LoBue: Real Resources: Human Resources

SUCCESS STORY: HUMAN RESOURCES

CLIENT:	Finance Company Arm of National Commercial Bank
DIVISION:	Retail
CONTACT:	President
MAJOR FUNCTIONS:	Direct Lending Human Resources Development

SITUATION
The client lost several high-and mid-level sales executives and management needed to evaluate its hiring processes, training methods, performance management methods and incentive compensation plans for its retail sales staff.

Recent changes had been made in the executive line-up. There was a new sales head and several regional and divisional managers within retail sales had been appointed to replace others. Thus, new people were in key positions.
Turnover in the branches was 35%+. Training was inconsistently applied by managers in the field who were, themselves, poorly trained and generally unprepared for their own positions.

The President wanted better prepared managers and salespeople, less turnover, productive new hires within 8 weeks, 50% increase in average sales production, and revamped incentive comp plans for sales people and branch managers.

LOBUE RECOMMENDATIONS
Hiring - Adopt an objective, behavior-based hiring methodology to include HR and branch managers. Training - Adopt an 8-week new hire training matrix to include 2 weeks in a central training location and 6 weeks of in-branch OJT with syllabuses and prescribed training methods and schedules. Performance Management - Adopt a performance methodology that provides reinforcement to in-house management programs for managers. Require consistent implementation of those methods. Incentive Compensation Programs - Revamp present plans to encourage better performers to stay.

REAL RESULTS
The client received specific recommendations and methods for installing a redesigned and much improved hiring system. In addition, a training matrix for the client's use was developed for client implementation. Performance management tools for managers in the field were produced and a detailed incentive compensation plan for salespeople and managers was created for management implementation.

Management was able to quickly overcome a personnel crisis with long-term solutions; and return to performance levels greater than those prior to the executive departures.