Amway Corporation: Driving Consistent, Strategic Performance of Distributors Globally*

Topic: Performance Improvement/HPT Model

Steven Sniderman, M.A., Amway Corporation, Ada, Michigan, USA, and Valerie Brown, M.A., Innovative Learning Group, Royal Oak, Michigan, USA

Background

Amway Corporation is a direct seller of nutrition, beauty, personal care, and homecare products. It is a global organization with ten autonomous regions and more than four millionactive distributorships in more than eighty countries. These distributorships earn money by selling Amway products and also by sponsoring others into their own businesses. Amway's learning organization consists of ten autonomous regional training groups and Global Training and Education, a shared-services function that supports the regions.

Situation

In March 2007 Amway identified a strategic need to improve its distributors’ performance on critical metrics related to retail sales, the number of new distributors, and the retention of existing distributors. Although Amway had considerable anecdotal information about successful distributors, it had no comprehensive understanding of the behaviors critical to effective distributor performance. Further, the existing anecdotal data were inconsistent across regions. Without a complete set of consistent performance data, there was no way to determine how to improve distributor performance.

Amway's ten regions around the world had no comprehensive curricula focused on success-critical performance. Prior to 2009 a number of Amway regions offered primarily product training. Training on how to run a business or how to sell were typically delivered by higher-level distributors, with varying levels of effectiveness. Where the regions had developed training, each region had created its own. This led to different content in similar solutions, duplication of efforts, and inefficient use of resources.

Intervention

Global Training and Education had a clear vision that achieving Amway's goals and improving distributor results required that distributors perform the behaviors critical to those results and goals. To address this need, Global Training and Education launched an intervention to define that set of critical distributor tasks and behaviors for distributors globally.

The intervention consisted of six components, selected specifically to balance global consistency (by driving to the global behaviors) and regional autonomy (by leaving alignment, design, and development to each region). Given the global nature of the organization and the autonomy of the regions, achieving this balance was a fundamental requirement for the intervention's success.

Intervention components include:

Distributor Performance Model. The heart of the intervention, this model details the linkage from Amway's goals to critical distributor results, critical distributor behaviors, the key knowledge, skills, and attitudes that enable performance, and the learning solutions that build the specified skills, knowledge, and attitudes. The model's design was adapted from the “impact map” concept presented by Brinkerhoff and Apking (2001). The purpose of an impact map is to focus performance improvement efforts (and especially learning) on those tasks and behaviors most directly linked to achievement of worthwhile organizational goals (Brinkerhoff & Apking, 2001). Unlike the Brinkerhoff and Apking impact map, however, the Distributor Performance Model was intended to be a deep-dive tool for use in designing and developing performance improvement solutions, including training. Thus, the performance model varies from the typical impact map in that the model includes three levels of detail related to tasks; it is multiple pages in length; and the model identifies the learning objectives and solutions that achieve the critical knowledge, skills, attitudes (Brinkerhoff & Apking, 2001).

The focus in the Distributor Performance Model was on cell four, Knowledge, of Thomas Gilbert's Behavior Engineering Model (Gilbert, 1996). The intervention team also gathered information on non-training factors affecting performance. The team captured these data on a separate worksheet within the performance model, categorized them by the remaining cells of the Behavior Engineering Model (Data, Instruments, Incentives, Capacity, Motives) (Gilbert, 1996), and shared them with the appropriate Amway functions.

Distributor Impact Map. To communicate the performance model purpose and contents to key stakeholders, the intervention team created a one-page Distributor Impact Map. This map distilled the following data from the full performance model: Amway Goals and Measures, Distributor Results, and Critical Behaviors. As with any impact map, the Amway Distributor Impact Map also showed the linkages among its contents (Brinkerhoff & Apking, 2001).

Distributor Curriculum Map. The Distributor Curriculum Map depicts in graphic format learning solutions that enable the critical distributor behaviors. This map shows not only what the learning solutions are, but also their ideal sequence. From this map, each region has regrouped/combined different learning elements to best reflect the needs of their region.

Module Specifications. Module specifications outline a high-level design for the learning solutions identified on the Distributor Curriculum Map. The specifications include prerequisites, objectives, delivery methods, materials, and existing courses to leverage. Instructional designers use these specifications to create detailed learning solution designs aligned with the critical behaviors.

Alignment Mapping. The intervention team worked with several Amway regions to map existing curricula to the performance model. In other cases, the regions did their own alignment mapping and shared the results with Global Training and Education. The purpose of the mapping was to drive to a critical set of consistent behaviors while making appropriate use of as much existing curriculum as possible. The regions retained control of how to address any gaps. Results of the alignment mapping were documented on the Distributor Performance Model.

Learning Solutions. Global Training and Education partnered with several of the regions to develop learning solutions aligned with the performance model. For example, since 2008 Global Training and Education has worked intensively with Amway Latin America to develop courses for the major activities (beginning, selling, business building, and leading an organization) of the distributor business. Typically, web-based and instructor-led versions were created to help ensure that training fits the distributors’ available learning time, learning styles, and access to technology. Global versions of each course are available to all regions for localization.

Critical Business Issue

Amway needed to improve the performance of its distributors globally on key metrics related to sales, number of new distributors, and distributor retention. A key factor in being able to achieve this goal was to drive globally to distributor performance of a consistent set of business-critical tasks.

Focus on Outcomes or Results

The intended outcomes of this intervention were the fundamental reason the intervention was developed and implemented; the focus from the start was on improving distributor performance. The Distributor Performance Model was intentionally structured to ensure that the intervention team maintained that focus; the model links critical tasks, behaviors, skills/knowledge/attitudes, and learning solutions back to distributor results and Amway goals. This outcomes focus assured that the skills, knowledge, and attitudes taught in training around the world were those that enabled a consistent set of strategic behaviors.

Focus on Systems View

Global Training and Education knew from the beginning that it needed to take a systems view in order for this intervention to succeed. Factors that drove this systems approach, and their implications, included:

• Region-specific strategic plans: Any identified solution needed to be adaptable to each region and contribute to the regions' strategic plans.
• Deliberately fostered regional autonomy: Global Training and Education respected regional autonomy and had no desire to impose a solution on any region.
• Amway distributors as independent businesses: Amway cannot hold distributors accountable for their capability, development, or performance.
• Huge, global distributor populations: Distributors represent a wide range of cultures, knowledge, experience, educational levels, access to technology, and amount of time devoted to their Amway businesses. One solution would not fit all.

Keeping in mind the factors the team could influence, the team identified the intervention deliverables and created one at a time. One output became an input to another deliverable: the research data led to the performance model, from which the impact map and curriculum map were created; the curriculum map was an input to the alignment maps and module specifications; and the module specifications were used to design the learning solutions. The deliverables themselves and the processes used to create them formed a system aimed at improving performance.

Focus on Value

It has always been Amway's philosophy that a performance improvement intervention should only be undertaken if it adds value. In this intervention, demonstrating the value was important in order to: show the organization that the intervention had contributed to organizational goals and show the regions the benefits of implementing the intervention for their distributors.

Focus on Establishing Partnerships

The intervention was researched, developed, and implemented by a core team consisting of Global Training and Education performance improvement and instructional design consultants and external consultants, key among which was Innovative Learning Group. Additionally, Global Training and Education recognized early that regional input and buy-in were critical to project success so the core team collaborated throughout with corporate experts, training leaders, instructional designers, and subject-matter experts from the regions, and practicing distributors. Further, the team used the Amway Global Training Conference in 2007 to gain regional training leader input into and acceptance of the intervention. Continuing into 2011, regional validation and localization of the intervention include collaboration among the corporate team, regional stakeholders, and learning experts. Finally, the intervention team works on an ongoing basis with corporate and regional experts in learning, in subject matter, and in current research on distributor best practices. These partnerships have been key factors in the sustainability of the intervention.

Be Systematic in Assessment of Need, Opportunity, or Challenge

Due to the scale of the intervention, the team knew that the analysis phase of the intervention needed to obtain multiple perspectives on the distributor audience, required performance, and training and non-training needs. The team systematically determined the best sources of data; these were identified as best practice literature, market research, and a series of initial interviews with exemplar distributors. The goal was to gather data on the major activities within a distributor's business (beginning, selling, business building, and leading an organization).

Be Systematic in the Analysis of Work, Worker, Workplace, and Worldview to Identify the Causes or Factors That Limit Performance

With the need to analyze data on the distributors, their ideal performance, and training/non-training needs, the team based its analysis on Gilbert's Behavior Engineering Model, which would enable it to identify issues related to worker, work, workplace, and worldview. Since Global Training and Education's main focus was on supporting the development of new/enhanced distributor skills, knowledge, and attitudes, the intervention team captured data related to work (ideal performance) and worker capability within the Distributor Performance Model. Then, non-training barriers to performance were captured on a separate sheet, as mentioned previously. This first phase of analysis, which produced the first full draft of the performance model, took roughly four months to complete.

Amway did not stop its data analysis here. Since the first draft of the performance model, additional distributor interviews (total interviews now number over five hundred) have been conducted to validate and fine-tune the model.

Be Systematic in the Design of the Solution

From project start, the intervention team thought through the solution components that were necessary and the order in which they should be developed. The performance model, an output of the analysis phase, defined the desired performance and non-training barriers to success. From there, the plan for accomplishing the objectives consisted of these key steps:

• Abstract the key data from the performance model into the impact map.
• “Chunk” the model's critical tasks, behaviors, and key knowledge and skills into proposed learning and performance improvement solutions.
• Represent the solutions in recommended sequence on the curriculum map.
• Develop the module specifications.
• Obtain team member and stakeholder feedback throughout the project.
• Provide partnering support as needed to those regions ready to implement the performance model.

This helped ensure that we leveraged all possible learning and efficiency from one component to the next.

Be Systematic in the Development of the Solution

The intervention team has continued systematically in the development of performance improvement solutions. Each learning solution project is led by a Global Training and Education project manager who is part of the intervention team. This helps ensure that each learning solution is developed to maximize achievement of the targeted behaviors. Further, Amway tasked the lead Innovative Learning Group consultant with ensuring that each solution aligns with the performance model and curriculum architecture and that solutions developed concurrently are complementary and not redundant. Finally, the team collects feedback throughout the development process from a wide range of stakeholders to ensure clarity of content and appropriateness of instructional design.

Be Systematic in the Implementation of the Solution

The implementation strategy is designed for sustainable change. Consistent with the collaborative nature of this project, responsibility for managing the change has resided with Global Training and Education, the regions, and key corporate stakeholders. Factors that have supported effective implementation and sustainability have included: communication, leadership support, and region-specific launch strategy and timing.

Ongoing communication to Amway executive leadership, the regions, and other corporate stake-holders has been a critical tool for success. The director of Global Training and Education was intentional in presenting regular updates to Amway's executive leadership, who quickly under-stood the purpose and potential impact of the intervention.

The launch strategy and timing were region-dependent. However, Amway executive support of the intervention was very effective in getting the regions to begin strategizing development of aligned learning curricula. The critical factors affecting timing were how closely the intervention aligned with current strategic initiatives and how the outcomes of these other initiatives would affect implementation. When a region was ready to implement, the intervention team provided ongoing shared-services support; this was an intentional strategy to assure consistent implementation of the intervention globally while preserving the autonomy of the region.

Be Systematic in the Evaluation of the Process and the Results

To date, Amway has focused impact evaluation on the Amway Latin America region, which had done an extensive implementation of a performance-model-based curriculum. To measure business results, the intervention team and Amway Latin America compared quantitative distributor performance data, one year after implementation in Latin America, on the metrics that this intervention aimed to improve. Global Training and Education intentionally did not attempt to segregate the impact of this intervention, as they worked as partners in each region to enable performance through multiple routes. Quantitative data, however, points to the intervention's learning solutions as critical factors in improved performance.

Evaluation efforts have demonstrated that the intervention is being readily adopted and is producing important, measurable results. Specifically, the intervention shows increased sales and increased sponsoring of new distributors among those who have participated in i ntervention-aligned training. The intervention is also increasing efficiency and the return on performance improvement investment for Global Training and Education and regional training organizations. The results for Global Training and Education have been achieved because newly created learning solutions are focused on critical tasks and behaviors (only necessary training is developed), and learning solutions are being repurposed across regions and delivery methods.

Lessons Learned from the Case

• By defining performance globally but keeping ownership of solution development local, global organizations effectively balance driving for consistency, deploying solutions that fit local needs, and maintaining local autonomy.
• Achieving adoption of global performance standards becomes easier when the local organization sees that they are free to achieve the desired performance in the way that best suits their organization and that they are partners with the corporate learning function.
• It is possible to have a single performance model for a global organization. Amway's validation data shows that on average 85 percent of defined behaviors applied around the world.
• New performance improvement applications for the model continue to emerge; because the focus was on performance (and not simply training), the model's data can be repurposed to other human resource needs.

References

Brinkerhoff, R. O., & Apking, A. M. (2001). High-impact learning: Strategies for leveraging business results from training. Cambridge, MA: Perseus.

Gilbert, T. F.(1996). Human competence: Engineering worthy performance (Tribute Edition). Amherst, MA: HRD Press.

Valerie Brown is a performance consultant at Innovative Learning Group, Inc. She is the lead external consultant for the Amway performance modeling intervention, which won a 2011 Award of Excellence from the International Society for Performance Improvement (ISPI). Valerie has twenty-five years' experience leading projects focused on improving human performance, including projects involving impact mapping; curriculum architecture design; learning solution design; and evaluation studies. She has a master's degree in human resource development from Western Michigan University and has completed all coursework toward a doctorate in that field. Valerie can be reached at 269.226.9472 or [email protected].

Steven Sniderman is manager of Learning Solutions, Design & Development within the Global Training and Education team at Amway Corporation in Ada, Michigan. Steve is an experienced instructional designer, facilitator, and project manager, with more than twenty years' experience in designing and developing programs, educational systems, and performance improvement materials. Steve is well-versed in the corporate, retail, and manufacturing segments of industry, where he has worked both as an external training partner and as internal training manager. He holds a master's degree in educational systems development from Michigan State University. Steve can be reached at 616.787.7879 or [email protected].