Learning and Development Insight 2012

7/31/2019 Learning and Development Insight 2012

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ProtAbility Insight: Great Learning in 2012 1

ProtAbilityInsight:Great Learning in 2012

experience your business uture


2/16


What makes great learning?

We received more than 400 dierent answers to

this queson which, when analysed, fell into threedisnct categories:

Anatudetolearning

Thelearningexperienceitself

Thebusinessimpactoflearning.

In the words of one respondent great learning

has the ability to change lives. This may be so, but

how do we turn that into something meaningful,

that learning and development can execute? In

order to begin answer this queson, the survey

went on to look in some detail at just two elements

of the learning mix learningmodality, and the

priorisaonoflearningobjecves.

Accelerangleadership remains top of many

organisaons training priories. But the number

of people that rate it as the most important has

declined since this me last year. Those that

commented were clear than the emphasis is

shiing to ensure that managers at every level

(not just the high potenals) are able to lead. 61%

of all companies surveyed have a high potenal

or leadership academy within the organisaon,dropping to 30% in companies with less than

1,000 employees. For c-level execuves (with

responsibility for training decisions), adapngto

change is most commonly cited as the top learning

priority.

Looking at learning modality, the quesons focused

on two separate areas: eLearning,andbusiness

simulaons. More than y percent of those

surveyed had used business simulaons. Yet onlyhalf of those were completely sased with their

experience. When asked why, the reasons were

clear: simulaons that were oversimplied, or

lacked customisaon; simulaons not blending

with the rest of the curriculum; or simply the

fact that businessimpacthadneverbeen

measured. Those organisaons that have fully

customised simulaons embedded within the

overall curriculum have a dierent perspecve. As

one respondent noted experienal learning has

certainly contributed to the results of the group.

For most, eLearning sll comprises only a small

proporon of the L&D budget.

TheProtAbilityInsightSurvey2012focusedontwokeythemes:

How much inuence do HR and L&D really have on business results?

What makes great learning? The report refers specically to:

o the impact of modality on learning eecveness

o training priories in 2012

Executive Summary

More than 430 human resources and learning and development professionals completed

the 2012 ProtAbility Insight Survey. These were split predominantly between the

USA and UK, with some representaon in Europe and Asia. The respondents included

144 c-level and execuve decision-makers, and 190 representaves from companies

employing more than 10,000 employees.


3/16


How much infuence do HR and L&D really have onbusiness outcomes?

In 75% of organisaons surveyed, either HR or L&D has a seat on the board or execuve. This reects

a growing proporon of the L&D community that are focused on becoming more strategic, rather

than operaonal, and who are working in partnership with the business to support performance goal

achievement. L&D has a much stronger inuence in the US than it does in the UK and the rest of the world,

where HR more oen oversees the L&D funcon.

An overwhelming majority of HR professionals agreed that in a changing business world, human capital

decisions must be aligned to the corporate strategy and vision. However, this is sll not recognised at

execuve level in many businesses. There are signs that this is beginning to change, but it is a slow process.


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The drive orgreat learning

In the ProtAbility New Dimensions user group

survey in late 2011, a number of key factors (see

chart below) were idened which reduce the

eecveness of skills-based business learning.

When combined with the other ndings from that

survey, three overall topics prevailed:

Movaon/arion reducing dropout rates

Retenon ensuring parcipants remember what

they have learned

Transferanduse ensuring that the results of

learning intervenons are embedded and used

and therefore impact business results.

ProtAbility increasingly works in partnerships

with clients such as Roche and Siemens, to deliver

a great learning service, so we were keen to

understand how the HR and L&D community views

great learning. As we approached the design

of the 2012 learning survey, we wanted to nd

out what factors were considered crical to great

learning and how organisaons are addressing

some of the issues that the 2011 research had

idened.

ProtAbility New Dimensions User Group survey, November 2011: What factors reduce the eecveness of skills-based business learning?


5/16


DeningGreat Learning

Increasingly, L&D and HR professionals recognise that looking at learning intervenons in isolaon is not

enough, and that this alone cannot deliver the desired business outcomes. With an increasing number of

HR and L&D professionals represented at execuve level, the emphasis is clear: training needs to prove its

eecveness on more than just individual development it must impact business results.

ProtAbilitys recent investments in collaborave and extended learning soluons* reect the need

to ensure that learning is retained and used. But clearly there is more to it than that, and dierent

organisaons vary signicantly in their outlook

Survey respondents talked about great learning in three disnct ways. The responses were evenly

split between these three areas, though it is worth nong that senior HR and L&D professionals from

organisaons with in excess of 100,000 employees were more inclined than other respondents to focus onbusiness results over and above the learning experience:

Toquoterespondents,greatlearning: is connuous learning and growth. It never

ends

is about being self-aware and open to learn

is engaging and experienal

is always an eecve use of me

is something that creates value

changes behaviours and perspecves

inspires immediate applicaon

has measureable business impact

makes a permanent impression

adds real long-term value to the person andthe organisaon

is something that people want to implement

acvates prior learning

transforms teams and their output

occurs when the L&D team is aligned to thecorporate vision shapes culture.

* You can nd out more about ProtAbilitys online learning plaorm from November 2012 on our websiteatwww.protability.com

Three possible denitions oGreat Learning


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Learning retention and use

The survey also looked at how organisaons ensure that learning is retained and used. In a frightening

24% of companies, learners have no structured support in taking learning back to their job. Another 24%

ensure that managers and workers work with L&D to create learning and applicaon programs designed to

achieve business results, which leaves the bulk of companies trying to help trainees apply learning, but not

in any formalised way.

At ProtAbility, we believe in working with clients to ensure that learning really does have an impact on

business results. We believe that every employee in any business can make a dierence, but only if their

learning journey is carefully managed to ensure that learning is retained and the vital bit used. The

responsibility for this is shared between management, departments, HR and L&D, and can be dicult to

manage. However, online learning plaorms, such as the one ProtAbility launched earlier this year, can

play a part in streamlining and monitoring the applicaon of learning.

Whichoftheseistypicalinyourorganisaon?

Learners have no structured support in taking learning back to their job

and applying it24%

Managers of trainees help them apply their learning 51%

Managers and workers work with L&D to create learning andapplicaon programs designed to achieve business result

24%


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Learningpriorities in

2012 - andemerging L&Dtrends

Company spending on learning and development

has been volale since 2008, declining and

recovering in reacon to the global nancial crisis

and its abatement. Recently, increased economic

uncertainty has again caused learning and

development budgets to come under pressure.

Learning organisaons realise that in the current

economic situaon, having highly eecve people

will make a dierence to business performance so

long as learning leaders align what they are doing

to the business goals. Whilst accelerang

leadership and adapng to change remain overall

the top priority for business skills training, 13% of

survey respondents now see strategy

implementaon as their main priority (see table on

page 9). This marks a signicant shi from 2011,

based on both anecdotal and specic client

feedback at that me.

According to CLO magazine, June

2012: CLOs have passed through a

dicult period, but a large numberexpect learning and development

will connue to evolve into a

stronger enty recognized as

contribung to delivery of business

strategies and objecves. Some

see dierent wring on the wall

and think CLOs will be under

severe cost-cung pressure unless

[they] can defend the strategic and

nancial impact.

The survey looked in detail at the training priories

and saw signicant dierences between dierent

regions, company sizes, funcons and vercal

market needs. This demonstrates that, now more

than ever, L&D funcons are becoming more

strategically aligned, and less inclined to buy

training from a shopping list of key deliverables.


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Topp

riority

Accelerang

leadership

Adapngto

change

Buildingfna

ncialunderstanding

Improvingth

ecompanyculture

Improvingca

show

Process,sup

plychainorLEAN

Salesandmarkeng

Strategicdevelopment

Strategyimp

lementaon

Teamwork

ALL 19% 17% 3% 3% 9% 6% 9% 10% 13% 11%

UK 16% 18% 6% 5% 9% 7% 9% 9% 11% 10%

USA 23% 15% 0% 0% 10% 5% 8% 11% 16% 12%

100k + companies 24% 11% 4% 4% 8% 4% 8% 11% 11% 14%

10k + companies 20% 17% 4% 2% 8% 6% 9% 9% 13% 10%

Less than 10k companies 15% 19% 0% 0% 10% 5% 9% 12% 19% 12%

L&D 25% 18% 4% 0% 12% 4% 7% 7% 13% 12%

HR 20% 18% 7% 4% 10% 6% 9% 7% 10% 9%

Exec / c-level 19% 23% 3% 2% 10% 1% 6% 9% 16% 11%

The table below looks at only the priority ranked by

parcipants as a top priority (the opons included

top priority, very important, fairly important,

not important and completely irrelevant).

Accelerang leadership was rated as top priority in

the US, within companies with more than 10,000

employees, and by learning and HR professionals.

However, smaller companies, and UK-based

businesses, ranked adapng to change as their top

priority. This reects the connuing uncertainty in

many markets, driven in part be economic factors,

but also due to compeon, issues of sustainability

and corporate social responsibility, and the

compeve nature of todays business world. The

percentage split for each group is shown in the

table below.


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Leadership training alonedoes not make great leaders

The denion of leadership within organisaons is evolving. Many claiming that the emphasis now is on

succession planning beyond the c-suite. As one senior HR professional put it leaders and managers

across the organisaon are helping allassociates build condence and drive improved results and in our

business, everyone is a leader of something.

This trend towards nurturing leadership qualies at every level is stronger in organisaons with more than

100,000 employees, where more than 80% of organisaons already have a leadership or high potenal

programme in place. In these businesses, which generally have a more mature leadership funcon,

some noted the focus on HiPos has been such that leadership skills organisaon-wide have simply been

neglected.

But companies focus on dierent elements of leadership depending on their requirements. Notable

responses from US organisaons included: Leadership is crical to culture-building, and Leadership

training helps leaders leverage new behaviours in the global marketplace.

Within the UK, adapng to change outranked accelerang leadership for the rst me, parcularly in

the minds of c-suite and execuve decision-makers. This reects a growing recognion that managers and

leaders of the future require a blended approach to learning. For example, building nancial acumen

was top priority for only 4% of those surveyed, and yet 75% ranked it as fairly important or very important.

Whilst acumen or nance for non-nancials is no longer top of the training shopping list, it is sllneeded. This is reected in the lack of true commercial acumen (as opposed to knowing some nancial

jargon) in many managers across a wide range of industries. ProtAbility works with a number of key

clients including for example, GKN, DSM, Nestl and Sky, for all of whom at least one commercial acumen

simulaon is a crical element of the curriculum.

This trend was reected across the board, with only improving cash ow and process/supply chain

rated as important by less than 50% of those surveyed.

Whilstaccelerangleadershipreceivedthemosttoppriorityvotes,itisinteresngtonotethatwhencombiningthescoresfor

theveryimportantandimportant,accelerangleadershipdropsdowntosixthplace.


10/16


So what does this really tell us?

The results of the survey suggest a levelling-out

process, where organisaons are reluctant to

priorise one need at the expense of others. The

diculty, in a climate of economic uncertaintyfor many, is that conicng incenves, and the

challenge in accurately measuring and managing

key factors are simply impossible to manage when

training resources have been reduced, and lack

of funding and support and not enough hours in

the day.

In this bale of compeng priories, a clear

direcon from the business is crical to sorng the

wood from the trees if talent management and

human capital are to adopt the most appropriatestrategic priories to help businesses build

compeve advantage moving forward. This will

be especially challenging for L&D departments who

are split by region or siloed by department or need

(for a detailed breakdown by industry sector, please

see appendix 1).


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Learning modality

Content, audience, environment and available technology all play a role in how learning is delivered.

The survey showed that organisaons seem to be spending on average less than 20% of their training

budget on e-learning, and that 10% of businesses (predominantly those with less than 10,000 people)

spend nothing at all on eLearning. eLearning spend in the USA is slightly higher than in the UK and rest of

the world, as shown in the chart below.

Businesses are geng more sophiscated in their modality choices. Classroom training remains the most

signicant form of training despite innovave alternaves largely because even the most eecve new

technologies cannot compare with real-life experience. Organisaons that reduce their classroom-basedinformaon are most oen driven by cost. Yet when organisaons increase their use of classroom-learning,

it is because of eecveness.

e-learning spend as a % of total L&D budget


12/16


Why businesssimulations succeed -

and why they can ailThe use of business simulaons is increasing, with 59% of those surveyed having used simulaons and, of

these, 64% are sll using them. The main reasons cited for those that have not used simulaons, or whose

experience was less than sasfactory were clear

1. Lackofspecicitytotheirbusinessneeds/lackofcustomisaon

2. Perceivedhighcostofdelivery

As one learning and development director put it succinctly it must resonate with real life. Good

simulaons are expensive for a reason because they work. They must be embedded in the curriculum

and demonstrate results. I need to know I will get real value for money, which means simulaons tailored

to my business needs, by an expert provider who really knows what they are doing.

Learning modality should be chosen based on the learning objecves. This is reected in the modalies

ProtAbility uses to maximise the eecveness of learning intervenons:

scenario-basedsimulaonsallow parcipants to experiment with teams, change iniaves,

strategic development and implementaon, and to enhance leadership and so skills

boardbasedsimulaonsdemonstrate the movement of money through a business

onlinelearningplaorms support informal learning, reinforce the impact of training, and

allow content-based informaon sharing, encouraging applicaon and peer-to-peer interacon.

Well-designed informal learning can improve producvity and eciency.

highqualityonlineandmobilelearning (online facilitated workshops, self-paced learning,

synchronous and asynchronous simulaons) used pre-and post-intervenon, and to roll out learning

across dispersed, me-poor teams.As organisaons apply the principles of gamicaon, the

potenal amount of learning that can be absorbed is staggering.

The most signicant informal learning is not technology based. On-the-job experiences, mentoring, and

discussions with peers connue to be considered by learning professionals to be the most powerful

informal learning. Leveraging exisng and informal content is increasingly vital as HR and L&D are limited

by economic pressures in their content generaon. The potenal opportunity for customised collaborave

learning plaorms is in facilitang informal content generaon by professionals across the organisaon.

ProtAbilitys research shows that whilst many o-the-shelf social tools are not t for learning purposes,

the use of a collaborave learning plaorm to facilitate content sharing and peer-to-peer review can be

enormously powerful. The use of rapid authoring tools is likely to plateau, as companies realise that more

sophiscated, custom soluons and simulaons require complicated tools and expert instruconal design

from companies like ProtAbility.


13/16


EmpoweringL&D and HR

Morethan95%ofHRprofessionalswesurveyed

agreedwiththisstatement.Asonesenior

talentmanagerputitIntheUKbusinessfor

therstmethisyearwehavefullyaligned

ourpeoplestrategytothebusinessstrategy

outsideofthecorporateHRstrategy,seeingit

forecastedover3-5yearswithafocusontalent

development,upliingskills,workforceplanning

andengagement.IdoagreethatHRhasbecome

morecricalinsupporngbusinessstrategy

andtheresultswithinourbusinessareclearly

demonstrangthis.

Organisaons benet from being nimble at

change, spong organisaonal eciencies,

strengths and weaknesses, and helping build

leadership teams and competencies to ensure the

organisaon is well led and managed. An eecve

HR department should be playing that strategic

role Head of HR internaonal, Legal & General.

As market demands continue to change,

organisational success will hinge on HRs

ability to connect human capital decisions.

Executive Grapevine, June 2012

However, a signicant proporon of assenters

were keen to point out that whilst they in the

human resources funcon were very clear on the

crical importance of human capital decisions, in

reality, we are too slow to react as a company, an

business and people strategy are not really well

aligned. We are undergoing extensive change but

operaonal HR managers in parcular are not being

kept fully in the picture.

There is also a strong argument that the focus on

human capital should be crical not just within

the HR and L&D funcons, but in business leaders

generally. As the HR business partner for a leading

pharmaceucal rm put it I agree there should be

a connecon - but is this the responsibility enrely

of HR?? My view is that we need Business Leaders

with a strong HR ability.


14/16


Executiveresponsibility

An increasing proporon of HR and L&D

professionals are reaching board level posions,

reecng the increasing emphasis on the

importance of talent and human capital decisions

within successful business. Notably, as the chart

below shows, both HR and L&D have greater

presence within the US market. This contrasts with

the emphasis in countries with head oces or

regional talent funcons within the UK and Europe,

where learning and development can somemes be

seen as a funcon within human resources, rather

than as an enty in its own right. As one parcipant

put it succinctly long-mers are running the show.

This makes iniang and execung change across

the organizaon extremely dicult.

A senior HR business partner at the UKs leading

airline makes this comment: There is growing

evidence that human resources are crucial to

organisaonal success, and may oer the best

return on investment for sustainable compeve

advantage. We turn to treang human resources

as a capital investment for compeve advantage.

Specic aenon is given to increasingly recognised

human and social capital and the newly proposed

posive psychological capital. We must pay

aenon to guidelines on how to praccally

manage human, social, and posive psychological

capital for an organisaon to gain compeve

advantage

Experience great learning that drivesbusiness outcomes

Call us today on +44(0)1491821900 in the UK and Europe, or(630)35-6096 in North America,

email [email protected] , or register for a free experience workshop at www.protability.com

% of organisaons with learning and development representaon at board or execuve level

80%

60%

40%

20%

0%


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Learning priorities byindustry sectorSome interesng trends emerged when looking at the learning priories by industry sector, as shown on

the table below. The most important priories are shown in pink, and the least important in green.

(Note the caveat that these numbers are unlikely to hold up to robust stascal tesng, with respondentnumbers by industry sector varying from 18 to 58 people, so should be used as indicave of trends and not

as concrete data)

Strategy

Buildingfnancial

Process,supplychain

Adapngtochange

Salesandmarkeng

Accelerangleadership

Strategicdevelopment

Improvingcashow

Teamwork

Improvingthe

ALL respondents N = 430

mostimportant 61% 57% 56% 55% 54% 51% 42% 40% 32% 30%

leastimportant 7% 11% 9% 13% 11% 14% 28% 23% 24% 35%

Educaon / training / business schools N = 36

mostimportant 72% 58% 76% 32% 57% 58% 47% 42% 27% 28%

leastimportant 4% 4% 4% 23% 7% 15% 25% 26% 27% 45%

Banking and Finance N = 42

mostimportant 72% 71% 80% 69% 52% 51% 31% 55% 33% 9%

leastimportant 3% 3% 3% 3% 3% 3% 29% 11% 14% 46%

Ulies / government N = 58

mostimportant 65% 54% 55% 47% 47% 55% 35% 25% 40% 31%

leastimportant 8% 17% 12% 16% 23% 16% 43% 38% 31% 38%Manufacturing N = 50

mostimportant 59% 63% 54% 64% 59% 46% 52% 50% 32% 58%

leastimportant 7% 5% 10% 6% 11% 13% 33% 11% 16% 10%

Retail N = 18

mostimportant 60% 69% 38% 53% 60% 73% 31% 36% 19% 25%

leastimportant 7% 0% 8% 7% 0% 0% 31% 29% 31% 50%

Media tech telco N = 40

mostimportant 53% 64% 53% 58% 59% 45% 41% 58% 36% 22%

leastimportant 9% 6% 6% 6% 6% 15% 25% 16% 17% 42%

Pharms N = 30

mostimportant 52% 44% 33% 48% 48% 58% 42% 36% 24% 35%

leastimportant 11% 16% 22% 19% 12% 17% 21% 16% 31% 27%

FMCG, food & drink, restaurants N = 21

mostimportant 65% 58% 60% 64% 50% 63% 47% 58% 45% 37%

leastimportant 6% 11% 10% 7% 6% 0% 12% 0% 5% 21%

Logiscs, transport and distribuon N = 19

mostimportant 63% 69% 69% 69% 69% 71% 50% 50% 44% 40%

leastimportant 0% 13% 13% 6% 13% 12% 14% 17% 17% 20%

Appendix 1


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ProtAbilityLtd

Stables 1,

Howbery Park,

Wallingford,

Oxon OX10 8BA

United Kingdom

t: +44 (0) 1491821900

f: +44 (0) 1491821901

e: [email protected]

Protability Business Simulaons, October 2012

www.protability.com

Learning and Development Insight 2012

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