Enterprise Expansion/Contraction and Worker Development Standardization

by Dean Prigelmeier, President of Proactive Technologies, Inc.

One challenge faced when expanding, contracting or acquiring an enterprise is adjusting the scale of the workforce development strategy(ies) that already exist(s) to the increase/decrease in the number of workers while maintaining a consistent ratio of output, quality yield, safe performance and process compliance. Contrary to an accountant’s perspective on staffing level adjustment, there should be serious consideration given to the range and depth of each worker’s acquired skills; an “inventory” of each employee prior to the official act of expanding or contracting. We take a physical inventory of product, equipment, parts, etc. to assess value, so why would we treat a human asset any different?

Obviously, an expansion strategy is different than a contraction strategy, but when it comes to determining the value of a worker it is similar for both strategies. How an organization addresses the development, measurement and maintenance of that value may differ widely. Let’s look at both scenarios.

For companies expanding, if a sound structured on-the-job training infrastructure is in place it is simply a matter of scaling. More work means more employees that have to be trained before adding value to the operation. Sometimes expansion includes a segway from straight-line scaling, such as new products and services requiring new equipment, which in turns requires new/improved core skills before structured, task-based on-the-job training can be implemented to build upon incumbent worker skill sets. A solid structured on-the-job training infrastructure can easily adapt to new work, new tasks, new technologies and new trainees.

For companies contracting, one would think this would just be scaling but in a negative direction. It usually ends up more complicated than that when work for three different areas are consolidated on top of the work performed by the workers in the fourth area. If left alone this will produce an obvious bottleneck to say the least. With consolidation of the jobs, and therefore the consolidation of the tasks required of workers in each, intuitively it would stand that recipients of these tasks should be trained on the best practice of these new processes and necessary compliance. Otherwise, contraction of an enterprise will continue as overall capacity dwindles and decreasing output results.

In a third scenario, when a company acquires another site or other sites, the acquiring enterprise usually brings in an expert who can unify HR and HRD strategies and already knows how to analyze what is needed. An effective expert will make sure inventories are taken at each site to formulate a strategy on how to consolidate differing systems and policies into one unified system – hopefully flexible enough to accommodate the uniqueness of each site. The process flow follows a logical track:

1. Inventory of human resources enterprise software (if existent): Decisions usually have to be made as to which system will become the standard, what data has been kept and should be kept, how to convert the data to the standard format, training of each site’s staff on the new system, etc. Every system is different, every site uses different parts of their enterprise system (usually the modules that work) and every site has a different focus and level of expertise. This system integration takes several years to implement and, in some cases, can be very costly.
2. Inventory of human resource development practices and records (if existent): A determination has to be made of which human resource development practices are/are not being implemented at each site; any of the practices that seem worthy of corporate standardization; any records that have been/should have been/should be kept; and training materials developed at any of the sites for their job relevancy and the possibility of shared site use. Depending on the size of the acquisition, there may not be a deliberate human resource development effort. This may make it easy to inventory since one can assume a “blank slate.” If informal, ad hoc training had been occurring in lieu of a training department, in each department with different practices and outcomes, and may be even harder to inventory.
3. Inventory of incumbent worker training progress: Imagine acquiring a property with no number 1 or 2 above. How would you determine each worker’s skill development process relevant to the job for which they are performing? What metrics, other than anecdotal, would exist? What if the acquired property was undergoing staff reductions and movements – either internally or out the door? Would there be any historical anecdotal information of value? The most effective solution is to immediately perform a thorough job/task analysis of the critical job areas (this can be done in as little as a week), to establish what each worker in each job classification should be able to perform. Next, inventory each incumbent worker to the list of tasks required for their job classification (confirmed by the manager) to determine the gap. Once the gap is known, structured on-the-job training will close the gap.
4. Inventory of frontline manager and supervisor development: Typically, any size enterprise limits their supervisory and manager training to a periodic seminar of general skills and traits such as “effective leadership” and “how to handle problem employees.” Some enterprises provide added instruction of technical skill development such as “LEAN manufacturing,” “six-sigma,” and “continuous improvement.” Regardless, completion of these courses does not really cast light on how well the supervisor or manager applies these concepts and strategies in the performance of their work or how well they actually manage people. Anecdotal information may be a primary source of development progress, again. Ideally, the most effective solution is to perform a thorough job/task analysis of each supervisor and manager job area (this can be done in as little as a week), to establish what each supervisor or manager in each job classification should be able to do. Next, inventory each incumbent supervisor or manager to the list of tasks required for their job classification (confirmed by their manager) to determine the gap. Once the gap is known, structured on-the-job training will close the gap.

The suggested measures for each of the scenarios might seem obvious but are often overlooked as decisions are rushed. Sometimes these measures aren’t implemented because those making the decisions are unaware that new tools exist to make it possible. By elevating the discussion to include these factors, transition strategies may become smoother and outcomes better.

Proactive Technologies’ helps employers build and implement a structured on-the-job training system approach – based on defining and documenting “best practices” for all critical tasks – to expedite each worker’s accelerated path toward full job mastery. To see how it might work at your firm, your family of facilities or your region. Contact a Proactive Technologies representative today to schedule a GoToMeeting videoconference briefing to your computer. This can be followed up with an onsite presentation for you and your colleagues. A 13-minute promo briefing is available at the Proactive Technologies website and provides an overview to get you started and to help you explain it to your staff. As always, onsite presentations are available as well.