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McGraw-Hill/Irwin

Strategic Training

2008 The McGraw-Hill Companies, All Rights Reserved

Introduction: Business Strategy

A plan that integrates the companys goals, policies, and actions The strategy influences how the company uses:
physical capital (plants, technology, and equipment) financial capital (assets and cash reserves) human capital (employees)

The business strategy helps direct the companys activities to reach specific goals
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Strategy impacts training with a strong

influence on determining: (1 of 2)
The amount of training devoted to current or future job skills The extent to which training is customized for:
the particular needs of an employee, or developed based on the needs of a team, unit, or division

Whether training is restricted to specific groups of employees or open to all employees

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Strategy impacts training with a strong

influence on determining: (2 of 2)
Whether training is:
planned and systematically administered, or provided only when problems occur, or spontaneously as a reaction to what competitors are doing

The importance placed on training compared to other human resource management practices such as selection and compensation
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Evolution of Trainings Role

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Evolution of Trainings Role: Learning

The acquisition of knowledge by individuals, employees, or groups of employees Willing to apply that knowledge in their jobs in making decisions and accomplishing tasks for the company

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Evolution of Trainings Role: Knowledge

Human and social knowledge; what individuals or teams of employees know or know how to do, and structured knowledge Two types:
explicit knowledge knowledge that can be formalized, codified, and communicated tacit knowledge personal knowledge based on individual experience; difficult to explain to others
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Key Capabilities Needed to Implement Learning Strategies (1 of 2 )

Alignment of learning goals to the business goals Measurement of the overall business impact of the learning function Movement of learning outside the company to include customers, vendors, and suppliers A focus on developing competencies for the most critical jobs
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Key Capabilities Needed to Implement Learning Strategies (2 of 2 )

Integration of learning with other human resource functions such as :
knowledge management performance support talent management

Training delivery approaches that include classroom as well as e-learning Design and delivery of leadership development courses
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The Strategic Training and Development Process:

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Decisions a Company Must Make About How to Compete to Reach its Goals:
1. Where to compete?
In what markets, industries, products will we compete?

2. How to compete?
On what outcome or differentiating characteristic will we compete?

3. With what will we compete?

What resources will allow us to beat the competition? How will we acquire, develop, and deploy those resources to compete?

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Strategic Training and Development Initiatives and their Implications (1 of 4)

Strategic Training and Development Initiatives Diversify the Learning Portfolio Expand Who is Trained Implications Use new technology for training Facilitate informal learning Provide more personalized learning opportunities Train customers, suppliers, and employees Offer more learning opportunities for non-managerial employees Quickly identify needs and provide a high-quality learning solution Reduce the time to develop training programs Facilitate access to learning resources on an asneeded basis
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Accelerate the Pace of Employee Learning

Strategic Training and Development Initiatives and their Implications (2 of 4)

Strategic Training and Development Initiatives Improve Customer Service Implications Ensure that employees have product and service knowledge Ensure that employees have skills needed to interact with customers Ensure that employees understand their roles and decision-making authority Ensure that employees have opportunities to develop Ensure that employees understand career opportunities and personal growth opportunities Ensure that training and development addresses employees needs in current job as well as growth opportunities
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Provide Development Opportunities and Communicate to Employees

Strategic Training and Development Initiatives and their Implications (3 of 4)

Strategic Training and Development Initiatives Capture and Share Knowledge Implications Capture insight and information from knowledgeable employees Logically organize and store information Provide methods to make information available

Align Training and Development with the Companys Strategic Direction

Identify needed knowledge, skills, abilities, or competencies Ensure that current training and development programs support the companys strategic needs

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Strategic Training and Development Initiatives and their Implications (4 of 4)

Strategic Training and Development Initiatives Implications

Ensure That the Work Environment Supports Learning and Transfer of Training

Remove constraints on learning Dedicate physical space to encourage teamwork, collaboration, creativity, and knowledge sharing Ensure that employees understand the importance of learning Ensure that managers and peers are supportive of training, development, and learning

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Example: SunUs Analysis to Align Training with Business Strategy (1 of 3)

Customers
Who are our customers and how do we work for them?

Organization
What is the nature of practices required to complete our mission?

Products and Services

How do we ensure that our products and services meet strategic requirements? 2-16

Example: SunUs Analysis to Align Training with Business Strategy (2 of 3)

Research and Development
How do we stay current in the training and learning fields and use our knowledge in these areas?

Business Systems
What are the processes, products, tools, and procedures required to achieve our goals?

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Example: SunUs Analysis to Align Training with Business Strategy (3 of 3)

Continuous Learning
How do we recognize that learning at Sun Microsystems is continuous, is conscious, and comes from many sources?

Results
How do we obtain results according to our customers standards?

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Metrics and Training: Balanced Scorecard

(1 of 2)

Measurements that look at performance from the perspective of:

internal customers external customers employees shareholders

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Metrics and Training: Balanced Scorecard

(2 of 2)

Four different perspectives are considered:

Customer
(time, quality, performance, services, cost)

Internal
(processes that influence customer satisfaction)

Innovation and Learning

(operating efficiency, employee satisfaction, continuous improvement)

Financial
(profitability, growth, shareholder value)
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Organizational Characteristics That Influence Training

Roles of Employees and Managers Top Management Support Integration of Business Units Global Presence
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Business Conditions Other HRM Practices

Extent of Unionization
Staff Involvement in Training and Development

Functions of Managers in Traditional Work Environments

Manage individual performance Develop employees Plan and allocate resources Coordinate interdependent groups Manage group performance Monitor the business environment Represent ones work unit
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The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (1 of 3)

Managing Alignment
Clarify team goals and company goals Help employees manage their objectives Scan organization environment for useful information for the team

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The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (2 of 3)

Coordinating Activities
Ensure team meets internal and external customer needs Ensure team meets quantity and quality objectives Help team resolve problems with other teams Ensure uniformity in interpretation of policies and procedures

Facilitating Decision-Making Process

Facilitate team decision making Help team use effective decision-making processes
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The Roles and Duties of Managers in Companies That Use High-Performance Work Practices (3 of 3)

Encouraging Continuous Learning

Help team identify training needs Help team become effective at on-the-job training Create environment that encourages learning

Creating and Maintaining Trust

Ensure that each team member is responsible for his or her work load and customers Treat all team members with respect Listen and respond honestly to team ideas
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Top Management Support

Vision Sponsor Governor Faculty Learner Marketing agent

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Other HRM Practices (1 of 2)

Consist of the management activities related to:
investments in staffing performance management training compensation and benefits

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Other HRM Practices (2 of 2)

The type of training and resources devoted to training are influenced by the strategy adopted for two HRM practices:
Staffing Human Resource Planning

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Staffing Strategy Influence on Training

Companys decisions regarding:
where to find employees how to select them the mix of employee skills and statuses

Two aspects of a companys staffing strategy influence training:

assignment flow supply flow
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Implications of Staffing Strategy for Training

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HR Planning Influence on Training

HR planning
allows the company to anticipate the movement of human resources in the company can help identify where employees with certain types of skills are needed in the company

Training can be used to prepare employees for:

increased responsibilities in their current job promotions, lateral moves, transfers downward job opportunities that are predicted by the human resource plan
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Implications of Business Strategy for Training

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Models of Organizing the Training Department

Faculty Model Customer Model

Matrix Model

Embedded model

Corporate University Model

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The Faculty Model

Director of Training Safety Training Quality Training Technology and Computer Systems Leadership Development Sales Training

Training Specialty Areas

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The Customer Model

Director of Training Information Systems Marketing Production and Operations Finance

Business Functions

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The Matrix Model

Director of Training

Training Specialty Areas

Sales Training

Quality Training

Technology and Computer Systems

Safety Training

Marketing

Production and Operations

Business Functions
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The Corporate University Model

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Business-Embedded Model
The business embedded (BE) model is characterized by five competencies:
strategic direction product design structural versatility product delivery accountability for result

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Comparison between a Business-Embedded Training Organization and a Traditional Training Department

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Tactics to Market the Training Function

(1 of 2) Involve the target audience in developing the training or learning effort Demonstrate how a training and development program can be used to solve specific needs Showcase an example of how training has been used within the company to solve specific business needs
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Tactics to Market the Training Function

(2 of 2) Identify a champion who actively supports training Listen and act on feedback received from clients, managers, and employees Advertise on e-mail, on company websites, in employee break areas

Designate someone in the training function as an account representative between the training designer and internal customer
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Outsourcing Training
Outsourcing use of an outside company that
takes complete responsibility and control of some training or development activities takes over all or most of a companys training

Business process outsourcing outsourcing of any business process

human resource management, production, or training

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