LEADERSHIP DEVELOPMENT

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RESEARCH RESULTS–CLIENT

LEADERSHIP

DEVELOPMENT

INDUSTRY

Pharmaceuticals Distribution & Wholesale

LOCATION(S)

United States

DDI PRODUCT USED

Interaction Management®_{: Exceptional} Leaders . . . Extraordinary Results®_{(IM: EX}®₎

BUSINESS NEED

As the largest pharmaceuticals distributor in North America, McKesson delivers

prescription and generic drugs as well as health and beauty care products to more than 40,000 retail and institutional pharmacies throughout the United States and Canada. The company is also a major medical supplies wholesaler, providing medical and surgical equipment to alternate health care sites, such as doctors’ offices, surgery centers, and long-term care facilities. In addition to distribution services, McKesson offers software and technical services that help pharmacies, health care providers, and insurers manage their supply chain, clinical, administrative, and financial operations.

McKesson was looking to create a program that would give its leaders the necessary leadership skills to coach, develop, and

effectively manage the performance of others.

SOLUTION

McKesson partnered with DDI to develop training for its supervisors. The resulting program, 365 to High Performance, consisted of the following DDI IM: EX®_courses:

 Essentials of Leadership  Coaching for Success  Coaching for Improvement  Setting Performance Expectations  Reviewing Performance Progress  Leading Change

RESEARCH DESIGN

A version of the DDI tool Training

CheckpointSM_{was then used to determine the} extent to which McKesson’s leaders changed their behaviors after the training as well as the program’s impact on the organization.

Training CheckpointSM_{is an online survey that} focuses on the specific goals of a development program and the behaviors addressed in the training. Participants and their observers receive the survey a few months after the trainees have completed the program to give them enough opportunities to practice implementing what they’ve learned. A total of 95 participants of 365 to High

Performance and 41 of their managers

participated in this evaluation. The majority of participants had completed the training three or more months prior to completing the survey.

REALIZATION RESULTS:

Leaders reported a 49 percent improvement in the number of leaders with positive leadership behaviors since attending the program; observers reported a 72 percent improvement. Leaders found the development program to be useful and applicable. Support and reinforcement for the program are high. Work groups are experiencing improvements in

communication, teamwork, and engagement.

RESEARCH RESULTS BY: JAZMINE BOATMAN MANAGER, CABER

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RESULTS

Overall Results

Behavioral indicators identified as learning objectives were specified for Training CheckpointSM_{. Then, both leaders and their} managers were asked to rate the frequency (i.e., Never or almost never, Rarely, Sometimes, Often, Almost always) with which the leader exhibited each behavior both before and after completing the 365 to High Performance program. Because each of the behavioral indicators selected was considered a critical outcome of the program, we focused on the percentage who displayed each behavior “often” or “almost always.”

Leaders reported a 49 percent improvement in the number of leaders with positive leadership behaviors since attending the program; observers reported a 72 percent improvement.

Figure 1 depicts the frequency of trainees’

positive behaviors (according to self- and manager reports), both before and after the training. Overall, before the training 57 percent of leaders reported frequently displaying positive leadership behaviors related to the curriculum. After they completed the program, the leaders displaying these behaviors rose to 85 percent (a 49 percent improvement). Their managers were less positive regarding leader behaviors before the training, which could explain the higher overall improvement they reported (i.e., 72 percent) compared to the leaders. Only 41 percent of managers reported observing frequent positive behaviors from the leaders before the training; after the training, they conveyed that 71 percent were now leading effectively.

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RCH RES U LTS—LEA D E R SHIP DEVELO P MENT

Figure 2 presents the frequency, according to

leaders, of positive behaviors targeted by the courses. Before the training, not many (only two-fifths) were collaboratively choosing competencies with team members that supported performance objectives or were

scheduling coaching sessions with their team members to discuss new opportunities. After the training, three-fourths of the leaders were displaying these same behaviors often or almost always.

Figure 2: Percent of Leaders Displaying Positive Behaviors (self-perspectives)

Figure 3 presents the managers’ perspectives

of the frequency of the leaders’ positive behaviors by course. Compared to the leaders, they reported significantly lower amounts of positive behavior before the leaders completed their training. In particular, the managers recounted that not many leaders were coaching their team members for improved performance

or actually scheduling coaching sessions to discuss job opportunities, nor were they involving their teams by incorporating their ideas for implementing change. The managers observed that after the training the majority of leaders were indeed displaying these positive behaviors as well as others.

0 10 20 30 40 50 60 70 80 90 100 Schedule a coaching session with team members to discuss an opportunity for a new project or task.

Collaboratively choose competencies with team members that support performance objectives. Model behavior as an agent for change. Involve team members in their ideas how to implement a change. Clearly communicate the Business Unit's performance expectations. Discuss performance with team throughout the Performance Cycle (not just at the end of the year). Coach team members for improved performance. Address poor performance issues as soon as possible. Address team members' concerns about changes that are occurring in the workplace. 43 39 57 51 70 66 59 65 66 74 75 85 85 88 89 90 91 93 Percent of leaders who do this often or almost always After training Before training

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Figure 3: Percent of Leaders Displaying Positive Behaviors (managers’ perspectives)

0 10 20 30 40 50 60 70 80

Schedule a coaching session with team members to discuss an opportunity for a new project or task. Address poor performance issues as soon as possible. Clearly communicate the Business Unit's performance expectations. Address team members' concerns about changes that are occurring in the workplace. Coach team members for improved performance. Discuss performance with team throughout the Performance Cycle (not just at the end of the year). Collaboratively choose competencies with team members that support performance objectives. Model behavior as an agent for change. Involve team members in their ideas how to implement a change. 34 38 38 47 24 45 57 49 37 62 63 68 70 72 74 74 76 76 Percent of leaders who do this often or almost always After training Before training

“When addressing employee concerns, I’ve used the worksheets provided in the class to be better prepared and organized. They also help me to stay focused on the issues being addressed.”

—McKesson leader

Reactions and Outcomes

Leaders found the development program to be useful and applicable.

Relevance is a major determinant of training transfer. If, after a training session, leaders believe what they learned was irrelevant or not applicable, then the likelihood of their

transferring those concepts to their jobs is highly improbable. Fortunately, leaders at McKesson reported that 73 percent of their total job skill set was covered in their training— a very significant amount. In fact, they

reported a 16 percent improvement in their overall job performance; their managers corroborated by reporting an 18 percent improvement.

Nearly all the leaders reported that the program was important for their jobs (93 percent) and that they had opportunities to apply the trained skills on the job at the time of this study (91 percent). In addition, 87 percent of leaders

agreed that the training increased their confidence in applying their skills on the job. The positive responses to the relevance of the program are likely a major reason for the significant improvement in leader behaviors at McKesson seen after the training.

Support and reinforcement for the program are high.

In addition to relevance, reinforcement is a critical aspect of creating an environment that supports applying what was learned in training. Nearly three-fourths of leaders (73 percent) agreed that their manager has supported and reinforced the application of their learned skills on the job. And two-thirds (66 percent) believe that they are held accountable for applying the skills. Continuous improvement is an

important tenet of any development program, and McKesson is clearly on the right track for reaping the benefits of its program.

In terms of environmental support, 81 percent of the leaders reported having the resources they need to apply the trained behaviors on the job.

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RESEA RCH RES U LTS—LEA D E R SHIP DEVELO P MENT CONTACT INFORMATION WORLD HEADQUARTERS 412.257.0600 E-MAIL [email protected] WWW.DDIWORLD.COM/LOCATIONS

This document was developed by DDI’s Center for Applied Behavioral Research (CABER). For more information, contact [email protected].

Work groups are experiencing improvements in communication, teamwork, and engagement.

Both leaders and managers at McKesson reported improvements in their work groups

after the program. Figure 4 shows that the majority of both groups cited improvements in engagement, teamwork, and communication among managers following the training.

Figure 4: Percent of Employees Reporting Improvements in Work Groups After Leaders Attended 365 to High Performance

CONCLUSIONS

The results of this study clearly demonstrate that McKesson’s 365 to High Performance program and efforts have had a significant positive effect on its leader behaviors and work groups. After completing the training, leaders demonstrated significant (49 percent)

improvement, while their managers cited even greater improvement.

“This leader uses what he learned in 365 to

High Performance to give his employees

genuine and honest feedback/recognition. He digs into his employees’ performance daily to find opportunities to reward successes.”

—McKesson manager

Reinforcement and support for the program were high; thus, the overall impact of the training was observed for the leaders, but it also carried over to those with whom they work. Communication, teamwork, and engagement improved in the leaders’ work groups, which will undoubtedly benefit the organization in multiple ways.

McKesson’s devotion to providing leaders with the coaching and performance management skills they need has helped to ensure its place among leaders in its industry.