Chapter 8

Action Planning as a Performance Measurement and Transfer Strategy

Holly Burkett

In This Chapter

This chapter explores techniques for implementing action planning as a performance measurement and transfer strategy. Upon completion of this chapter you will be able to

• describe the importance of action planning as a performance measurement tool
• apply techniques for implementing action planning as a transfer strategy
• analyze action plan data to determine a solution’s value.

 

Why Action Planning?

Consider the following workplace scenarios. A dynamic manufacturing environment seeks to increase labor efficiency through continuous process improvement and work redesign. A state agency determines that management skill gaps in coaching and development have adversely affected attraction and retention of key personnel and that a competency-based management development program is the key to closing gaps. A call center begins a training initiative designed to reduce call escalations through improved on-the-job training among call center staff.

What do these scenarios have in common? Each initiative addresses a critical business need; each represents a substantial investment of time and resources; each commands high visibility and management interest; and each requires accomplishing specific, measurable performance objectives. In addition, each solution lends itself to the use of action planning as a performance measurement strategy to achieve desired application and impact outcomes.

What Is Action Planning?

Action planning is a powerful and flexible process for managing and measuring the performance objectives of a training solution and ensuring that objectives are effectively aligned with desired business results. A key output of the process is an action plan document in which project or program participants outline detailed actions to accomplish specific goals connected to program objectives. The action plan answers questions such as

• What steps or action items will be taken as a result of learning?
• What on-the-job improvements or accomplishments will be realized with participants’ applied skills/knowledge?
• How much improvement can be linked to the program?

In cases where action planning is used to measure business impact measures and return-on-investment (ROI), an action plan can also provide data about participants’ estimations of the

• monetary value of improvement
• intangible benefits of a program
• enablers and barriers to applying learned skills and knowledge
• other influences related to performance improvement.

In short, action planning is the process of planning what needs to be done and by whom, when it needs to be done, and what resources or inputs are needed to do it. It is the process of operationalizing your strategic objectives.

How Does it Work?

Figure 8-1 shows the sequence of steps involved with implementing an action planning process.

Before the Program

All learning projects should begin with a clear focus on the end in mind. This includes defining initial business needs and aligning project or program objectives to those needs. In the action planning process, the up-front “before” steps help to assess the potential value and feasibility of the action planning approach. For example, can participants’ on-the-job actions influence targeted business measures? Are the right resources available to assist participants with planned actions? Is there a commitment from participants and their managers to support action planning follow-up? This preliminary assessment ensures that action planning is linked to a strategic framework, that it is positioned as an integral part of implementation, and that it does not take place in a vacuum as an add-on, hit-or-miss activity. For these reasons, the following sequence of steps is important to consider before you initiate the action planning process.

Identify Objectives of the Solution

For programs or solutions targeting ROI measurement, broad objectives are first established across five levels of evaluation during the evaluation planning process. The example provided in table 8-1 shows how the action planning process was aligned with high-level reaction, learning, application, and impact objectives for a strategic career development initiative intended to increase organizational capacity and efficiency. In this example, the business need (increased operational capacity) was the starting point for determining program objectives and corresponding evaluation targets across multiple levels.

Integrate Action Planning into the ADDIE (Assessment, Design, Development, Implementation, and Evaluation) Cycle

Although action planning is a common data collection method for capturing measures of program effectiveness, the action plan requirement must be properly integrated with the entire assessment, design, development, implementation, and evaluation cycle of training or solution development. By planning early and defining linkages, learning professionals can give clear direction to the stakeholders about the schedule, scope, and resource requirements of an action planning process.

Proper linkage also ensures that action plans are used to support specific objectives identified through the evaluation planning and needs analysis process. For example, table 8-1 shows the objectives outlined for a career development initiative. In this case, defined business needs drove impact objectives (Level 4, increased operational capacity) and impact measures (increased labor efficiencies, increased productivity). Application (Level 3) objectives (employees will complete development discussion action plan with their managers within 60 days of completing program) were based upon needs analysis data showing gaps between current and desired job-task, coaching behaviors.

Identified skill/knowledge gaps determined specific learning needs, which were reflected in Level 2 learning objectives for the program. Finally, learning preferences appeared as Level 1 reaction objectives (achieve 4.0 out of 5.0 on overall satisfaction). With this approach, the action planning process was positioned as a value-added strategy that supported desired performance goals and business results.

Ensure That Participants Are Knowledgeable about Targeted Improvement Areas

Participants are often the individuals closest to the workplace areas needing improvement and are a reliable source of data for identifying how improved actions affect specific business improvement measures. However, when using the action planning process, it is important to confirm that participants are capable of providing estimates of the cost or value of the business units of measure being monitored and that they have the power to take action themselves or to be relatively assured that their actions will be supported in the workplace.

Communicate the Action Plan Requirement Early

An important prerequisite to successful action planning is to provide an understanding of how it works, how specific action items are developed, and how action planning data will be used. Communicate the action planning requirement to participants and their managers prior to the program. Communication can be conducted via email announcements, program descriptions that include action planning requirements, brown bag informational sessions, staff meeting attendance, and/or preprogram briefings with participants and their managers. Include available support tools, such as examples of key measures, charts, graphs, or completed action plans, in these briefings. Advance communication helps participants and stakeholders take the program more seriously and assume more ownership of the transfer of learning back to the workplace.

Engage Managers and Supervisors

A well-designed action planning process will include provisions for management support and review (Burkett, 2004). For example, management and stakeholder input is needed to ensure that action plans address specific business measures. Managers and supervisors are also a key resource in defining and eliminating potential barriers to on-the-job application of participants’ planned actions. Many organizations have effectively leveraged management support to convey the importance and value of action planning during early communications or program briefings as well during the opening segments of a program in which action planning is required (Burkett, 2005).

During the Program

The sequence of steps in the action planning process during the program are to review the action planning requirement, determine areas for action, teach the action planning process, allow time to develop a plan, require participants to estimate the monetary value of each improvement and ask them to rate their confidence of those estimates, isolate the effects of the program, incorporate a peer review process, and define a follow-up mechanism.

Review the Action Planning Requirement

During the opening of the program, it is important to remind participants that they will be encouraged and expected to apply learned skills and knowledge back on the job and that the action plan is intended as a performance support tool. It is also important to make sure that participants understand the “line of sight” linkage between their applied actions on the job and the consequence of those actions upon desired impact objectives or business results.

Determine Areas for Action

Identifying potential areas for action is one of the first tasks for action planning participants.Areas or measures of action should originate from the objectives and needs of the program or project and should focus on on-the-job application of acquired skills and knowledge. Participants can develop a list of potential action areas on their own, or generate a list of action items during a group discussion. The list may include a business measure needing improvement or represent an opportunity for increased operational or job performance. Typical categories of measures include

• productivity
• sales, revenue
• customer service
• quality, process improvement
• efficiency
• work habits
• time savings
• cost savings.

Common questions to be considered when developing action plan items include

• How long will this action take?
• Are resources available to achieve this action?
• What barriers, if any, could interfere with accomplishing this action?

Teach the Action Planning Process

Participants need clear instructions and examples when being asked for performance improvement data. Action items that support desired business measures should be written so that targeted actions are observable and obvious to everyone involved when they occur. Providing specific examples is an important step in this process. Examples include

• identify and secure a new customer account, by (date)
• analyze job tasks using the “difficulty, importance, frequency” scale when creating assemblers’ training plans, weekly
• apply the “schedule, scope, and resource matrix” to an IT project, by (date)
• apply the five-step call escalation process with customer calls, daily
• initiate three cost-reduction projects, within 60 days of training.

For maximum effectiveness, each action item should be written with active verbs, include a completion date, and state what resources or individuals are needed for successful completion. Figure 8-2 shows an example of a completed action plan for a career development initiative. In the sample action plan, participants complete the left column where they list one to three actions they will take as a result of the program. Identified actions are consistent with targeted business improvement measures (efficiency) and performance goals targeted in the program.

Allow Time to Develop the Plan

Giving participants ample time to develop and complete a plan outlining their intended actions and projected results during the session is critical. Plans can be completed individually or in teams. Facilitators can monitor the progress of individuals or small groups to keep the process on track and to answer questions.

Require Participants to Assign a Monetary Value to Each Improvement

For impact and ROI analysis, ask participants to determine, calculate, or estimate the projected monetary value for each improvement outlined in the plan. For this step to be effective, it may be helpful to provide examples of typical ways in which values can be assigned to the actual data (Phillips, 2003).

As shown in figure 8-3, suggested questions for helping participants identify potential improvement (Level 3 and Level 4) data during the program include

• What specific actions will you apply based upon what you have learned?
• What specific unit of measure will change as a result of your actions?
• As a result of these work improvements, please estimate the monetary benefits to your line or department over a one-month period.
• What is the basis for your estimate?

Figure 8-2. Sample Action Plan for Career Development Initiative

Objective To apply skills and knowledge gained from career development program

Evaluation Period___________ to ___________

Improvement Measures: Efficiency

 

Action Steps	Analysis
As a result of this program, what specific actions will you apply based upon what you have learned? 1. Conduct development discussion with manager, within 30 days of program completion. 2. Enlist support from my manager to apply skills and talents toward cross-functional job rotation or project assignment with engineering group, within 60 days. 3. Initiate follow-up with development discussions and recommended actions to close skill gaps, biweekly, or as determined.	What specific unit of measure will change as a result of your actions? (see above) 1. What is the unit of measure? Efficiency 2. As a result of the anticipated changes, please estimate the monetary benefits to your line or department over a one month period. $768 3. What is the basis of this estimate? (How did you arrive at this value?) $32 per hour x 6 hours a week x 4 weeks a month = $768 month Based on salary and average time spent on project, rework per week due to issues with product change-overs, material supply 4. What level of confidence do you place on the above information? (100%=Certainty and 0%=No confidence) 85% 5. What percentage of the change above was the direct result of applying skills learned in the career development program? (0%–100%) 60% 6. What other influences, besides training, might have influenced these improvements? Project management software
Intangible benefits:	What barriers, if any, may prevent you from applying what you have learned?
Improved cooperation with manager. Better focus on performance priorities and the “big picture.” Improved visibility to upper management—allows me to be more strategic in promoting my skills and talents for career mobility and job satisfaction.	Lack of follow-up due to work volume, conflicting priorities from corporate, moving targets

Source: Burkett (2008).

Figure 8-3. Action Plan Template

Evaluation Period___________ to ___________

 

Action Steps	Analysis
As a result of this program, what specific actions will you apply based upon what you have learned? 1.       2.       3.       4.	What specific unit of measure will change as a result of your actions? (see above) 1.    2.    3. As a result of the anticipated changes, please estimate the monetary benefits to your line or department over a one-month period. 4. What is the basis of your estimate? 5. What level of confidence, expressed as a percentage, do you place on the above estimate? (100% = Certainty and 0% = No confidence) % 6. What other factors, besides training, may contribute to process improvements or changes you make? 7. What barriers, if any, may prevent you from using skills or knowledge gained from this program?
Intangible benefits:

Source: Phillips (2003).

Ask Participants to Provide a Confidence Level for Estimates

Because the process of converting performance improvement data to monetary value may not be exact and the amount may not be precise, participants are asked to indicate their level of confidence in values defined in the action plan.

Figure 8-3 illustrates a suggested question for capturing this information and allowing participants a mechanism for expressing potential discomfort with their ability to be precise. Specifically, what level of confidence, expressed as a percentage, do you place on the above estimate? (100% = Certainty and 0% = No confidence)

Ask Participants to Isolate the Effects of the Program

Although the action plan is initiated to support achievement of performance and impact objectives, actual performance improvement, or lack of it, may be influenced by other factors. For example, in the career development initiative, action plans generated to improve labor efficiency could only take partial credit for improved efficiency measures 60 days later because other variables like new product cycles and change-over processes influenced the desired result (Burkett, 2001).

While at least nine methods can be used to isolate the effects of a training or performance improvement solution, participant estimations are typically an appropriate source for providing data about the effect of learning gains and on-the-job application of learning. The individuals who have actually learned new skills and applied them to daily operations are a credible source of input about the real-world effect of a training program, because they know how much they have applied new skills and how many other influences may have influenced job or operational performance. They are the ones closest to the business areas of improvement being targeted and are generally very effective at providing cost data and program isolation and data conversion input (Phillips and Burkett, 2008).

Incorporate a Peer and Facilitator Review Process

Facilitator and peer reviews of plans are highly recommended to promote action learning and ensure that action items are related to defined objectives. In some cases, space is included on an action plan for the facilitator’s signature to indicate that the plan is approved and appropriate. Considerations for facilitator and peer review include the following:

• Do planned actions relate to the skills and knowledge contained in the program objectives?
• Do planned actions answer the “So what?” question? “So what?” is the consequence of participants’ applied actions to the business or business unit.
• Do planned actions meet SMART (specific, measurable, achievable, relevant, time-bound) criteria?
• Do plans describe measures that can be easily collected?
• Does the time to complete actions seem reasonable or manageable?
• What degree of work disruption, if any, is involved with task completion?
• What enablers/barriers may enhance or impede planned actions?

Peer group input on action planning sparks greater energy, creativity, and commitment. Reflecting on planned actions provides the best impetus for learning and performance change to occur.

Define a Follow-Up Mechanism

Participants need to leave the session with a clear understanding of the timing of the action-plan implementation and the planned follow-up. There should be open discussion of when the data and forecasted, planned improvements will be collected, analyzed, and compared to actual actions and improvements. Options for follow-up include

• The group reconvenes to review whether planned actions and targeted improvements were achieved. When feasible, this is the most effective way to reinforce progress and accurately assess enablers/barriers to participants’ implementation of planned actions. Many organizations build the action plan follow-up session into the program schedule (that is, 30 days after the last session) to reinforce action planning as an integral part of the program, to promote application of learned knowledge/skills, and to ensure that participants and/or managers plan their schedule accordingly.
• Participants review the action plan with their immediate manager and forward a copy to the evaluator.
• A meeting is held with the participant, his or her immediate manager, and the evaluator to review the plan and success with intended objectives.
• Participants send the action plan directly to the evaluator and review it during a conference call.
• Participants send the action plan directly to the evaluator with no meeting or discussion. This approach is most common.

After the Program

After completion of the program, the final sequence of steps in the action planning process are to collect action plans, summarize the data and calculate ROI, identify intangible benefits, and report the results. For maximum effectiveness, use evaluation data gathered from completed action plans for continuous improvement purposes. This includes uncovering data about enablers and barriers to action plan application so that needed adjustments can be made for future implementations that lend themselves to an action planning process.

Collect Action Plans at a Predetermined Follow-up Time

Because it is critical to have an excellent response rate, several activities may be needed to make sure that action plans are completed and returned for analysis in a timely manner. Some organizations use reminder emails or phone calls. Others offer assistance to participants who are developing or refining their final plan. Using a follow-up questionnaire to track the extent to which participants were able to use action plans is also helpful. Integrating planned follow-up approaches into the action planning process can lead to a 60- to 90-percent response rate (Phillips and Phillips, 2005).

Summarize the Data and Calculate the ROI

When using action plans to capture business impact and ROI results, each action plan should have annualized monetary values associated with improvements. Also, each individual will have indicated the percentage of improvement directly related to the program, along with a confidence level reflecting any degree of uncertainty with the subjective nature of the data. Because subjectivity of participant estimates may be a concern to stakeholders, there are several guiding principles for making adjustments to increase the credibility of the performance improvement data (Phillips and others, 2006):

• If no improvement data are available for a population or from a specific source on an action plan, evaluators assume that no improvement has occurred.
• Discard and omit extreme data items and unsupported claims on an action plan when calculating the cost benefits of an improvement.
• To be conservative, have participants estimate only annual improvements.
• Adjust values by the estimated percentage of improvement directly related to the program using a multiplication process. This helps isolate the effects of the program or solution.
• Adjust the improvement from the previous step by multiplying it by a confidence percent, which reflects participants’ level of confidence in their estimate. The confidence level is actually an error suggested by the participant and is used to be conservative. The confidence factor is then multiplied by the amount of improvement.

The monetary values determined in these five steps are totaled to arrive at a total benefit for the program. Because these values are annualized, the total of these benefits becomes the annual benefits from the program.

Table 8-2 provides an example of how the above techniques were applied to action plans collected from the career development initiative. These values were then used as cost benefit data and compared to program costs in the final ROI analysis and calculation.

Identify Intangible Benefits

Other important outcomes of interest to senior management include intangible benefits. As shown in figure 8-2, action plans can provide important input about intangible benefits linked directly to the program but not converted to monetary values.

Report Results

Results data are meaningless if they are not used properly and communicated to the sponsors, executives, managers, and participants who have a strong interest in the project. Communicating action planning results helps position the workplace learning function as a viable business partner with a focus on helping stakeholders define results-based, value-added solutions. Communication can take many forms, including full case study or impact reports, streamlined executive summaries, postings on internal websites, or articles submitted to a company newsletter, to name a few.

Summary

Integrating a results-based action planning process into your learning and development “tool kit” can add credibility to the workplace learning function from multiple perspectives. Specifically, an action planning process helps to

• organize and document the link between learning and on-the-job performance
• facilitate transfer of learned knowledge/skills through an action learning and peer feedback process
• deepen participants’ personal commitment to achieving performance outcomes
• show the contribution of select programs
• provide a quick method to evaluate at Levels 3 and beyond
• demonstrate to stakeholder groups that programs and services are designed to add value and deliver results.

The key to success with this approach is to build it into the learning and development process during the early planning stages and to allow sufficient time to teach the action planning process. In general, the job aid in figure 8-4 will help you decide if your organization or your targeted program is ready to implement and support an action planning strategy.

Table 8-2. Case Example: Using Action Plan Estimates to Measure Business Impact and ROI

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Calculation: A x B x C x D = E (Total adjusted monthly benefit)

E x 12 = F (Annualized benefit)

 

Action Plan # N = 35	Business Unit of Measure	Monthly Improvement Value (A) x	Percent Confidence Estimate (B) x	Percent Change Due to Program (C) x	Total Adjusted Monthly Benefit (D) =	Annualized Program Benefit (E) x 12
1	Efficiency	$3,000	80%	60%	$1,440	$17,280
2	Productivity	$1,875	60%	45%	$506.25	$6,075
3	Productivity	$2,500	35%	50%	$437.50	$5,250
Total annualized benefit directly attributable to program from action plans 1–3 (above)						$28,605
Total annualized benefit directly attributable to program from other action plans collected						+ $250,395
Total annualized benefit directly attributable to program from all action plans collected						= $279,000
ROI calculation:						235% ROI
Net benefits attributable to training ($279,000) – Program costs ($83,300) = ($195,700)
Program costs ($83,300) x 100 = ROI %

Source: Burkett (2008).

Figure 8-4. Job Aid: Readiness Checklist

Readiness Checklist for Action Planning Implementation

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The following areas will help you assess organizational readiness for action planning as a performance measurement and transfer strategy.

 

Readiness Factors	Yes	No
Clear business objectives have been established for the program
Clear performance objectives have been defined for the program
Clear learning objectives have been defined for the program
The program requires data about success with application objectives
Participants are knowledgeable about targeted improvement areas
Participants have sufficient workplace support to implement planned actions
Barriers and enablers to successful application of the action plan have been defined
Managers are available for communication about action planning progress
Program staff are capable and competent to teach the action planning process
Sufficient time has been allotted in the program design for participants to develop and complete the action plan
Sufficient time has been allotted in the program design for facilitators to review and approve participant action plans
Sufficient time has been allotted in the program design for peers to review and approve individual action plans
Follow-up mechanisms have been defined
Management review mechanisms have been defined
Methods and resources for summarizing action planning data have been defined
Action planning results will be used for continuous improvement activities

Knowledge Check: Using Action Plans to Calculate ROI

Now that you have read this chapter, try your hand at using action plan data to identify impact (Level 4) results and calculate ROI (Level 5). Check your answers in the appendix.

Scenario: Coaching Program

• results obtained from 20 of 30 participants

• 20 completed action plans

• 10 participants did not provide data and/or data were incomplete

• data from 18 participants’ action plans have been analyzed, isolated, and annualized

• total monetary benefit influenced by the coaching initiative is $84,109

• two additional action plans remain to be analyzed.

1. Instructions: Using the formula provided, calculate the total adjusted monthly benefit (Column E) and the annualized program benefit (Column F) for the remaining two action plans collected from the coaching program.

 

Calculation: A x B x C x D = E (Total adjusted monthly benefit)

E x 12 = F (Annualized benefit)

 

Action Plan #	Unit of Measure	Monthly Improvement Value (A) x	Confidence Level (B) x	Percent Change Due to Program (C) x	Percent Time Applied to Productive Tasks* (D)	Total Adjusted Monthly Benefit = (E)	Annualized Program Benefit (use 12) (F)
19	Product- ivity	$12,000	50%	70%	60%	$	$
20	Time	$8,500	40%	60%	70%	$	$

*Note: In this example, Column D was added to further estimate the extent to which time savings benefits actually affected business measures of productivity. Time savings benefits represent an improved business measure only when the time saved is applied to business tasks.

2. Instructions: Now that the performance improvement data have been analyzed from all available action plans, calculate the ROI of the coaching program.

Coaching Program	Your Answer	Actual Answer
Action plan #19	$	$
Action plan #20	$	$
Data from 18 other action plans, isolated and annualized	$84,109	$84,109
10 other participants who did not supply data	-0-	-0-
Total annualized benefits from the coaching program	$	$
Total costs of the program	$65,000	$65,000
Your ROI calculation:	ROI = ____%	ROI = ____%
Net benefits attributable to training ($) – Program costs ($) = ($)
Program costs ($) x 100 = ROI %

About the Author

Holly Burkett, SPHR, CPT, is principal of Evaluation Works in Davis, California. A certified ROI professional since 1997, she has more than 20 years’ experience assisting public and private sector clients develop evaluation processes and tools to define the business value of diverse WLP programs. Sample clients include Apple Computer, the National Security Agency (NSA), Premera Blue Cross, and the California Department of Transportation. Recognized as an evaluation expert with the U.S. Office of Performance Review (OPR), she also serves as editor of ISPI’s Performance Improvement journal and a select item writer for the Human Resource Certification Institute (HRCI). Publications include coauthoring Data Conversion (2008) and The ROI Fieldbook (2006), as well as an award-winning case study in ROI in Action (2008). She earned her master’s degree in human resources and organization development from the University of San Francisco and is currently pursuing doctoral studies in Human Capital Development. She can be reached at [email protected].

References

Burkett, H. (2001). Program Process Improvement Team. In P. Phillips ed. In Action: Return on Investment Volume 3. Alexandria, VA: ASTD.

Burkett, H. (April 2004). Using Action Plans to Measure Job Performance, Business Impact, and ROI. ASTD Links. Alexandria, VA: ASTD.

Burkett, H. (2005). Evaluating a Career Development Initiative. In D. Kirkpatrick ed. Evaluating Training Programs: The Four Levels, 3rd ed. San Francisco: Berrett-Koehler.

Burkett, H. (2008). Measuring ROI in a Career Development Initiative: A Global Computer Company. In P. P. Phillips and J. J. Phillips eds. ROI in Action Casebook. San Francisco: Jossey-Bass/Pfeiffer.

Burkett, H. (April 2008). Using Action Plans to Align Performance with Desired Results. Preconference workshop, 46th Annual ISPI International Conference. San Francisco, CA.

Phillips, J. J. 2003. Return on Investment in Training and Performance Improvement Programs, 2nd ed. Boston: Butterworth-Heinemann.

Phillips, P. P. and H. Burkett. (2008). Data Conversion: Calculating the Monetary Benefits. San Francisco: Pfeiffer.

Phillips, J. J. and P. P. Phillips. (January 2003). Using Action Plans to Measure ROI: A Case Study. Performance Improvement Journal 42(1): 22–31.

Phillips, P. P. and J. J. Phillips. (2005). Return on Investment Basics. Alexandria, VA: ASTD.

Phillips, J. J., P. P. Phillips, R. Stone, and H. Burkett. (2006). The ROI Fieldbook: Strategies for Implementing ROI in HR and Training. St. Louis, MO: Elsevier/Butterworth-Heinemann.