives such as conversions or consolidations. While it seems to offer a cost effective alternative to staffing a formal training team, it is often more costly. Here s why: A subject expert may excel in their area of expertise; however, with little or no experience in instructional design or training development, they may struggle in the unfamiliar role. With the best of intentions, the subject expert s approach may be to share all the information they can. In fact, this linear approach often results in confusion when the learner is unable to separate relevant information from information overload. In contrast, using a structured instructional design methodology creates relevance, placing information into the context of jobbased training, specific to roles and related tasks. Using the right resource at the right time is the most costeffective approach to instructional design. Train the Trainer Sometimes an organization can identify key individuals who have strong presentation skills, extensive functional knowledge, and the capacity and desire to play a lead role in organizational consolidation or conversion. When this is the case, a trainthe-trainer model can be a cost-effective approach to class delivery. Place body copy here. Place body copy here. Place body copy here. Place body copy here. The Value of Trainer s Tips Getting results from a Train-the-Trainer approach An additional risk arises when a subject expert is asked to take on the role of trainer. Delivery of effective training requires more than subject knowledge. Presentation skills, classroom management skills, and adult education experience are all critical to delivering an effective class. Using experienced trainers who are skilled in adult learning techniques is ideal. Yet, for the organization that does not have a dedicated training staff in-house, a train-thetrainer model can be an effective solution. Get the best results from a Train-the-Trainer program by partnering with experienced trainers, or by sharing tips from the pros with individuals who will be recruited as trainers during your merger or conversion initiative. These individuals can take a lead in learning new processes or systems, and in turn, can support the roll out of this information to the organization FIS and/or its subsidiaries. All Rights Reserved. 6

7 For individuals who need to brush up on their presentation skills, or pick up a few tips on classroom management, use of a Trainer s tips guide can be a valuable asset. This type of guide makes expert advice from experienced trainers available to in-house staff who will take a lead training role in the organization s training program. Just how effective a Trainer s tips guide is depends on the individual who uses it. The first step is to honestly and objectively assess one s skills. After first learning the system or process related to the course they will train, the trainer must become very familiar with the training manual or materials for the course. Trainer s notes within a training manual are helpful, but will not suffice where true expertise is lacking. The Importance of Trainer Practice and Preparation Like all learners, trainers need time to practice, not only on the system or process they are training, but on the delivery and timing of the course as well. To polish their delivery, trainers will want to conduct a dry run, or mock class, prior to delivering it to learners. The most effective dry run of a class is not delivered to an empty room. Make sure to recruit a few colleagues to sit in on the class. These learners can provide the new trainer with valuable feedback following the session. Classroom management involves more than covering the content of the training manual within the allotted timeframe. It includes making adult learners comfortable in the classroom, encouraging probing questions and facilitating discussions. It also includes making sure all participants are engaged and on track, following the flow of the course and comprehending the content. When strong personalities manifest themselves in a classroom, it can present a challenge to even the most experienced trainer. Knowing how to identify the learning styles and how to effectively meet the learning needs of all participants is a required skill for a classroom trainer. Partnered Training When the scope of a training effort is large and resource constraints are a factor, partnering with a vendor on an end-user training program may be a good option. This kind of arrangement typically is best when traditional classroom training at the organization s site is required. Cost-benefits should be evaluated based on the number of learners and the number of available training sites FIS and/or its subsidiaries. All Rights Reserved. 7

8 Creating a Blended Training Strategy The most successful approach to training involves using a blended training strategy. A blended strategy is effective because it provides flexibility in how content is provided. Based on the needs of the organization, various training modalities may be used to deliver content. Among these are traditional classroom, virtual classroom, and various types of e-learning. Traditional Classroom Traditional classroom sessions offer hands-on training in a risk-free training environment. Typically, applications are run in test environments simulating the systems and workflows the organization will use. This enables learners to practice hands-on, but without risk to production data. Classroom training also offers an opportunity to participate in classroom discussions with other learners and to engage the instructor in real-time questions or discussions. The limitations of classroom training, as expected, are physical. Scheduled classes and room capacity must match the availability of the learners and instructors. When multiple locations are impacted, travel expenses and time away from the office can become significant constraints. Nonetheless, for some types of training, where effective learning benefits from the guidance of an instructor, traditional classroom training is the best choice. Virtual Classroom Web-based virtual classes (webinars), offer the convenience of taking a class without leaving the office. Best for short classes, on focused topics, this is a convenient, cost-effective training modality. Virtual classes are typically led by an instructor. Participants have the opportunity to watch demonstrations, to query an instructor, or to participate in online discussions. However, hands-on practice is limited. This modality is best for high-level content that consists of information such as overviews or concepts. It is less effective where step-by-step process and procedures are part of the content. When convenience and the need to deliver training just in time are requirements, virtual classes are a good choice. Self-Paced E-Learning Web-based training at the learner s pace and schedule is an excellent option for training large numbers of learners in a short time frame. With the exception of a requirement for a PC with Internet access, and possibly a set of headphones, resource constraints are eliminated. Online access is cost-effective and eliminates the need for travel FIS and/or its subsidiaries. All Rights Reserved. 8

9 E-learning can provide on-demand training, with access limited only by license agreements. Learners have access to handson practices in a simulated environment whenever, and as often, as the learner requires. Because it can be referenced when needed, this training is very effective over the early weeks or months prior to and following a conversion or consolidation. This type of training provides instant feedback to a learner through a simulated hands-on model. Interactive, multi-media courses enable learners to test their own comprehension through practice interactions and scored assessments. Blending Modalities No single training modality meets all the requirements of an organization s training program. However, when used in combination, they are powerful components of a proven training methodology. The Methodology in Action Case Study: A Training Strategy for the Bank R Merger/Acquisition Business Background When Bank R, an existing client of FIS with approximately 50 branches, acquired Bank M (a non-fis client), an organization of about 30 branches, FIS s Education and Training Department was asked to manage the process of providing application training to employees of the newly acquired bank. Early in the due diligence process, Bank R discovered that Bank M had a stronger and more experienced training department, however, they lacked knowledge of the FIS systems. Bank R, though an FIS client for several years with many experienced end users, did not have a strong staff experienced in providing critical knowledge transfer to others. With 210 Personal Bankers and 290 Tellers requiring training, Bank R turned to the Education and Training team of FIS to manage the all aspects of training the new end users. The collaboration between Education and Training and both banks began in February and was completed in early July of that same year. Training coordination requires focus and a dedicated resource You should plan on assigning a Training Coordinator from your organization to work closely with the implementation or integration team. Depending on the scope of your project, this resource may need to be dedicated full-time to the role. From initial kickoff of your project to post-project follow-up, the Training Coordinator will need to be engaged as your project progresses. They ll participate in planning sessions, communicate training schedules within your organization, ensure that individuals complete scheduled training, and identify any additional classes that may need to be scheduled due to ongoing project changes. The Training Coordinator s role is essential to the successful execution of your training plan in a hectic banking environment FIS and/or its subsidiaries. All Rights Reserved. 9

10 Analysis (Task Duration: 1.5 Months) A critical first step in the analysis of the project was determining what resources each bank could deploy to partner with the FIS project resources. A Training Coordinator from both banks was assigned. These individuals functioned as the liaison for each financial institution. Their responsibilities, under the guidance of the FIS Solution Manager, included working with department heads to gather needs analysis data (using a customized needs analysis template provided by FIS), identifying employees from each bank to act in the role of Power User, communicating project milestones to the banks management teams, and functioning as a liaison with FIS in every aspect of the project. Preparing the Power User The Power User role was initiated to create resident experts for each training site to provide application support internally on a go-forward basis. Individuals were selected based on past performance and the likelihood that they would be successful in a training/tutoring role. These individuals attended Train the Trainer conducted by FIS and which were designed to increase their knowledge of FIS applications. As Power Users, these individuals were not only expected to be proficient in using FIS applications, they also needed to understand and clearly demonstrate how the banks procedures would integrate with FIS applications to meet their business needs. An initial step in the training plan was to provide the tools developed by FIS to Bank R s Training Coordinator. This enabled them to work with department heads in creating a matrix identifying the roles of the individuals who needed training and the tasks that those individuals performed on a daily basis. Prior to initiation of the project, a decision had been made that all operations functions would be centralized at Bank R and completed by Bank R s current operations team. Though a few key individuals from Bank M attended operations training offered by FIS, the project focused on training the 500 branch employees of Bank M. These individuals fell into two major categories, Tellers and Personal Bankers. An outline including an estimate on the duration of each training session and the job- based training modules to be included was developed using the completed needs analysis documents together with standard application agendas. A final training plan was presented to both banks. The plan consisted of two different courses and a training schedule covering ten different geographic locations. The plan also used multiple FIS trainers to deliver more than 65 days of training. Design (Task Duration:.5 Months) The design of the training sessions and the training materials was a collaborative effort involving the Training Coordinators from both banks, the Power Users, FIS delivery resources, and the FIS Training Solution Manager FIS and/or its subsidiaries. All Rights Reserved. 10

11 The clients Power Users provided the needed context for the business scenarios and practice examples. Working with the banks Training Coordinators, the FIS team leveraged the original needs analysis matrix to customize the course content, worked through base training materials and agendas, made notes about which topics to include, and identified which topics to delete. The process resulted in job-based training that supported not only the needs of the end users, but also tied directly to the tasks they would need to complete as part of the implementation Readiness Review (a mock conversion step, designed to ensure that the bank s staff is ready to use the FIS applications in live production). During the Design phase, Power Users helped provide needed context regarding unique bank processes that might generate questions when application training was delivered. FIS s instructional designer worked with the Power Users to analyze how bank employees performed their tasks during the work day. Business scenarios and practice examples that reflected the bank s needs were then developed and incorporated into the training materials. After the materials had been modified for the project, the materials were reviewed by the entire team prior to approval for use in the scheduled training sessions. Design (Task Duration: 2.5 Months) The primary focus of this training project was to provide job-based training to approximately 290 Tellers and 210 Personal Bankers. Selecting the Right Resources FIS trainers were assigned to this project based on their knowledge of the applications that were included in the scope of the project, as well as for their highly specialized skill sets in a classroom environment. Banking expertise was also critical; FIS s trainers had significant industry experience, and could therefore respond credibly to questions that involved tasks not specifically tied to the application-training being provided. The trainers were also chosen for their significant banking experience; they were familiar with typical terminology, common banking functions, and best practices. In addition, classes at each location included a resident expert/power User who participated in training to communicate how an application s use supported bank processes. This approach produced an effective training team that was able to provide learners with effective application training within the desired business context. Evaluation Evaluation of the training strategy was completed concurrently with the training implementation process FIS and/or its subsidiaries. All Rights Reserved. 11

12 A nightly debriefing call was coordinated and facilitated by the FIS Education and Training Solution Manager on each evening that a training session had occurred. This ongoing approach allowed for immediate fine tuning to the plan or to class content as needed. The Debriefing Call These calls were attended by the Bank Training Coordinators, all Power Users, all FIS training resources, the FIS Training Solution Manager, and the Analyst. Executive Bank Management also attended selected calls for updates on the progress of the training project and to ensure readiness for the go-live date. Standard topics that were included in the debriefing call included an analysis of the day s training, discussion of any concerns about individuals or groups that needed additional training, an assessment of the time spent on each topic, and the progression of the topics presented from a business perspective. Suggestions were reviewed and change strategies were mutually agreed upon prior to continuing with implementation. The debriefing call was critical to the success of the project as a communication tool since training occurred simultaneously in multiple locations. Ongoing Practice Recognizing that evaluation was more than a single assessment at a point in time, Bank R s strategy focused on additional practice. After all scheduled training was complete, bank personnel continued to run transactions, dually, through their current environment as well as the FIS environment. In addition to the hands on practice included as part of the formal training, these additional activities provided important ongoing opportunities for the branch personnel to practice, evaluate, improve, and confirm their system knowledge. Additional strategies were also used to ensure understanding of the FIS applications. These included multiple Mock Conversions and a pre-conversion Readiness Review. Using test scripts designed to simulate typical transactions, FIS project team members were able to confirm prior to the go live date that branch personnel could accurately perform their daily tasks using the FIS applications. The Final Test The most significant assessment of the success of the training program occurs on the first day in production. In the case of Bank R, with FIS s resources, leadership, and proven methodologies the 500 branch employees of Bank M being integrated into the network of employees for Bank R were able to provide an effective level of banking services with no interruption to their client base. Contact Us For further information call or visit fisglobal.com FIS and/or its subsidiaries. All Rights Reserved. 12