Strategic Planning for Training & Development

Strategic Planning for Training & Development

-Strategic Alignment of Learning Systems-

Strategic Planning for Training & Development

-Strategic Alignment of Learning Systems-

Guy W. Wallace, CPT

Can be reached currently at:

EPPIC Inc.

www.eppic.biz

Guy W. Wallace, CPT Guy W. Wallace, CPT

Can be reached currently at:

EPPIC Inc.

EPPIC Inc.

www.eppic.biz www.eppic.biz

SWI Strategic Planning for Training &

Development

-Strategic Alignment of Learning Systems-

Since 1978

Original version presented at the

1996 ISPI Conference April 18, 1996

Guy W. Wallace, SWI Partner Aligning

Human

Talent

and

Energy

3

Foreword to the Presentation Foreword to the Presentation Foreword to the Presentation

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and the systems to address those are never simple

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with this complexity

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and its human asset development needs

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needs of the business

Foreword

About SWI About SWI About SWI

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Performance Technology

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-Organizational Architecture

-^Staffing -^T&D

-^Assessment

-Rewards & Recognition

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their strategic intent through the application of Human Performance Technology

Performance Technology

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Management, specifically

--Organizational ArchitectureOrganizational Architecture

--StaffingStaffing

--T&DT&D

--AssessmentAssessment

--Rewards & RecognitionRewards & Recognition

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Guy Wallace Guy Wallace Guy Wallace

Alpha

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Technology, Instructional Technology, and project planning and management principles to T&D efforts

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and journalist for U.S. Navy

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Technology, Instructional Technology, and project planning Technology, Instructional Technology, and project planning and management principles to T&D efforts

and management principles to T&D efforts

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Architecture Design and Development

Q ^UALITY

ROADMAP

Q ^UALITY

ROADMAP

How to Get Your Company on the Quality Track —

And Keep It There

SWI Books SWI Books SWI Books

THE

TRAINING

AND

DEVELOPMENT

STRATEGIC

PLAN

WORKBOOK

RAYNOLD A. SVENSON MONICA J. RINDERER

WINNER!WINNER!

Ray Svenson Karen Wallace Guy Wallace with Bruce Wexler

Business Drivers Business Processes

and Metrics Resource Infrastructure

As es s s

D es gi n

D e p l o y

I n t e g r a t Working Level e Middle Management Executives

THE THE

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Strategic Planning for Training &

Development Projects

Strategic Planning for Training &

Strategic Planning for Training &

Development Projects Development Projects

• Abbott Laboratories 1993

• ALCOA 1984, 1985, 1986, 1991

• Allstate Insurance 1991, 1992

• Amoco 1992, 1993

• AT&T 1981, 1984, 1986, 1987, 1988, 1991, 1992

• Bandag, Inc. 1995

• Baxter Healthcare 1983, 1986

• CCH, Inc. 1993

• Commonwealth Edison 1981, 1983

• Contel 1989

• Data General Corporation 1993

• Digital Equipment Corporation 1987, 1992

• Discover Card Services, Inc. 1992

• Dow Chemical 1986

• E. I. Du Pont 1991

• Eli Lilly and Company 1996

• Exxon 1981, 1982

• Ford Design Institute 1993

• General Dynamics 1990

• General Motors Corporation 1984, 1986, 1990

• GPU Nuclear 1986

• Hoechst Celanese Corporation 1992

Strategic Planning for Training &

Development Projects

Strategic Planning for Training &

Strategic Planning for Training &

Development Projects

Development Projects

• Illinois Bell 1986, 1987, 1988

• Intel 1990

• International Harvester 1980

• Johnson & Johnson 1988

• Maryland State Department of Education 1990

• Mobil 1990

• NASA 1993

• NCR 1990

• Northern Telecom 1983, 1984

• Northern Trust Bank 1987

• Novacor Chemical, Ltd. 1993, 1994

• Occidental Chemical 1989

• Pacific Telephone & Telegraph 1978

• Salt River Project 1988

• Shell Oil 1982

• Square D 1990

• Tenneco 1983

• Texaco Canada 1988

• The World Bank 1992

• United Airlines 1995

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Session Objectives Session Objectives Session Objectives

After this session, you will be able to

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Development would have value in your organization

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After this session, you will be able to After this session, you will be able to

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of a world--class systemclass system

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Development would have value in your organization Development would have value in your organization

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project to senior management

A-1

Session Agenda Session Agenda Session Agenda

1. Session open

2. The business need and rationale for Strategic Planning for Training & Development

3. T&D system assessment handout

4. SWI’s business and T&D systems models

5. SWI’s four-phase Strategic Planning for Training &

Development process

6. Planning a Strategic Planning for Training & Development project

7. Selling a Strategic Planning for Training & Development project

1.1. Session openSession open

2.2. The business need and rationale for Strategic Planning for The business need and rationale for Strategic Planning for Training & Development

Training & Development

3.3. T&D system assessment handoutT&D system assessment handout

4.4. SWI’sSWI’s business and T&D systems modelsbusiness and T&D systems models

5.5. SWI’sSWI’s four-four-phase Strategic Planning for Training & phase Strategic Planning for Training &

Development process Development process

6.6. Planning a Strategic Planning for Training & Development Planning a Strategic Planning for Training & Development project

project

7.7. Selling a Strategic Planning for Training & Development Selling a Strategic Planning for Training & Development project

project

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Section 2 Section 2 Section 2

The Business Need and Rationale for

Strategic Planning for

Training & Development

- SPT&D -

The Business Need and The Business Need and

Rationale for Rationale for

Strategic Planning Strategic Planning

for for

Training & Development Training & Development

- - SPT&D SPT&D - -

T&D . . . A Means to an End T&D . . . A

T&D . . . A Means Means to an to an End End

High-

performing Organization

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Learning Culture

T&D . . . A Means to an End T&D . . . A

T&D . . . A Means Means to an to an End End

High-

performing Organization

T&D System

Learning Culture

T&D . . . A Means to an End T&D . . . A

T&D . . . A Means Means to an to an End End

High-

performing Organization

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Changing Forces in the Business Environment Changing Forces in the Changing Forces in the

Business Environment Business Environment

TQMTQM

GlobalizationGlobalization

TechnologyTechnology

Price, Quality,

Time Competition

Price, Quality,

Time Competition Re-engineeringRe-engineering

B-1

Supplier/Customer Partnerships Supplier/Customer

Partnerships Workforce

Diversity Workforce

Diversity

Major Paradigm Shift Major Paradigm Shift Major Paradigm Shift

19001900 19501950 20002000 Craft

Production (Agricultural

Economy) Craft Production (Agricultural

Economy)

Lean Production (Information

Economy) Lean Production (Information

Economy) Mass Production

(Industrial Capital Economy) Mass Production (Industrial Capital

Economy)

17761776 Economic

Emphasis Economic Emphasis

21002100

Craft

Production (Agricultural

Craft

Production (Agricultural

Mass

Production (Industrial

Mass

Production (Industrial

Lean

Production (Information

Lean

Production (Information

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Some Common Themes in the New Paradigm

Some Common Themes in Some Common Themes in

the New Paradigm the New Paradigm

B-1

Teams and teamworkTeams and teamwork

Decentralizing decisionsDecentralizing decisions The learning organizationThe learning organization

Process controlProcess control

Continuous improvementContinuous improvement Bureaucracy bustingBureaucracy busting

Supply-chain partnershipsSupply-chain partnerships

Networked organizationsNetworked organizations

Disappearance of standard jobsDisappearance of standard jobs DelayeringDelayering

Quantitative decision-makingQuantitative decision-making

EmpowermentEmpowerment

Cycle-time reductionCycle-time reduction Information technologyInformation technology Elimination of wasteElimination of waste

Customer focusCustomer focus

Central service groupsCentral service groups 1/2 the time

1/10 the defects 2/3 the cost

1/2 the time 1/10 the defects

2/3 the cost

Workforce Implications Workforce Implications Workforce Implications

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*New skills*New skills

*Continuous learning

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T&D Implications T&D Implications T&D Implications

• Peak performance requires full skills development

• Multidimensional change multiplies the new skills to be learned

• Management of the skills inventory (human assets) becomes an executive priority

• T&D are managed as an investment

• Training response times must be much shorter

• Training must be more customized to individual and team needs and local conditions

• Training can take advantage of the different tools and technologies emerging in the new business environment

• Learning becomes a part of everyday work versus training as a single event

• Trainers often replaced by on-the-job coaches

•• Peak performance requires full skills developmentPeak performance requires full skills development

•• Multidimensional change multiplies the new skills to be learnedMultidimensional change multiplies the new skills to be learned

•• Management of the skills inventory (human assets) becomes an exeManagement of the skills inventory (human assets) becomes an executive cutive priority

priority

•• T&D are managed as an investmentT&D are managed as an investment

•• Training response times must be much shorterTraining response times must be much shorter

•• Training must be more customized to individual and team needs and local Training must be more customized to individual and team needs and local conditions

conditions

•• Training can take advantage of the different tools and technologTraining can take advantage of the different tools and technologies emerging ies emerging in the new business environment

in the new business environment

•• Learning becomes a part of everyday work versus training as a single eventLearning becomes a part of everyday work versus training as a single event

•• Trainers often replaced by on-Trainers often replaced by on-thethe--job coachesjob coaches

B-1

Traditional Learning Culture

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Learning Culture for Today’s Environment

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systematically focused to support business goals

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Learning Culture for Today’s Environment

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systematically focused to support business goals

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The Shifting Organizational Learning Culture

The Shifting Organizational The Shifting Organizational

Learning Culture

Learning Culture

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What is this worth to the business? What is this worth to the business?

B-1

Financial Analysis of Training Opportunities

Financial Analysis of Training Financial Analysis of Training

Opportunities Opportunities

e.g.,

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e.g., e.g.,

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Cost of Conformance

Cost of Conformance

By itself, the cost of conformance (COC) may be large By itself, the cost of conformance (COC) may be large All of the costs required to train the workforce to a level of competence and to define, develop, and deliver the

needed training

All of the costs required to train the workforce to a level of competence and to define, develop, and deliver the

needed training

= =

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Financial Analysis of Training Opportunities

Financial Analysis of Training Financial Analysis of Training

Opportunities

Opportunities

e.g.,

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e.g., e.g.,

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assets

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Cost of

Nonconformance Cost of

Nonconformance

Relative to the cost of conformance (COC), the cost of nonconformance (CONC) is probably far greater and far

more scary

Relative to the cost of conformance (COC), the cost of nonconformance (CONC) is probably far greater and far

more scary

All of the costs for less than perfect performance

All of the costs for less than perfect performance

= =

B-1

The Return on Investment Calculation

The Return on Investment The Return on Investment

Calculation Calculation

ROI = ROI = ^{CONC - COC CONC - COC}

COC COC Return - Investment Return - Investment

Investment Investment = =

CONC = Cost of Nonconformance COC = Cost of Conformance

CONC = Cost of Nonconformance COC = Cost of Conformance

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Training’s Impact on ROI Training’s Impact on ROI Training’s Impact on ROI

Situation

A major semiconductor manufacturer has an automated production process where unscheduled downtime is worth

$10,000/hour. Maintenance technicians have not received training on new process control computers. In the first six months, downtime has equaled 30 percent, of which one- quarter can be attributed to training.

Situation Situation

A major semiconductor manufacturer has an automated A major semiconductor manufacturer has an automated production process where unscheduled downtime is worth production process where unscheduled downtime is worth

$10,000/hour. Maintenance technicians have not received

$10,000/hour. Maintenance technicians have not received training on new process control computers. In the first six training on new process control computers. In the first six months, downtime has equaled 30 percent, of which one months, downtime has equaled 30 percent, of which one-- quarter can be attributed to training.

quarter can be attributed to training.

B-1

Training’s Impact on ROI

(continued)

Training’s Impact on ROI Training’s Impact on ROI

(continued) (continued)

Value Value

30 X 80 X 24 == 576 hours of downtime 576 hours of downtime

% Downtime

% Downtime Hours/weekHours/week WeeksWeeks

576 X 0.25 X $10,000 == $1,440,000 value$1,440,000 value Hours

Hours % Training% Training DowntimeDowntime CostCost

CostCost

$150,000 + $150,000 + $40,000 == $340,000$340,000 Development

Development InstructorInstructor StudentStudent and Facilities

and Facilities

ROI ROI

$1,400,000

$1,400,000 -- $340,000$340,000

== 312%312%

$340,000

$340,000

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Training’s Impact on ROI

(continued)

Training’s Impact on ROI Training’s Impact on ROI

(continued) (continued)

Situation

A telephone company has installed new workstations and software for 250 service representatives. Training was informal, and the measured productivity of the CSRs has reached only 50 percent of capacity after four months.

Situation Situation

A telephone company has installed new workstations and A telephone company has installed new workstations and software for 250 service representatives. Training was software for 250 service representatives. Training was informal, and the measured productivity of the

informal, and the measured productivity of the CSRsCSRs has has reached only 50 percent of capacity after four months.

reached only 50 percent of capacity after four months.

B-1

Training’s Impact on ROI

(continued)

Training’s Impact on ROI Training’s Impact on ROI

(continued) (continued)

Value Value

$40,000 X 100% X 250 X 0.50 == $5 million annual$5 million annual Loaded

Loaded % of job% of job CSRsCSRs ProductivityProductivity (plus irate customers,(plus irate customers, annual

annual using theusing the %% overtime, etc.)overtime, etc.) salary

salary workstationworkstation

CostCost

$300,000 + $140,000 == $440,000 - $0.5 million$440,000 - $0.5 million Development

Development Deliver 3 days toDeliver 3 days to 250250CSRsCSRs

ROI ROI

5 -5 - 0.50.5

== 9:19:1 0.50.5

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Section 3 Section 3 Section 3

T&D

System Assessment

- plus handout -

T&D T&D

System System Assessment Assessment

- - plus handout - plus handout -

Attributes of a World-Class T&D System

Attributes of a World

Attributes of a World - - Class T&D Class T&D System

System

1. Organizational cultural values support full competency development and lifelong learning

2. Everyone participates in the T&D system and processes

3. The T&D system is driven by business performance goals and is performance-based

4. There are tight linkages between T&D departments and the users of their services

5. There is strong executive leadership and participation 6. T&D resources are matched to need and objectives

7. T&D staffs are competent and include a balanced mix of expertise 1.1. Organizational cultural values support full competency Organizational cultural values support full competency

development and lifelong learning development and lifelong learning

2.2. Everyone participates in the T&D system and processesEveryone participates in the T&D system and processes

3.3. The T&D system is driven by business performance goals and is The T&D system is driven by business performance goals and is performance

performance--basedbased

4.4. There are tight linkages between T&D departments and the users There are tight linkages between T&D departments and the users of their services

of their services

5.5. There is strong executive leadership and participationThere is strong executive leadership and participation 6.6. T&D resources are matched to need and objectivesT&D resources are matched to need and objectives

7.7. T&D staffs are competent and include a balanced mix of expertiseT&D staffs are competent and include a balanced mix of expertise

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8. A balanced array of T&D strategies is employed

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9. There is strong administrative coordination of all T&D efforts

10. Internal T&D resources are leveraged through appropriate use of outside resources

8.8. A balanced array of T&D strategies is employedA balanced array of T&D strategies is employed

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advanced computer technologies

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9.9. There is strong administrative coordination of all T&D There is strong administrative coordination of all T&D efforts

efforts

10.10. Internal T&D resources are leveraged through appropriate Internal T&D resources are leveraged through appropriate use of outside resources

use of outside resources

Attributes of a World-Class T&D System

Attributes of a World

Attributes of a World - - Class Class T&D System

T&D System

B-1

Trends in T&D Trends in T&D Trends in T&D

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Section 4 Section 4 Section 4

SWI’s Business

and

T&D Systems Models

SWI’s SWI’s Business Business

and and

T&D Systems T&D Systems

Models

Models

SWI’s Business Model Context for T&D

SWI’s

SWI’s Business Model Business Model Context for T&D

Context for T&D

Human Asset Management System

Human Asset Management System

Business Drivers

Business Metrics

Business Processes

Human Performance

Models

Human Assets Infrastructure

Environmental Assets Infrastructure

Organization Architecture

Staffing

Training

&

Development

Assessment

Rewards and Recognition

Business Architecture Business Architecture Process/Perform

ance Requirements Process/Perform

ance Requirements

Infrastructure Requirements

Infrastructure Requirements

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The Business Architecture of T&D

The Business Architecture The Business Architecture

of T&D of T&D

C-1

Government

Shareholders

Executive Management

Employees

Community Suppliers

Customers

Training Stakeholders Assets and Competencies

of Training

Business Environment

Training Processes Training Metrics

Financial Customer Satisfaction Employee Satisfaction Perf.

Index

Values Attributes

Human Assets Infrastructure

Environmental Assets Infrastructure

Process/Performa nce Requirements TRAINING

MANUAL

$

$

$

Business Drivers Training Processes and MetricsTraining Infrastructure

Knowledge and Skills Org

aniz ation Stru

ctu re

Info rmation

Ph ysic

al Ass

ets

Con sequ

ence Sys

tem s

Example: T&D Business Drivers

Example: T&D Business Example: T&D Business

Drivers Drivers

Assets

• Available courseware

• Production capability

• Delivery infrastructure -Facilities

-Networks (CBT and other)

• Analysis data

• Training staff Competencies

• Front-end analysis of performance

• Curriculum Architecture Design (CAD)

• Instructional

design/development

• Just-in-time delivery

• Developing customer solutions

Assets

• Available courseware

• Production capability

• Delivery infrastructure -Facilities

-Networks (CBT and other)

• Analysis data

• Training staff

Competencies

• Front-end analysis of performance

• Curriculum Architecture Design (CAD)

• Instructional

design/development

• Just-in-time delivery

• Developing customer solutions

Assets and CompetenciesAssets and Competencies StakeholdersStakeholders Business EnvironmentBusiness Environment

• Business leadership -General management -Process owners

-Professional/technical discipline leaders -Initiative leaders

• Employees (end

consumers of training)

• Customers of the company

-Users of products and service who need

training

• Suppliers of the company -May need training on

interfacing, TQM, etc.

• Training department employees and suppliers

• Business leadership -General management -Process owners

-Professional/technical discipline leaders -Initiative leaders

• Employees (end

consumers of training)

• Customers of the company

-Users of products and service who need

training

• Suppliers of the company -May need training on

interfacing, TQM, etc.

• Training department employees and suppliers

• Rate of change impacting training customers

• Rate of hiring and job movement

• Competitive or

alternative sources of training

• Best practices

• Customer/user perceptions about training

• Technologies

• Rate of change impacting training customers

• Rate of hiring and job movement

• Competitive or

alternative sources of training

• Best practices

• Customer/user perceptions about training

• Technologies

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Example: T&D Performance Metrics

Example: T&D Performance Example: T&D Performance

Metrics Metrics

Business Benefit Business

Benefit

Training Department Employee Satisfaction

Training Department Employee Satisfaction

User Satisfaction

User Satisfaction

Training Department Supplier Satisfaction

Training Department Supplier Satisfaction

Quality IndexQuality Index

C-1

Performance Index Performance

Index

Example T&D Performance Metrics

Example T&D Performance Example T&D Performance

Metrics

Metrics

Business Benefit Business

Benefit

Cost of Training Needs Not Met Cost of Training

Needs Not Met

Cost of Cost of Unnecessary Business Benefit of Training Needs Met

Business Benefit of Training Needs Met

Value

– Cost

+ +

–

–

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Planning and Budgeting

• Strategic planning

• Operational planning -Workload -Staffing strategy

• Budgeting

Overall System Design/Improvement

• Job/team design/redesign

• Process design/redesign

• Process support materials

Results Measurement

• Financial results

• Customer satisfaction

• Employee satisfaction

• Training results

Operations Management

• Work management

• Program coordinator

• External linkages

• Internal linkages

Leadership

Core Process

Needs/Performance Analysis

• Preliminary Analysis Report

• Analysis Report

Curriculum Architecture Design

• Curriculum Analysis Report

• Curriculum Design Document

• Implementation Planning Report

Design, Develop, Procure

• Course Design Document

• Instructional Materials

• Instructor Training Plan

• Pilot results

Delivery

• Delivery plan

• Trained employees

Evaluation

• Evaluation design

• Evaluation documents

• Evaluation reports

Maintenance

• Maintenance plan

• Courses updated

Training Technology Surveillance

Support

Project Management

• Project Plan • Team organization • Project status reports • Final project report

Training Administration

• Environmental resource management

• Registration and scheduling

• Training materials inventory

• Training attendance tracking

Staffing

• Recruiting and selection

• Training and development

• Performance management

• Career management

Training Information Management

• Information system in place

Training Marketing and Communication

• Training marketing tools

T&D Processes

Human Assets Infrastructure

Analysis Subject Matter Expertise Measurement Expertise

Design Desktop Publishing Planning

Development Graphics Marketing and Sales

Instruction Technology Expertise Finance/Accounting

Facilitation Project Management Administration

Environmental Assets Infrastructure

Organization and Team Training Facilities Analysis Data

Structure and Equipment

Client Boards/Councils Materials and User Data Materials System

Budget/Financial Resources Communications Networks Results Data

Suppliers Tools/Workstations Financial Data

Human Assets Infrastructure Human Assets Infrastructure Analysis

Analysis Subject Matter ExpertiseSubject Matter Expertise Measurement ExpertiseMeasurement Expertise Design

Design Desktop PublishingDesktop Publishing PlanningPlanning Development

Development GraphicsGraphics Marketing and Sales Marketing and Sales Instruction

Instruction Technology ExpertiseTechnology Expertise Finance/Accounting Finance/Accounting Facilitation

Facilitation Project ManagementProject Management Administration Administration

Environmental Assets Infrastructure Environmental Assets Infrastructure Organization and Team

Organization and Team Training FacilitiesTraining Facilities Analysis DataAnalysis Data Structure

Structure and Equipmentand Equipment Client Boards/Councils

Client Boards/Councils Materials and Materials and User DataUser Data Materials System

Materials System Budget/Financial Resources

Budget/Financial Resources Communications NetworksCommunications Networks Results DataResults Data Suppliers

Suppliers Tools/WorkstationsTools/Workstations Financial DataFinancial Data

T&D Infrastructure Requirements

T&D Infrastructure T&D Infrastructure

Requirements

Requirements

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Example Infrastructure Elements Example Infrastructure Elements Example Infrastructure Elements

C-1

Training Organization

Structure Training Training Organization Organization

Structure Structure

Delivery Systems

Delivery Delivery Systems Systems Workplace

Learning System Workplace Workplace Learning Learning

System System

Governing Structure Governing Governing

Structure Structure