CASE STUDY: The Scandinavian insurance group Tryg has created unique results with their people data. Impact measurement of sales training revealed that employees with the highest improvement of a specific sales competence outperformed their colleagues on average sales per week by 48 % and increased customer satisfaction by 12 percentage points.
Being able to pinpoint and advise business units on important business drivers has reinforced the status of Tryg’s HR function as a strategic business partner. Moreover, HR has increased the strategic alignment between people development programs and overall business strategy. And finally, they have developed a sales manager tool-kit to improve strategy execution. The Peopleway Impact Management Solution, ease®, has been the means to reach the goal: being a true strategic HR business partner.
At Tryg being a strategic HR business partner means being an active travel companion on the journey towards world-class customer experience and financial results.
According to Steen Wung-Sung, Head of HR Technology at Tryg, a financial mind-set and the concept of customer-driven HR are the cornerstones of Tryg’s HR model.
“HR should always consider the return of investment of a development program, how it supports the overall business strategy and whether it has a higher purpose for the individual participant and his job function.” Steen explains.
Steen Wung-Sung has added a new dimension to what it means to be a strategic HR business partner: customer-driven HR (CdHR): to use customer experience as a direct driver for people development. Tryg combines data from customer experience surveys with sales and employee data when deciding where and how to invest in people development programs.
Optimizing Investment in People Development
Five years ago Tryg upgraded their HR toolbox by bringing Peopleway to the table. The Peopleway Impact Management Solution: ease® allows Tryg to measure and secure the impact and return on investment of their people development activities. ease® helps Tryg’s experienced HR team to identify important business drivers and development areas.
Tryg uses this insight to target and tailor their people development programs on an individual level – maximizing the learning outcome and minimizing the training expenses. The primary goal is optimizing investment in people development through increased financial return on investment and customer experience (NPS).
“Strengthening the individual employee’s strategy execution capability is a key driver towards the goal and what is more natural than using the voice of the customer as a guiding mechanism on both a strategic and an operational level.” Steen Wung-Sung says referring to the concept of CdHR as central to reaching business-critical goals.
The Impact Map: Business Case and ‘From Strategy to Execution’ Model
Anchoring people development initiatives in the overall strategy is the first step on the way to securing impact of investments, implementing strategy and reaching business-critical goals.
“When building the Impact Map [in ease®] we actually write our business case. Asking questions such as: What are your goals and KPI’s: what drives your business? What behaviour will enable you and your employees to reach your goals? Do you have the right knowledge and attitude to get there?” Steen Wung-Sung explains.
The Impact Map, an integrated part of the ease® solution, has inspired Steen Wung-Sung to make a communication model of strategy and execution. It illustrates how overall strategic goals are connected to specific sales and service competencies on an individual level. The model also illustrates how sales competencies, financial results, management behaviour and customer experience are directly linked to people development programs and again to overall strategy and KPI’s. “It’s all about giving life to strategy, translating it to meaningful behaviour of the employees” Steen Wung-Sung says.
“Meaningfulness drives performance and therefore individual goals and strategy must be clearly defined.” Steen Wung-Sung has no doubt that illustrating the value stream is crucial to motivating employees, implementing strategy and reaching overall business goals.
Customized Sales Training
When measuring and securing the impact of sales training at Tryg, an important partner is Cultivator, Tryg’s sales and leadership training provider.
Using their expertise within sales, Cultivator helps identifying learning needs and key metrics e.g., the business-critical behaviour and competencies needed to reach Tryg’s overall strategic goals.
In return, Cultivator benefits from the clearly defined goals and strategic anchoring of people development at Tryg. “It is always a pleasure working with a dedicated customer who knows exactly what they want to achieve. It gives us the best possible framework for developing and tailoring the training activities.” – Claes Hestehave, Senior Partner, Cultivator.
The Value of Combining People, Customer and Sales Data
To measure and report on the impact of people development programs is essential to becoming a strategic HR business partner. At Tryg, presenting hard facts and an impact map – illustrating the link to the overall business strategy – has facilitated and enriched the collaboration with other business units such as Sales and Business Development.
The Impact Management Solution, ease®, is an integrated and mandatory part of all new people development programs at Tryg. HR measures the learning impact of participants with a pre-, post-, and a job-test. Analysing business-critical knowledge, attitude and behaviour, they gain insight about learning outcome and transfer of newly acquired skills into competencies on the job.
It is by combining these very specific data with sales and customer experience data that Steen Wung-Sung and his colleagues get the rare and unique insight into important business drivers and development areas.
An example is a preliminary study indicating the high impact of the challenger competence on sales performance within complex sales. Impact measurements revealed a substantial mean difference in average sales per week between employees with a high versus low challenger competence (ease® learning and execution score). The group with high challenger competence outperformed their colleagues on higher average sales per week by 48% and increased customer satisfaction by 12 percentage points.
Source: Tryg & Peopleway A/S
Implementing Strategy at an Individual Level
At Tryg impact measurements are not just a HR tool. They are also a popular tool amongst sales and service managers.
Steen Wung-Sung has developed a toolkit for sales and service managers. It contains the results for each employee in the department: ease® learning and execution score, sales data, manager’s assessment of the employee and customer experience data.
The toolkit enables the sales and service managers not only to give tailored feedback but also to work with competence development on an individual level.
“Tryg offers a valuable preview of tomorrow’s HR function. Demonstrating how people data – when leveraged the right way – reinforces HR’s position as a strategic business partner” says Lars Julin, CEO at Peopleway.