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Evaluating the Impact of Leadership Training in RetailThis global retailer enjoyed consistent growth and development. Now it is home to several burgeoning consumer brands—that are synonymous with style, quality, and value for casual clothing for men, women, and children. Year after year, however, it is its people the company credits as its most significant advantage. Thus, investing in its employees has become a critical link to success.

Leadership Training—The Beginnings

The organization sought an outside partner to launch a leadership training program at its San Francisco headquarters. Among several contenders, The Ken Blanchard Companies® captured the business with Situational Leadership® II (SLII®)—its widely used, time-tested model for developing people that emphasizes using a variety of leadership styles to meet individual needs.

“Our selection committee unanimously agreed that SLII® was an ideal fit,” said the vice president of employee and management development. “The model was grounded in excellent research and theory, yet was practical and easy to use.” After a successful pilot program, a headquarters roll-out of SLII® was approved by the company’s executive committee. Blanchard® worked with the organization to train its corporate trainers and customize the SLII®-based program, which would be called Leadership Training for Supervisors (LTS). Today, more than 850 corporate-based supervisors, managers, directors, and senior executives have been trained at cross-divisional, cross-departmental sessions.

From Headquarters to the Field—A Major Roll-Out

The organization was convinced that delivering LTS to its field organization was critical. “We had been using a very basic management training program in the field since the late “80s,” said one vice president. “With its emphasis on skill building, LTS was what we really needed. In addition, it would connect our corporate and field teams with a common approach and language.”

IMPACT STUDY

2 Evaluating the Impact of Leadership Training in Retail • © 2015 The Ken Blanchard Companies. All rights reserved. Do not duplicate. • MK0084 • 080315

More than 400 area managers, district managers, regional managers, and vice presidents were initially trained. In the following year, more than 1,100 store managers were trained.

During the three- or four-day LTS program, managers learned how to use the four SLII® leadership styles of directing, coaching, supporting, and delegating. They also learned important communication skills, plus the four functions of leadership:—goal setting and action planning, monitoring performance, giving feedback, and providing recognition. Six to twelve months after the initial training, they attended a one-day follow-up workshop on handling performance problems.

Included in the LTS program was Blanchard’s Leadership Skills Assessment (LSA). Prior to the initial program, up to five direct reports for each manager anonymously completed a customized 30-question survey to assess their manager’s leadership skills. The results, which provided powerful feedback and important baseline data, were discussed at the training session with a focus on growth and improvement. Post-training LSAs were completed in 6 to 12 months to provide managers with valuable before-and-after feedback.

Prior to the LTS field roll-out, all materials— including workbooks, assessments, exercises, role plays, and games—were customized. In addition, field facilitators were selected from the various divisions. They attended an eight-day facilitators’ conference and went on to conduct the crossdivisional program in pairs.

Measuring Success—A Comprehensive Evaluation

From the onset of the roll-out to store managers, the organization was committed to evaluating the LTS program—both qualitatively and quantitatively—according to the four levels of the well-known Kirkpatrick Model (Kirkpatrick, 1975).

• Level 1–Reaction—Did the managers like the experience?

• Level 2–Knowledge—Did the managers learn the fundamental concepts?

• Level 3–Behavior—Did the managers actually change their behavior back on the job?

• Level 4–Results—Did the company realize measurable results in one or more business areas?

“With LTS we provided managers with a valuable learning experience,” said the manager of employee and management development. “In turn, we needed assurance that our investment was paying off.”

Situational Leadership® II

At the core of the organization’s Leadership Training for Supervisors is Situational Leadership® II (SLII®), a widely used, time-tested model for developing people that emphasizes using a variety of leadership styles to meet individual needs. Ken Blanchard and Paul Hersey developed the original concept more than 30 years ago. Since that time, Blanchard and his colleagues at The Ken Blanchard Companies have updated the model to make it relevant for today’s workplace. Thousands of this global retailer’s managers now use SLII® as a building block for developing their people. They understand and practice the four SLII® leadership styles of directing, coaching, supporting, and delegating, as well as skills related to goal setting, observing performance, providing feedback, and effective communication.

Evaluating the Impact of Leadership Training in Retail • © 2015 The Ken Blanchard Companies. All rights reserved. Do not duplicate. • MK0084 080315 3

Level 1—Evaluating Reaction with the LTS Program Evaluation

Across the board, LTS participants liked and appreciated the experience. For most, it exceeded even their highest expectations.

“It was phenomenal—a truly next-level experience,” said one general manager in Los Angeles. “It was structured and well organized, yet flexible, too. I especially liked interacting and relating with my peers,” added another general manager in Chicago.

“It was the most enlightening learning experience I’ve ever had,” cheered yet another general manager in central New York. “The facilitators were great about creating an environment that felt safe to really share and learn,” said a store manager.

“Everyone responded to the SLII® model,” said the regional vice president in San Francisco. “They also appreciated getting feedback from their direct reports through the LSAs.”

To actually measure participants’ reactions, the organization. created the LTS Program Evaluation. It invited all participants from the roll-out to rate their overall experience, as well as specific areas like program content, relevance to their job, and the facilitators’ presentation skills.

The findings exceeded the organization expectations. Using a 1 to 5 scale, with 5 being “highly effective,” managers gave the overall program a strong 4.8 rating. In addition, both relevance to their job and the facilitators’ presentation skills received 4.9 ratings.

Table 1 shows the results of the LTS Program Evaluation. In summary, the first level of evaluation showed that the retailer was on the right track.

The Best Practices at Work

The organization set the stage for success by putting several best practices to work, including

• Seeking upfront support and involvement from senior management

• Customizing all training designs and materials

• Selecting field facilitators from field management and then training them well

• Providing managers with direct feedback from their subordinates

• Reinforcing the new learnings with follow-up sessions

• Committing to a comprehensive evaluation strategy, including establishing baseline data

Situational Leadership® II Model

S3 S2

High SupportiveandLow DirectiveBehavior

High Directiveand

High SupportiveBehavior

COA

CH

IN G

SU

PP

OR

TIN

G

Leadership Styles

S4 S1

High Directiveand Low SupportiveBehavior

Low Supportiveand

Low DirectiveBehavior

DIR

EC TIN

G DELEGA

TIN

G

Development Levels

Low to SomeCompetence

D1D4

Variable Commitment

High Commitment

High Commitment

Low Commitment

D2Moderate to High

CompetenceLow

CompetenceHigh

Competence

D3

SU

PP

OR

TIV

E B

EH

AV

IOR

HIGH

HIGHLOW D I R E C T I V E B E H A V I O R

D E V E L O P E D D E V E L O P I N G

Table 1LTS Program Evaluation Results

RATING

Program Met Expectations ...................................................... 4.7*

Relevance of Program to Job .................................................. 4.9*

Facilitators’ Presentation ......................................................... 4.9*

Overall Program ...................................................................... 4.8*

Appropriate for Skill Level ....................................................... 3.0**

Pace of Program ..................................................................... 3.1**

* A 1 to 5 rating system was used, with 5 considered “highly effective.”

** A 1 to 5 rating system was used, with 3 considered “just right” and the most desirable response.

Results represent all LTS training participants.


Level 2—Evaluating Knowledge with the LTS Questionnaire

To measure knowledge, the organization created the LTS Questionnaire. It was a comprehensive, fill-in-the-blank test that was completed on the final day of training. Managers, who were not allowed to use any notes or materials, received a percentage score based on their total number of correct answers. A random sample of 17 percent of all participants completed the questionnaire, with the results aggregated by division.

With the LTS Questionnaire, we determined if the managers were actually learning and retaining the new concepts. The organization was very pleased with the results.

The average score on the LTS Questionnaire was 87 perecent. Since the managers were not familiar with LTS concepts prior to attending the program, these results were considered to be outstanding.

Comments from the field and headquarters supported the findings. “After training, managers and subordinates seemed to be working from the same sheet of music—many for the first time,” said a director. “Almost immediately, they were going beyond their own natural style to do what was best for their people and the business,” added another participant.

Overall managers seemed to have a higher level of awareness and understanding of their people’s needs.

Success—Up Close and Personal

For one participant the Leadership Training for Supervisors (LTS) has led to ongoing, measurable success.

When she attended the LTS program, she was general manager of the high-volume Georgetown store in Washington, DC. Within a year, her post-training score on the Leadership Skills Assessment (LSA) increased by a remarkable 39 points—the biggest increase among all LTS participants. These results were a crucial vote of confidence about her new and improved leadership skills from where it counted most—her direct reports.

Over the next several months, she celebrated even more successes, this time in the critical business areas of store sales, employee turnover, and shrinkage. With amazing consistency, she achieved double-digit sales increases—earning a top-ranking position within her region—and decreased turnover and shrinkage.

Soon thereafter, she was promoted to area manager, becoming accountable for three stores, twelve managers, and 70 employees in North Carolina. She gives much of the credit to LTS. “LTS was the most valuable training I’ve ever received,” she said. “From the onset, it helped me assess people and situations more clearly, listen and communicate better, and build a more dedicated, results-oriented team.” “Without a doubt, LTS has helped her become an outstanding leader,” said her leader. “Her listening and action-planning skills have improved greatly, as has her ability to create a sense of teamwork and store pride, even in the most challenging situations.”


Level 3 Shor t Term—Evaluating Behavior with the LTS Post-Program Survey

To look for early signs of behavioral change, the organization created the LTS Post-Program Survey. The survey, which featured a 1 to 6 rating scale, was designed to assess managers’ improvements in twelve skill areas. A rating of 5 or 6 meant “somewhat better” or “much better,” respectively.

Three months after training, divisional facilitators used telephone interviews to administer the survey to store managers and up to three direct reports. A random sample of 17 percent of all participants from each division was selected. Names and store numbers were not used in the results, which were aggregated by division.

The findings were encouraging, as they showed that both managers and their direct reports were sensing improvements in all twelve skill areas. Behavioral changes in diagnosing, direction, and support were especially strong, receiving ratings as high as 5.3.

Table 2 reports the results of the LTS Post-Program Survey. In summary, this early Level 3 evaluation showed that behavioral changes were headed in the right direction.

Table 2

LTS Post-Program Survey Results (Three Months after LTS Training)

Skill Store Manager* Direct reportS*

Diagnosing 5.3 5.0

Leadership Style 5.1 5.0

Flexibility 4.9 4.9

Direction 5.1 4.9

Support 5.2 5.0

Contracting 4.8 4.9

Receiver Skills 5.1 5.0

Sender Skills 4.9 4.8

Goal Setting 5.0 4.9

Positive Feedback 4.9 4.9

Constructive Feedback 5.0 4.9

Providing Recognition 5.0 5.0*A 1 to 6 rating system was used, with 5 considered “somewhat better” and 6 considered “much better.”

A random sample of 17 percent of all participants from each division was selected.


Level 3 Long Term—Evaluating Behavior with the Leadership Skills Assessment

For each store manager, five direct reports anonymously completed Blanchard’s Leadership Skills Assessment (LSA) before the initial training and 6 to 12 months thereafter. The results reported managers’ performance in the four SLII® leadership styles—directing, coaching, supporting, and delegating—and in goal setting, observing performance, providing feedback, and communication.

In many ways, the LSA was the most critical component of the LTS roll-out. For store managers, it provided honest input from their direct reports and, in turn, became a key motivator during the training and back on the job. In addition, it gave invaluable before-and-after feedback—rewarding those who had improved and enlightening those who may have fallen short. For the organization, the LSA opened the door to evaluate LTS at Level 3 and, hopefully, begin to see a return on its investment. In essence, the LSA would reveal if store managers had actually changed their behavior after the training, according to the people they manage.

Seven of the eight skill areas showed improvements so strong they were statistically significant. This reinforced that our managers had created real versus chance improvements and that the investment was paying off.

These findings rewarded and the pre- and post-training LSA scores confirmed what the organization believed from the program’s onset: that managers could put the LTS concepts to work.

Table 3 reports the LSA results. In summary, this third level of evaluation proved that the managers had actually changed their behavior after the training, according to the people they manage.

Table 3

Leadership Skill Assessment Results (Six to Twelve Months after LTS Training)

pre-teSt poSt-teSt Skill Mean Mean probability*

Directing 27.07 27.87 .052**

Coaching 27.14 28.23 .010**

Supporting 27.45 28.28 .047**

Delegating 28.04 28.96 .011**

Skill Set Total 109.72 113.35 .014**

Goal Setting 17.86 18.46 .029**

Observing Performance 17.13 17.81 .009**

Providing Feedback 17.32 18.01 .017**

Communication 29.10 29.82 .087

Skill Set Total 81.41 84.10 .021**

*Probability is a statistical tool used to identify real versus chance improvement. A statistically significant change, marked here with **, is less than .050 and means that the probability of the improved rating occurring by chance is less than 50 in 1,000. For example, the .009 rating for “Observing Performance” (see above) confirms an improvement so great that the odds of it happening by chance are a mere 9 in 1,000. Post-LSA results indicated that the retailer’s managers achieved statistically significant improvements in seven of eight skill areas, according to the people they manage. All findings are for store managers who remained in the same store for one year before and one year after LTS training.


Level 4—Evaluating Business Results with Data on Shrinkage, Turnover, and Sales

Though research continues to prove that meaningful organizational change takes at least three to five years, the organization began to look for the earliest signs just one year after the roll-out to store managers.

Three key business areas—shrinkage, turnover, and sales—were to be scrutinized for all managers who had improved their post-training LSA scores. In doing so, the company would test its hypothesis that managers with measurably improved leadership skills would also lead their stores to better performance in these three areas. Only store managers who remained in the same store one year before and one year after the roll-out would be considered.

Once again, the organization was able to pinpoint some positive trends.

• The majority of stores—up to 79 percent—with reduced shrinkage one full year after LTS training were led by managers with increased post-training LSA scores.

• Both involuntary and voluntary turnover decreased for one full year after LTS training. The majority of stores—up to 64 percent—with turnover reductions were led by managers with increased post-training LSA scores.

• Sales increased overall in the year after LTS training. The majority of stores—up to 66 percent—with sales gains from month to month were led by managers with increased post-training LSA scores.


Summing It Up—Celebrating Success

On all four levels of evaluation, the LTS program was indeed a success for the organization. Leaving no room for doubt, important measurements proved that managers enjoyed the experience, learned new skills, and changed their behavior. In turn, they created positive results in critical areas like shrinkage, turnover, and sales.

Today, the organization remains committed to LTS and the culture it is helping to create and support. On its way to achieving even greater, global success, the specialty retailer knows this for sure: Investing in people really does pay the biggest dividends of all.

Global Headquarters

125 State Place

Escondido, CA 92029 USA

From anywhere: +1 760.489.5005

Within the US: 800.728.6000

Fax: +1 760.489.8407

For a list of our offices worldwide, visit

www.kenblanchard.com

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