To get employees working toward organizational goals, they first have to know what the goals are.
Business leaders are continually searching for ways to increase the return on human capital — to improve the performance of employees and therefore the performance of the organization.
What many now recognize is that gains can be realized by mobilizing employees towards a common goal. The challenge is to ensure employees are engaged, motivated and committed toward that goal.
While many organizations struggle to find a way to do this effectively, others have discovered that by improving the level of business literacy within the organization, employees have a better understanding of what they are mobilizing for. Once employees understand the ins and outs of how the business functions and more importantly makes money, engagement and motivation levels also rise.
To do this, HR departments might want to consider implementing an organization business literacy program where, upon completion, employees could be awarded an MBA, (maximum business awareness) certification.
The curriculum
Developing a business literacy program’s content can be challenging. What information will provide employees with the greatest increase to their business awareness, be applicable to all employees, and not be too time intensive to teach? The basic courses which should be included in any organization’s MBA curriculum include:
•Core Business 101: Employees will learn the basics of the organization’s core business. This is a valuable course both as an introduction to new employees and a refresher for more experienced staff as it provides an overview of core functions and support services.
•Dashboard Metrics: An introduction to key financial indicators and related benchmark and target values. Students will gain basic knowledge of key financial terms and meanings. The course will also provide students with an understanding of reasonable benchmarks for each metric and current year targets.
•The Flow of Money: Designed to provide students with an overview of the organization’s balance sheet and how different activities can influence profits. Course emphasis is on personalization of accounting terms and linking them to day-to-day activities within students’ control.
As the comfort level with the business literacy program grows, some extra educational content could be added. Additional business literacy program electives might include:
•The Competitive Landscape: Designed to build employee awareness of the external environment. This course includes information and discussions about the organization’s customers and competitors and demographic, political and legislative changes.
•Our Business Strategy at Work: This intermediate-level course should be taken after students have acquired a foundation of core business basics. It is designed to assist students in gaining greater insight into the organization’s business strategy and help them personalize its application to their role in the organization. Students learn how they can influence the achievement of strategic business goals.
•Leadership for the New Millennium: An advanced course for organizational leaders to develop a leadership model customized to their organizational realities. This course takes into consideration changes in demographics, employee values, access to information and shifts in both societal norms and organizational power.
Benefits of an MBA
Educating employees on core business helps them understand what role they play in the success of the organization. After completing an introductory course, like Core Business 101, employees learn the inter-relations of various business functions, how their job may affect others and, in turn, final business outcomes.
Gaining greater insight into the core business and its related activities helps employees work towards a common goal with increased focus. They develop personal insights related to business objectives and have a renewed approach to carrying out their jobs and interacting with co-workers. Additionally, employees are often better able to see the rationale and benefits of various management directives. They now have a context within which to interpret the often-competing messages from management.
Once employees have the knowledge they need to understand the basics of financial indicators and start receiving those numbers regularly, they will begin to behave differently, taking greater accountability for financial outcomes. Upon completion of a course like Dashboard Metrics, employees will likely anticipate the release of financial results, begin speaking in terms of measuring performance and hold each other accountable for achieving goals.
Even without the addition of incentive or gainsharing plans, employees begin to think more like owners. They take more personal responsibility for the long-term health of the organization and therefore for their continued employment.
Once employees have a clearer picture of their connection to “how the organization makes money” they begin using their skills in ways that will maximize value to the organization. After taking a course like the Flow of Money, which illustrates how employee actions show up on the balance sheet, employees can link organizational financial results to their daily activities.
Most managers recognize the value of using each resource level to its maximum efficiency; finding the optimum fit between skill sets and tasks. However, in an MBA organization, general employee awareness of inefficiencies in processes becomes heightened. MBA graduates begin contributing to discussions about improving processes and having the right skill sets perform the work to increase the resulting value to the organization.
An MBA case study
In one organization that enrolled its entire workforce in an MBA business literacy program, not only were managers more demanding of executive staff in terms of requiring data and time to discuss it, line and support staff began to stop executive officers in the hallway to chat about performance indicators and offer suggestions for improvement. One year after “graduation’ from the program, the organization had employees talking more about business in the lunchroom and holding longer, yet more meaningful employee work group meetings.
In addition, following the business literacy introduction, 90 per cent of employees indicated they had a better understanding of how they could influence the success of the business, 80 per cent had a better appreciation of how the company makes money, and more than 90 per cent indicated they had a greater appreciation for the challenges and opportunities facing their organization. In one division in particular, efficiency gains resulted in savings of approximately 17 per cent of operating budget.
Development of course curriculum
So if the benefits of maximizing business awareness amongst employees is clear, how exactly should HR begin implementing a business literacy program in light of all the other competing demands within the organization?
The first place to start is with a thorough understanding of employees’ current knowledge. What is the current level of business awareness? If the majority of the organization is already business savvy, a “re-certification” course consisting of an overview and opportunity to discuss business amongst various operating units may be all that is necessary. The needs of such an organization may not require the time-consuming development of a full curriculum. Sometimes maximizing business awareness can be as easy as maintaining a visible record of progress, such as a thermometer, for employees to refer to regularly.
In other cases it may be necessary to initiate a change in organizational culture and communication style to sustain long-term results. In such cases, courses that utilize “discovery learning,” the use of visual aids, corporate facts, learning points and peer conversations to discover business realities and messages, may achieve the greatest sustained results.
The important point is that the organization develops strong habits and cultural norms for the discussion of business issues, and the development of the MBA curriculum should focus on this goal.
Candidates for an MBA
Should everyone have an MBA? Absolutely. Regardless of the method, business literacy programs should involve all employees in the organization — from line staff to the CEO. In fact, the greatest gains will often be from administrative staff and other support workers who now understand their connection to the organization’s main business. With the knowledge of how they fit in the value chain, MBA graduates can make decisions with a full understanding of how they impact other activities.
The organization as a whole wins when all employees are informed and able to use their judgement to benefit the business, not just their personal interest.
A prerequisite for implementing
Creating business literacy requires commitment to communication. The overriding goal is to increase employee awareness of the organization’s business. Creating a business literacy program that is strategic, integrated and that meets the education needs of the organization is a first step in developing strong business communication habits.
Simple, open, honest and frequent communications about performance and business mechanics goes a long way. It minimizes confusion among staff members, increases personal accountability and enhances employees’ sense of value contribution to the organization. All of which may very well help achieve retention goals. The long-term result is a workforce that is mobilized around the achievement of fundamental business objectives. To hit strategic objectives, the first important step is to have everyone in the organization aiming at the same target. It’s up to the organization and in particular the HR department to ensure all employees can clearly see the target and understand what role they play in hitting it.
Nancy Gore is a consultant at Watson Wyatt Canada. She can be contacted at (416) 874-4914 or [email protected].
What many now recognize is that gains can be realized by mobilizing employees towards a common goal. The challenge is to ensure employees are engaged, motivated and committed toward that goal.
While many organizations struggle to find a way to do this effectively, others have discovered that by improving the level of business literacy within the organization, employees have a better understanding of what they are mobilizing for. Once employees understand the ins and outs of how the business functions and more importantly makes money, engagement and motivation levels also rise.
To do this, HR departments might want to consider implementing an organization business literacy program where, upon completion, employees could be awarded an MBA, (maximum business awareness) certification.
The curriculum
Developing a business literacy program’s content can be challenging. What information will provide employees with the greatest increase to their business awareness, be applicable to all employees, and not be too time intensive to teach? The basic courses which should be included in any organization’s MBA curriculum include:
•Core Business 101: Employees will learn the basics of the organization’s core business. This is a valuable course both as an introduction to new employees and a refresher for more experienced staff as it provides an overview of core functions and support services.
•Dashboard Metrics: An introduction to key financial indicators and related benchmark and target values. Students will gain basic knowledge of key financial terms and meanings. The course will also provide students with an understanding of reasonable benchmarks for each metric and current year targets.
•The Flow of Money: Designed to provide students with an overview of the organization’s balance sheet and how different activities can influence profits. Course emphasis is on personalization of accounting terms and linking them to day-to-day activities within students’ control.
As the comfort level with the business literacy program grows, some extra educational content could be added. Additional business literacy program electives might include:
•The Competitive Landscape: Designed to build employee awareness of the external environment. This course includes information and discussions about the organization’s customers and competitors and demographic, political and legislative changes.
•Our Business Strategy at Work: This intermediate-level course should be taken after students have acquired a foundation of core business basics. It is designed to assist students in gaining greater insight into the organization’s business strategy and help them personalize its application to their role in the organization. Students learn how they can influence the achievement of strategic business goals.
•Leadership for the New Millennium: An advanced course for organizational leaders to develop a leadership model customized to their organizational realities. This course takes into consideration changes in demographics, employee values, access to information and shifts in both societal norms and organizational power.
Benefits of an MBA
Educating employees on core business helps them understand what role they play in the success of the organization. After completing an introductory course, like Core Business 101, employees learn the inter-relations of various business functions, how their job may affect others and, in turn, final business outcomes.
Gaining greater insight into the core business and its related activities helps employees work towards a common goal with increased focus. They develop personal insights related to business objectives and have a renewed approach to carrying out their jobs and interacting with co-workers. Additionally, employees are often better able to see the rationale and benefits of various management directives. They now have a context within which to interpret the often-competing messages from management.
Once employees have the knowledge they need to understand the basics of financial indicators and start receiving those numbers regularly, they will begin to behave differently, taking greater accountability for financial outcomes. Upon completion of a course like Dashboard Metrics, employees will likely anticipate the release of financial results, begin speaking in terms of measuring performance and hold each other accountable for achieving goals.
Even without the addition of incentive or gainsharing plans, employees begin to think more like owners. They take more personal responsibility for the long-term health of the organization and therefore for their continued employment.
Once employees have a clearer picture of their connection to “how the organization makes money” they begin using their skills in ways that will maximize value to the organization. After taking a course like the Flow of Money, which illustrates how employee actions show up on the balance sheet, employees can link organizational financial results to their daily activities.
Most managers recognize the value of using each resource level to its maximum efficiency; finding the optimum fit between skill sets and tasks. However, in an MBA organization, general employee awareness of inefficiencies in processes becomes heightened. MBA graduates begin contributing to discussions about improving processes and having the right skill sets perform the work to increase the resulting value to the organization.
An MBA case study
In one organization that enrolled its entire workforce in an MBA business literacy program, not only were managers more demanding of executive staff in terms of requiring data and time to discuss it, line and support staff began to stop executive officers in the hallway to chat about performance indicators and offer suggestions for improvement. One year after “graduation’ from the program, the organization had employees talking more about business in the lunchroom and holding longer, yet more meaningful employee work group meetings.
In addition, following the business literacy introduction, 90 per cent of employees indicated they had a better understanding of how they could influence the success of the business, 80 per cent had a better appreciation of how the company makes money, and more than 90 per cent indicated they had a greater appreciation for the challenges and opportunities facing their organization. In one division in particular, efficiency gains resulted in savings of approximately 17 per cent of operating budget.
Development of course curriculum
So if the benefits of maximizing business awareness amongst employees is clear, how exactly should HR begin implementing a business literacy program in light of all the other competing demands within the organization?
The first place to start is with a thorough understanding of employees’ current knowledge. What is the current level of business awareness? If the majority of the organization is already business savvy, a “re-certification” course consisting of an overview and opportunity to discuss business amongst various operating units may be all that is necessary. The needs of such an organization may not require the time-consuming development of a full curriculum. Sometimes maximizing business awareness can be as easy as maintaining a visible record of progress, such as a thermometer, for employees to refer to regularly.
In other cases it may be necessary to initiate a change in organizational culture and communication style to sustain long-term results. In such cases, courses that utilize “discovery learning,” the use of visual aids, corporate facts, learning points and peer conversations to discover business realities and messages, may achieve the greatest sustained results.
The important point is that the organization develops strong habits and cultural norms for the discussion of business issues, and the development of the MBA curriculum should focus on this goal.
Candidates for an MBA
Should everyone have an MBA? Absolutely. Regardless of the method, business literacy programs should involve all employees in the organization — from line staff to the CEO. In fact, the greatest gains will often be from administrative staff and other support workers who now understand their connection to the organization’s main business. With the knowledge of how they fit in the value chain, MBA graduates can make decisions with a full understanding of how they impact other activities.
The organization as a whole wins when all employees are informed and able to use their judgement to benefit the business, not just their personal interest.
A prerequisite for implementing
Creating business literacy requires commitment to communication. The overriding goal is to increase employee awareness of the organization’s business. Creating a business literacy program that is strategic, integrated and that meets the education needs of the organization is a first step in developing strong business communication habits.
Simple, open, honest and frequent communications about performance and business mechanics goes a long way. It minimizes confusion among staff members, increases personal accountability and enhances employees’ sense of value contribution to the organization. All of which may very well help achieve retention goals. The long-term result is a workforce that is mobilized around the achievement of fundamental business objectives. To hit strategic objectives, the first important step is to have everyone in the organization aiming at the same target. It’s up to the organization and in particular the HR department to ensure all employees can clearly see the target and understand what role they play in hitting it.
Nancy Gore is a consultant at Watson Wyatt Canada. She can be contacted at (416) 874-4914 or [email protected].
