Management training - beyond the 'helicopter factor'

They need joined-up thinking and to be ahead of the curve. They are engaged in obtaining 360-degree feedback from colleagues and, when it all goes wrong, they blamestorm or even townhall it. It is a question of who can bring what to the table and then squaring the circle.

Being an effective manager requires a lot more than jargon, even though much of this seems to have emanated from management training gurus. Yet, looking beyond this, does training really boost performance? It would appear that many brokers are more interested in paying for technical training over that for management, perhaps perceiving the latter to be overpriced and unnecessary.

This is also a sector where many principals have learned the ropes along the way but, whether or not this is the case, such attitudes are becoming outdated.

In the harshest economy for decades, it is not always easy to set aside funds for management training. If brokers fork out then they may well feel the technical aspects are more important, particularly in keeping the regulator happy.

The alternative way of thinking is that bringing on the next generation is crucial, as is ensuring that managers are performing to the best of their abilities. Is it time for those brokers that are doubtful about the concept of training managers to think out of the box?

One thing that experts agree on is that there needs to be commitment from the top and that training should be ongoing. The odd day course, providing it is well delivered and focused, can be useful. However, a longer-term and more structured approach can provide lasting results.

Barbon Insurance Group is a case in point. The newly rebranded group has 600 employees and has just set up the BIG Management Training Programme.

The course has the backing of Barbon's chief executive Martin Oliver, and senior managers across the group and is aimed at all aspiring managers across the group's six divisions. It is designed as an introduction to leadership principles. The course will launch in January 2009 and run for 15 months, leading to a qualification from the Chartered Management Institute.

Beginning

The scheme's origins lay in a development programme called High Fliers that was run by one of the divisions, Keelan Westall. One of the graduates, Michelle Richards, has been appointed as Barbon's head of broking and client service and she says that the training was hugely beneficial in preparing for this role.

Nick Sharp, property and commercial division managing director at Barbon, comments: "We saw great results with the Keelan Westall scheme, which had five or six people going through each programme. This is an enhanced version and we are now taking 12 people on the next course. I think it is the quality of the management which sets a business apart and it will help us keep people. It's a great investment and it works."

Barbon's HR director, Richard Walden, joined the business from a firm of lawyers and says that, in his experience, brokers have some catching up to do in terms of believing in the value of management training. "I think it's more important than ever. We are equally committed to technical training but managers need particular skills, such as how to motivate people, strategic planning and spotting the signs that could indicate potential problems."

Obtaining a place on the course is not easy. Employees apply direct and a line manager should endorse their applications. Those that make it through the initial interviews are then sent for an external assessment at the Centre for People Development. Walden said that over 40 applied for the last course, although only 12 could be taken on. However, he says that a further course is now under consideration to allow more to train as a result of staff enthusiasm and the high quality of the applicants.

Untroubled

Sharp adds that he is not bothered by the fact that training his managers will increase the likelihood of poaching by rivals. "I don't like cliched terms like 'employer of choice' but there are certain businesses that you know offer good training and that attract people. So, I think training helps retention and encourages others to join us. Whatever happens, some members of staff are going to leave anyway and if companies are trying to poach then that is also a compliment."

Broker K Drewe has around 60 employees but it is also firmly in favour of management training. Roger Harvey, assistant managing director, says: "Training gives skills and knowledge and empowers people. Investing time and money into your employees' futures motivates them and helps them believe they are the best, so they start delivering to that benchmark. It's also essential to have a succession plan; you can't just expect people to step into a role they haven't been trained for."

The business now offers a six-month module in executive leadership training for all the board and senior management and Harvey says that most of these people had no formal training in this area before.

The module consists of various external training courses for management skills and engages with issues facing new managers, meeting FSA supervision standards and time management. At the end, those attending should attain the Institute of Leadership and Management's Introductory Certificate in First Line Management.

According to Harvey, brokers looking at offering comprehensive training for their managers should look to include basics including time management, organisation, planning, reporting and feedback, interviewing and tools such as personal development plans: "Soft skills such as how to motivate yourself and others, how people interact and understanding yourself and others are equally important."

There are numerous providers of management training and brokers should research the market and ask peers for recommendations. In the current climate, they may also find that some competitive deals are on offer.

Alex Lovesey, a freelance communications consultant now working with K Drewe, attended various management training courses when she held a senior marketing role with broker Hill House Hammond.

Lovesey says that the best course she ever attended was called Winning Edge, which is provided by Mancroft International. This is an approach to improving employee motivation through work and life performance and social attainment, both based on so-called cognitive performance enhancement.

"Managers are rarely taught on the job to plan, stand back from the day to day grind or recognise how others can help. Training can introduce a different way of looking at things, from blue sky thinking to the Pareto principal - namely that 80% of all productivity comes from the efforts of 20% of the people," she adds.

Cost

It may be possible to obtain some training at low cost, perhaps partly sponsored by an insurer or through a local college. However, good-quality management training, particularly over extended periods and leading to formal qualifications, is not cheap. Courses tend to cost upwards of £1,000 for each candidate and will typically cost more if only a few members of staff can be sent. Beyond this, employees under training will be required to spend time out of the office, which again is a cost.

However, if there is an urgent need or training is required to fill a gap - for example, when a manager needs to do appraisals for the first time - then short courses can fit the bill and be affordable.

The Chartered Insurance Institute has over 30 courses covering management topics through its Broker Academy. Jon Chapman, head of regional business development at the institute, explains: "We may be primarily known for technical training but we are committed to this area and there is increasing demand from brokers. I would suggest that any broker wanting to get started should call us and we'll be able to suggest what would be most suitable for their needs."

Topics range from developing coaching skills to team building and conflict management and costs are low, with each day course typically costing approximately £100. "Broking is changing and, in recent years, we've seen many more firms acquire other businesses. This means managers may need to deal with expanded teams or take on new responsibilities. Just being expected to learn on the job and muddle along is not the solution," Chapman says.

Harvey adds: "I would suggest speaking to a range of providers, as there are a lot of options and training does not have to be expensive. There are management training specialists like Skillpath and also local colleges and the Chambers of Commerce may have courses. The CII is also focusing more on management training."

Nurture

Managers earn more for a reason: it is challenging at best and can be extremely arduous. Whether it is in broking, insurance or any other business, management skills are not always inherent. Arguably, leaders are born rather than made but, on the other hand, most agree that management skills can be vastly improved through training.

Trevor Smith, Allianz's training and development manager, comments: "At Allianz, we have always focused on training managers and all the research shows you can develop peoples' skills in this area, even if you have to want to be a leader."

Smith says that there is no point in brokers paying for courses and not bothering to evaluate how useful they are. "You need to assess what has been effective and what hasn't and also make sure you are aware of which people will benefit from training." He emphasises that managerial pressure is increasing and that training is not just about theory: "Managers may have problems with their work-life balances and training can help them find better ways of coping. They also need to have the right approach to change and be positive towards areas such as diversity and social responsibility. Often, being trained away from the day job allows managers to think far more clearly."

Paul Cann, human resources director at Groupama, says that his company uses many internal and external training providers, including business schools Ashridge and Roffey Park.

"It doesn't matter if you are a large or small company, managers need to have an understanding of a range of more technical areas such as employment law. We also work with consultants The Hay Group on developing and assessing managers on their emotional intelligence," he comments.

Empathy

Emotional intelligence is a person's ability to understand their own emotions as well as those of others and to act appropriately. It is said that emotional intelligence can be learned and developed and leads to enhanced innovation, effective time usage and restored trust.

Cann adds that managing people issues is the one area in which most managers feel that they need help, for which Groupama provides a grounding through a course with ongoing support. Topics covered include equality and diversity, discrimination, family-friendly policies, managing performance and conducting and managing absence.

Chapman adds: "When I worked for an insurer, I moved from being a team member to leading a team. It was difficult; I found it hard to delegate. I was not sure how to motivate and giving praise was also hard because I did not want to sound condescending. Learning techniques that work is of enormous benefit and it also makes a lot of sense in a regulated environment."

This is a view endorsed by Steve White, head of compliance and training at the British Insurance Brokers' Association: "Many brokers see the sense in technical training but the FSA states quite clearly that it is not just about learning information, you also need skills. For managers, this means things such as communication, negotiation and getting the best out of a team."

White says that more brokers are switching on to management training but qualifies this by noting that there are still some dinosaurs out there. "Back it the days when I worked for an insurer as an inspector, I went into brokers' offices and saw at first hand that some people had management positions but were quite clueless in the way they communicated with other employees and clients. Beyond this, there are still staff members in brokerages that have responsible roles that can't make proper business phone calls or write a sensible business letter. It's no longer enough to have one person at the top who is competent and with the choices on offer such as Broker Academy, there really is no excuse."

Another reason for avoiding management training is that some employees already doing the job are reluctant to go on courses, as Chapman points out: "I know that some older people are not comfortable about being trained; they can be scared they will be shown up. Training should not be like this. The trainer should understand different people's needs and ensure that those being trained both learn from the session and enjoy it."

Ian Jerrum, managing director at Searchlight Insurance Training, provides face-to-face training for the Broker Academy. He comments: "It's clear many brokers are still only focusing on the technical areas. They will want to make sure they know what they are doing if they are cross-selling on different products, for example, but not what they should know if they start managing people."

His advice is that brokers should talk to either the CII or Searchlight and explain what they want. Jerrum says: "I would say that it is better to go with a company that understands brokers and, beyond this, we can make up a bespoke training programme. Brokers can be trained in their local area or perhaps link up with other firms to hold training sessions as part of a larger group."

Determination

Jerrum adds that training over a longer period with dedicated trainers can help managers to discover their own strengths and weaknesses and learn from others in a group.

"I think the work of John Adair, a renowned management training provider, is interesting. His work is based around three core management responsibilities: achieving the task; managing the team; and managing individuals. You find that most people have strengths in a particular area and you need to try to bring all three together."

Jerrum adds: "We provide training for some one-day courses that can plug gaps and we also work with the Institute of Leadership and Management to run courses over a period of approximately six months, with a qualification at the end of it. Those attending spend time out of the office and work on projects when they are in the workplace. You can see the changes in people as they go along."

Broker Higos has won awards for its commitment to training and has one of the highest levels of qualified staff in the broking sector; three-quarters of the workforce has achieved a recognised qualification.

However, as training co-ordinator Clive Wyatt says: "We're strong technically but realised that management training was something we needed to focus on far more. Just because someone is in a management position and has a lot of experience does not mean people will follow them."

Recently, Higos put 12 managers through an Institute of Leadership and Management course that was run in conjunction with a local college, which took place over nine months. Wyatt adds: "We chose to stay away from insurance-linked providers in this instance as we wanted to experience training in a wider environment, in part to come into contact with those from other local businesses. For example, one of the companies also sending its people on training was drinks business Matthew Clark."

Wyatt says that the total cost was around £7,000 and the Institute of Leadership and Management Level Three qualification in First Line Management was achieved. Wyatt attended the course himself and now wants further managers trained: "I have been talking to a number of providers and we'll be announcing it soon. There are employees here who have that spark that we plan to move into management roles and so they would definitely benefit from it.

Bespoke

"Where possible, brokers should look to set up bespoke training packages if they find the right provider rather than buy something off the shelf. After all, each business has its own idiosyncrasies."

Larger brokers may have an advantage because they can be more demanding of providers. In the case of Towergate, it has set up its own business school.

Fiona Andrews, group head of people development at Towergate, comments: "Even though the economy is tough, we think it is important to swim against the tide when it comes to training. You need to do more."

Training is provided to all managers from those just starting out to those already on boards. "It is something both Peter Cullum and Andy Homer really believe in and they both give leadership classes. We also work with Ashridge Business School. If you want to be a company that is seen as offering rapid promotion to the right people then you have to provide the best training."

As Wyatt points out, however: "You can't make someone into a fantastic manager if they don't want it. On the other hand, there are people that have an innate ability that needs developing. This is where first-rate training comes in, to bring out these essential skills." Some of the smartest brokers are now committed to training managers. To those brokers that have put the issue on the backburner, now is the time to start taking a helicopter view and see its implementation as mission critical.

Developing skills through management training

Michelle Richards has been promoted to head of broking and client services at Cardigan Keelan Westall - part of the Barbon Group - a commercial property broker. The role encompasses UK and overseas business development roles in addition to managing approximately 25 staff.

She explains that the training course was far from a doddle. "It took place over 15 months and you had to look at yourself from every angle. As time went on, you developed a real rapport with the other course members and learned to work together on projects. You developed better communication skills and looked at ways of managing a crisis. It was tough because you had a lot to do on top of your normal job, including spending one day a month out of the office and so you had to manage time better. When I finished the course, I felt I was a lot stronger as a manager."

The course covered: communication skills; customer service; effective team working; leadership; project management; negotiation skills; performance management; and finance.

Upon completion of the course, participants will be awarded a level three Diploma in First Line Management and level five Certificate in Management and Leadership.

The right training partner match - 2Inspire and JM Glendinning

Harrogate-based broker JM Glendinning is now using leadership and development programmes run by 2Inspire, a change management consultancy that equips business leaders with the skills to boost profits.

Initially, managing director Paul Glendinning put the provider through its paces by attending a course on his own. He was so impressed that he sent two more directors - head of life and pensions Richard Carr and financial director Tim Hutchinson. Now others with management responsibilities are attending.

Hutchinson comments: "Paul was so enthusiastic when he came back. When you operate in a sector in which the people are the brand, investing in something that helps us to relate to one another better and help everyone support the company strategy is bound to pay dividends. It was not always easy though; it made us tackle issues head on that we'd been avoiding."

The 2Inspire programme is designed to equip executives, directors and senior managers with the skills to set a future direction, create a culture of leadership and high performance, learn how to alter ingrained behaviours and have the courage to take on new business challenges and manage change.

Following detailed personal appraisals, delegates take part in a comprehensive assessment that is then followed by seven four-hour sessions, which is supported by personal coaching, a post-course interview and a follow-up meeting.

JM Glendinning has described the programme as a "liberating experience" that has changed both their personal and professional lives fundamentally.

Hutchinson adds: "One of my colleagues described the process as like dropping a lit box of matches into a bucketful of fireworks. The whole experience was as big as that. My wife can see the difference too in how I spend my time at home; she says I've had an epiphany.

"All too often, we get sucked into thinking that if we are working every hour and letting the job consume our family time we'll be more productive. It becomes a spiral and difficult to get out of."

He comments: "I have responsibility for human resources, compliance and training and was initially doubtful about taking time out. However, I knew I had to make some changes. My family was telling me that I could be at home but I was not there. I was thinking about something like VAT or the payroll."

He said the fact that 2Inspire is not insurance specific was a bonus. "I have been on insurer-run courses and you end up talking shop."

Moisley-Mason says: "I understand the broking sector - having worked for a network - and know that management training is vital for many businesses both in terms of taking a firm to the next level and in succession planning. The training we provide is challenging but is also about building confidence. Too many brokers are keeping away from their staff by hiding in their offices. We bring them out of that environment, working on ways to help them communicate and lead with sincerity."

Moisley-Mason says that delegates typically can arrive with some anxiety but, by meeting others from a range of different backgrounds and industries, start to change the way in which they think. She comments: "Sometimes, people can have preconceived ideas about others. It is often the case that when they are working together these are quickly dispelled and they find it far easier to think out of their comfort zone and to embrace change."