Canadian Management Centre's Training Blog

Evaluating Outsourcing Services Becomes Crucial

As reported by HRI, As the use of outsourcing increases, so does the need for measures to evaluate its impact, advises SHRM Research. According to a 2006 article, measures used to evaluate outsourcing can be divided into two categories: those that measure quality level and those that measure number of services delivered. Summarizing the work of Dr. John Sullivan, the article highlights that the following issues are worthwhile of consideration: adequacy of service (both quantity and quality), resources that go into managing the relationship with the outsourcer, impact on costs related to both efficiency and strategic improvements, and any unanticipated results. (SHRM Research [Kirchhoff], August 2006)

Workers See a Lack of Development Opportunities

As reported by HRI, many employees see room for improvement in their organization's learning opportunities, found a 2006 survey of 7,700 workers conducted by Harris Interactive. Only 42% of respondents said professional development opportunities were open to them; only 9% had the opportunity to participate in a formal mentoring program. Also, according to Harvard Business School Working Knowledge, "A bare majority expressed any level of agreement (slight, moderate, strong)" when asked to express calibrated agreement or disagreement with the assertion that "top management is committed to advancing the skills of our employees." Fourteen percent strongly disagreed. Employees at large organizations were slightly more likely to have formal learning programs available to them, but were also less likely to believe that management truly cared about skill-building. (Harvard Business School Working Knowledge [Dychtwald, Erickson and Morison], April 3, 2006)

Beware the Dumbing Down of Metrics

As reported by HRI, The practice of "dumbing down measures," although a time saver, is hazardous to the development of top performance, according to Paul Walsh, a senior lecturer at the Australian Graduate School of Management, University of NSW, Australia. Walsh describes how this practice is occurring due to the widespread use of dashboards and scorecards. He defines the dumbing down of measures as "the practice of repeatedly substituting measures of achievement with less and less relevant surrogate measures until what remains is an activity or initiative measure, not a measure of outcomes achieved." In practice, however, available measures are not always perfect. Referring to R. Simons' work in 2000, Walsh recommends first identifying types of measures used. This system classifies measures as: objective (can be verified through audit), subjective (relies on judgment), complete (reflects all relevant components) and responsive (management action can affect it). Walsh suggests that initiative measures and process measures alone report on activities rather than strategic outcomes, but outcome measures - either through exact measures or proxy measures - cover more of the attributes of good performance measures. When faced with less-than-perfect measures, Walsh recommends, make use of the following workarounds: 1) identify the type of measure to allow those interpreting the data to make necessary adjustments; 2) link measures to a strategic theme to provide more clarity and 3) based upon Simons' work, use a "rule-based decision tree," which takes into consideration the organizational climate when evaluating the adequacy of measures. (Measuring Business Excellence [Walsh], 2005, pp. 37-45) 

Older Workers Have Higher Levels of Engagement

As reported by HRI, workers ages 55 and over surpass younger employees on levels of workplace motivation and engagement, according to a 2005 Towers Perrin study, which also asserts that such engagement encourages retention as well as a worker's sense of connection to a company's achievements. Though the study found moderate overall engagement levels for the roughly 60,000 workers polled, older workers still recorded higher levels of engagement than younger workers. Industry profiles suggest more stark contrasts in the engagement levels of different age groups, however. Within the energy industry, for instance, older workers showed significantly greater levels of high engagement than workers ages 29 and younger, 22% compared to 8%, respectively. Drawing on earlier academic findings that question the presumed connection between lower productivity levels and advancing age, the study concludes that experience and knowledge can more than compensate for age-related losses of mental acuity. (WorldatWork Journal [Feinsod and Davenport], Third Quarter 2006, pp. 15-17)

Leadership Perceptions May be Based on Biology

Biologically based differences in the way men and women approach the tasks of leadership may help explain why women in Canada (and other nations) don't fill as many leadership positions as men do, says Elaine Allison, author of The Velvet Hammer: PowHERful Leadership Lessons for Women Who Don't Golf. Noting Statistics Canada figures that place the proportion of female leaders in Canadian businesses at only 34%, Allison observes that medical research has demonstrated that women tend to use both sides of their brains to solve business problems, while men's brains usually show one-sided function. Although both genders may arrive at the same solutions, this pattern, she says, can lead some to perceive men as focused and women - whose two-sided brain activity enables them to multitask - as scattered. Similarly, Allison says, hormonal differences push men to aggressively attack problems with less thought to the personal effects on their work teams, while women tend to be concerned about their teams' welfare and the personal effects of business decisions. Those differences, says Allison, can cause women to be viewed as emotional and men as focused problem-solvers. She concludes, "Society must learn that men's and women's methods are just different, not better or worse. By celebrating and embracing the differences, organizations will become more progressive, profitable and productive." (Canadian HR Reporter [Allison], May 22, 2006, p. 31)

Mens and Womens Leadership Styles Are Viewed Differently

As reported by HRI, Business leaders in Western Europe "consistently perceived differences in leadership behavior and effectiveness of women and men," reported the research and women's advocacy group Catalyst, which conducted a 2006 study in partnership with Switzerland's Institute for Management Development. The two organizations examined responses of 935 institute alumni across Europe who became business managers, gauging managers' perceptions of male and female leaders. Researchers found that valued leadership traits differed regionally and that stereotyping of female leaders sometimes was exacerbated if their leadership styles didn't match the preferred traits. For instance, women who were seen to be effective team-builders might be viewed as less capable in regions where team-building is not a highly valued leadership ability. Catalyst cautioned that "global companies need to be particularly aware of these differences as they transfer ... executives in and out of these cultures." ("Barriers Across Borders" [Catalyst], press release, June 13, 2006)

Leadership Development Succession Plans Are Top Concerns

As reported by HRI, The development of potential leaders is considered the top management challenge in 2006, according to an annual survey conducted by The Ken Blanchard Companies that polled more than 800 training and development professionals. In 2006, 63% of survey respondents chose developing potential leaders as the top issue, up from 58% who responded that way in 2005. Another one of the top management challenges related to leadership that were noted by survey respondents was succession planning, chosen by 42% of respondents in 2006, up from 34% in 2005. Among the top organizational business challenges noted in the 2006 survey were competitive pressure (60%), growth and expansion (53%) and skill shortages (43%). (Training, June 2006, p. 16)

Ratings of Leaders Skills in China are Lukewarm

As reported by HRI, in China, more than half (57%) of 400 survey respondents rated business leaders' overall skills "acceptable," while 23% rated them "weak" and only 20% rated them "strong," according to the respondents to a 2005 survey by Development Dimensions International (UK). Those polled for Leadership in China: Keeping Pace with a Growing Economy included managers at all levels of the organization (first-, mid-, high- and senior-levels) and HR professionals in primarily multinational firms.

Ratings of leaders' individual skills were not particularly high in China, either. The managers rated leaders' skills as "strong" in the following areas: delegating for results (32%), building winning partnerships (29%), motivating others (26%), building an environment of trust (25%) and valuing differences (24%). The HR professionals rated leaders' skills as "strong" in these areas: building winning partnerships (23%), rapid decision-making (19%), making meetings work (16%), building an environment of trust (14%) and motivating others (14%).

The report grouped leaders' skills into four main themes and, while the majority of leaders in China were rated "acceptable" in each broad area, a larger proportion were rated as having a developmental need than as having a strength in three of the four areas, as shown in the table below.

Ratings of Leaders' Skills in China, 2005

Leadership Themes Developmental Need Acceptable Strength Relationship management 20% 58% 22% Coaching and developing 24 58 18 Getting results 27 58 15 Managing performance 28 60 12

Source: Development Dimensions International, Inc. (UK)

(Leadership in China: Keeping Pace with a Growing Economy [Bernthal, Bondra and Wang], 2005, pp. 2, 7-9, 16)

Chinas Business Leaders Need Specific Skills

In China, business leaders need skills in creating an environment of trust, motivating employees, retaining talent and leading high-performance teams, according to the more than 400 respondents to a 2005 survey by Development Dimensions International (UK). Those polled for Leadership in China: Keeping Pace with a Growing Economy included managers at all levels of the organization (first-, mid-, high- and senior-levels) and HR professionals in primarily multinational firms. The proportion of business leaders and HR professionals, respectively, who selected those top four responses follow: building an environment of trust (80%, 77%); motivating others (80%, 72%); retaining talent (75%, 72%); leading high-performance teams (68%, 70%). Other leadership skills rated high by leaders included building winning partnerships (57%), delegating for results (55%) and leading change (53%). Other leadership skills rated high by HR professionals included coaching for success (58%) and setting performance expectations (56%). (The China Business Review [Hulme], March/April 2006, p. 24)

Swedish Job-Seekers Understand Corporate Strategy

As reported by HRI, More than two-thirds (68%) of surveyed European job-seekers say they know their organization's corporate strategy, but 22% say they don't think their employer has one, according to research from StepStone, an online recruitment firm. StepStone polled 9,760 career Web site users in Europe and found that those in Sweden were best informed and those in Italy least informed about corporate strategy. Following are the survey results by country.

European Job-Seekers' Responses to
"Do you know the corporate strategy of your employer?"

Country Yes, couldn't do job properly without it No, don't need it for my job Don't think company has one Europe overall 68% 10% 22% Sweden 79 7 14 Norway 77 9 14 Netherlands 75 10 15 Germany 69 7 24 Denmark 67 10 23 Belgium 66 12 22 France 65 10 25 Italy 62 13 25

Source: StepStone

(StepStone News & Research, July 20, 2006)