The value driver tree is a tool used to identify the root cause of an issue. In our case it is used to identify causes of business issues. The value driver tree is also known as a fishbone analysis.
The value driver tree is a very useful model to use when engaging in discovery sessions with prospective and current clients. You should be familiar with the model so that you are able to use it in conversations as a way to structure thinking. The best use case is creating a value driver tree on a whiteboard, computer or paper flip-chart as part of the meeting with clients, prospects and internal stakeholders.
An example of a simple value driver tree is shown above. In this case the issue facing the business is declining profitability.
The next level to the right of the business issue breaks the issue of declining profitability down to three possible solutions. The third level are the actions needed to execute the solutions. A key concept when creating value driver trees is MECE.
The MECE model is used to separate items into subsets that are ‘mutually exclusive’ and ‘collectively exhaustive.’ The MECE model as developed by Barbara Minto at McKinsey and Company in the late 1960s. You can learn more here.
In some cases these actions may directly address the issue or be actions such as research and analysis. In the latter case, this may then lead to a further value driver tree created to reflect the outcomes of research and analysis.
A value driver tree must focus on one single issue. Therefore there may be a number of value driver trees created in the course of a discovery session. It is common to start the process with a value driver tree to determine which of a range of issue should be prioritised and then break that down to individual issues.
The example above shows a value driver tree that will then be broken down into the issue that is considered the highest priority.
The value driver tree helped my client remain focused and not go off in a number of different directions. In my consulting practice, I only focus on one issue per engagement. I have learned this removes the risks of project creep and uncertainty about closure of an engagement.
Once I have worked with my client to create a value driver tree on the challenge with the highest priority, there are two necessary steps before we commit to working together. The first step is gaining conceptual agreement. The process to this point is very positive for the client. Once the person is fully able to identify a business issue there is a sense of relief even before a solution is executed.
The positive state achieved in the value driver tree process is the precursor to conceptual agreement. The conceptual agreement is both parties agreeing that there is a compelling case for moving forward with an engagement to build and apply a solution to the business issue. The conceptual agreement is gained by asking the client whether they wish to solve this issue using you and/or your firm.
When this question is asked, there may be a few responses. One may be related to cost, another related to time, another related to decision making, etc. There is absolutely no point in developing a proposal with costs, activities and timelines until you have reached conceptual agreement with your client.
This is always very hard for my clients to accept. Most people in business to business professional services are using an outdated paradigm wherein the proposal is a huge document that is used to sell an engagement to a client or prospect. This is all wrong. The proposal I use includes seven sections and the whole document is rarely more than four to seven pages. I will cover more about proposals in another article.
For now let’s assume you gain conceptual agreement with the client or prospect. You are now ready to create your short proposal. What about the value driver tree?
The value driver tree is captured and saved. You photograph the whiteboard, photograph and roll up the flip-chart paper, save the digital file or whatever. The value driver tree is your navigation tool moving forward with the the engagement. The value driver tree will set the scope of the engagement as well as define the parameters of the activities that are going to be included in the engagement. I will cover more about using the value driver tree to develop your engagement plan in another article.
There is no doubt accounting firms are under pressure for both fees and service delivery. This can be considered disruption. There are a few reasons for this pressure and it will only intensify. Here are some reasons:
* Businesses are questioning the amount of fees they pay annually for compliance services against the perceived value they receive from these services.
* Accounting firms are facing a technology tidal wave that will shift much of the compliance work to ‘bots’ that deliver higher accuracy and cost a fraction of a qualified accountant.
* The complex operating environment facing companies is encouraging them to seek outside expertise to remain competitive and sustainable; unfortunately they rarely look at their accountants to provide such services.
These disruptive changes are compelling proactive firms to focus on developing other capabilities to maintain and grow revenue. The most common focus is on building revenue from advisory services. One would normally think accounting firms are well positioned to delivery advisory services. They may be well positioned, but many lack the competencies needed to uncover opportunities, scope advisory projects and execute the delivery phase for a successful result.
We were engaged to help a firm build an advisory capability without increasing the headcount. Our project including a number of phases that included strategic planning, business model development, behavioural competency assessment, training and coaching. Our process included a small digital transformation with the inclusion of work to improve use of the incumbent information management system, CRM and the introduction of a learning management system, (LMS).
We implemented a learning management system to support our transition strategy as well as sustain competency development across the firm. Below are some of the key outcomes we have achieved thus far with the LMS.
* Communities of practice to foster sharing of ideas, best practices and content.
* Learning linked to performance reviews and career planning.
* Tracking learning and participation in communities of practice.
* Self-publishing content using standard tools like PowerPoint, Sway, audio and video.
* Team publishing by practice teams to share with teams in other locations and colleagues.
Our ongoing strategic focus for the LMS includes:
* Eliminate knowledge drain.
* Replicate the learning across the organisation at lower cost.
* Develop individual learning pathways for advisors based on subject matter expertise and market sector focus.
Do you have a sense that interest and engagement with your LMS is in decline? Is it only a sense or have you been confronted with metrics showing declining enrolments, logins and participation? These are some ideas on how you can reverse the decline trend and ignite interest and engagement with your elearning programs.
These ideas vary in complexity and cost to implement. I suggest you consider these ideas in the context of both your target audiences and the resources you have available.
Add social to your elearning. This may be in your LMS, using social platforms or a mixture of both. You might be surprised to find that a Facebook Group focused on a learning topic or general subject matter will prompt higher participation rates and interest. In both a social platform and your LMS make sure you encourage question and answer, forums, course ratings and surveys. Some organisations have been successful encouraging social collaboration by rating questions, answers and published content and offering awards.
Mobile learning is no longer an option. You will compromise your participation rates without enabling people to access learning on mobile and tablet devices. Make sure your learning is always available with fast access and mobile is the way to achieve this. Make sure there is learning available that does not require an enrolment process or other barrier to entry.
People do not have the time or attention span to endure long online learning modules. Make sure your learning content is short and to the point. Short modules can be combined to create longer courses. I recommend modules of 5 to 10 minutes duration. If you go much beyond this a person will lose focus and attention. Your people may be accessing learning on their mobile devices in all sorts of environments so you want to make it easy for them to start and complete a module with the greatest chance for success.
You can ‘gamify’ your elearning. This does not have to be overly complicated. You simply determine what the parameters of the game are and then implement measurement and tracking. It can be assigning points to courses and people accumulate points as they complete courses. You can award points for participation in social collaboration and sharing. There are many ways to do this. Remember you are not wanting to encourage a toxic competitive culture, you want to make learning fun.
Case studies are a good way to capture interest. Case studies are great for learning concepts since people can relate to them. You can add coaching and social collaboration to case study learning for even more impact.
If you are facing declining participation rates in your organisation’s elearning you may have reached a fork in the road. You have the choice of the carrot or the stick. The carrot is always more effective to create change and encouraging people to participate in learning is no different. I hope these five ideas will help you out.
Here is a list of the five best practices e-learning courseware design elements, that when used together, can help your learners make the transition from the formal e-learning space to application on the job—thus moving you closer to achieving 70:20:10 in your learning mix.
Rather than rely on simulations or exercises in your courses or workshops, which is still part of the 10%, provide the learner with step by step instructions on how to apply the course on the job.
This will eliminate the issue that David V. Day mentioned in his article about “happenstance and ad hoc at best.” The structure and guidance on how to handle the situation is provided—nothing is left to chance. The learner will know exactly what to do.
Keep Courses Short
Most e-learning courses tackle more than one topic. Here is an example, communication skills training. Communication skills training covers numerous topics ranging from listening skills to non-verbal communication skills to knowing your audience and so on.
Instead of one long communication course, an alternative training method would be to provide short courses also known as micro-learning, chunked learning, or bite sized learning.
They all mean the same thing: learning content that is broken down into small bite sized chunks or one single learning topic or learning objective per course.
This allows the learner to select the exact course to meet individual need at the time of need. When too many topics are addressed at the same time, the learner wastes time getting to the point in the course that applies to their particular need.
Employees and leaders have no patience for wading through information, thus wasting their time. This can lead to low e-learning course utilization.
Provide the learner with job aids they can use on the job in conjunction with the step by step instructions.
Job Aids make it easy for the learner to complete the exercise. Removing barriers to completing the exercise will help your learners start and finish the on-the-job exercise.
To help your learner complete the instructions on the job, in an actual work situation, the learning content needs to be able to be accessed on a hand held device.
Each step that the learner needs to go through to access the information acts as a barrier. Eliminate as many of them as possible.
Most e-learning courses end with a quiz that measures knowledge acquisition. This is appropriate in formal training.
However, if you are designing courses that provide structure for the 70%, add an assessment that asks the learner to reflect on his/her experience and the skill building activities after the step by step instructions.
As Charles Jennings suggests, this is an important component to learning in the 70%.
David Patterson, a director of Learning Light, which owns the E-Learning Center and provides advice and help to organizations using e-learning and learning technologies to improve their business performance, explained:
“It’s now well accepted—and research shows—that 70% of development happens on the job, 20% happens through coaching and mentoring, and the last 10% comes through formal learning, including e-learning and instructor-led workshops.”
“Vado’s courses are the only off-the-shelf courseware that helps learners to make the transition from the formal learning environment to applying that learning on the job.”
He continued, “Basically, Vado not only espouses the 70:20:10 model but its e-learning courses embody the model’s principles, using the 10% to deliver the 70% and thus, make the learners and the organizations they work for more productive and profitable.”
Incorporate the Best Practices
Combine these five design elements to create e-learning courseware that will help the learner apply on the job to….
Leverage the natural way a person develops
Provide structure to the 70%
Lower your training and development costs
Increase personal performance
Increase organizational performance
70:20:10 in Action
To see an employee soft skill development or management development course created using the five design elements listed above, contact us and we will give you a demonstration.
When you were taught how to swim did you experience the shock and awe of being forced to enter the water while consumed in fear? Or were you first coached on the pool deck and acclimated psychologically and physically for the inevitable entry into the unknown environment of a large body of water?
If you have been in the workforce for some years, chances are you have experienced the shock and awe and/or the coaching method of training and development. If you have been around as long as I have you have probably experienced both to differing degrees.
Training and development is not an optional tactic – it is a critical component to your engagement strategy. It demands its own structured strategy and measurements to ensure it is delivering results for your organization. The training and development starts on day one [or before] with an effective on-boarding program and continues thereafter in a roadmap of personal and professional development that enhances a person’s ability to contribute to the organization and grow as a human being. Lofty? You bet.
Here are a few prime elements that I have found contribute to a solid and effective training and development tactical component to your engagement strategy.
There is a linkage between a person’s position or job title to at least one of their learning pathways. This is often compliance based.
The learning and development has a mix of modalities and these do not need to be concurrent – they can occur at different times and for different purposes. For example:
Quality online self paced learning programs.
Webinars, seminars and discussion groups.
Targeted coaching programs with agendas and feedback.
Mentoring programs – particularly effective for succession planning.
The business owners and/or leaders are engaged and committed to the learning and development activities in the organization.
There is alignment between the organisation’s strategy and the learning and development programs down to the individual level.
Learning activities of employees are visible to managers.
Learning and development is included in the performance management strategy.
Learning for personal development and interests is included in the offerings for all employees. [I cannot count how many clients initiate an LMS implementation with compliance and corporate learning the only pathways].
I realize I could go on and on with this list. Give me a call or email me and we can share some more ideas. If you are seeking some ideas or help in developing or implementing an engagement strategy, I can help you out.