Organizational Consulting

This article will focus on how organizational consultants may use the concept of human performance technology to improve performance in an organization. In order to effectively make changes to the processes and structures, a change agent would need to have the ability to interpret various situations occurring within the organization. One field of study that evaluates how to effectively make change in people and systems is human performance technology. The human performance technology field aims to ensure that the knowledge, skills, motivation and environmental support necessary for employees to complete their work successfully is available through a systems approach. Human Performance Technology is important to the world's economic future because practitioners, such as organizational consultants, strive to provide organizations with solutions to their performance problems. An effective human performance technologist will use a systematic approach to improve the productivity and competence of the workforce so that organizations are able to compete in a global economy.

Keywords Change Agent; External Consultant; Human Performance Technology; Internal Consultant; Organizational Consultants; Performance Management; Systematic Approach

Management > Organizational Consulting

Overview

Organizations can be very complex. There will be times when the management team may decide the organization needs assistance with making changes throughout the different units in the company. As a result, individuals may be assigned to facilitate the change process. In order to effectively make changes to the processes and structures, a change agent would need to have the ability to interpret various situations occurring within the organization. "Reading" an organization requires one to be able to understand situations as they occur and know how to handle any problems that may occur. "Skilled leaders and managers develop the knack of reading situations with various scenarios in mind and of forging actions that seem appropriate to the understandings thus obtained" (Morgan, 1995).

One field of study that evaluates how to effectively make change in people and systems is human performance technology. According to the International Society of Performance and Instruction (ISPI), human performance technology (HPT) can be described as “the systematic and systemic identification and removal of barriers to individual and organizational performance.” The meaning of the concept can be broken down by each word in the phrase. "Human" refers to the individuals that make up the organization, and "Performance" implies that the activities of the employees can be assessed by measurable outcomes. "Technology" assumes that a systematic and systemic approach can be developed to resolve problems within the organization.

Human Performance Technology (HPT) draws from many academic disciplines such as psychology, instructional systems design, organizational development and human resources. The focus of the interdisciplinary field requires the practitioner to be able to assess and analyze the performance gap between where the organization is and where it wants to go, identify the causes for the performance gap, make recommendations on how to close the gap and improve performance, facilitate the change management process, and evaluate the results to make sure that the desired change has occurred.

The human performance technology field aims to ensure that the knowledge, skills, motivation and environmental support necessary for employees to complete their work successfully is available through a systems approach. According to Jacobs (1987), the conceptual domain of HPT can be defined by three key aspects:

• Management functions — guides, controls and facilitates the development of human performance systems.
• Development functions — examines all aspects of a problem; relates results from a set of decisions to other decisions; and uses resources to develop performance systems.
• Systems functions — provides the conceptual means for viewing people, materials, events and resources required to achieve goals.

Performance tends to be measured in terms of quality, productivity, and cost. As a result, human performance is tied to the bottom line — organizational success. Both individual and organizational goals must be considered when implementing processes and policies that will improve performance. “Use of systems approaches to develop human performance systems is one of the most significant aspects of the field. The end result of using a systems approach is a combination of materials, events, peoples and strategies called a performance system. A performance system is the structure, within the work setting, in which people use resources and tools to perform their work. Human performance systems have five main components: a job or context; individual abilities, motivations, actions, decisions, and behavior; responses required for performance; consequences of the response; and feedback on the consequences” (Jacobs, 1987).

In summary, organizations may require the services of human performance technologists to facilitate changes, such as process improvement, within the company. These individuals will act as consultants to the organization as it charts a new course and direction. Armed with the concept of HPT and performance systems, organizational consultants will be tasked with improving the bottom line of the company's initiatives so that it remains competitive.

Applications

Human Performance Technologists as Organizational Consultants

Human Performance Technology is important to the world's economic future because practitioners such as organizational consultants strive to provide organizations with solutions to their performance problems. HPT uses instructional technologies to improve individual performance so that organizational goals can be achieved. Being a good organizational consultant requires an individual to navigate the company through innovations, changes, and processes. An effective human performance technologist will use a systematic approach to improve the productivity and competence of the workforce so that organizations are able to compete in a global economy. According to Morgan (1995), these individuals must have the capacity to remain open and flexible, reserve judgment until all facts are known, and gain new insight by viewing situations from different angles. These skills are required of both the internal and external organizational consultants.

Guiding Principles

In order to differentiate the concept from other disciplines, ISPI has developed a set of principles for human performance technologists to follow when assisting organizations in managing change. The principles are:

1. HPT focuses on outcomes. If an organization focuses on outcomes, the consultant may use tools that support obtaining data to determine whether or not a process is effective and whether the employees share the same vision and goals. In addition, outcomes can measure whether or not the performance gap has been closed.

2. HPT takes a systems view. There is a need to implement an approach that analyzes the performance of the employees in order to determine if the organization is on track with fulfilling its vision, goals and objectives. A system implies that the divisions and people of an organization are interconnected. The people must support the process. It is important to take a systems approach because the complexity within an organization has the power to affect the performance of its employees. The success of a single unit itself and the success of the entire organization at large are deeply dependent on one another. A systems approach considers the entire organizational environment including inputs as well as pressures, expectations, constraints, and consequences.

3. HPT adds value. At the end of the process intervention, clients should leave with a set of tools which will assist them with making choices, establishing measurable goals, identifying barriers and tradeoffs, and taking control of the destiny of the organization. Although the actual HPT techniques address issues such as improving quality, customer retention and cost reduction, there should be a link to how the efforts impact business goals and outcomes such as sales, profits, and market share.

4. HPT establishes partnerships. HPT is built on collaboration among all of the stakeholders in an effort to improve the overall performance of the organization. Everyone should be involved in the decision making process, and the advice and experience of subject matter experts (SMEs) should be taken into consideration. Working collaboratively includes sharing decisions about goals, determining the next steps to take in the process, and viewing implementation strategies as shared responsibilities. Partnerships are created from listening closely, trusting and respecting each other's knowledge and expertise.

5. Be systematic in the assessment of the need or opportunity. The needs assessment occurs in the beginning of the project. The consultant should analyze and evaluate the effectiveness of different aspects of the organization in order to identify the external and internal pressures affecting it. This process will determine the deficiencies or performance gaps that need to be corrected.

6. Be systematic in the analysis of the work and workplace to identify the cause or factors that limit performance. Cause analysis is about determining why a gap in performance or expectations exists. This step in the systematic process will determine what should be addressed to improve performance.

7. Be systematic in the design of the solution or specification of the requirements of the solution. Design is about identifying the key attributes of a solution. The output is a communication that describes the features, attributes, and elements of a solution and the resources required to implement the solution.

8. Be systematic in the development of all or some of the solution and its elements. Development is about the creation of some or all of the elements of the solution. It can be done by an individual or a team. The output is a product, process, system, or technology. Examples include training, performance support tools, a new or re-engineered process, the redesign of a workspace, or a change in compensation or benefits.

9. Be systematic in the implementation of the solution. Implementation is about deploying the solution and managing the change required to sustain it. This standard is about helping clients adopt new behaviors or use new or different tools.

10. Be systematic in the evaluation of the process and the results. Evaluation is about measuring the efficiency and effectiveness of what was done, how it was done, and the degree to which the solution produced the desired results so that the cost incurred and the benefits gained can be compared. This standard is about identifying and acting on opportunities throughout the systematic process to identify measures and record the data that will help identify needs, adoption, and results.

Issues

Choosing the Best Organizational Consultant

External versus Internal Consulting

Many organizations will assign someone to complete the task of assessing the organization. When selecting this individual, the organization must evaluate the environment to determine whether or not it is best to use someone within the organization or outside of the organization. Facilitators, or consultants, are requested as a result of their expertise in a given area as well as their ability to collaborate with others in order to accomplish a given task. Human Performance Technologists can facilitate the process if an organization is attempting to make a change with the workforce and systems that are currently in place. Human Performance Technologists are in various industries such as academia, financial services, manufacturing, government, and pharmaceuticals. In addition, their expertise covers many functions such as human resources, training and development, and line management. Given the vast number of sources for finding these individuals, organizations will have to decide what works best.

Although most references on organizational consulting discuss the role of the external consultant, the role of internal consulting is becoming popular. External consultants are viewed as neutral because they do not have a history with the organization, and they tend to work on a project for a specific period of time. In other words, there is a beginning and an end. They are from outside the company, work for the duration of the contract, and may leave (Kleinberg, 1992). In some cases, part of the external consulting contract is to transition the outcomes into a "Train the Trainer" workshop for a select group of employees. Once they have completed their mission, they may train employees to maintain the changes once they are gone. These employees can become the internal organizational consultants. However, depending on the organization's culture, the management team may elect to use external consultants on a continual basis in order to maintain a sense of trust and objectivity.

Internal consultants are organizational development professionals who work exclusively for one organization and are direct reports to a designated level of management (Lacey, 1995). These individuals may work alone or as part of a team. In addition, there may be others such as specialists in organizational development, human resources, training or communications who report to the internal consultant in an effort to complete the assigned tasks.

Both external and internal organizational consultants are challenged with developing a systematic approach to managing change in an organization. As they go through each phase of the consulting process, they will be faced with obstacles that they must overcome. There are advantages and disadvantages for using internal and external consultants to evaluate an organization.

Cummings and Worley (1993) created a process consisting of five phases in the consulting process. These phases are entering, contracting, diagnosing, intervening, and evaluating.

1. Entering

a. External Consultant — This stage tends to be the most difficult stage for the external consultant because the individual needs to market himself and build a client base. Once clients have been identified, the external consultant must build relationships and become familiar with the organization.

i. Advantage: Select projects based on their criteria

ii. Disadvantage: Need to learn company jargon

b. Internal Consultant — Little time is spent on entry for the internal consultant since he is considered an insider of the organization.

i. Advantages: Ready access to clients

ii. Disadvantages: Obligated to work with everyone

2. Contracting

a. External Consultant — The consultant must work with the client to develop a mutual understanding of what the expected outcomes and deliverables will be. At this stage, the consultant and client communicate expectations and create a legal contract that both will be bound by. The purpose of the contract is to clarify goals, roles, use of resources, and ground rules (Block, 1981).

i. Advantages: Can terminate project at anytime; maintain "outsider" role

ii. Disadvantages: May incur "out of pocket" expenses, especially if unexpected events occur.

b. Internal Consultant — The internal consultant works under a contract as well. However, most are verbal versus written. The internal consultant has internal clients that require services. However, one of the disadvantages is that the internal consultant must be sensitive to the "personalities" and politics of the organization. An external consultant can be more vocal with their opinions because they will eventually leave. However, the internal consultant has to remain within the organization and be sensitive to backlash and retaliation.

i. Advantages: Information can be open or confidential

ii. Disadvantages: Must complete projects assigned; may experience client retaliation and loss of job

3. Diagnosing

a. External Consultant — During this stage the external consultant will start collecting data such as employee surveys, meeting with focus groups to get follow-up information and feedback, and conducting individual meetings in order to develop an analysis and make recommendations for change. The consultant may also evaluate leadership styles of key players (Darling & Heller, 2012). Once the plan has been developed, the consultant will schedule a meeting to provide the client, and special guests, with feedback on what needs to occur in order to implement the plan.

i. Advantages: Prestige from being external

ii. Disadvantages: Confidential data can increase political sensitivities

b. Internal Consultant — This phase is the same for both the internal and external consultant.

i. Advantages: Has relationships with many organization members

ii. Disadvantages: Openly sharing data can reduce political intrigue

4. Intervening

a. External Consultant — The design of what issues need to be addressed are the focus of this stage. It's important that the external consultant can get the participants to buy-in to the process because authentic information is required at this point. There has to be commitment on the part of the participants, and the external consultant may include this request at the beginning when the contract is being written. The external consultant needs to be assured that there will be individuals taking ownership of the outcomes and the process will be implemented and maintained once he has left.

i. Advantages: Can insist on receiving authentic data and internal commitment

ii. Disadvantages: Must confine activities within boundaries of client organization

b. Internal Consultant — Although this phase is the same for both the external and internal consultant, there is one exception for the internal consultant. Buy-in is key for the external consultant. However, the internal consultant considers it a luxury. Many employees do not have the opportunity to be authentic and recognize the political ramifications if they are completely honest. The internal consultant recognizes this dilemma. "Although most change projects begin with testing the waters of opportunity, hoping to build critical mass that will sweep in all members and result in commitment to change, all projects are not successful in generating enthusiasm for change" (Lacy, 1995).

i. Advantages: May run interference for client across organizational lines to align support

ii. Disadvantages: Cannot require information and internal commitment is a luxury.

5. Evaluating

a. External Consultant — During this phase, the external consultant is constantly assessing the process and results while making revisions to the plan. The external consultant may make some assumptions and solicit feedback from the client to see what level of customer satisfaction is present.

i. Advantages: Can use project success as a means of gaining repeat business and customer referrals

ii. Disadvantages: Seldom see long term results

b. Internal Consultant — This phase is similar for both types of consultants. The client will require more measurable results as the amount of money spent on the project intervention increases. In addition, there are potential personal rewards for the internal consultant. If the project is successful, there are opportunities for an increase in salary as well as promotions. However, there is a down side. Being an internal consultant can be lonely because many people within the organization may not understand the job. There will be questions regarding what the consultant actually does and whether or not the work adds value to the bottom line.

i. Advantages: Can see change become institutionalized

ii. Disadvantages: Little recognition for a job well done

Both external and internal consultants perform many of the same functions throughout the consulting process as each attempt to create a plan of improvement for the organization However, each will face unique sets of challenges and obstacles as he attempts to obtain his goals.

Conclusion

If one has a desire to lead change in an organization, he/she must have the ability to see the organization from the "big picture" perspective. Understanding the mission and vision will assist consultants in determining the best course of action for the organization at any given time. "Effective managers and professionals in all walks of life have to become skilled in the art of reading the situations they are attempting to organize or manage" (Morgan, 1995).

Human Performance Technology is a technique that both external and internal organizational consultants may use in order to assist companies with achieving the bottom-line, implementing process improvement, and navigating change throughout the organization. Jacobs (1987) provided 11 propositions that emerged as a result of his research on HPT.

1. Human performance and human behavior are different, and knowledge of the difference is important for achieving the goals of the field.

• 2. Any statement about human performance must also include organizational performance.
• 3. Costs of improving performance should be regarded as investments in human capital, yielding returns in terms of increased performance potential.
• 4. Both organizational and individual goals must be considered in order to determine the desired performance.
• 5. Human performance technology consists of management functions, development functions, and systems functions.
• 6. Knowing how to engineer human performance and the conditions that affect it is as important as explaining why the behavior occurred.
• 7. In order to diagnose problems in an organization, the consultant must analyze the present system first, then examine the differences between the present and ideal system.
• 8. Exemplary performance provides the most logical referent for determining job performance standards.
• 9. Human performance problems can have different root causes, and these causes are generally classified as either originating from the person, from the person's environment, or from both.
• 10. Performance of one subsystem affects the performance of other subsystems in predictable ways, which will require problem causes to be analyzed at more than one level of an organization.
• 11. Many different solutions may be used to improve human performance. Selection of any one solution is dependent upon the cause and nature of the performance problem, and the criteria used to evaluate a solution must include its potential to make a measurable difference in the performance system.

Terms & Concepts

Change Agent: A person that brings about change.

External Consultant: Individual hired from outside an organization to provide expert advice to that organization as concerns its operations.

Human Performance Technology: The recognition and amelioration of those elements within an organization that prohibit it and its employees from finding success; performed with and through technological systems.

Human Performance Technologists: A person who is an expert in the field of HPT and practices the concept when assisting an organization with resolving problems.

Internal Consultant: Organizational development professionals who work exclusively for one organization and are direct reports to a designated level of management.

Organizational Consultants: Experts who specialize in developing planned approaches for implementing changes that will assist the organization in achieving its vision, mission and goals.

Outcomes: Changes, results or impacts that generally focus on employees, but could be a program or institutional change.

Performance: Tasks that are designed to have employees demonstrate their understanding of their job by applying their knowledge to a particular situation.

Performance Gap: The comparison between the current performance of project and work level tasks and the desired performance of project and work level tasks.

Performance Management: Management that encourages a setting and situation in which employees are capable of performing to their highest ability.

Subject Matter Experts (SMEs): An individual who understands a business process or area well enough to answer questions form people in other groups who are typing to help.

Systematic Approach: The measured and defined method for designing, developing, managing and evaluating learning resources and processes.

Bibliography

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Cummings, T., & Worley, C. (1993). Organization development and change (8th ed). New York: South Western College Publishing.

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Free Management Library, Human Performance Technology. Retrieved April 20, 2007, from http://www.managementhelp.org/trng%5fdev/hpt.htm.

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International Society of Performance and Instruction. (n.d.). What Is Human Performance Technology? Retrieved April 20, 2007, from http://www.ispi.org.

Jacobs, R. L. (1987). Human performance technology: A systems-based field for the training and development profession. (SERIES NO. 326). Columbus: ERIC Clearinghouse on Adult, Career, and Vocational Education, The National Center for Research in Vocational Education, The Ohio State University, 1987. (ERIC Document Reproduction Service No. ED 290 936).

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Lacey, M. Y. (1995). Internal consulting: Perspectives on the process of planned change. Journal of Organizational Change Management, 8, 75-84. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3925451&site=ehost-live

Morgan, G. (1995). Images of organization. Thousand Oaks: California: Sage.

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Suggested Reading

Dervitisiotis, K. (2006). Building trust for excellence in performance and adaptation to change. Total Quality Management & Business Excellence, 17, 795-810. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22295476&site=ehost-live

Hsu, I., Yeh-Yun Lin, C., Lawler, J., & Wiu, S. (2007). Toward a model of organizational human capital development : Preliminary evidence from Taiwan. Asia Pacific Business Review, 13, 251-275. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=24404428&site=ehost-live

Old, D. (1995). Consulting for real transformation, sustainability, and organic form. Journal of Organizational Change Management, 8, 6. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3925446&site=ehost-live

Prajogo, D., & Ahmed, P. (2006). Relationships between innovation stimulus, innovation capacity, and innovation performance. R&D Management, 36, 499-515. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22931166&site=ehost-live

Talaq, J., & Ahmed, P. (2004). Why HPT, not TQM? An examination of the HPT concept. Journal of Management Development, 23, 202-218. Retrieved April 20, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=13208199&site=ehost-live