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1© Gordon Training International
Welcome to The Real Costs of
People Problems
Presented by
2© Gordon Training International
You are viewing this presentationbecause you have people
problems in your company.
How many times have you said or heard someone else
say: “If it weren’t for the people, I’d love this job.”
3© Gordon Training International
Conflict is killing your productivity
How much money does your company waste on unresolved conflict?
How many of you like conflict? Many of us can deal with it when they must but few of us actually like it. Most of us avoid it. Stop and really think about how much unresolved conflict costs your company.
What are the signs? Silent meetings, people avoiding eye contact—each other! What work isn’t getting done because people are trying to protect themselves or make an “enemy” look bad?
4© Gordon Training International
You have new managers with technical know-how but lacking
in leadership skills.
“We leave the hardest part of the job to chance.”
You would never let an engineer design a new technical process without the proper technical training. But employees with little or no leadership skills are routinely put into management roles. And that is high risk!
5© Gordon Training International
You’re fed up with investing in training that doesn’t produce results
• You’ve spent money on every conceivable “buzz-word” training program but not much has changed.
• People are still cynical and skeptical.• Training can cost a lot of money—if you’re not getting
the results, you need to change the way you are approaching it. It may be the wrong training or some other error.
• Whatever the reason, resentment may be building at your company from a series of failed attempts.
6© Gordon Training International
What’s in this presentation for YOU?
You will learn:• to recognize the common mistakes people
make in choosing training.• why these mistakes are costly.• how to avoid them.• how to make your training dollars produce
real, quantifiable and lasting change.
7© Gordon Training International
Our agenda in this Presentation:
• Provide some valuable information about how to solve people problems.
• Help you avoid making costly training mistakes.• Provide guidelines for choosing training that
works.• Introduce you to some of our solutions.
8© Gordon Training International
Who are we?
• We are Gordon Training International and our founder, Dr. Thomas Gordon (and Nobel Peace Prize Nominee), was the author of 9 books on how to solve people problems.
• We have over 1,000,000 graduates worldwide of our training programs.
• We’ve been around since 1962.
9© Gordon Training International
Bad leadership affects the bottom line
The case that we are going to make is that poor leadership skills costs your company money. Leadership skills can be learned. You don’t have to settle for mediocrity in your leaders.
10© Gordon Training International
What is bad or good leadership?
Bad Leadership• Non-supportive• Poor listeners• Limited input from
team members• Unilateral, arbitrary
decision making (autocratic)
• Avoids conflict or uses power to impose a solution
Good Leadership• The opposite!
11© Gordon Training International
Effects of leadership trickle down(good and bad)
“Monkey see, monkey do.”
(If you’re productivity is
low, look up.)
12© Gordon Training International
Remember the Space Shuttle Columbia accident investigation?
Their own board wrote:
"NASA's organizational culture and structure had as much to do with this accident as the external tank foam.“
“The attitudes and decision-making of shuttle program managers and engineers during the events leading up to this accident were clearly overconfident and bureaucratic in nature.”
13© Gordon Training International
Bad leadership causes people problems like these:
• High turnover
• High absenteeism
• Stress
• Sabotage
• Poor upward communication
• Unproductive competition
14© Gordon Training International
Turnover
• Many people leave their jobs because of bad bosses.
• Recruiting, hiring and training new employees is costly.
• High turnover also has many hidden costs.
15© Gordon Training International
These numbers are the turnover rates in various industries. In government, 38% of the people quit, retired, were fired or laid off each year—in private industry, that percentage was 43%.
16© Gordon Training International
“These calculations will easily reach 150% of the employees annual
compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial
and sales positions.”
Aubrey C. Daniels, Ph.D., Bringing Out the Bestin People: How To Apply The Astonishing
Power of Positive Reinforcement
17© Gordon Training International
“...let's assume the average salary of employees in a given company is $50,000
per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves
the company. For the mid-sized company of 1,000 employees who has a 10%
annual rate of turnover, the annual cost of turnover is $7.5 million!”
Aubrey C. Daniels, Ph.D., Bringing Out the Bestin People: How To Apply The Astonishing
Power of Positive Reinforcement
18© Gordon Training International
If you use the 40% figure from the Labor Department, the cost for
that same company would be $30 million due to turnover.
19© Gordon Training International
“Surveys consistently show that more than 40% of people who quit do so
because they feel they weren't appreciated for their contributions”
Aubrey C. Daniels, Ph.D., Bringing Out the Bestin People: How To Apply The Astonishing
Power of Positive Reinforcement
20© Gordon Training International
Absenteeism
Bad bosses make people sick.
21© Gordon Training International
“As much as 60% of absenteeism is due to stress. If an organization has autocratic management, it is likely
driving absenteeism costs up.”
“Approaching Change” Chrysalis: Performance Strategies
January 2003, Vol. 3, No. 5
22© Gordon Training International
Stress
When people are stressed out:
• they make mistakes
• their productivity is lower
• they may use poor judgement
• they may make bad decisions
• they get sick
23© Gordon Training International
A study of 10,000 civil servants working in traditional hierarchies (conducted over a 20-year period)
found that those lower in the hierarchy with little control over their
work have four times the risk of developing coronary heart disease
and depression than those at the top.
Dr. Sir Michael MarmotWhitehall Study I and II, 1978, 1991
24© Gordon Training International
Total cost to business in the U.S. related to job stress is
$150 billion per year.
Joe Robinson, Work to Live: The Guide to
Getting a Life
What might this mean to your company’s bottom line?
25© Gordon Training International
Sabotage
• Intentional and unintentional
• Petty theft
• Malicious obedience
• Undermining perceived rivals
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86% of employees working in traditional hierarchical organizations coped with that culture by reducing
the quality of their work.
Linda DuxburyCarleton University School of Business
27© Gordon Training International
Traditional Hierarchies Reduce Upward Communication
• Productivity suffers• Decisions are made with insufficient data• Serious problems go unnoticed• The boss is the last to know
When people are reluctant or afraid to bring up problems or ideas…
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Competition and Rivalry
When people fight with one another:
• less work gets done• good ideas are kept hidden• grievances increase• HR professionals spend up to 45% of their
week dealing with conflicts• the cost to replace an employee who has to
be dismissed because of conflict costs 160% of that person’s salary
• companies dealing with conflicts through litigation might spend $10k to $30k to fix small problems
• if the employee leaves or files a grievance, the costs become huge
29© Gordon Training International
We’ve all tried to fixthese problems
• Many of our efforts have failed.
• Many training programs promise a lot but don’t deliver.
30© Gordon Training International
There are thousands of training programs.
How do you choose the right ones for your company?
31© Gordon Training International
6 Biggest Mistakes in Choosing Training
• Quick fix
• Motivational programs with no staying power
• All theory - no skill development
• Hodgepodge approach
• Lack of follow-up
• Lack of accountability
32© Gordon Training International
Mistake #1 Too short, looking for quick fix
• The need for speed (“give me the 30 second version”)
• Dependency (“Give a person a fish…”)
• Illusion of low risk (doesn’t cost much or take much time)
33© Gordon Training International
Mistake #1 – Cont’d.
It is an illusion that shorter classes are alwayscheaper. Even though there may be higher initialcosts with a longer class, if the participants are morethoroughly prepared to put their new skills to work,the long term cost will be less if you have to:
• Do the training over• Recover costs from poor implementation• Overcome cynicism and skepticism generated
by the perception that leadership is looking for Band-Aids instead of real solutions to problems
34© Gordon Training International
Mistake #2 Motivational; high initial
enthusiasm, no staying power
• The “sugar buzz”
• Everyone “feels good” but have not learned how to change their behavior
• Low retention
• Addictive
35© Gordon Training International
“...87% of theknowledge and skill acquired in a
training program is lostwithin 60 days after training.”
Huthwaite, Inc., Building Interactive Skills
36© Gordon Training International
Mistake #3 No skills, no real change
People learn “what,” but not “how.”
The advice of “You should listen toyour people,” doesn’t tell you HOWto listen.
37© Gordon Training International
Mistake #4 Hodgepodge, no system or model
• Training not connected to a clear business need
• Program-of-the-month syndrome
• Programs can teach contradictory ideas
• Piecemeal approach
38© Gordon Training International
Mistake #5 Lack of follow-up
The “coffee cup and three-ring binder” syndrome
You go to training and everyone knows you’ll learn new “buzzwords.”
They will be skeptical and on guard—they’ll watch to see if you “act funny.”
They may even sabotage your efforts—you may be tempted to give up and say, “This doesn’t work!”
39© Gordon Training International
Mistake #6 No accountability
“It’s nobody’s job to make it happen.”
• Insufficient planning• Lack of assessment• Not measured
40© Gordon Training International
People Skills Training
• Are leaders born? Or made?• People skills can be learned.• People skills are not just attitudes or
attributes but specific behaviors that can be observed and measured.
• Organizations are systems of relationships.
41© Gordon Training International
How do people learn a new skill?
How do we change our behavior?
42© Gordon Training International
The Learning Stages (We refer to these stages in our workshops—the following slides will explain them in more detail.)
Unconsciously Unskilled
1. Consciously Unskilled
2. Consciously Skilled
3.Unconsciously Skilled
4.
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• You don’t know what you don’t know.
• The new material is completely unfamiliar to you.
Unconsciously Unskilled
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Consciously Unskilled
• You know what you don’t know.
• You recognize the skill but you cannot perform it.
45© Gordon Training International
Consciously Skilled
• You know you know it.
• You can perform the skill but it requires concentration.
• It still feels awkward.
• It is at this point that people sometimes give up.
46© Gordon Training International
Unconsciously Skilled
• You use the skills automatically.
• They are integrated. You don’t need to think about them.
• This stage comes only with many repetitions.
47© Gordon Training International
How long should training take?
Long enough to:
• ensure understanding
• allow time for practice
• apply to real situations
• build confidence
48© Gordon Training International
What should the content be?
The content should:• address a clear business need• be consistent with the
organization’s vision and values• scratch beneath the surface• hang together
49© Gordon Training International
Why are skills important?
Skills:
• go beyond attitude change
• produce behavior change
• reduce dependency
• increase confidence and self esteem
• improve productivity
• improve relationships
50© Gordon Training International
Why do you need an integrated model?
An integrated model:• gives you the tools you need to
address many problems• helps you make good decisions about
when and how to use the skills• gives you confidence to put your
skills to work
51© Gordon Training International
Why is follow-up important?
• You are more likely to get lasting change.
• Your investment pays off.• You reduce cynicism.• You increase the credibility of the
leadership of the organization.• The new skills are integrated into the
day-to-day routine.
52© Gordon Training International
Why is accountability important?
• If people are expected to use new skills, they need to know how they will be measured.
• Measurement is a “signal” of the importance of a new skill.
• It creates an expectation that people will master the new skill (go through the learning stages).
53© Gordon Training International
Imagine that your organization’s leaders
have the people skills to build more productive
relationships.
54© Gordon Training International
Imagine that you are the employer of choice…
• People don’t want to quit.
• They are productive in spite of problems.
• They volunteer for difficult tasks.
• They are willing to go the extra mile.
• Recruiting, hiring and training costs are lower.
55© Gordon Training International
People want to come to work
• Absenteeism is low.
• People are healthy (less need for mental health days).
• Health costs are lower.
• People are “fully present.”
56© Gordon Training International
The climate is positive!
• People are energetic and enthusiastic.
• People stick to their tasks.
• People are free to perform at a high level.
• People are creative and resourceful.
57© Gordon Training International
“…a considerable body of research has shown that…the opportunity to
participate substantively is associated with reduced stress. Having greater
autonomy or control over one’s job, in particular, has been linked to lower
incidence of health conditions such as coronary heart disease.”
Peter Berg & Arne L. KallebergThe Effects of High Performance Work Practices on Job
Stress: Evidence from a Survey of U.S. Workers
58© Gordon Training International
You can trust your people
• There is less need for supervision.
• Your leaders are seen as trustworthy.
• People want the organization to be successful.
• People spend their time being productive.
59© Gordon Training International
Communication is effective
• Problems are identified and solved sooner.
• People speak up freely and honestly.
• Leaders have better information about the business.
• People make better, more well- informed decisions.
60© Gordon Training International
There is a climate of cooperation
• People work as a team.
• People want each other to be successful.
• People are more productive on tasks that require teamwork.
• There are fewer grievances.
61© Gordon Training International
A 10-year study published in 1996 demonstrated that “…organizations that
consistently practice good people management create an environment that
reduces - even eliminates - significant workplace stressors...have higher sales,
profit, growth and margins...”
Dennis J. KravetzPeople Management Practices and
Financial Success: A Ten-Year Study
62© Gordon Training International
Companies that improved PMP (People Management Practices) added [on average] $294 million in profits per company, a gain of
60% over three years.
Dennis J. Kravetz People Management Practices and
Financial Success: A Ten-Year Study
63© Gordon Training International
The Six Principles for Choosing Training that Works:
Make sure that the training is:
1. long enough
2. substantive
3. skill-based
4. based on an integrated system or model
5. contains plenty of follow-up
6. designed to hold people accountable
64© Gordon Training International
Here is one solution that will reduce the cost of people problems and increase productivity…
65© Gordon Training International
Gordon Training International’sPeople Productivity Process
Leader Effectiveness Training is at the core of The People Productivity Process, a six-step, four-tool process that focuses on solving people problems.
Based on the pioneering work of Dr. Thomas Gordon, this process is a proprietary system that delivers measurable results, increases productivity, reduces friction among employees and leaders, and minimizes the damage to morale and energy that are associated with lingering, unresolved conflicts.
66© Gordon Training International
1. needs analysis
2. pre-assessment
3. skills training course
4. e-newsletters, tips, assignments
5. post-assessment
6. follow-up
The six steps of the process:
67© Gordon Training International
Step 1 - Needs Analysis
• Together we will discuss your concerns and needs as they relate to your company’s people problems.
• If appropriate, we’ll introduce our process for solving them.
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Step 2 - 360 Pre-Assessment
• Assessments capture data from all angles -- leader, his/her direct reports and boss.
• Focus is on the future, not the past.
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Step 3 - Skills Training Workshop
• Leaders participate in a comprehensive, intensive workshop.
• They learn to use and apply the communication and conflict resolution skills for solving their people problems.
• It’s Dr. Thomas Gordon’s Leader Effectiveness Training (L.E.T.) program -- we’ve been offering it for over 43 years.
70© Gordon Training International
Step 4 - E-Newsletters, Tips, Assignments
• Course graduates reinforce their skill training by practicing a specific skill each month via The Graduate Connection, a free e-mail service.
• Your newly-trained leaders can opt to meet together once a month to discuss and practice their skills.
71© Gordon Training International
Step 5 - Post-Assessment
• At specific intervals after the course, both the leader and his/her direct reports and boss assess the leader’s progress.
• An L.E.T. Trainer meets with each leader focusing on successes and areas that need improvement.
72© Gordon Training International
Step 6 - Follow-up
• To ensure your company’s training success, we will customize follow-up training specifically for your leaders to assist them in refining and integrating their new skills.
• Follow-up could include: refresher courses, one-on-one coaching and/or consulting.
73© Gordon Training International
Would you like to take the next step?
74© Gordon Training International
For more information about our People Productivity Process and our L.E.T. Workshops, call or e-mail us:
Contact us
1.800.628.1197, ext. [email protected]
www.gordontraining.com