LEARNING TO BE STRATEGIC

In good times, companies need learning and development that contributes to growth and enables the realization of strategic goals. In rough times, companies need learning and development to do the same, while also paying attention to changing priorities and new challenges.

The same practices that have been shown to work during good times, such as alignment of learning and corporate strategy, involvement of corporate leaders with learning, and responsive processes for developing new courses and programs, are even more important in tough times.

It is always interesting to look at brand new survey results, especially since this year’s study was done in a different economic climate than previous studies. What we have found is that those learning organizations that consider themselves to be at the highest Strategic Function stage are doing many things the same way they always have. A Strategic Function learning organization is, according to the study definition, viewed as a strategic enabling function for the business, repeatedly delivering quantifiable business benefits; budgets and programs are expanding.  What is interesting in light of the economy is that many of those practices, designed to enable a long-term view of learning needs, also work when it is necessary to respond quickly to change.

The Stages of the Learning Organization

• Beginner: Currently in the process of reconfiguring the training organization and establishing a new focus for the function
• Early Stage: Have established structures to drive tighter alignment to business needs; have common practices and standards in place; positioned to deliver solid programs moving forward
• Valued Partner: Operating with a record of success for delivering solid programs and have credibility with most business units as a valued partner
• Strategic Function: Viewed as a strategic enabling function for the business, repeatedly delivering quantifiable business benefits; budgets and programs are expanding

 

Aligning learning

Alignment of learning with corporate strategy has always been a key to an effective learning function. It is one of the quadrants of the Corporate University Xchange 4 Quadrants of Corporate University Performance, and has its own category in the CorpU Awards for Excellence and Innovation program. Making the right decisions about what is important for L&D to focus on is one of the keys to that alignment. Strategic Function learning organizations are more likely to use the corporate strategic plan as their primary method to define learning needs (Figure 1).  Is this still an effective strategy in a time of change?

Figure 1

It can be if the learning organization has processes and procedures in place, and access to the information it needs to shift its strategy. Strategic Functions are more likely to consult with leaders, business managers, HR, and others when making decisions about L&D strategy (Figure 2). In times of change, that network of relationships has to be an advantage in learning what really is going on, not only at the most strategic levels, but also in terms of what is needed at all levels.

Figure 2

Another key factor that distinguishes aligned learning organizations is how they are governed. Almost half of Strategic Function organizations have an executive level oversight board that oversees learning. This is a dramatic difference from other organizations, since only 18% of all other survey respondents have oversight at that level.  Two-thirds of those governing boards meet to discuss future business priorities and the implications of those priorities on L&D programs, with more than half of governing boards meeting on a quarterly basis. We have long advocated that learning organizations have these kinds of governance structures and processes in order to facilitate the need for learning to be long-term and strategy-focused, but it is easy to see that the insights gained from executive level leaders discussing business priorities on a quarterly basis are critical as L&D tries to react to changes in those priorities.

Reacting to change

The importance of the involvement of a governing board of senior leaders can be seen in how L&D prioritizes the development of new programs. Although Strategic Function companies - in comparison to overall - are less likely to have a discussion specifically when a strategic priority is introduced (Figure 3), they are more likely to have quarterly discussions, corresponding to the governing board meeting interval described above.

Figure 3

Table 1 shows what methods are used to prioritize programs. This is a critical issue for companies that want to have learning that is aligned with the strategic business challenges they are facing. Learning organizations that classified themselves as Beginners (blue cell) were far more likely to have business units establishing their own priorities for learning. This is likely to lead to more tactical requests, and to make it more difficult for a learning organization to respond quickly to strategic change.  Strategic Function learning organizations (orange cell) are more likely to have the governing board establish priorities than other stages. A third of Strategic Functions have business units establish their priorities; the difference is that many of them have processes and procedures in place to “roll up” those priorities into a single learning plan for the company. Early Stage and Valued Partner companies (purple cells) use a portfolio management process more than the other stages, though the percentages are low. If implemented properly, this process can help establish priorities across the company and enable a learning organization to manage resources to respond to changes in strategy.

 

Table 1. Primary Method for Prioritizing New Learning Programs

	Overall	Beginner	Early Stage	Valued Partner	Strategic Function
Governing board establishes priorities	21%	18%	20%	18%	33%
Business units establish their own priorities	41%	56%	38%	36%	33%
Formal needs assessment by L&D	27%	18%	32%	31%	27%
ROI analysis	5%	9%	0%	3%	0%
Portfolio management process	8%	0%	10%	12%	6%

 

Another key factor that enables L&D to respond to change is the point at which learning is involved in the planning and execution of new initiatives that will require new courses or programs (Figure 4).  While it is useful to be involved in the planning phase as most survey respondents are, being involved when the initiative is being conceived - as a third of all Strategic Function learning organizations are - enables L&D to function in the role of a performance consultant, informing the initiative itself and not just the learning that may be required. This can add to the success of new initiatives, an important requirement in changing times.

Figure 4

There are no guarantees, but…

Learning doesn’t stop when times are tough. In fact, it should be a critical element of any corporate change, including rebuilding, mergers and acquisitions, staff changes, or wherever the change in strategy takes the company.  Having established processes and procedures in place that enable the learning organization to be part of the ongoing dialogue about what changes are coming will go a long way to assure that learning meets the strategic needs of the business, and is a major contributor to reaching new goals. 

These are just a few of the reports that are coming from the data from the 9th Annual Benchmarking Study. If you want to learn how your learning organization scores on these and many more attributes of a successful learning organization, there is still time to take part in the study. To begin, follow this link and get started today.