Building an effective e-learning program is a seven-step process. The first step is to assess the current learning situation in three parts: content, learners, and systems. Before we discuss these elements, it’s a good thing to remember that e-learning in general is different than traditional learning interventions. E-learning is a different concept, with different conventions, rules, and delivery methods. So if you’re new to e-learning, wipe your mind clean while we discuss the seven steps of creating an effective e-learning program. Along these lines, assessing e-learning requires a different "eye" than assessing traditional learning. With that in mind, let’s discuss assessing the situation before you begin an e-learning program. The first element of assessing e-learning is to look at content, both existing and future. Before you look at your existing content, decide what is appropriate for e-learning. In many cases, informational course material is the best way to start with an e-learning program. This type of material can be made easily interactive and lends itself to participants who are not in a classroom. Tutorials, pre-work, and some collaborative exercises such as case studies may also be good candidates for transformation to an e-learning platform. As far as your future content, you’ve got a blank slate. One way to see what content is being used and in what contexts is to go out to major Learning Management System vendors such as Learn.com or GeoLearning and ask for a free tour. You’ll see that e-learning possibilities are very broad and are only limited by your audience and possibly your budget. Next, you should assess your learners. On the surface, this may seem like an easy task. You know where your learners are located, how many exist, and what jobs they hold. But to successfully implement an e-learning program you must go deeper into the learner’s skills and abilities as they relate to technology. In fact, that’s the first question. Are your learners "tech-savvy"? Do they have exposure to computers and computer programs every day? Some parts of your organization may have this exposure, while some may not. It all depends on your industry and your specific organization. Do you think the learners will be able to learn via online programs? This question extends past ability and into environment. For example, skilled workers who are members of a union may have to have special time and permission written into their contracts. With this question comes the question of management: will you be able to train the management to give their groups time to complete online learning programs? Are your learners adaptable? Let’s face it: some groups are not necessarily the most ready to accept change. But then again, if the organization is ready to modernize then it may be time to separate the change champions from the status quo. Once you’ve assessed your learners, you must assess your organization’s requirements. The first requirement is simply a question of budget. How much money will you have to spend on e-learning development and delivery? Once you have an idea, take a look at the vendors again to see what they have to offer - and at what cost. But before you ask for a demo, decide what "bells and whistles" your system will have. Do you want or need to use streaming video or will a simple platform with basic graphics suffice? Do you have a large number of learners, let’s say, over 1000? Finally, determine what technology is already out there - and decide if these computers and equipment stand up to the test of modern e-learning software and applications. We will discuss systems in more detail in the third step of our seven step series on the successful implementation of e-learning programs. This three-step assessment is probably only the beginning, but you will answer some of the basic questions that can point you toward the right staff, systems, and e-learning content. You’ll also have a good idea of what requirements to hand over to your vendors or your IT department, depending on who will help you roll out the new e-learning program. Once you’ve taken the time to assess, you’re ready to move to step two, converting and creating content. Related Posts: 7-Steps to Creating an Effective E-learning Program Part 2: Convert and Create Content 7-Steps to Creating an Effective E-learning Program Part 5: Evaluation LMS Implementing and Analysis 7-Steps to Creating an Effective E-learning Program Part 4: Implementation 7-Steps to Creating an Effective E-learning Program Part 3: Online Learning Systems

You’ve taken the time to assess your content, learners, and overall system requirements. The next step is to understand how to build and deliver e-learning content. In regard to converting existing content, the task is not as simple as dumping pages into an online learning management system or content builder application. The conversion takes careful planning and adherence to some general standards on content. The creation of new content is somewhat easier - as long as you know the standards. Let’s discuss content and delivery. E-learning content, as we’ve seen previously, is a completely different concept than traditional learning material. First, online content should be brief and must not wander. "Wandering" content is somewhat more acceptable in traditional learning materials, because typically participants take the written materials with them as references. In online learning, the participant is going to learn what content is directed their way and they are probably not going to take anything with them. You can develop content in a brief format by trying to keep each frame to 70 words or less. With this guide, you can also be sure that your content is to the point, that is, in the realm of "need to know" versus "nice to know". Training managers and instructional designers must exercise quite a bit of editorial license to prepare traditional materials for transfer to e-learning platforms. The content must be learner-directed, as well. Think about a traditional textbook, with "pop outs", tables, exhibits, and references. In e-learning, you can turn appropriate "extras" into a bit of an adventure for the participants. For example, your content can say, "for more information about X, click here". When the participant clicks, you can show a "pop up" or callout with more information. That information will make a special impact in the learner’s mind, so use this type of learner-directed concept wisely. Along the lines of learner-direction, e-learning content should be interactive. Have you ever seen an online course that was simply like turning the pages of a virtual book? Learners can read handouts that are emailed just as easily as logging into your learning management system, so create a way for the learner to interact every few frames. This interaction may be as simple as a review question, a callout, or a quick interactive exercise. In more sophisticated delivery systems, the interaction could be a collaboration with other learners, a video, or even a tutorial or simulation. The idea is to keep your learner’s interest by asking them to interact every few minutes. One of the final things to keep in mind on e-learning content is that modules should ideally be thirty minutes or less. You already know how hard it is to keep an adult learner’s attention in the classroom for more than an hour at a time, especially when those learners have jobs, e-mails to answer, and goals to satisfy. Don’t make the assumption that an e-learning audience is captive. Keep content brief, learner directed, and interactive. What special guidelines apply to e-learning delivery? In addition to the usual adult learning principles, such as applicability and timeliness, e-learning content should be the "need to know" content. A fun course is great as long as the content serves a purpose. The quickest way to fail your e-learning program is to use it as a catch-all. Learners will begin to question why they are taking their valuable time to complete courses that make no difference in their jobs. In addition, e-learning content delivery should be accessible. Don’t make it too hard for learners to sign in, take a course, and have a grade recorded. Along those lines, the accessibility of programs is a great place to begin questioning a possible vendor. The content should be "book-markable", that is, the learner should be able to exit the course and go right back to where they left off. Your courses should always begin with a set of instructions on how to use the course, how to advance, how to go back, and how to bookmark. Make this section something that the learner can opt-out of, but have it available anyway. When you start creating and transferring content for your e-learning programs, keep these guidelines in mind in order to make the experience a good one for all of your learners. Related Posts: 7-Steps to Creating an Effective E-learning Program Part 1: Assessment 7-Steps to Creating an Effective E-learning Program Part 5: Evaluation Engaging Participants 1: Keys to Engagement Engaging Participants 4: Virtual Engagement 7-Steps to Creating an Effective E-learning Program Part 3: Online Learning Systems

Your existing content has been converted and your new content is ready to be delivered. Now what? Your organization must have some type of delivery system for the online learning program, commonly referred to as a Learning Management System, or LMS. There are numerous questions to analyze and topics to consider before you choose a system. Let’s take a look at those topics so that you and your organization can begin asking the right questions in order to implement the right delivery system. First, you must consider the origin of the delivery system. Will the organization choose a vendor to assist or will it go with internal expertise, namely the IT department? When considering this important decision, remember that there are benefits and drawbacks for both. A vendor-purchased system is typically made-to-order by a group that specializes in just that. You can give the vendor your organization’s specifications and they can come back with a system design and price. On the drawback side, the specifications can sometimes be costly - and changes can be slow and costly, as well. A homegrown LMS is fantastic if you have the expertise and resources in-house to build it. An in-house development team knows the organization, its growth, and its audience. Plus, a homegrown system may cost less in the long run. The potential roadblocks to this path are that the expertise must be present in-house - and they must be able to devote themselves pretty much full time to the project. If the department’s knowledge of LMS architecture is marginal, you may find more problems than you bargained for. Once you’ve made the decision to go internal or external for the build-out of the delivery system, you can begin thinking about the features you’d like to see. Do you want the system to track completion and record grades? Do you want to use those features to register and track your traditional learning programs, as well? Should learners be able to print a certificate of completion for their online courses, no matter where they are located? On the technical side, does the LMS need to have the capability of creating complex video streaming, interactive modules, and collaboration? If so, how is the existing technology able to accommodate the LMS? On the design side, would you like to see a built-in content development engine, where content developers can essentially "dump" information into the LMS and create effective courses? Or are you going to have a team of technology designers who can take the content, develop it in Flash or HTML, and upload it to the LMS? We’ll discuss staffing in a moment, but these technological specifications should be part of your systems discussion from the beginning. There are some other considerations, as well. What population is going to be accessing the delivery system? Can the organization’s infrastructure and bandwidth handle the influx of users? What about access? Do you want users to be able to access the system from the Internet, that is, from anywhere, or just within the confines of the organization’s firewall? When thinking through these considerations, be certain that a vendor can offer you all of these options. Add-ons, as we have discussed, can be very expensive. If you’re going with an in-house construction, consider pulling an IT person to become the administrator of the online delivery system. Someone will need to make changes as the e-learning program and the organization continue to grow. Along those lines, what are your staffing needs for the system itself? Typically a person (or more than one person) is needed to administer the system, even if it is purchased from a vendor. Your decisions about the structure of the technology may also affect your staffing. If you are going to design courses outside of the LMS, you’ll probably need content designers, who write the material, and graphic designers who can create the course framework, the interactivity, and the testing pieces. And keep in mind that setting up course roadmaps, course schedules, and maintaining the recording end of the LMS may take an administrator, as well. Now that you have quite a bit to think about when implementing an e-learning system, take the time to answer your questions thoroughly. You’ll be glad you did. Related Posts: 7-Steps to Creating an Effective E-learning Program Part 6: Modification 7-Seven Steps to Creating an Effective E-learning Program Part 7: Regular Monitoring Learning Management System Basics (LMS) 7-Steps to Creating an Effective E-learning Program Part 4: Implementation LMS Implementing and Analysis

Your content is ready to go. Your LMS is in place and ready to deliver quality online courses to your entire organization. Is the implementation simply a matter of flipping the switch? It can be, but that is not an effective way to change the organization’s mindset when it comes to online training. And a new e-learning program is certainly going to require a new mindset. When you’re ready to implement, you must market with a message - and look at changing how the organization thinks about training. First, marketing is not reserved for the organization’s products. Marketing must occur with an e-learning implementation. You should determine how you want to "brand" your online learning. Do you want to use the organization’s brand and continue it into the program? Or do you want to create a secondary brand that’s used in-house? Either way, you may need to engage your in-house marketing department or an outside consultant to help you design the look and feel of the courses and their rollout. But overall, think about how e-learning is going to change the organization’s "life": it’s learning that’s easy, effective, and a new and exciting way to meet learning requirements! Consider these aspects as you plan your marketing. The presentation of the message and marketing is equally important. Consider creating informational emails or memos that market the learning program and encourage learners to check out the new system. Along those lines, consider going on "road trips" to various groups in order to plug the new and improved learning. If your organization is already technologically advanced, put your marketing into every virtual location, such as blogs, online collaboration, e-newsletters, and Intranet articles. In addition to marketing, it is a necessity to obtain buy-in from the executive level in the organization. This group must be ready to get behind the online learning program and sing its praises at every opportunity. In more advanced organizations, the executives even go out on the road trips to talk to the populations. In these organizations, training personnel sometimes test the LMS and new courses on executives. A high-level testimonial from someone’s favorite CFO is a great marketing tool and should be used to every advantage. When it comes to marketing the e-learning program, remember that you are pushing a new product - and you need "buyers" for it. From the operational standpoint, first consider if the rollout of e-learning will be one large act or a phased-in approach. Do you want to hit the entire organization with a few excellent courses, or do you want to roll to a smaller group to get them up and running first? There is really no wrong answer here. It all depends on your organization. Along with this, be sure that you know what the initial headcount could be. You don’t want your delivery system to crash because you underestimated the number of users who will be acessing it in the first day, week, or month. A final word on operations: test the system before you roll it out. You can begin testing within the training organization and then expand. Have everyday users go to the courses and evaluate content, ease of access, wait times, and recording. If the test on a small scale goes well, you know you can expand and roll out to a larger number of users. Finally, remember that implementing e-learning is a change in the mindset of many organizations. It’s not just a new system and a new way to take classes - it’s a new way of life, one that will make things easier for all involved. But with this new way of life comes new opportunities. For example, managers must learn to schedule employees for training, even if that employee is sitting at his or her desk. The temptation is to call them back into action before they are finished, simply because they are present in the workplace. Plus, someone has to be held accountable for getting learners on the system and allowing them to complete their courses. Typically that accountability also goes to organizational managers. Along with these considerations, remember that if employees are able to access training at home, there may be issues with pay, unions, and maximum work time requirements. The best thing to do with "mindset" is to make a list of all of the considerations, from buy-in to accountability to hourly pay - and decide how the organization will work with each. This way, no question will go unanswered during the implementation phase. Related Posts: 7-Steps to Creating an Effective E-learning Program Part 6: Modification LMS: Training, Marketing, and Technology 7-Steps to Creating an Effective E-learning Program Part 3: Online Learning Systems 7-Steps to Creating an Effective E-learning Program Part 5: Evaluation 7-Steps to Creating an Effective E-learning Program Part 1: Assessment

Evaluation of your training programs should be occurring at all times. But keep in mind that e-learning evaluation is different; the goal may be the same but your methods will change slightly. When you evaluate your e-learning program, there are two areas to focus on: learner and content. Let’s look at ways to evaluate these areas effectively using your program itself and your delivery system. The initial evaluation of your e-learning program can take place both at the beginning of the program and throughout its lifetime. In the area of content, the first thing you’ll need to do is evaluate the course content. Remember that e-learning is new to your learners and may even be new to the training staff, so discovering how the content is being viewed is critical. You probably conduct "level one" evaluations in your traditional programs, sometimes referred to as "smile sheets" Although this evaluation has a light name, the act should not be taken lightly. The first evaluation is sometimes very valuable. So how do you carry out this task in an e-learning environment? Your LMS may give you the option of putting participants into an evaluation before they get to a test on the material - or immediately after. The best option is to get the evaluation while the audience is "captive". Otherwise, you may not get the evaluation at all. The content of your evaluation can cover traditional bases, that is, did the learner find the content useful and engaging. But instead of talking about an instructor, substitute the system itself. What was the learner’s immediate reaction to the accessibility of the system? Did he or she encounter problems with the navigation or have trouble understanding the instructions? Did the learner encounter long delays while waiting for a video or an activity? If you think about what the learner is seeing and doing at the time he or she is in the course, you’ll be able to come up with an effective evaluation. The learner data, aside from what you can deduce from evaluations, can also be obtained from the system itself. Look at the number of participants you were expecting, or the number of participants who are required to go to certain courses. How many of them accessed the system and the courses? How many of those actually finished the course, took an evaluation, and received a grade? You can also look at initial learner reaction outside of traditional means, especially if e-learning is new to the organization. For example, consider sending out emails to a "test group" of learners in order to get their candid and unstructured feedback. As the e-learning program progresses, consider calling users on a random basis or even having local users attend focus groups. Just because the training intervention is online does not mean that you can’t evaluate it in person. Be creative and remember that many members of your audience are more than willing to help you out. Once you’re past the initial rollout, remember to continue taking initial reaction evaluations -and to continue looking at the results. But what else can you do to ensure effectiveness of content and system when it comes to e-learning? Consider using online evaluations at 30 or 45 days after the course is completed. This technique often works in traditional training, so why not take a look at it for your e-learning program? You can find out if the learners found the content useful. And you can evaluate their reactions after they’ve had time to think about it and take other online courses. Some LMS systems may even "tickle" the user based on his or her login, that is, it may remind them that they need to take an evaluation on a course when they sign in to take another one. As you move forward, continue to look at the user data, as well. Know what your beginning numbers were and compare them to the numbers you’re getting on a monthly basis. You may see small fluctuations in the number of users, but the basic trend you’re looking for is an increase in users over time. If that increase doesn’t occur, dig deeper using more targeted evaluation methods. The best thing to remember with evaluation is that you should use all of the data you collect in order to modify your program - and make it effective for the organization and its learners. Related Posts: 7-Steps to Creating an Effective E-learning Program Part 6: Modification 7-Seven Steps to Creating an Effective E-learning Program Part 7: Regular Monitoring Engaging Participants 7: Evaluating for Engagement 7-Steps to Creating an Effective E-learning Program Part 2: Convert and Create Content Building a Corporate University: Maintenance

"We receive three educations, one from our parents, one from our schoolmasters, and one from the world. The third contradicts all that the first two teach us."~ Charles Baron de Montesquieu (1689-1755) Related Posts:Masters in Finance HQ100% ResponsibilityTraining Alchemy: How the Military Takes Ordinary to ExtraordinaryPersuasion and Influence Are Part of Foundations of LeadershipTraining Alchemy: 5 Disruptive Training Technologies

Now that your e-learning program is up and running, you’ve evaluated it, made changes, and the organization loves it. Can you sit back and relax? Absolutely not. Your e-learning program requires a constant eye on various areas to ensure that nothing goes off track. One tiny flaw can create large problems, and with large problems comes a loss of users. Organizations have made the mistake of letting the e-learning program "ride", only to find that one day no one is using it. Let’s discuss how you can monitor your program at all times. First, continue to monitor user data. This data includes the evaluations that you’ve taken the time to create and integrate. But remember to monitor at a deeper level than the evaluations. Are your user numbers up or down? Are the evaluations themselves changing in trend or tone? For example, a course evaluation that was consistently a 5 on a 5-point scale that moves to a consistent 4 is not exactly failing - but is it as good as it once was? You can also see from this type of data if your audience is growing and becoming more sophisticated. If so, you should consider going back to the modification stage to grow with the audience. Be sure to look at the tests that accompany your online courses, as well. Are certain items being missed or skipped on a regular basis? Those items can point to a poorly written question or a malfunction in the interactivity of the item. Next, be sure to look at your system data. One of the often-forgotten pieces of data for LM Systems is, believe it or not, cost. Once the budget is entered, billing for certain things on an LMS becomes automatic. Be sure that someone is looking at cost for upward trends. For example, the number of users may drop to a point where each one costs more. Or, higher bandwidth use may begin costing the organization more in terms of the overall communications cost. Don’t let the cost get away from you. Another way to look at system data is to find out how many technical troubleshooting calls are made. Whether you are taking calls internally or sending them out to the vendor, you should be able to monitor both number and subject. If users begin showing problems with course access, for example, you may need to tweak your instructions. Whatever the issues, your call information should be able to help you categorize and identify potential opportunities. Also, take a look at the transcripts or records that are being kept by the system. Are learners barely scraping by or are they all making high grades? Are learners being added to the system quick enough to get them going while they are still interested? This information can be monitored on a regular basis and can give you a great deal of insight into your e-learning delivery system. Course data is also an important monitoring point. You can look at evaluations regularly to see if courses are appropriate. But be sure to compare courses to each other. In other words, what common characteristics are shared between the courses that are being used more often? Do you have a high number of users on required courses only, while job or promotion-related courses are being ignored? Remember that a course evaluation is only going to occur when someone takes that course. Use the data that you can mine from your delivery system to make comparisons - and to make changes to course offerings as needed. Finally, don’t forget to monitor the training staff. It’s easy to assume that once the program is up and running the staff will have less to do. This is a common misconception with e-learning programs. As much as we would like the program to run itself, it just won’t happen. Is the administrator spending too much time on clerical tasks, like creating course "shells" or entering course descriptions? If so, consider bringing in an assistant. Are course content designers consistently making changes and taking those changes to the graphic designers? Or is there time to turn a course content designer into a combined content and graphics person? Can your marketing be taken over by someone who resides within the training organization? All of these questions will help you monitor your staff and make changes in order to keep things efficient. An effective e-learning program saves money and time and creates an effective platform to educate the workforce. When you follow these seven steps, you’ll have a guideline to creating the best e-learning program possible. Related Posts:7-Steps to Creating an Effective E-learning Program Part 6: Modification7-Steps to Creating an Effective E-learning Program Part 5: Evaluation7-Steps to Creating an Effective E-learning Program Part 3: Online Learning SystemsLMS: Building the SystemLMS: Training, Marketing, and Technology

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"Who you become in the future will be a function of the books you read and the people you meet." — Charlie "Tremendous" Jones If you read 15 minutes a day you will read a book a month. That will put you in the top 1% of business people in the developed world. The Book you don’t read won’t help you! Make it a goal to build a great library and leave it as a legacy Related Posts:Training Does Make the Difference7-Steps to Creating an Effective E-learning Program Part 2: Convert and Create Content3 C’s for SuccessTurnover, Turnover, TurnoverWhy is Training Important?

"As the chief learning officer, ask yourself, ‘Are we investing sufficiently in learning to generate the growth and return we need?’ We had a group of graduate students research the topic, plotting long-term shareholder returns against a number of factors. They discovered that investments in training and development were the single best predictor of shareholder return three to five years down the road." —Karen Franse, "Build Your Profits," VARBusiness, January 18, 1999 It was true then (1999) it remains true today. Related Posts:Turnover, Turnover, TurnoverPareto Rule: 80/203 C’s for SuccessWhy is Training Important?Proving the Value of Training

Your e-learning program has rolled out and has come under constant evaluation. What are you doing with the evaluation data? If you’re filing it away, that’s not quite enough. Every piece of data you receive, whether it seems small or not, can help you modify your e-learning program, keep it fresh, and move it into prominence with your organization. When you consider modifying your program, look at three common areas: system, course design and delivery, and marketing. Remember that during evaluation you are looking at user data, evaluation data, and even survey data. When you look at modifications to your system, think about that data in system terms. Are users reporting problems with accessibility? If so, you may need to look at the number of users, the organization’s bandwidth, or its overall technical architecture. Any of these characteristics can show you specific and overall problems with the program. In specific areas, you may find that accessibility problems are caused by a slow running system, malfunctions in video streaming or interactivity, or overall system preparedness. If you determine that there are issues with your system, make a list of the problems. But don’t stop there. Make a list of the solution you’d like to see. For example, if the system is functioning slowly, know what the optimum time should be. Once you have a list of requirements and optimum functions, go back to the vendor or in-house IT department and present it. The next area to look at is course design and delivery. In evaluation, you’ve looked at the number of users per course, how many of those users finish the course, and how many leave the system without a course completion. If the system is functioning well, then you should consider the possibility that the courses are not presented as well as they could be. Remember our discussion on e-learning guidelines. Are the courses too long? Are individual frames covered with text and little interaction? Is the content appropriate for e-learning deployment? Are certain courses used infrequently? If so, consider taking them offline to create space for more critical courses. A training organization must always have a thick skin, but now is the time for the group to look at its output very critically for the benefit of the learners.  The key item to remember about course design and delivery is that changes must be made consistently, especially if courses are required at certain time periods. For example, if the entire organization must go through compliance training each year, consider making changes to the appropriate courses each year. Learners will appreciate the effort and will always be on top of mandated learning. In the course of modifying your program, don’t forget to look at the marketing and message of the program itself. If user numbers are low, think about the message and how it’s being broadcast. Send out surveys to see if learners received marketing information - and what they did with that information. Ask them how they reacted to the message that new training methods were available. Along those lines, find out if learners are being given ample time to complete training - or if they are being pulled back to work before they’ve had time to take courses. The idea here is to also take a critical look at how the program is being marketed - and to be bold in asking for changes to that message. Modification of the e-learning program should be gradual, however. Some organizations have been known to pull large parts of the program offline in order to modify it. This may not be the best way to take care of changes. Determine which areas need the most attention and work on those first. But avoid taking whole pieces of the program offline at all costs. Modifications should be so gradual that the learner notices the small changes each time he or she logs in to the system. Your modification should be a "no shock" plan. Remember to use your evaluation data to make constant modifications to your program. Related Posts:7-Steps to Creating an Effective E-learning Program Part 5: Evaluation7-Seven Steps to Creating an Effective E-learning Program Part 7: Regular Monitoring7-Steps to Creating an Effective E-learning Program Part 4: Implementation7-Steps to Creating an Effective E-learning Program Part 3: Online Learning Systems7-Steps to Creating an Effective E-learning Program Part 2: Convert and Create Content

It’s important to examine the competencies you would like to see in your organization and compare them to the competencies that a professional certificate holder can bring. But when we analyze competencies, we need to look at both expressed and implied competencies. The expressed competencies are those that are stated in the program, and may be technical or functional in nature. The implied competencies are the ones that are not stated by the program and take some inference to determine. In other words, these are the competencies that the certificate holder will most likely have because he or she went through the program successfully. Also keep in mind that you’ll want to look for competencies that are not only technical and functional, but also related to leadership and management. The PRM certification brings numerous expressed competencies to your organization’s collective table. The successful completion of the program means that a person is well versed in risk management theory as well as practice, through the mathematics of risk management. The certificate holder must also have the ability to apply theoretical knowledge, as the exam tests application of knowledge, conduct, and ethics through case studies. The expressed competencies in the PRM program are mainly technical and functional in nature. But let’s analyze the program a little further to look for implied competency for a PRM certificate holder. First, the multiple-choice format of the exams provides us with a picture of someone who is good at making decisions. The fact that the program is self-directed in nature paints a picture of a professional who has drive, determination, and focus. As we’ve mentioned, not all adult learners possess the competency to get through a self-directed study program successfully. Translated into the organizational world, this person will probably have the ability to work well independently. Because the PRM program allows a candidate to self-assess, you’re going to get a professional who is able to address his or her weaknesses. This is not just acknowledgement of a weakness but the ability to correct that weakness through action, study, or other intervention. The choice between online and classroom preparation also ensures that the professional knows his or her own learning style and can apply it quickly and easily to the learning process. Plus, in relation to learning, a successful completion of the PRM shows you that the person is open to being coached, trained, and managed in a positive direction. All of these combined competencies create a great profile for a potential organizational leader. The FRM certification through GARP also carries a high level of technical and functional competency, such as market risk, credit risk, and operational risk. The FRM also tests risk management in investment management. Again, this certification proves a certain ability to take knowledge, synthesize it, and apply it to common situations. In terms of implied competency, the FRM shows us that the certificate holder, because of the elite size of the network, has the ability to see him or herself a part of a larger group. The fact that the person chose the FRM designation shows that he or she is dedicated to the furtherance of the profession and not just interested in his or her own self-interest. It’s also necessary to again consider that a self-directed learner has proven an ability to focus and drive projects through to completion. In regard to the ERP certification through GARP, we can also see a high level of technical and functional competency, including physical energy markets, financial trading instruments, and valuation and structure of energy related transactions. Because there are specific experience requirements to even sit for the exams, we can also assume a higher level of experience in what is certainly a specialized field. On the implied level, the ERP certificate holder not only shows his or her determination and focus, but also a level of devotion to a specialized field. When you add the continuing education requirement to this mix, you’ll also see a professional who is certain that he or she is in the field on a permanent basis. Why are expressed and implied competencies important to your organization? One of the most obvious reasons is that you want to ensure that people in specific positions have a measurable level of functional and technical competency. All of these certification programs prove this competency, as well as experience. But what about bringing in certified professionals as part of your overall leadership "bench" strategy? If you are actively recruiting professionals with the designation, you can be assured that you are going to create a bench of high professional leaders, that is, the ones who can lead and manage functions in their own field. But when you look at the implied competency of these certification programs, you can also be assured that some of those professionals will be high potential leaders, that is, the ones who can be groomed for leadership and management across a spectrum of functional and technical areas. If you are considering certifying existing associates, think about how that will improve your existing "bench". The people who readily enter a certification program are proving that they are dedicated to the profession and dedicated to the organization’s future success. Not only this, they are obviously open to being coached and "schooled" on the most current industry knowledge. Now that we’ve looked at the FRM, PRM, and ERP certifications generally, examined the curricula and exam structures, analyzed recognition and standard, and discovered competencies, the last step is to look at the overall picture of how these things can help your organization. Related Posts:CFA CompetenciesRecognition and Standard of PRM, FRM, and ERPCFA Organizational BenefitsRisk Management: Certification Curriculum and Exam PreparationRisk Management: PRMIA and GARP Certifications

Professional certifications are important to both the individuals that obtain them as well as the organizations in which those individuals work. In the financial field, personnel involved in risk management can obtain several important certifications from two major international groups. In today’s uncertain financial environment, professional certifications can go a long way to calm investors and regulators, as well as restore faith in the financial system in general. But before we look at the organizational and individual benefits of the most common risk management certifications, we should spend some time becoming generally familiar with the certifications and the groups that offer them. There are two major groups offering risk management certifications: the Professional Risk Managers’ International Association (PRMIA) and the Global Association of Risk Professionals (GARP). Both of these organizations show their certifications as widely recognized and accepted, although the organizations approach certifications differently. PRMIA offers the Professional Risk Manager certification, or PRM. PRMIA calls the PRM certification "The Higher Standard in Risk Management" and is very flexible on how professionals prepare for the certification exams. The PRM is essentially a validation of skills that are most likely picked up in every day work in the risk management arena. The certification does stress professional standards and integrity in addition to skills and knowledge. Also, the PRM tests an individual’s ability to not only know best practices but his or her ability to apply those best practices in the appropriate situations. The candidate must be a member of PRMIA in order to sit for the certification exams, and, as in many cases with professional certifications, the candidate with other industry certifications, such as the CFA (Chartered Financial Analyst) may have an easier time attaining the PRM. In the industry at large, hiring managers often use the PRM designation as a measurement for the most desirable risk management skills. GARP offers two major risk management certifications, the FRM, or Financial Risk Manager, and the ERM, or Energy Risk Professional. The FRM, according to GARP, is one of the certifications that is currently desirable to recruiters who are looking to fill senior risk manager positions. There are only around 18,000 FRM’s in the world, which is a small number for a professional certification that is recognized around the world. In order to qualify for the FRM, a professional must have two years related experience and must also be a member of GARP. The ERM certification is obviously for energy industry risk managers, who must also have at least two years experience in the field of energy risk management. These professionals must also be members of GARP. GARP is in the process of creating a continuing education program and requirements for the ERM certification, which will most likely become a requirement in 2010. In the field of risk management, the ERM is one of the only designations that has or is about to have a continuing education requirement. It’s a good idea to have a general feeling of what professionals hold risk management certifications - as well as what industries look for these professionals. The top industries with certified risk managers, and whose recruiters look for certifications, are banking, academics, asset management, and government. There are many other sectors of the financial industry in which you will find certified risk managers. Professionals who hold these certifications also hold a wide variety of positions, from junior through executive levels. The most common jobs held by certified professionals in the field are risk managers, analysts, consultants, accountants, traders, portfolio managers, and even operations managers. What exactly does the professional have to undertake in order to become certified as a risk manager? It depends on the program, but both the PRMIA and GARP certifications are either strictly structured or strictly unstructured in regard to preparation, and both organizations certify only after examination. To obtain a PRM certification, the candidate must take four examinations, either separately within two years or all at once. These exams cover financial theory, financial markets, risk management mathematics, best practices, ethics, conduct, and case studies. PRMIA will help a candidate prepare for the examination through a variety of preparation courses and seminars, but the candidate is not required to "officially" attend any courses. In fact, PRMIA encourages organizations to use the exams separately as ways to test potential job candidates or to test for promotional readiness. As we discussed, a PRM candidate can take the entire battery of tests at one time, or can spread the four out over two years. The GARP FRM certification is broad based, covering market risk, credit risk, operational risk, and risk management in investments. There is only one exam in order to obtain the FRM certification. The ERP certification, on the other hand, requires about 250 hours of study to prepare and is also only one examination. The ERP core competencies include physical energy markets, risk management compliance, financial trading, and valuation of energy transactions. We will discuss specific benefits of these certifications throughout the risk management series, but it’s a good idea to consider why certifications might be important to your organization. A professional designation carries proof of knowledge and competence in specific areas. Your organization can use the certifications as a way to market or prove competence in the field, and can even use the possibility of certification as a way to recruit and retain the best talent. In today’s financial market, a certification may show a higher dedication to ethics and integrity, both on the organizational and individual levels, and this may help to satisfy regulatory agencies and shareholders. The next step in this series is to look more closely at the curriculum and study methods for each of the certifications, and determine why this is important to the organization. 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It’s very difficult to ensure that the individuals you hire into your organization have a recognized standard of knowledge, experience, and competency. You can certify internally, but this type of program does not have much meaning outside of your organization. That’s why it’s necessary to look for external certification sources. And in the case of risk management, the three certifications are highly visible, recognized, and set standards that will most likely improve your organization. Let’s look at how the PRM, FRM, and ERP standards look, and then discuss how those standards might impact your organization. First, the Professional Risk Manager certification from PRMIA seems to have a high level of recognition throughout the industry. PRMIA defines its certification as the "benchmark" in global risk management. To begin with, the organization gives partial credit toward certification if you hold another designation, such as Actuarial Fellow, Actuarial Associate, or Chartered Financial Analyst (CFA), to name a few. This type of recognition means that the PRMIA puts its certification on the level of other well-known certifications. Because this type of reciprocal arrangement exists, you can be assured that the standard of excellence is high. The PRM certification carries recognition by universities, including the University of Toronto, Technical University of Munich, NYU, and also a group of faculty who represent the Sorbonne, the Ecole Polytechnique, and the Universite Paris Dauphine. The PRM designation is used in about 80 countries, which is, according to PRMIA, more than any of the other risk management designations. This also indicates a high level of portability for the certification, which means that your organization can certainly benefit if it is international in scope or is planning expansion. The PRM certification is also endorsed by some of the best-known companies in the business, including the Canadian Securities Institute, Algorithmics, Lombard Risk, Ernst and Young and SunGard Trading and Risk Systems. These industry relationships can help your organization gain a firmer footing in the industry. In regard to standards, the PRM stands out because of the exam format, which is designed from a database. This format ensures that a professional cannot pass the exam with weaknesses in any areas. If he or she plans to pass, he or she must be highly prepared in any area as there is no way to predict where the database will pull questions for the individual exam. The exam prep handbook is currently in use in 105 countries and is a common reference guide in 23 of the world’s largest banks. Plus, the exams can be used to test knowledge areas without going to full certification. For example, you can have members of a certain department take the exams that most closely relate to their expected competencies. It’s obvious that the PRM designation is well recognized for its high standards. The FRM designation from GARP also carries high standards and recognition. GARP reports that recruiters and hiring managers are now actively looking for these certificate holders in order to fill senior risk management positions. Given the current economic climate, this is certainly a plus in the recognition column. FRM holders make up a fairly elite group, having slightly less than 18,000 members worldwide. This creates a highly recognizable standard as well as a useful network. For example, GARP reports that its 2008 candidates represented 36 industry sectors and were working in 168 of the Fortune 500 companies. A person who receives the certification can add the "FRM" to the end of his or her name, and a potential candidate can even submit a resume to see if he or she qualifies for the experience requirement. The ERP designation carries much of the same standard and recognition as the FRM certification, including the network of worldwide certificate-holders. However, one of the more revealing elements of the ERP certification is that GARP is planning a continuing education requirement for its holders. Continuing education requirements ensure that certificate holders have current knowledge. Consider the state bar associations or even real estate and appraisal professionals in the U.S. If a person obtains a certification with a continuing education requirement, he or she is signifying a readiness to consistently work to maintain the certification and to continually uphold the standards required of the certification. Why is recognition and standard important for your organization? Consider the value that a recognized certification brings. The certification certainly provides value for your shareholders, stakeholders, and customers. And in this financial environment, any kind of value and standard is going to be vital to the survival of the organization. Plus, a recognized standard may even bring regulatory value. In other words, regulators are looking for proof that financial organizations are actively finding ways to maintain the highest knowledge, ethics, and accountability. In relation to your leadership pool, a certification is of definite value. As you bring certified professionals in or certify your existing associates, your pool of qualified candidates grows. This pool not only possesses the competencies that are stated by the program, but also some implied competencies that come with self-guided certification programs. Finally, certifications like these focus on the advancement of the profession and not necessarily education for education’s sake. This focus ensures that your certified associates are "A" players - and that they are committed to their respective fields. In our next discussion, we will look at the competencies that certified professionals bring to your organization, both as expressed and implied competency. Related Posts:Risk Management: PRMIA and GARP CertificationsCFA Recognition and StandardCompetencies for PRM, FRM, and ERP Certificate HoldersRisk Management: Certification Curriculum and Exam PreparationWhat Is the CFA Designation?

Becoming a certified professional in any field can be a rigorous process. Some designations require classroom study and preparation, while others simply require that a designee pass an exam based on his or her knowledge. Curriculum is also important, but also based on the field. If the field is a dynamic one, such as the financial industry, then a curriculum should be dynamic to match the field. In terms of the risk management certifications, both PRMIA and GARP offer self study programs, designed to be "at pace" with the individual. But both organizations offer examinations that are rigorous and that will test the ability and knowledge of the candidate. The PRM program is comprised of four exams. As we discussed, PRMIA does not require that a candidate take all four exams at one time, nor does the organization require that the exams be taken in a specific order. PRM Exam I covers theory related to finance, as well as financial instruments and markets. In Exam II, the candidate will need to understand the mathematics that accompanies risk measurement. Exam III is a test of common practices in the risk management filed, and exam IV covers professional standards, conduct, ethics, and bylaws as set by PRMIA. The PRM exams are multiple-choice exams, consisting of 120 questions pulled from a database. Although the questions are multiple choice, the existence of a database proves that the organization is attempting to test from every possible angle. PRMIA reports that only 50% of its candidates actually finish the certification with the required 60% pass rate, so it appears that the exams are fairly difficult. Preparation is unstructured, that is, there is no actual requirement that a candidate attend courses. One of the first aspects that PRMIA stresses about exam preparation is that professionals in the field can prepare by simply doing their jobs well. The organization also recommends that candidates examine all of the available resources, including professional journals, articles, online forums, conferences, and procedural documentation. PRMIA offers a self-study guide which the candidate can use to assess areas in which he or she needs further study and practice. The study guide also recommends reading in specific topic areas. The organization recommends a textbook (The Professional Risk Manager’s Handbook), which is written by 35 authors, as preparation for Exams I, II, and III. In order to prepare for Exam IV, the candidate is encouraged to examine a reading list provided by PRMIA. Once the candidate determines his or her areas for improvement, PRMIA offers online and classroom training targeted for those competency areas. The FRM certification from GARP is undergoing change as of October 2009, mainly in response to the financial upheaval of the past two years. Depending on when a candidate submits interest for the certification, he or she may either be required to take one exam or two exams. All of the FRM exams are multiple choice; the exam with only one part, which will be "grandfathered" out, has 140 questions. The two part exam consists of 100 questions for Level I and 80 questions for level II. In order to prepare for the two-level exam structure, the organization expects that the candidate will spend between 150 and 200 hours for each level. GARP offers a self study guide, as well as core readings that are available as a "course pack". The FRM Handbook is recommended as a textbook for study and each participant can also prepare using practice exams available from GARP. The organization can also point candidates in the direction of local study groups and third party course providers. GARP does not offer training directly, naming this as a potential conflict of interest. There is a digital library where candidates can find information and readings on any of the competencies covered in the exam battery. As mentioned, the FRM curriculum, in the form of readings, textbook, and courses, changes regularly, and is being especially overhauled to match the new financial environment. GARP’s ERP preparation and exam structure is very similar to the FRM’s. Candidates are expected to spend 250 hours in preparation of the exam, which covers physical energy markets, financial trading instruments, valuation and structure of energy transactions, risk management in financial trading, as well as disclosure, accounting, and compliance. This is obviously a broad-based curriculum for a specialty area of practice. As with the FRM, candidates can use a self-study guide, a course pack, a digital library, and sample exams in order to prepare for exam day. The ERP certification program is overseen by practicing professionals, which is in itself a dynamic aspect of curriculum and exam preparation. Why is the curriculum and preparation method for certifications important to your organization? First, a dynamic curriculum ensures that whoever becomes certified will not only be exposed to a broad base of knowledge, but also to knowledge that is current. This is important in any field, but in the field of finance current knowledge takes on a life of its own. Oversight by practitioners is also of importance to the organization, for virtually the same reasons: content needs to be current. Broad-based areas of competency are also important, because you need to ensure that designees are able to function in a variety of knowledge areas, even if he or she is specialized. Knowing where a particular function "sits" in relation to the broad spectrum of financial activity is key to moving the organization forward. What about the significance of self-study? We will go into more detail in this topic when we discuss competencies, but it’s important to note that a self-guided curriculum requires a dedication and focus that not every adult learner possesses. If you hire based on a certification such as the FRM, PRM, or ERP, you’ll know that you’re getting a person who is dedicated, able to focus, and possesses the skills to follow through. Next, we will examine the recognition and standards set forth by risk management certifications. Related Posts:Risk Management: PRMIA and GARP CertificationsThe CFA CurriculumRecognition and Standard of PRM, FRM, and ERPCompetencies for PRM, FRM, and ERP Certificate HoldersWhat Is the CFA Designation?

The CFA designation, or Chartered Financial Analyst, is a high-level certification for professionals in the areas of investment and financial analysis. The program consists of self-study, along with three exam levels that measure almost every level of learning. Professionals must also meet criteria for time in the profession, as well as a high level of competency and ethics. The CFA program, offered by the CFA Institute, is global in its reach and has been in existence since 1962. In the financial world, a CFA designation is considered to be among the highest of professional designations. In view of these criteria, the CFA designation is beneficial for both the individual and the organization in several ways, including the curriculum, the CFA standards and recognition, competencies, and in an overall sense at the organizational level. Before we examine each piece, let’s discuss in more detail what the CFA designation means, which professionals hold this designation, and what organizations look for CFA designated charterholders. Chartered Financial Analysts own their own businesses and work in highly regarded financial organizations around the world. The highest concentration of CFA’s is in world-renowned financial organizations such as Deutsche Bank, ABN Amro, and Credit Suisse. Many charterholders have worked in finance for most of their professional careers, while some have been drawn to finance after a "first" career in another field. Because the designation is a global one, CFA’s around the world have the same level of knowledge and nearly the same level of experience. In fact, some of the top financial organizations may prefer applicants for various positions to have the CFA designation. In order to begin study for the CFA program, a candidate must meet a minimum level of experience, education, and competency in the field. First, a candidate must have a Bachelor’s degree or U.S. equivalent, or meet a variety of work-related experience requirements. In other words, the candidate without a B.A. must have at least four years qualified experience in the field or a combination of education and experience that equals four years. Internships or part-time assignments do not count toward the experience levels. In addition, each candidate must understand and adhere to very strict rules of Professional Conduct and Candidate Responsibility, and must re-certify to the rules of Professional Conduct on an annual basis. Although it is not stated as a requirement, a CFA candidate must understand enough English to study the program and take the exam in that language, as the program is not available in any other languages. The question at this point is why is the designation important to individuals, organizations, and consumers? We will discuss each of these aspects during this series, but it’s a good idea to have an overall picture of the benefits. An individual with the CFA designation has a highly competitive edge for employment in the financial industry, not only in his or her own country, but around the world. And in a period of financial uncertainty, it may very well be that an organization will hold on to its CFA’s during periods of contraction because they do not want to re-hire those levels of competency and experience. Because of the broad based, experiential curriculum, which we will also discuss in the future, a CFA charterholder has knowledge that is applicable in every day situations. In addition, because of the network of CFA charterholders, each individual has access to up-to-date information regarding financial markets all over the world. At the organizational level, a CFA hire has already been held to an extremely high bar in terms of experience, education, ethics, and professional standard. A hiring manager who is looking at two candidates with equal education and experience may have an easier choice if one of the candidates is a CFA because of this level of professional standard. As we will see with the curriculum structure and competency levels of the program, your organization can build its leadership bench with CFA charterholders. For example, the CFA will probably have not only technical competency but also the ethical and leadership competencies that are needed to move your organization forward. In terms of the consumer, consider where your organization is in regard to customer service. If you are a financial organization whose analysts and investment counselors touch the public, then the CFA designation is a definite plus. Because of the CFA designation’s high regard in the financial world, you can use it as a marketing tool to attract and retain new customers. You can point to the trust that the consumer can have in your CFA’s because of the high standard of ethics and professional conduct required of them. You can show clients that in today’s uncertain financial world, your organization is acting in an ethical, above-the-board manner because of its preference for professionals who hold the CFA designation. As we have mentioned, some of the world’s top investment banks and financial providers choose to employ professionals with the CFA designation. These CFA’s work with the public and also in internal roles related to investment, analysis, and financial forecasting. So consider this from the organizational point of view. If you are attempting to topgrade your organization and benchmark it in relation to the highest performing financial institutions in the world, then the decision to begin sponsoring for the CFA designation and employing individuals with the designation will be a good one. In our next article in this series, we will look at the CFA curriculum in order to show its benefits for both the individual and the organization. Related Posts:CFA Organizational BenefitsCFA Recognition and StandardCFA CompetenciesRisk Management: PRMIA and GARP CertificationsRecognition and Standard of PRM, FRM, and ERP

The CFA study program encompasses many areas of the financial industry, as well as a strong emphasis on ethics and professional responsibility. As we’ve discussed briefly, the CFA candidate must pass three exam levels. The CFA Institute recommends that each candidate spend at least 250 hours in preparation for each level. The curriculum is self-study, which means that the candidate can pace him or herself according to his or her own comfort level. However, as exams are only given on certain dates, the candidate must create the pace to fit within those timelines. From the organizational perspective, the fact that the program is self-paced is very important. The candidate that completes all three levels successfully will prove that he or she is dedicated, determined, and goal-oriented. From an education perspective, we know that any self-paced program requires this dedication and determination, not to mention the discipline to make study a part of every day life. The next important aspect of the CFA curriculum is who determines topic areas, how those areas are chosen, and who writes the content for those topics. First, the curriculum itself changes from year to year due to the changes that constantly occur on a global scale in the investment world. Major changes are undertaken every five years - and only after a detailed analysis of the practice on a global scale. In terms of curriculum development, a committee of active CFA charterholders determines content and the content is then written under their tutelage by the CFI Institute staff. From a training and development perspective, many corporations would love to have a committee of practicing professionals who actively look at curriculum to keep it fresh. And because of the changing nature of the financial markets, the CFA curriculum must be in constant change, as well. This combination of practicing Subject Matter Experts as well as field analysis make the CFA curriculum strong, current, and in constant change with the financial world. The topics that are currently covered in the CFA curriculum are varied, including ethical and professional standards, statistics, analysis, economics, financial reporting, corporate finance, equity investment, fixed income securities and markets, derivatives, alternative investments, portfolio management, and wealth planning. Because practicing CFA’s develop the curriculum, the content tends to be on the practical side, versus more theoretical knowledge that a person might obtain in a university degree program. Plus, the broad-based, generalist approach allows the CFA candidate to absorb topics in a way that keeps them from being too product or market specific. This approach also allows the organization to create a talent pool with broad knowledge that can be applied in various settings, positions, and projects. The CFA curriculum is broken down into multiple study sessions within the topic areas. Each of these sessions contains readings from Institute content, textbooks, professional journals, analyst reports, and case studies, along with problem sets that correlate with the reading and require practical application of the information. In addition, each session and reading contains specific learning objectives so that the candidate can understand what he or she is going to be expected to do even before the lesson begins. The CFA Institute includes multiple additional resources, such as comprehensive outlines and indices, as well as a glossary. The exams are almost textbook-perfect examples of Bloom’s taxonomy in action. Exams, as we’ve discussed, are given in June and December in multiple locations. Each exam is broken down into three levels that vary in both testing method and taxonomy levels. For example, Level One exam questions are generally multiple-choice and cover knowledge, comprehension, and some analysis. Level Two are case-study questions that cover analysis and application, and Level Three are both essay and case-based in nature, covering synthesis and integration. From an adult education standpoint, the fact that each exam has three levels that cover multiple testing methods and taxonomy levels is impressive. This shows us that the CFA Institute is dedicated to ensuring that each CFA leaves the program with not only knowledge but the skill necessary to apply that knowledge in multiple situations. One of the other benefits from a learning standpoint is that the exams are given only in English. This may seem tough to some, but the Institute maintains that this is a method for ensuring fairness and accuracy in both delivery of exam material as well as grading. From a consistency standpoint, the English-only exams also ensure a high level of learning and application for candidates. Before we move on, let’s look at the CFA curriculum and exam structure as it relates to organizational benefits. We’ve already determined that a self-study curriculum requires a dedication and discipline that some people simply do not possess. But in regard to the content itself, a CFA candidate will be receiving the most up-to-date content available since practitioners compile it. This seems to take the onus off of the organization for ensuring that the CFA is consistently up to date. With the network of CFA professionals in addition to the curriculum, your organization can concentrate on training in other functional or behavioral areas. This is a definite benefit if you are planning to build a department comprised of CFA’s. Finally, the exam structure ensures that each professional has a detailed knowledge - but is able to apply that knowledge. As organizational development professionals, we too often see that there is a gap between knowledge and execution. In the case of the CFA, this gap is probably very narrow. Next, we will move from the curriculum to the recognition and standard of the CFA program as a benefit to both the organization and the individual. Related Posts:Risk Management: Certification Curriculum and Exam PreparationWhat Is the CFA Designation?CFA CompetenciesCFA Recognition and StandardRisk Management: PRMIA and GARP Certifications

Certifications and professional designations have a value to the organization and the individual only if they are recognized or explainable in terms of the standards they uphold. In other words, both individual and organization look for designations that can be used to market, lend credibility, and explain standards, education and experience. Many organizations have internal certification or designation programs and these are a great way to get associates involved and retain them. But what does an internal certification actually prove? Everyone inside the organization knows what the certification means, what the person had to do to get it, and what standards he or she was held to. But outside of that organization, what value is the certification to shareholders, customers, or other organizations? The CFA designation is well known throughout the world, and because of its structure, gives your organization and each individual the recognition and standard they deserve. Let’s find out how. First, The Economist ranked the CFA designation as the "gold standard" in investment analysis designations and certifications. This is a weighty accolade and certainly puts the individual and the organization at a higher level. But what other recognition and standard exists to place the CFA at the "gold standard" level? There are several areas, including worldwide regulatory recognition, community recognition, standards related to the curriculum, and types of companies that look for CFA charterholders. Regulatory recognition is important in worldwide financial circles, especially if holders of a designation plan to work in global markets or in countries other than their own. CFA charterholders reside in just about every country around the world, according to the CFA Institute. This is just one piece of the recognition puzzle. Several countries’ regulatory bodies have waived some licensing and examination requirements for candidates who have passed Levels I or II or have already obtained their CFA designation. This means that these charterholders are licensed to practice in multiple areas, such as Australia, the U.S., four provinces in Canada, Greece, Hong Kong, Singapore, and Turkey. If your organization is involved in investment operations in these areas, your CFA charterholders can practice without further licensing or examination. The fact that the regulatory authorities of these countries have extended recognition of the CFA designation provides a high standard of authority. The community within which an organization operates is also an important source of recognition and standards. For example, the National Council for Interior Design Qualification is a recognized standard within that industry, but is most likely meaningless outside of it. But keep in mind that the financial industry in general is loaded with certifications and degrees such as MBA’s, Certified Public Accountants, and Certified Investment Management Analysts, to name only a few. So when it comes to choosing a designation, it all depends on what kind of work the person does, what kinds of organizations will hire him or her, and what kind of network exists. CFA charterholders are involved in investment, financial analysis, and corporate financial planning in large and small companies everywhere. These CFA’s are located in commercial banks, investment banks, consulting firms, insurance companies, financial research foundations, and mutual fund companies, so the range of the network is wide. Since various types of organizations hire CFA’s, this recognition and standard is also important at both the group and individual levels. The CFA network is over 100,000 strong in countries around the world. This is a large network, but when you consider that the focus areas of CFA’s are fairly narrow, the network becomes and even better organizational and individual tool. We’ve discussed the nuts and bolts of the CFA curriculum and content previously. But how does this have an effect on the recognition and standards that come with the CFA designation? The fact that the curriculum is updated annually and is completely overhauled every five years after heavy industry analysis creates a standard for both inside and outside the organization. This curriculum development process keeps the organization from having to "push" the recognition on an educational level, because marketing a changing, dynamic curriculum is easy. But the changes to the curriculum also indicate that any CFA charterholder will have current knowledge about the global financial markets. On top of this, the tri-level examination structure ensures that each person has knowledge, comprehends that knowledge, can apply it, and can go on to synthesize it as part of his or her every day activities. Looking closer at the curriculum structure, the CFA Institute provides a learning experience that is broad-based, and, as we’ve discussed, covers a wide variety of topics. The experience uses professional journals and practitioner information as part of the curriculum. This type of learning should also serve to add to the recognition and standards defined by the CFA program. If your organization’s jobs fit the CFA standards, you may want to consider looking for candidates with the CFA designation - or putting your existing associates through the program. As you can see, the recognition and standards set forth by the CFA program can benefit both the organization and the individual. Next, we will look at competencies covered, both implied and expressed, in the CFA program. 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An individual with a professional certification brings credibility and expertise to the organization. But when you look closer, you’ll see that a certified individual brings a package of multiple competencies to the table. These competencies are important both in terms of ability to the job as well as long term benefit to the organization. Many times, a professional certification brings both expressed and implied competencies to your organization. If you are looking to bring in more people with a special designation or if you are considering sending your brightest through the program, be sure to examine the expressed competencies and determine what competencies you can imply. The CFA designation will provide your organization with a long list of expressed and implied competencies. Let’s discuss those in detail so that you can determine if the CFA designation competencies match those of your organization.<!-more-> First, let’s look at expressed competencies in terms of the CFA designation. Expressed competencies are those that we know are covered in the certification curriculum and process. These are easy to determine but it’s still a good idea to pick them out, both technical and soft skill competencies. Obviously the CFA program has a list of technical competencies, including knowledge and application of various markets and financial instruments. But what other competencies are expressed in the program and how can those fit in with your organization? One of the more obvious "soft" competency groups in the CFA program is related to ethics and ethical behavior. Given the current financial situation, high ethics are certainly going to be beneficial to your organization and its future. In the CFA program, candidates are evaluated based on their ability to place integrity over their own interests. This competency obviously has a huge impact in today’s environment, in which many financial professionals have fallen because of self-interest over integrity. Among the other ethical competencies in the CFA program are the improvement and maintenance of the candidate or charterholder’s professional standing, through education, networking, and appropriate decision making. In relation to professional competency, the CFA program expresses that duty is also a key attribute, next in importance to ethics. The program stresses that each charterholder has a duty to his or her client as well as a duty to his or her employers. This duty extends into making the correct choices, maintaining professionalism, and keeping every action above the board in terms of ethics. Between ethics and duty, the expressed soft competencies of the CFA program are quite strong. Once an individual as passed the three levels and becomes a CFA charterholder, he or she can apply for membership in the CFA Institute. The requirements for membership are almost as strong as the requirements for entrance to the program, and bring another level of professional competency into play. To begin with, each local society may have different requirements. But on top of this, a person entering membership after obtaining the CFA designation must have two sponsors, one who is already a member and another who is a supervisor. Obviously the requirement for sponsors will provide another view of the CFA charterholders professional and ethical competency. In addition, the prospective member must be involved on a daily basis in the evaluation and application of financial data, specifically related to securities and investments. The potential member must also supervise this type of activity effectively and may also have taught this activity. Plus, at least 50% of the prospective member’s time must be devoted to investment decision-making and the creation of added value through those decisions. These are not only technical competencies but are also leadership and management competencies. Let’s take a look at the competencies we can imply from the CFA program. First and foremost, the program is self-paced, with only the exam schedule as a final deadline for the candidate. As training and development professionals know, a self-paced program of any kind takes a specific type of adult learner, someone who has the drive and ambition to see the project through to the end. Plus, the person will probably have weighed the pros and cons of entering the program pretty heavily by the time he or she makes the decision to enter the program. This in itself shows a high level of analysis and decision making skill. A self-paced learner must also possess a high level of self-reliance and focus in order to complete a course of study. In the case of the CFA program, there are study groups and assistance available; it’s just a matter of determining when the time has come to go those resources. In other words, the self-paced learner must utilize self reliance but also be self-aware enough to realize when it’s time to reach out. Isn’t that a great combination in the field? Revisiting the CFA curriculum, we see that technical and financial acumen are tested routinely, and in multiple levels of learning taxonomy. This will require that a candidate have the ability to move knowledge through those levels. For example, a less-disciplined adult learner may learn enough to "get by", but not enough to synthesize the knowledge he or she has obtained in the course of study. This probably wouldn’t work in terms of the CFA program. The currency of the CFA curriculum combined with the analysis and synthesis of knowledge will also require a candidate to possess leadership and technical decision making skill. On top of all of this, these competencies will prepare a potential CFA charterholder to make the decisions that drive your organization forward. Clearly the CFA designation tests the competencies of potential charterholders. And because the CFA will come to you with those competencies, the benefits to the organization will be impressive. In our final discussion, we will look at the CFA designation and the overall benefits at the organizational level. Related Posts:Competencies for PRM, FRM, and ERP Certificate HoldersCFA Organizational BenefitsWhat Is the CFA Designation?Recognition and Standard of PRM, FRM, and ERPCFA Recognition and Standard

There are numerous benefits to both the organization and the individual in relation to the CFA designation. We have discussed many of these benefits, but let’s take a look at the benefits that the organization can gain and utilize if you are looking to bring in CFA charterholders. Keep in mind that you may also be considering moving some of your existing associates through the CFA designation, so all of the organizational benefits we are discussing would apply in either situation. First, let’s examine the overall organizational benefit, the level playing field. Every organization looks for this leveling in terms of departments or individuals. Where it’s applicable, the CFA designation serves as a "leveler". For example, you may place the designation as a preference in hiring. As other associates begin to leave the applicable areas, the new hires with CFA designations will take their places. On the other hand, you may want to place existing employees into the CFA program in order to topgrade them. In the process of topgrading, you may even weed out "B" or "C" level players within the organization. When you achieve the ultimate goal of having all applicable positions filled with CFA’s, you’ll have the people with the highest level of knowledge and competency. As a natural segue from the level playing field, you can also consider building your leadership bench in relation to CFA charterholders. Financial organizations are probably running at a very lean level at this point in time. In view of that situation, organizational development leaders are looking for candidates who combine leadership with functional and technical competency. In other words, why hire for "or" if you can hire for both? With this need for leadership, we can look back at the expressed and implied competencies of the CFA program. Associates who are hired with the CFA designation or successfully complete the program have the competencies that are in need for your leadership pool. Not only this, you can look at your CFA charterholder pool and choose the high potentials for grooming into leadership positions in other areas of the organization, as well as your high professional leaders who can lead the areas they are already in. The leadership bench is important, but let’s discuss retention of those associates. First, when you hire and top grade to the CFA level, you’re getting employees who are ready to do the work and most likely are ready to be promoted. This in itself is a retention tool. But in addition to this, the people who are hired in as CFA’s and the people who obtain their CFA designation from within the organization will be the ones who are in the right positions. These associates know what types of positions they are interested in and you know that you can utilize them in those positions. With a high-grade certification like the CFA, there won’t be much doubt from the organization or the individual when it comes to taking positions, staying in them, and getting promoted. We have already discussed competencies in great detail in this series. But remember on an organizational level that the CFA designation will ensure leadership competencies. It does not seem possible that a CFA charterholder could make the decision to enter the program, stick to it, and move into an organizational position without applying his or her leadership competency. On top of that, the curriculum and the network that comes with the CFA designation will ensure that technical and functional competencies are introduced to the organization - and remain there in the form of retention, knowledge, and up-to-date information from around the world. One of the issues we haven’t discussed is marketing in relation to the CFA designation. From and organizational standpoint, think about all of the areas we have to market: customers, employees, new employees. Think about who we have to satisfy: employees, regulators, shareholders, customers. In terms of marketing, showing one or two professional designations is probably not enough in any organization. But what if you can say that a certain percentage of your organization’s associates hold a "gold standard" financial designation? From customer perspective, this will create credibility at a time when credibility is much in doubt in the financial world. But what about employees and potential employees? The fact that the CFA designation is sought after will show them that the organization is concerned about knowledge, ability, and ethics on every level. Plus, consider the increased performance that may come with the knowledge level of CFA designees. This can only serve to satisfy the organization’s stakeholders and shareholders. We usually don’t think in terms of marketing when it comes to regulators, but it’s also something to consider in regard to the CFA designation. Because there is a certain level of regulatory approval involved with the CFA program, oversight agencies may be inclined to believe that your organization is interested and concerned about its level of ethics, professionalism, and technical ability. Marketing with the CFA designation can be very powerful for the organization on many fronts if it is used properly. In this series we’ve looked at the benefits of the CFA designation from both the organizational and individual levels. We began by defining the CFA designation and determining what qualifications are key for entering the program. We have analyzed the advanced curriculum and learning methods put forth by the CFA Institute, as well as the recognition and standards of the CFA program in relation to the financial industry. We have also defined competencies required by the CFA program, both at the expressed and implied levels. Because of all of these benefits, we can see clearly that bringing in CFA charterholders or putting existing associates through the CFA program where applicable is a good move in many different ways. Related Posts:What Is the CFA Designation?CFA Recognition and StandardCFA CompetenciesCompetencies for PRM, FRM, and ERP Certificate HoldersRecognition and Standard of PRM, FRM, and ERP

Leadership skills become second nature for many people. But one of the most difficult skills is decision making. There are always numerous factors to consider, impacts to predict, and, simply put, it’s difficult to please everyone from the highest levels. It’s easy for leaders to procrastinate on decision-making or even try to offload the decision to someone else. But an effective decision making strategy is a highly useful leadership tool, so let’s discuss how to make those decisions in a methodical and factual way. First, let’s discuss how decisions are made. Some leaders may make all decisions alone. This may be based on the individual or the dynamic of the group he or she leads. On the other hand, some leaders do not step into decision-making unless they have their "sounding board" group around them. Before you enter into the decision process, determine how you’ll make your decision. With that said, remember that group decision- making is sometimes highly effective because, let’s face it, none of us has all of the answers.<!-more-> The first step in decision-making is to clarify the issue at hand. To do this effectively, you must examine the facts surrounding the decision. This sounds simple, but often there is "hype" or emotion surrounding the facts. Your job as a leader and decision maker is to extrapolate the facts from the junk surrounding them. Once you’ve clarified the issue and reduced it to its facts, you must put it in common terms. These terms can be your own terms for ease of understanding, or in terms that are readily understood by the organization. With a clear issue that is easily communicated, you’re ready to move to the next step. Brainstorm the issue at hand, either alone or with a group. Single person brainstorming tends to be one sided, but at least you can create causes and effects for the decision that needs to be made. On the flip side, a group brainstorming session allows for various points of view and the elaboration of further problems relating to the issue, possible solutions, and possible pros and cons. Once you begin the process of brainstorming, either alone or with a group, write down your thoughts. Put the thought page where you can see it and refer to it as the decision making process is underway. In a group setting, create a dialogue between group members about the decision and be ready to accept other points of view. After a brainstorming session, the possible decisions will probably become clear. Take the possible decisions and create a list of advantages and disadvantages for each. It sounds simple to create what amounts to a "pros and cons" list, but the method is effective for eliminating possibilities. If a possible decision is heavy on cons and light on pros, it may not be the best decision at the time. If you’re making a decision with a group, be sure that everyone in the group participates on the pros and cons identification - you may achieve clarity where you thought none existed. Even if you finish the pros and cons exercise with a few possible decisions, you’ll still be closer than you were at the beginning. Next, take all of the "finalists" and map out the consequences. In fact, you may have identified consequences in your pros and cons activity. But analyze the decisions further. Consider using a timeline. For example, if we make decision "A", what will be the result within one week, one month, one year, or five years? Some decisions will require speculation based on current knowledge, but some decisions may be very clear at this point. You must take an extremely analytical approach at this point in your decision making process. One way to do this is to make conclusions such as, "If condition A exists, then situation B will emerge", or, "if decision A is made, then the result will be actions B, C, and D." The last step of methodical decision-making is to make the final decision. After going through this process, your final decision will probably be very clear. But you must be prepared to explain why you’re making the decision. And you must be able to back it up with facts. The fact-basis of decision-making cannot be underestimated. If there is any emotion in the support for the decision, you may need to consider going back to the drawing board. Decision-making is difficult, but these five steps will help you obtain clarity, fact, and a clear path to the decision itself. Related Posts:Decision Making StrategiesGetting Past the GatekeeperGetting Past the GatekeeperCFA CompetenciesUsing Simulations in Corporate Training

Making a sales presentation in person is quite important. But how do you "appear" when you are using the phone? Clients or potential clients may call you or you may call them to obtain an appointment, discuss your solution, or even embark upon a full-scale sales presentation. With this perspective on the use of the phone, it is vitally important to come across as professional, enthusiastic, and persuasive. Let’s discuss some tips for your phone presence. First, take a breath before picking up a call or making one. When we’re working, we tend to take shorter, shallower breaths, especially if the day has been stressful. And a person on the other end of the line is likely to hear this in our voice and our breathing patterns. If you take a deep breath before speaking over the phone, you can speak while you exhale. Speaking upon an exhale tends to carry more energy and less "deflation" in the voice. Your client will pick up on this. Remember that the first 30 seconds of a phone call are probably the most important, so a "deflated" voice will not be very enthusiastic or persuasive. Next, keep a smile on your face. This may sound "hokey", but it is a tried and true method of using the phone. If you’re not happy about the call, this will come across in your voice. Try recording your voice on an MP3, tape recorder, or cell phone. First, try saying something about your product without smiling. Then try the same words or phrases with a smile. You can tell the difference and so can your clients. Of course, if you have to muster all of your energy to get a smile, you may need to consider how happy you are with your work and your environment. The third area of selling over the phone is the self-identification. Whether you are taking inbound sales calls or reaching out to clients or prospects, your greeting is vitally important. In many cases, your self-introduction may be scripted. If that is the case, try not to make it sound "canned". Remind yourself that each call is different, although you may have said the same words repeatedly during the day. If you sound sick of saying it, your client or prospect will be able to tell. Keep the smile on your face and the inflection in your voice. Another good way to keep a greeting from sounding canned is to keep it slow. We have the tendency to speed up our speech when we’re nervous or when we’re saying something we’ve said before. Take it slow - it may even sound too slow at first, but remember that your prospect or client may be hearing it for the first time. When you record your voice, as we discussed earlier, try recording your scripted greeting or introduction. Make changes based on what you hear. Next, remember to use sincerity and empathy at all times. Have you ever called someone for help and could not tell if you were still talking to the computer? Your voice over the phone should never give the prospect or client this feeling. The person should know that they have reached a live person. Try not to be "fake" and then position yourself as an empathetic problem solver. When you’re making an in-person presentation, think about how the inflections of your voice go along with your body language. If you’re using a headphone or earpiece to make phone calls, use the same body language. You’ll find that the emotions in your voice, like empathy and sincerity, will come out even though you don’t have an audience directly in front of you. Finally, be attentive. The person on the other end of the line can tell if you’re having coffee or playing Solitaire. Remember to focus solely on the caller in your ear. If you have trouble keeping your hands occupied, take notes on the call. This way, you’re recording important information about what the client says and you’re keeping yourself as attentive to the caller as possible. A sale can occur anywhere, so remember that talking to a prospect or client on the phone is just as important as speaking to him or her in person. Related Posts:Five Focuses For SalesAccount PlanningGetting Past the GatekeeperGetting Past the GatekeeperEngaging Participants 4: Virtual Engagement

You’ve worked on your presentation, your communication skills, and your research in order to persuade a particular client. But then you realize that getting to the decision maker is going to be more difficult than you imagined, because that person has a gatekeeper. Let’s discover some strategies for getting past the gatekeeper effectively, without creating a conflict. First, it’s important to understand that there is more than one type of gatekeeper. The first type of gatekeeper is the permanent one, who is usually an executive assistant, administrative assistant, or secretary. This person probably holds all of the access to the decision maker, and he or she can make the decision as to whether you get through to that person or not. The second type of gatekeeper is the temporary or situational gatekeeper, which is a person who is working on a project with the decision-maker. That person may be a committee member, a team member, or a person on a project who is assigned to RFP’s and demonstrations. It’s important to understand what type of gatekeeper you’re dealing with in order to fashion your strategy. What works on one type of gatekeeper may not work on another. Now, let’s take a look at three strategies for getting through the gatekeeper - or avoiding him or her completely.<!-more-> The first strategy is a direct approach. You’re dealing with a decision-maker, who sometimes may be a manager or director. Think about how that person operates. He or she is probably someone who is confident and works with self-assurance. If he or she were to request to speak with someone, he or she would probably be direct instead of "beating around the bush". You can use this approach to get through the gatekeeper. Be polite, and never take a rude tone, but consider saying, "Could you tell Mr. So-and-so that Bob from XYZ Company is on the line?" This approach may not always work, but it may cause the gatekeeper to stray away from asking too many questions. Another strategy may take you all the way around the gatekeeper. In this strategy, you must consider using another "gate". Are there industry groups or networking events that the decision maker belongs to or attends? If so, consider going to these events or joining the group in order to get an introduction. Remember that groups such as Chambers of Commerce or industry-specific groups use their events for networking; you cannot go to an event without the prospect of someone introducing him or herself to you. And decision makers know this, as well. In fact, some decision makers go to these events for the purpose of seeking out possible business partners. Here’s another way to use this approach. Once you’ve met the decision-maker, you can use the direct approach with the gatekeeper, as we just discussed. But when the gatekeeper says, "What’s this about?" you won’t be stuck fumbling for an answer. Say, "I just met her at the Chamber of Commerce meeting and I have a business opportunity to discuss with her." When you relate it that way, the gatekeeper is far more likely to let you get through. A final strategy is also a very effective one with permanent gatekeepers. Make an ally of the gatekeeper and sell to him or her. Think about it. Many executive level decision-makers trust their entire lives to the assistant. That person has control over the executive’s calendar, office, files, etc. The decision maker most likely respects that person’s opinion. First, find some common ground with the gatekeeper. Then introduce yourself to him or her as a solution-bearer. When you do this, you’re "getting chummy" with the gatekeeper and you’re going to have some influence there, as well. The important thing to remember when formulating strategies for getting through a gatekeeper is that the approach is not a "one size fits all". When you do your research, find out if a gatekeeper exists. Find out what kind of gatekeeper he or she is - and judge how that person will react to various approaches. If you make your gatekeeper strategy a part of your initial research and preparation, you’ll find that your sales process is easier - and that getting through the gatekeeper is not such a terrible chore. Related Posts:Getting Past the GatekeeperAccount PlanningDecision Making StrategiesDecision Making StrategiesTraining Vision 6: Execution Plan