Professional Documents
Culture Documents
Table of Contents
Executive Summary 2
The New Realities of Talent Development 3
Are training and development obsolete? 3
What is a learning organization? 4
Aligning Talent Development with Organizational Objectives 5
Responsibility for Talent Development Falls On the Managers 6
What can employees be expected to do? 6
What can the development office be expected to do? 7
Measuring the Impact of Talent Development 8
The use of metrics in talent development 8
Assessing the Business Impact of Talent Development 9
Assessing Your Learning Organization 10
Development Toolkit for Senior Managers and Development Professionals 11
Program ideas for senior managers 11
Program ideas for development professionals 13
Conclusion 16
World-Class Versus Traditional Talent Development: A Comparison 17
Executive Summary
We can all agree on one thing: the world of business is changing more rapidly now
than ever before. With a never-ending stream of evolving technology, expanding
global markets, and cutthroat competition tactics, no organization can afford to
rest on its laurels.
While many organizations have tried, few have succeeded in transforming themselves
into a learning organization. Most chief learning officers (CLOs) and development
professionals realize that competitive advantage is at stake, but lack the business
knowledge and support needed to create a centralized development organization.
This white paper examines what managers and development professionals must do
in order to take responsibility for talent development and ensure a positive impact
on the bottom line. It suggests that those involved with developing talent must
rethink the current approach, and it offers dramatic alternatives to the status quo.
It also challenges the idea that development activities must be centralized in order
to be successful, and recommends shifting many development activities directly to
the line manager and the employee.
While it may be provocative, this white paper attests that traditional approaches to
training and development cannot be effective in widely dispersed, lean, and rapidly
changing organizations. Everyone is overworked and no one has any time for
traditional development approaches and methods. Organizations need simpler
management-driven approaches and tools that are designed to make continuous
learning and development an integral part of the process.
What does all this mean for the development function and everyone involved?
Current processes and programs must be redesigned to account for rapid obsolescence.
Organizations must develop processes to learn faster, share ideas more quickly, and
increase the speed at which individuals update their capabilities. This task is made
even more daunting by the environment created by downsizing, mergers, and
economic pressures. No one has time to learn, and development budgets have been
cut to the bone.
In short, senior executives want the development function to radically change into
one that increases productivity and delivers business results.
Knowledge sharing is considered a critical success factor for the organization, and in
fact information hoarding is discouraged by the organization’s senior management.
The organization considers learning a major competitive advantage. Competitive
intelligence and continuous benchmarking are considered essential, and open-book
management is widely practiced.
The first step is to understand senior management’s expectations. CEOs are focused
on results, and laser-focused on the short list of things for which their board of
directors holds them accountable. Therefore, one method for ensuring alignment
of development is to identify exactly what factors the CEO is being measured and
rewarded on, and then concentrate talent-development efforts in those areas.
For example, if the CEO is measured and rewarded for increasing customer satisfaction,
then talent development must demonstrate how improving customer service skills
immediately impacts service ratings, and what each percentage point increase
represents to the bottom line.
If the CEO is rewarded for increasing sales revenue, then talent development must
demonstrate how improving skills in the sales area dramatically increase overall
sales. The impact can be demonstrated by using a control group to show how the
talent development program makes an economic difference.
Some other ways to align talent development with corporate objectives include:
Improving performance in areas that are off the CEO’s radar screen does little to
improve the image and perceived value of talent development. However, it’s important
to remember how frequently that radar screen can change. Organizational objectives
shift almost as often as the business world changes. That said, it’s not enough to
align development with corporate goals once a year. Ensuring alignment is a
continuous process that requires at least one midyear review and adjustment point.
Talent development must remain agile and capable of providing just-in-time services
as corporate needs change.
Of course, not all managers avoid taking ownership for developing employees. But
there is rarely a set time for development discussions, and when they do happen, it
often requires bold employees to initiate them. There are some exceptions, such as
General Electric and Intel, where company culture and senior leadership reinforce
the need to make development an essential element of every manager’s job. Those
companies correctly see development as a key element to success.
Learners are not heroes. There are few organizations in which learning is considered
an essential element of leadership. In fact, the culture of many organizations has
made continuous learning something that is simply not important.
Unclear on their future. Employees are not told what new skills will be important or
where the key growth areas will be within the organization. If they are developing
themselves in hopes of a promotion, they are most likely to reference current job
descriptions and have no insight into how they might differ in the future.
Focus on the short term. So many organizations have frozen or restricted promotions
that employees often see immediate productivity as the key to success, as opposed
to developing themselves for future opportunities within the organization.
Fear of failure. It’s difficult to rely on employees to manage their own development
because, if they get it wrong, they feel that their mistake will be perceived as job
failure. Worse, if employees fail to develop in the appropriate ways or at the right
speed, they are likely to become frustrated in their jobs.
Although some organizations have actually adopted that approach, on the surface
it’s obvious that no central organization can identify the development needs or
opportunities for thousands of employees. Thus, the third option must become
more viable, in which the manager becomes the primary person responsible for
employee development, in partnership with an educated employee and a centralized
support function. In that case, ownership and personalized development at the
departmental level are the keys to success.
Metrics are the fastest and the cheapest way to change behavior in business. They
work as motivators because they excite, draw out competitiveness, and occasionally
embarrass performance-driven individuals. Although metrics might seem intimidating
at first, once you grow accustomed to them, you will not be able to live without them.
There are five primary measurement categories for which metrics should be chosen:
1. Business impact. Assessing and placing a dollar value on the business impact of
talent development.
Assuming that obsolete employees make more errors, slow product development,
and are more apt to offend customers makes it easy to understand why a lack of
talent development can have a significant negative impact on business results. In
making the business case, the magnitude of these impacts must be identified,
quantified in dollars, and reported to senior management.
Implementing new talent development programs and then measuring the results
represents the traditional way that most development professionals determine
whether a new program is successful. However, many executives understand that
increases in productivity or output can be influenced by numerous factors occurring
simultaneously. As a result, these individuals are likely to dismiss the notion that
such increases are automatically the result of development efforts.
To solve this problem, consider some of these surefire approaches to removing senior
management’s doubts:
Run a pilot. A small trial allows you to compare the before and after and see if the
activity or program has a noticeable impact on output, productivity, or business results.
Use split samples. Apply your development approach or tool to one group and not
another. An examination of the control group versus the affected group will help
determine if the program worked.
Program hibernation. If you really want to prove that a program works, hibernate
it after a period of successful operation in order to see if productivity returns to
lower levels.
Although some of these approaches may seem drastic, they are the same approaches
used by marketing and product development departments to prove program value
and success.
Problem solving and solution sharing. The speed at which managers are notified
about problems and workable solutions identified in another region or business unit.
Information and idea transfer. The percentage of new ideas, information, and best
practices that are generated and shared by individuals in jobs at the bottom 30 percent
of the organization.
Learning and information sharing. The speed at which important company, competitor,
and industry information is shared between managers and employees.
Obviously no organization has the time or resources to utilize all of these learning
organization metrics. To achieve excellence in this area, however, organizations
should strive to incorporate as many as possible.
Use “what-if” and “if-then” scenarios to forecast results. Many employees and
managers are so tied up in day-to-day activities that they don’t have time to
forecast. One way to force the development of this forward-looking capability is
to run employees and managers through what are known as “what-if” and
“if-then” scenarios.
During these scenarios, individuals are asked to walk through the steps that they
would take if they were confronted with a likely future event or problem. They are
then assessed on their approach to handling the situation. Even though they don’t
always have the right answer, the process forces individuals to think ahead and
understand how to handle a situation.
Explore other delivery mechanisms and media. Every individual learns in his or her
own way, and some despise classroom training. As a result, you need to find ways to
help employees learn that fit into their style.
For example, give employees CDs to listen to during their commute, or provide
subscriptions to publications they can read on the subway to and from work. If your
budget allows, consider providing short videos on monitors located by elevators,
water coolers, and other areas where employees congregate. Some firms have
even utilized fortune cookies to send a key message. Identify the media that your
employees regularly utilize outside of work, and adapt them to development and
learning programs.
Respect development diversity. Many managers fail to realize that individuals from
different backgrounds learn and develop differently. It’s important when you design
programs to ensure that many different types of people will gain from them.
Try “the pit.” General Electric made the pit famous, and a similar tactic called
“constructive confrontation” is used at Intel. This approach employs senior managers
to deliver their ideas and assess the ideas of other employees.
In the pit, the individual presenting is encircled by other employees and managers,
and is bombarded with questions from the audience. Managers can observe individ-
uals asking tough questions and assess them on the quality of their questions and
their answers. The net effect is that if the idea is accepted the entire group will be
less resistant to it. If the idea is weak, those weaknesses will be uncovered during
this session.
Try surveying employees, as early as their first day, on what motivates and frustrates
them. Also, try asking employees to list what they want more of and less of in order
to maintain their productivity and motivation. It’s important to have discussions
directly with employees regarding motivation, as well as the challenges and learning
opportunities available to them.
Share learning best practices. Managers and employees often have little time for
traditional education. One way to speed up the learning process is to provide
employees with presorted sources of learning.
What that means is that an employee, rather than having to search through volumes
of Web pages and periodicals, instead receives a presorted list of the sources that
your most successful managers have found to be the most effective. The sources
selected are labeled by who uses them, how much they cost, and the type and
depth of information they contain. As additional sources are identified, the profile
is refined and updated.
Use list servers to support information sharing. Many organizations share information
and facilitate best practices via the company intranet. Unfortunately, the failure
rate is extremely high because it requires managers to periodically post their best
practices to the site.
A more effective option is using a list server, which only requires a manager to send
an email to the list. The email is then automatically shared with all other members
on the list. List server software is inexpensive and easy to use, and resistance is minimal.
Results can be easily archived for people researching questions that are likely to
have already been answered. List servers that are restricted to relatively narrow
technical or management areas are generally the most successful.
Convince the CEO to be your CDO. Nothing increases attendance and demonstrates
the importance of talent development like having senior management participate
in development efforts. By having the CEO and other senior officers sponsor, attend,
or even lead a session, it sends a clear message to everyone that development is
important. Solicit the CEO’s help by demonstrating the business impact of develop-
ment, then getting his or her commitment to allocate four to eight hours per
month to development efforts.
Work closely with managers that resist development efforts. While most managers
appreciate the development function, there is always a core group of managers
that resist overhead functions, and development is no exception.
The problem with this group is that they disparage development and can negatively
impact your overall image. As an alternative, try assuming that there are certain
individuals that will resist development, and seek them out in order to identify why
they feel this way. Consider putting them on a task force to design alternative training
programs, giving them ownership of the problem and the solution.
Seek out the managers with the biggest challenges. The best way to identify the
biggest business problems faced by the organization is to directly solicit the managers.
Once you know what your company-specific problems are, demonstrate to the
managers how learning and development efforts can help to solve them. This
approach will help change the development function’s image from a passive overhead
program provider to a proactive business problem solver. Also, targeting the biggest
business problems alleviates much of the concern about whether development is
directly aligned with corporate goals and objectives.
Put the right person in the right job. Keeping up with the rapid changes in business
means moving people quickly from low-return areas to high-return areas. For the
talent development function, this means proactively identifying individuals and
moving them into assignments, jobs, and business units where they can have the
most impact.
Change initiatives are top down and bottom up. The most effective talent development
functions expand their role beyond learning and development. They are also experts
in change management, because learning has little value if it is not implemented.
Information and decisions cannot always come from the top down. The trickle
down just takes too long. In a learning culture, initiatives come from the individual
with the most information relevant to the problem. The development function must
create processes to ensure the free flow of communication to increase the likelihood
that ideas, innovations, and criticisms come from every layer in the organization.
This is important because learning occurs in every level of the organization, and in
order to be successful, that information has to be passed quickly without having to
go through a tedious hierarchy.
Conclusion
The purpose of this white paper is to cause you to rethink your approach to talent
development, and it purposely takes a cynical view of the traditional approaches to
training and development. Managers seldom report being 100 percent satisfied with
the training and development options that are offered. Every year, development fads
come and go, but overall there has been little change. Surveys routinely point out
that managers’ expectations are not being met. If you need additional proof as to
whether or not the development function must improve, you need look no further
than development budgets, which are consistently slashed during tough economic
times. The message is clear: we need to do things differently.
These new approaches will emphasize fact-based decision making, in which decisions
on where to allocate development resources are based on data and business impact
rather than on intuition and past practices. That is the biggest key to success for
employees, their managers, and the organization.
Business case for managers Calculates the ROI of Fails to determine and
development activities and communicate to managers
communicates that informa- the economic impact of
tion to managers, driving participating in development
support for development activities.
activities. This business case
compares the performance
of units and managers with
their usage of development
tools and practices.
Managers are the primary The majority of training is Training and development
delivery mechanism delivered via managers, is delivered primarily via
including classroom and corporate trainers or third-
online learning. This is party consultants and
because managers have more outside experts.
credibility, can provide more
company examples, and can
be developed more quickly.
©2005, Dr. John Sullivan, reproduced with permission. Kronos Incorporated. Kronos and the Kronos logo are registered trademarks, and “Improving the
Performance of People and Business” is a trademark of Kronos Incorporated or a related company. All other product and company names mentioned are
used for identification purposes only, and may be the trademarks of their respective owners. Printed in the USA. xxxxx Rev. x
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