CHAPTER 9

Pulling It All Together

Although the previous chapters offer examples of how to develop objectives at the different levels, there is nothing like a case study to show how the process evolves. Chapter 1 presented three short case studies that described organization profile, the issues involved, and the objectives. However, the case studies did not show how the objectives were developed. The objectives were developed following important and necessary analyses and discussion, presented in chapter 2. The following case study shows how this is accomplished.

THE SITUATION

Global Financial Services (GFS) is a large international firm that offers a variety of financial services to clients. After analyzing its current sales practices and results, the firm identified the need to manage sales relationships more effectively. A task force comprising representatives from field sales, marketing, financial consulting, information technology, and education and training examined several solutions for improving relationships, including customer-contact software packages. The firm chose to implement a software package designed to turn contacts into relationships and relationships into increased sales. The software features a flexible customer database, easy contact entry, a calendar, and a to-do list. It enables quick and effective customer communication and is designed for use with customized reports.

This project represented a tremendous amount of money—approximately $1 million total for the proposed software purchase, training, networking for the software, and time away from work. This million-dollar decision prompted a detailed analysis in which objectives were needed at all levels.

The project director met with a variety of stakeholders to secure input for the objectives. Those involved in the meeting included the analyst who conducted the initial needs assessment, a marketing manager who understands the marketing dynamics, the project requestor (sponsor), a sales representative from the software supplier, a district sales manager who manages the relationship managers (RMs), two RMs (sales representatives), the facilitator for the program, and the project evaluator.

INPUT OBJECTIVES

The software implementation and training had to be developed quickly and provided to all 4,000 RMs so the benefits of the project could be realized. A pilot program was envisioned that could be implemented with a small number of RMs (120) and the results used quickly to see if there was a positive ROI before pursuing the complete purchase and networking of the system. GFS has RMs in 20 regional offices, and it was preferred that the training be conducted in those offices to minimize hotel and travel costs and disruption. Regional training centers were used in each of the regional offices. It was critical for the budget not to exceed the anticipated $700,000 in direct costs associated with the software, networking, and training delivery. After the pilot was approved and the training complete, the project was to be implemented within one month. The pilot program can be evaluated in three months.

Questions for Discussion

1. What input topics should be addressed?

    

    

    

    

    

2. Write the specific input objectives that represent the most critical areas.

    

    

    

    

    

Responses to Discussion Questions

1. These topics should perhaps be addressed:

   a.	Delivery. Focus on a pilot program first.
   b.	Timing. To ensure that the dates are met.
   c.	Budgets. Stay within budget.
   d.	Audience. Define the proper audience. (Does this involve support staff?)
   e.	Duration. Only one day.
   f.	Location. Conduct it in the regional offices.
   g.	Disruption. Minimize the disruption of taking the relationship managers away from normal customer work.

2. The project will be delivered with these specific objectives:

   a.	Upon completion, direct costs will be less than $700,000.
   b.	Conduct a pilot program with 120 participants, with evaluation completed within three months.
   c.	Full implementation should be completed within one month after the pilot evaluation is complete.
   d.	The program will involve relationship sales managers only with no support staff.
   e.	The one-day workshop will be conducted at regional training offices with no travel involved.
   f.	A repeat session will be conducted—all to be completed within one month.

REACTION OBJECTIVES

Next, the discussion focused on how participants should react to the workshop, the software, and their use of the software. The group concluded that the workshop should be important to participants and their work. The principal concern was whether they would actually use the software. GFS has a history of buying software for the sales team, and then the product goes unused for a variety of reasons, primarily because the sales staff did not see the benefit. Also, the sales team members must see this software as an aid to their success. “What’s in it for me?” is a huge issue. “If I am going to take my time away from my customers, this better be worth it,” is the prevailing attitude. They need to see the software as useful and helpful in driving sales and improving customer satisfaction.

Questions for Discussion

1. What areas would you consider measuring at the reaction level?

    

    

    

    

    

2. Construct the reaction objectives that represent the most important areas.

    

    

    

    

    

Responses to Discussion Questions

1. The key areas would be as follows:

   a.	What is in it for me? They must see that this will increase sales.
   b.	Relevance to my work. It must tackle the problem directly or improve the current job situation.
   c.	Useful to me personally. This must be user friendly and not complicated.
   d.	Intent to use. They must indicate an intent to use, perhaps even with planned action. Without this, it might fail.
   e.	Recommend to others. Since all relationship sales managers must attend, it would help the situation if the early participants would recommend this to later participants.

2. At the end of this one-day workshop, the participant should rate the following measures 4 or more on a 5-point scale:

   a.	The software is important to my current success.
   b.	It is relevant to my work and clients.
   c.	It is easy to use.
   d.	I intend to use the software.
   e.	I will recommend that others attend this.

LEARNING OBJECTIVES

After some discussion with the software supplier and the RMs, the key information that the RMs must know began to emerge. The team concluded that there was a variety of features and benefits that they must know and that perhaps a checklist or a quiz would be appropriate. These items were straightforward features and routines that could be learned easily. Participants must also use the software in the classroom and demonstrate certain features. Specifically, the planning group wanted them to demonstrate that they know how to

• enter a new contact
• create a mail-merge document
• create a query
• send a customized response
• create a call report
• create a sales data summary
• create a status report.

The facilitator should observe each participant to ensure that he or she can correctly perform the tasks.

Questions for Discussion

1. What areas should be covered in the learning objectives?

    

    

    

    

    

2. Write the specific learning objectives.

    

    

    

    

    

Responses to Discussion Questions

1. The objectives should cover basic knowledge and skills related to the software, including knowledge of the features and benefits of the system and the ability to demonstrate this knowledge.
2. After completing this workshop

   a.	participants will score 75 or better on a test measuring the features and benefits of the new software (80 percent target)
   b.	given the complete software package, participants will demonstrate to the facilitator five of the following seven features within 12 minutes with zero errors:

   • enter a new contact
   • create a mail-merge document
   • create a query
   • send a customized response
   • create a call report
   • create a data summary
   • create a status report.

APPLICATION OBJECTIVES

Next, the group focused on application objectives. The concern centered on the expectations of the relationship managers: “What do we want them to do, and when do we want them to do it?” This becomes critical, as this audience has a history of ignoring new tools and software. Detailed objectives were needed not only to check the progress, but to create expectation and drive the desired performance. The first issue involved the immediate use of the new system for customer-contact management. It is critical for users to enter new clients and new prospects directly into the system as they are developed. It is equally important to begin merging the current contacts into this new system.

In terms of usage, there are many features that RMs should be using routinely. Fortunately, the software had built-in, user-performance profiles that track how often they use the software, what they are using, how accurately they are using it, and if major parts of the process are omitted. This user-performance profile has a scoring mechanism to indicate how well RMs are using the software. One hundred percent is perfect use. After some discussion, the team decided that to achieve an 80 percent score in four weeks would be acceptable. Also, they wanted this software to generate additional follow-ups. While the follow-ups provide a consequence (such as sales or customer satisfaction), it is important for the relationship managers to use the system to schedule more follow-ups. Consequently, the number of calls and appointments should increase. This is the culmination of the use of the system.

Questions for Discussion

1. Specifically what areas should be explored in the application objectives?

    

    

    

    

    

2. Write the specific application objectives.

    

    

    

    

    

Responses to Discussion Questions

1. The areas that should be explored in the application objectives are these:

   a.	User-performance profile. A host of functions and activities and use of the software is tracked automatically.
   b.	Entering names in the database. New contacts, new prospects, and new customers.
   c.	Merging existing documents in the system. Bringing all of the current contacts and customers into the system.
   d.	Planning follow-ups. This is the actual scheduling of follow-ups with an individual. There is sometimes confusion about whether this should be Level 3 or Level 4. Essentially, the RMs are scheduling more follow-ups than normal. Therefore, this is something that they are doing (that is, increasing performance) as a result of the software. The consequences of the follow-up will occur later as sales are generated or customer satisfaction is increased.
   e.	Barriers and enablers. These are always tracked to understand clearly what got in the way and what has helped with software usage.

2. After the workshop is completed, participants will

   a.	enter new contacts, new prospects, and new customers within one day of obtaining the information
   b.	merge the current customer database into the new system within one week
   c.	use the software routinely as reflected in an 80 percent user performance profile score out of a possible 100 percent, which will occur three weeks after the workshop
   d.	increase the number of weekly planned follow-ups with customers by 10 percent within three weeks
   e.	in one month, identify the barriers that have prevented them from using this system successfully
   f.	in one month, identify the enablers that have helped them use this system to the extent that they have.

IMPACT OBJECTIVES

The discussion among the planning team members moved to impact objectives—a much easier step for the group. These measures framed the rationale for implementing the program in the first place. However, several issues needed further discussion. While the program was perceived as a tool to drive sales with existing customers, improve customer satisfaction, and reduce complaints, additional discussion centered on the cause-and-effect relationship. In other words, “Is this software actually going to do what we want it to do?” Although this was the premise of the initial needs assessment, it was helpful to have the dialogue about how to know it would make the difference.

Some initial analysis revealed that customers were complaining about response time on the part of the RMs. A deeper analysis revealed that some customers were not recommending the firm to others. In a few cases, they were going to a competitor. The issue seemed to center on managing communication with the customer in a timely and productive manner. This software is intended to do just that—ensure that communication is smooth and timely and keeps RMs focused on service.

Consequently, this software should certainly reduce response time, although there is no formal way to measure it in the system. That is, when a customer calls or has an inquiry, nothing in the system measures the time taken to respond to that particular customer. Even this software does not do that. While it is not measured, it is certainly an issue that can be monitored on a perception basis. Also, customer satisfaction should be connected to the software use, along with increasing revenue with current customers and reducing customer complaints. The logic: If RMs respond quickly and reduce complaints, customer satisfaction increases and sales increase.

Questions for Discussion

1. What issues should the impact objectives address?

    

    

    

    

    

2. Write the impact objectives.

    

    

    

    

    

Responses to Discussion Questions

1. The following areas are considered important for the impact objectives:

   a.	Reduce response time. Although this is not measured, it is an important consequence measure. Improvement can be captured on a perception basis.
   b.	Reduce customer complaints. Particularly those that are based on delays in acquiring information.
   c.	Customer satisfaction. Measured in a customer satisfaction composite survey index.
   d.	Sales with existing customers. Under the rationale that if RMs kept closer correspondence, commitment, and communication, then it would be easier for customers to remain with the firm and provide more opportunity to increase the level of business.

2. Within three months of implementation, there should be

   a.	a reduction in the time to respond to customer inquiries and requests
   b.	a reduction in the number of customer complaints regarding missed deadlines, late responses, and failure to complete transactions
   c.	an increase in the customer satisfaction composite survey index by 20 percent at the next survey (in six months)
   d.	an increase in sales for existing customers.

ROI OBJECTIVES

The final objective is the ROI objective. It had been decided earlier that the program would be evaluated at ROI on a pilot basis to see if it should be implemented throughout the company. A positive ROI was needed, because it would clearly reflect that this expense is an investment and that there is a positive return on that investment. Determining the precise amount stirred up some debate. Some members of the team thought that it should be held to the same standard as when they buy another company. At GFS, the ROI hurdle rate is 17 percent for major capital expenditures. Some suggested that a standard should be set higher than the company’s hurdle rate—maybe 20 percent. Others thought it would be best to let the sponsor select the number, because a small sample is being used to make a decision about the entire company. Still others indicated that a breakeven on this project—which would be 0 percent ROI—would be okay. This argument was based on the fact that there are some intangibles that will not be converted to money, such as customer satisfaction. Also, more than likely, the customer response time is going to be an intangible, because they had no way of easily and credibly converting it to money.

Questions for Discussion

1. What do you recommend for an ROI objective and why?

    

    

    

    

    

2. How should it be worded?

    

    

    

    

    

Responses to Discussion Questions

1. The group chose ROI and the benefit-cost ratio as two measures. The client asked for 25 percent return. This seemed to be a rational value and was only slightly above the hurdle rate for other capital projects.
2. The actual wording: “After three months, and based on one year of value, the project should attain a benefit-cost ratio of 1.25:1 and represent an ROI value of 25 percent, using a first year of benefits.”