September 24, 2007

1. Consulting Skills Update Presenter: Alex Mackenzie, MA, MFT, CEAP Director, Health and Performance Solutions September 24, 2007

2. Alex Mackenzie has worked for ValueOptions for four years as an Advisor, Account Manager, and HPS Director. Prior to ValueOptions, Alex held positions as an HR Director, specializing in Organizational Effectiveness in a Fortune 100 Financial Services Firm, as a Senior Consultant for a large, international HR consulting firm; and Manager of Organizational Services for an internal Employee Assistance Program. Little known fact: Alex’s first professional career was as a FORTRAN computer programmer A fan of continuous learning, Alex has taught MBA and masters-level Organizational Psychology classes through UC Berkeley Extension, and Golden Gate University, and is coauthor of a textbook chapter on Group Therapy for Domestic Violence Offenders. Alex is an avid reader, and a rabid skier. Presenter Bio

3. Presentation Outline • Advantages of employing good consulting skills • Differences between consultant role versus vendor role • Consulting skill: contracting to solve a business problem Using SPIN approach • Consulting skill: Establishing needs and mutual expectations • Additional Skills

4. Consultant Success based on pre-agreed measures Part of a joint effort to produce results Valued for impact on organization’s performance Eyes and ears, provides honest feedback to the client Relationship-based Creative Vendor Unclear whether successful or not Does all the work Lacks access Feels like a “hired gun” Lacks buy-in Often deploys the wrong “solution” “Order”-based Reactive Advantages of Employing Consulting Skills

5. Good News: Human factors interventions are among the most highly leveraged investments organizational leaders can choose. Bad News: The perception is that human factors interventions and expenditures are “nice to have,” as opposed to key strategic contributions Good News, Bad News Your partnership can help your clients connect the dots, articulating the contribution to the bottom line.

6. Consulting Skill: Start with the Problem…

7. Situation Questions Problem Questions Implication Questions Need-Payoff Questions SPIN Your way to Problem-solving Partnership Concept by: Neil Rackham Situation Problem Implication Need Increased commitment to: Solution, partnership, relationship

8. The purpose of situation questions is to uncover problems or opportunities the client is experiencing from his/her point of view. Do your homework first– consider alternative sources Well-used situation questions help determine what problems/opportunities to pursue. These questions build the relationship by conveying your interest in the client’s world Examples of situation questions: How is success or performance measured in your function/group? What keeps you awake at night? What is your vision for next year? What measurements do you use? What do your customers– internal and external value most? What would people have to do to meet that goal? What is changing? What barriers do you see? What is your team hitting home runs on, and what do they need to improve upon? What is the impact of <technology, legal, market, strategic> changes? How are you meeting those changes? How do your numbers compare to <goals, the industry, last year>? What have you tried so far? Tell me about yourself and how this relates to your business and career goals Situation Questions

9. Problem questions ask about difficulties, dissatisfactions, or barriers to opportunities within the situation you just learned about. The purpose of problem questions is to reveal implied needs, and build shared understanding. Examples of Problem Questions: How satisfied are you with_______ Are there specific areas you think could improve? Are you worried about what will happen now that _____? Where are breakdowns likely to occur? Do you have the right people with the right skills? Are you concerned about whether people will change fast enough? How often does <this problem> arise? How quickly do you need to respond? How are the costs and schedule looking, compared to the plans? I can see how that might be a problem for <function-1>, but how might it also effect <function-2>? Situation Problem Problem Questions

10. Implication questions ask about consequences, effects, or impacts. The purpose of asking is to Focus on results Link problems Build motivation and commitment to mutual expectations Prioritize to maximize the value you add! Examples of Implication questions: Could that development lead to greater risk of ________ How might that effect cost, quality, competitiveness, turnover? What would growth look like with/without our intervention? Could that lead to increased _______ Would that lead to higher/lower speed to___________ How does that effect your workload? Hours? Stress level? Career? How you’re seen? Implication Questions Problem Implication

11. Need-Payoff questions ask about value, importance, and usefulness of a solution. The purpose is to focus on the payoff, probe for explicit needs, and to get the client to tell you the benefits of the solution. You can see how this builds commitment and perceived value. Examples of Need-Payoff Questions: How much of a savings would this mean? What other opportunities would this allow you to pursue that you can’t now? How important is that? Where would that put you relative to the competition? How would that help provide the infrastructure for growth? Need-Payoff Questions Implication Need/Payoff

12. You are in an elevator, rapidly descending from the 34th floor, where you work as an EAP consultant in a financial services firm. With you is the Co-CEO. It is 1995, and the stock market is tanking, and cost cutting is the order of the day. You already know that the organization’s revenue comes from two places: Commissions on trades, and profit on investments held. Both are down due to stock market conditions. There is much concern about layoffs. Situation Question_______________________________________________________________________________________________ Problem Question_______________________________________________________________________________________________ Implication Question_______________________________________________________________________________________________ Need Question_________________________________________________________________________________________________________________________________ Case Vignette

13. Consultant will Conduct further assessment Deploy interventions including training resources promotion health/wellness activities facilitation Serve as an expert resource Provide means of assessing results Provide honest feedback Client will Provide access Publicize Administer satisfaction surveys Administer pre and post tests Take additional measures Preview and provide feedback on materials Provide honest feedback Mutual Expectations(To Meet the expressed need,…)

14. In this session, we’ve identified and demonstrated a technique for gaining agreement and partnership Research/Assessment Action Planning Facilitation (including telephonic/Webex) Customization and selection of training content Choosing a presenter Measuring impact Additional Skills

15. Poor Employee Performance Critical Incident Response Drug Free Workplace Cases Fitness for Duty Employee Threat of Violence Don’t be afraid to be directive Act in concert with HR and company policy Help manager focus by asking open ended questions Remember to ask how the manager is doing Nuts and Bolts:Providing Subject Matter Expertise

16. Flawless Consulting by Peter Block SPIN Selling by Neil Rackham Organization Development by William Rothwell The Fifth Discipline by Peter Senge The Fifth Discipline Fieldbook by Peter Senge HPS Policy and Procedure The Team Handbook by Peter Scholtes Organizational Behavior, an Experiential Approach by David Kolb (or anything by Kolb, really) On Organizational Learning by Chris Argyris (or anything by Argyris!) See also, anything on Competencies on Lominger or DDIWORLD websites Additional Resources