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Bersin & Associates Learning Leaders® 2006

Lessons from the Best – 2006 Award Winners

Bersin & Associates

June 2007

© BERSIN & ASSOCIATES RESEARCH REPORT | v.1.0

Bersin & Associates © June 2007 • Not for Distribution • Licensed Material

Bersin & Associates Learning Leaders® 2006 �

TABLE OF CONTENTS

Introduction 5

Learning Leaders by Category – Analyst Overviews 10

Operational Training Excellence 11Common Operational Elements 11

Conclusion 16

Technology 17

Leadership Development 19Best Practices 20

Results 27

Summary and Considerations 28

Initiative Excellence �9Performance-Focused Learning 29

Linking Competency to Learning 30

Cross-Functional Leadership of Learning 31

Organizational Management Excellence 35Caterpillar, Inc. 36

Symantec Corporation 38

Recommendations 38

Learning Leaders® �006 Award Winners: Company Profiles 40

Alcatel 41Leadership Program Excellence 41

Focus on High Potentials 41

Strong Connection to Talent Management 42

Strong Alignment with Strategic Priorities 43

American Power Conversion Corp. (APC) 45Operational Training Excellence 45

Thorough and Careful Planning 45


Bersin & Associates Learning Leaders® 2006 3

Well-Orchestrated Launch 47

Far-Reaching Participation 47

Bellevue University 49Technology Excellence 49

Caterpillar 51Organizational Management Excellence 51

Many Flavors of e-Learning 52

Clear Line-of-Sight between Learning and the Business Strategy 53

The Children’s Place Retail Stores, Inc. 54Technology Excellence 54

Customization and Interaction 55

Dramatic Results 55

Digitas 57Leadership Program Excellence 57

Intensive, Focused Training 57

Integration throughout the Business 58

Bootcamp Considered a Rite of Passage 59

General Motors 60Operational Training Excellence 60

From Nameplates to Systems 61

Training Leads to Higher Customer Satisfaction 62

The Institute of Nuclear Power Operations (INPO) 64Initiative Excellence 64

Methodological, Process-Oriented Approach 64

A New Learning Mindset 65

MetLife 67Initiative Excellence 67

A Major Strategic Shift 67

Building the Workforce of the Future 68



Philips Ultrasound 70Leadership Program Excellence 70

Designed to Build Individual and Team Leadership 71

Importance of Executive Support 72

Saks Incorporated 74Initiative Excellence 74

More Strategic Merchandising Skills 75

Exceeding Expectations 75

Scottrade 77Operational Training Excellence 77

Real-to-Life Training 78

Branch Level Champions 79

A Renewed Focus on Customer Relationships 80

Symantec 81Organizational Management Excellence 81

Appendix I: Directory of Companies 84Operational Training Excellence 85

Leadership Program Excellence 85

Initiative Excellence 85

Technology Excellence 85

Organizational Management Excellence 86

Appendix II: Table of Figures 87

About Us 89

About This Research 89



Introduction



IntroductionU.S. corporations spend more than $55 billion each year on corporate training. In today’s increasingly competitive labor market and growing economy, organizations are working hard to make sure that their learning and development (L&D) investments are delivering the following results:

• Increasing revenue;

• Improving employee productivity;

• Increasing employee engagement and satisfaction; and,

• Improving critical technical and professional skills.

In our 2007 research on the state of corporate talent management,1 more than half of the 700 human resources (HR) executives responding stated that they have urgent problems in building their leadership pipelines. More than 41 percent stated that they have significant talent shortages in the line-manager and director-level positions. In addition, more than 32 percent stated that they have severe or significant shortages in engineering and other technical skills.

Many of these issues can be solved by well-aligned, effective and efficient training programs. Such high-impact programs have many elements in common, such as:

• Being very closely aligned to urgent business problems;

• Having their basis in a performance-consulting� framework that is designed to solve business problems (and not just learning problems);

• Designing and implementing innovations to reach a new generation of employees with access to technology;

1 For more information, High-Impact Talent Management: Trends, Best Practices and

Industry Solutions, Bersin & Associates / Josh Bersin, May 2007. Available to research

members at www.elearningresearch.com or for purchase at www.bersin.com/hitm.2 “Performance consulting” is a needs assessment process that must be completed

to identify the root cause of the business problem. Working with the line of business,

performance consultants diagnose the business problem and assess the needs, and then

work with instructional designers to develop, launch, manage and assess the training

solution. Performance consulting does not presume that the solution is training.

http://www.elearningresearch.com

http://www.bersin.com/hitm



• Focusing on the development of certifiable and measurable skills that drive mastery and tremendous productivity improvements;

• Providing cost-effective and measurable programs3; and,

• Delivering programs on-time and on-budget.

As a research organization focused on business-driven solutions for enterprise learning and talent management, we set out in 2006 to identify “learning leaders” that exemplify these best practices. The goal of this program, which we are conducting annually (the 2007 program is now available for nominations),4 is to use objective, business-driven criteria to evaluate and select the top Learning Leaders in the following five categories:

• Operational Program Excellence – Operational training programs deliver needed skills and capabilities for business-driven objectives. In this category, we sought out programs in sales, technical skills development, service and other operational areas that demonstrated excellence in design, implementation and results.

• Leadership Development Excellence – Leadership development is the single largest spending area in training and one of the most urgent challenges for businesses today. In this area, we targeted programs that demonstrate excellent business and cultural alignment, and use a wide range of the techniques as illustrated in our Leadership Development Maturity Model5 (see Figure 4), as well as solutions that were innovative and highly effective in driving new skills in leadership and management.

• Learning Initiative Excellence – Training organizations have many cross-disciplinary roles:

3 For more information, High-Impact Learning Measurement: Best Practices, Models, and

Business-Driven Solutions for the Measurement and Evaluation of Corporate Training,

Bersin & Associates / Josh Bersin, November 2006. Available to research members at www.

elearningresearch.com or for purchase at www.bersin.com/measurement.

4 For more information on the 2007 Learning Leaders program, please visit http://www.

bersin.com/llawards.

5 For more information, Leadership Development Maturity Model®: Executive Summary,

Bersin & Associates / Kim Lamoureux, September 2006. Available to research members at

www.elearningresearch.com or at www.bersin.com/ldmaturity.



http://www.bersin.com/measurement

http://www.bersin.com/llawards

http://www.bersin.com/llawards



o Building competency models;

o Developing performance management frameworks;

o Establishing measurement processes; and,

o Setting up change management and development processes.

In this category, we celebrate the companies that have developed unique and high-powered initiatives to drive learning effectiveness and efficiency throughout their organizations.

• Learning Organization Management Excellence – One of the biggest challenges (and drivers of success) in L&D is how the function itself is organized, managed, governed and measured. In this area, we identified organizations that have “set the standard” for how to run a successful training organization – and that embody the principles and practices from our High-Impact Learning Organization6 research.

To better reflect the wide variations in organization sizes and budgets, we selected multiple winners in each category, differentiating them as global enterprise, enterprise and mid-market organizations. We realize that smaller organizations often accomplish great things with limited budgets, while larger organizations can accomplish great things in different ways.

The entire focus of this program is twofold:

• First, to recognize and reward innovators and business leaders in the area of corporate training; and,

• Second, to provide you, our readers and research members, with actionable and practical best practices that you can use to improve your organization’s programs and initiatives.

The results have been absolutely fantastic. I personally read most of the applications submitted, and was inspired and astounded by the level of business-focus, creativity, energy and hard work that takes place in our industry. In fact, as you read through this report, I hope you are as impressed as I am – we are part of an industry of extraordinary people

6 For more information, The High-Impact Learning Organization: WhatWorks® in the

Management, Organization, and Governance of Corporate Training, Bersin & Associates,

June 2005. Available to research members at www.elearningresearch.com or for purchase

at www.bersin.com/highimpact.



with the focus, skills and ability to drive tremendous impact in our organizations.

As always, we welcome your feedback on this report and the program itself. We intend to continue this program, and look forward to welcoming you and your organization to the roster of future “Learning Leaders.”

Josh Bersin, CEOBersin & Associates



Learning Leaders by Category – Analyst Overviews



Operational Training ExcellenceOperational training is the “bread and butter” of the L&D organization. These programs (that focus on sales, technical training, customer service and professional development) are among the most urgent and business-critical programs for corporations.

We received a wide range of applications in this area – from sales, service and compliance (and diversity and financial services) to channel training. Each of the applications was clearly focused on addressing a business-critical problem unique to that organization.

What I found in the analysis of these applications is that the high-impact operational training programs all had four elements in common.

Common Operational Elements

First, they were performance-consulting based. While these programs were designed around building business-critical skills, the winning applications went further – these companies identified the specific business problems to be solved, and diagnosed precisely which skills and abilities would solve these problems.

An example of such a program is the Scottrade® Sales Training Simulation program (see Figure 1), developed from extensive surveys and the telephone call screening of sales representatives. The program developers understood not only the business needs of Scottrade’s sales organization, but also the specific behaviors, and unique types of questions and answers the winning sales reps had learned. These behaviors and questions were built into an innovative, simulation-based, online scenario program that drove very high levels of satisfaction and results.

Second, they focused on certifiable skills. It is too easy to build a training program that quickly and inexpensively teaches people a few things. The real value of training does not truly occur unless a person can develop mastery – and mastery drives 10 to 100 times the productivity of familiarity or moderate capabilities. Consider the fact that:

• The top salespeople sell 10 times what junior salespeople do;

• Top software engineers develop 10 times the amount of code with fewer bugs than new engineers; and,

Josh Bersin,Principal Analyst


Bersin & Associates Learning Leaders® 2006 1�

Figure 1: Scottrade Sales Training Simulation Portal

• Top customer service representatives generate customer satisfaction and loyalty that is 10 times greater than for those who are junior or mediocre.

In The Blended Learning Book7, I analyzed the definition of mastery as “… a combination of proficiency (proven skills) and experience (the ability to apply these skills in a wide range of unpredictable situations).” It is very difficult to develop mastery in a single training program – one must attempt to simulate the real world, and let learners “make

7 For more information, The Blended Learning Book: Best Practices, Proven Methodologies, and Lessons Learned, Josh Bersin, Pfeiffer, 2004.

Figure 1: Scottrade Sales Training Simulation Portal

Source: Scottrade, 2007.



mistakes” and learn in a protected environment that provides support and feedback.

The winning operational programs focused on developing such mastery. For example, the GM Service Technical College program (see Figure 2) consists of a wide variety of formal, informal, simulation-based, on-the-job, academic and test-based learning experiences for GM’s worldwide service organization. The program is managed meticulously by Raytheon to track every individual’s achievement of each goal to make sure they become “certified.” The results of failure can be very high – poorly trained service representatives could cost GM millions of dollars in rework and lost customers.

Third, they focus on meticulous program management. The third characteristic of the winning operational programs was that they all included meticulous and careful program design and program management. Every step and stage of these programs were developed with:

• A clear objective;

• Awareness (by the learners) of the program’s objectives and strategies;

• Activity tracking; and,

• Many elements that made the program interesting, compelling and easy for the learners to follow.

An example that demonstrates program management in particular is the American Power Conversion® (APC) Data Center University (see Figure 3).

The APC Data Center University program has rich and complete learning curricula. This allows the learner to follow step-by-step modules that get him / her to where he / she needs to go. With the APC Data Center University, there is a wide variety of supporting materials, tracking tools and navigation guides to help carefully track the progress and completion of each learner. The APC Data Center University is so well designed that it has been approved for accreditation by IEEE (Institute for Electronics and Electrical Engineers) and state engineering boards for continuing education.



Figure 2: GM Service Technical College PortalFigure 2: GM Service Technical College Portal

Source: General Motors, 2007.



Figure 3: APC Data Center University PortalFigure 3: APC Data Center University Portal

Source: General Motors, 2007.



Figure 4: Bersin & Associates Leadership Development Maturity Model®

Conclusion

While some may believe that operational training is one of the more commonplace aspects of corporate training, to me it is one of the most interesting. In this regard, training managers must act as consultants, designers, marketers, program managers, change agents and administrators all at once. The winners in this category all reflect best practices in each of these areas and illustrate examples from which you can learn.

Figure 4: Bersin & Associates Leadership Development Maturity Model®

Source: Bersin & Associates, 2006.

Strategic Leadership DevelopmentChampioned by Executives, Talent Management Integration

Focused Leadership DevelopmentCulture Setting, Future Focused, Developing Organization

Structured Leadership TrainingCore Competencies, Well-Defined Curriculum, Developing Individuals

Inconsistent Management TrainingContent Available, No Development Process, Benefit to Employees

9%

26%

29%

36%

35%

65%



TechnologyThe technology section is important to the Learning Leaders program for several reasons. It gave us an opportunity to look at a variety of ways that organizations are creatively applying technology to many areas, including:

• Performance support;

• Training administration;

• Compliance;

• Content delivery; and,

• The overall learning experience.

We also were exposed to the breadth of custom-built systems that are used to address challenges for which there are no commercial solutions. The revolution in technology-supported training has truly taken some remarkable turns in which systems have been built for complex compliance needs (e.g., CIBC8) and a truly virtual classroom (e.g., Bellevue University). Commercial applications often receive much of the attention, but these Learning Leaders demonstrated that much of the innovation comes from those that are closest to the business challenge and provide custom solutions to those challenges.

We identified some common activities among the winners that made their initiatives successful.

Rallied around an identified business need. These were not “me-too” projects. CIBC needed to conduct compliance training more quickly to meet regulatory guidelines. Bellevue University wanted to generate revenue from its large investment in creating a virtual auditorium. The Children’s Place needed a simple solution to train store associates on a new product offering.

These Leaders understood their individual organization’s business challenge and focused on solving that one problem, rather than taking on a myriad of other issues that would complicate the problem and slow it down.

8 Please Note: CIBC chose not to include a company profile in this report.

Chris Howard,Principal Analyst



Followed a similar path to get the project funded and completed. While identifying a business need is one thing, getting a solution in place is another. Each Learning Leader worked with its stakeholders to document the requirements before ever looking for a solution. Training executives are often tempted to look for a technology solution to a problem that is not well understood and may not have the full support of the stakeholders. Avoiding this trap is critical to success.

Established measurement benchmarks that can be tracked. Training measurement philosophy is far too extensive a topic for us to cover here.9 However, each Leader did have some training or business metric on which to hang its hat. CIBC reduced its system management costs by 50 percent; time to train for compliance is now within the guidelines dictated by regulatory agencies. Bellevue University is able to track the revenue produced by commercializing its training auditorium system. Children’s Place increased product sales by 29 percent. Again, whether these are the right metrics or not – Leaders are able to benchmark themselves against a desirable business objective.

Submissions under the technology section are an impressive display of the imagination that training managers are using to solve every day business challenges in their organizations. While there are certainly other best practices that must be applied to each one of these particular solutions, the commonalities mentioned above are the key reasons that their sponsors are true Learning Leaders.

9 For more information, High-Impact Learning Measurement: Best Practices, Models, and


Bersin & Associates / Josh Bersin, November 2006.



Leadership DevelopmentLeadership development has quickly become one of the most important initiatives for HR and L&D managers. Likewise, many believe that the future success of organizations will lie in the bench strength of its leaders and the developmental opportunities that are afforded to them. Overall, we have found that organizations are focusing more time, budget and resources on leadership development than ever.

The vast majority of organizations today, however, do not provide strong, well-designed leadership development programs. In a recent study, companies rated themselves against the Bersin & Associates Leadership Development Maturity Model (see Figure 4). Only nine percent of organizations consider themselves as having a “best-in-class leadership development initiative” in place today.10

According to our research, companies that are at the highest level of maturity are, on average, recognized for:

• Seventy-four percent higher effectiveness at driving business results;

• Increased quality of the leadership pipeline;

• Increased engagement and retention of leaders; and,

• Improved overall employee retention.

This is a clear indication of the complexity of leadership development (the time and energy that is required), as well as the fact that leadership development has to be a business priority to be done effectively. The winners of the Bersin & Associates Learning Leaders Program® in the Leadership Development category demonstrated many best practices that are necessary to achieve a high level of maturity and to drive improved business results, including:

• A high degree of senior management support;

• Targeting multiple levels of management positions;

• Aligning program content with competencies and business strategies;

10 This information is based on current research on the topic of leadership development,

the report for which is due to be published Summer 2007.

Kim Lamoureux,Senior Analyst


Bersin & Associates Learning Leaders® 2006 �0

• The application of blended learning and delivery; and,

• Integrating this with other talent management processes.

The winners of the Learning Leaders Leadership Development category are Alcatel® (now Alcatel-Lucent), Digitas®, Inc. and Philips® Medical Systems – Ultrasound.

Best Practices

Best practices and examples from each of our Learning Leaders winners are discussed in the following sections.

Senior Management Support

Executives at leading organizations understand that “talent” is what ultimately creates a competitive advantage – and fully believe that leadership development should be a top priority. Their involvement is critical for supporting consistent programs and processes that enable the identification, development and positioning of future leaders who will continue to move the company toward achieving its vision.

Senior management at Alcatel is continuously involved through the Alcatel University advisory board (composed of senior executives), which reviews strategic learning investments – including leadership development. Senior executives also demonstrate their support by:

• Sponsoring application projects for participants to address;

• Presenting business topics during classroom sessions; and,

• Mentoring leaders.

At Digitas, Inc., senior leadership is involved in every stage of its leadership program. Senior executives are involved in:

• Identifying and approving program nominees;

• Clearing participants' calendars to enable them to attend the program;

• Developing and delivering content;



• Participating on a “panel of experts” that judges participants’ presentations; and,

• Attending social events throughout the program.

Multiple Levels of Management

Leadership strategies should include specific developmental activities geared toward different levels of leadership – since the skills sets of progressive management positions change along the way.

Leadership development programs at Alcatel are designed for what Alcatel refers to as “cohorts of talents.” These cohorts are described as follows:

• Top Potentials – Individuals who are capable of taking a “Top 40” senior-level position in the next five years;

• Corporate High Potentials – Individuals who have the potential to take a “Top 40” position within the next 10 years; and,

• High Potentials – Individuals who are typically more junior, are moving fast in the early stages of their careers and are expected to have two career moves within the next four years.

Digitas has documented job competencies at every level of leadership for every capability. Their leadership programs target both “hard skills” (business strategy) and “soft skills” (interpersonal, relationship management), and apply a systematic progression of four distinct training programs:

• Managerial Skills Series;

• Manager's Mindset;

• Strategy Bootcamp; and,

• Senior Leadership Forum.


Bersin & Associates Learning Leaders® 2006 ��

Also, Digitas "high-potential11” employees receive coaching and mentoring.

Strategic Program Alignment

Aligning leadership development activities with the business strategies and goals of the company is critical for building skills, knowledge and experience of leaders that are relevant and essential for the company’s success. Leadership development efforts should also be linked to and driven by the behavioral standards of the defined competencies.

Digitas’ Strategy Bootcamp program supports three core corporate goals – winning talent, winning work and winning financial results. Strategy Bootcamp is designed to transform up-and-coming leaders from being primarily focused on execution to becoming “strategic thought” leaders who can think more broadly and make smart recommendations to clients.

At Philips’ Medical Systems – Ultrasound, the CEO and executive team were instrumental in defining leadership skills gaps, and identifying the critical content and topics that are the key to successful leadership within the organization. The leadership development program is also designed to develop the core leadership competencies identified by senior management for which the company has the greatest need.

Organizational Culture and Values

Strategic alignment also refers to an organization’s culture, vision, mission and values. In other words, leadership programs should be threaded with key messages that instill specific behaviors and create a common cause among leaders. This will ensure that leaders are thinking about a consistent future state, and that they are acting in a way that is conducive to effectively interact and work with others in the organization.

11 A “high-potential employee” is an employee who has been identified as having the

potential, ability and aspiration for successive leadership positions within the company.

Often, these employees are provided with focused development as part of a succession

plan and are referred to as “HiPos.”



Philips’ leadership development program, “Navigator™,” targets directors (one level below the executive team) and their direct reports, and supports the organization’s values. Development plans and action learning are designed to ensure that leaders and their direct reports deliver on their commitments and accountabilities by providing a framework to monitor and adjust for them. Further, the development plans and action learning activities (along with peer groups and coaching) foster relationships that reinforce the ability of employees to depend on one another. Philips’ Navigator program, aligned with the organization’s culture, is grounded in delivering the highest levels of innovation.

Multiple Learning and Delivery Methods

The nature of leadership development requires that learners not only understand the principles of leadership – but that they also have a chance to practice and receive performance feedback to enhance the learning experience. With all that is available today, companies have the luxury of selecting the methods that will work best for them.

Alcatel’s “STRETCH™” leadership program (see Figure 5) is very effective at blending multiple learning and delivery methods. The program, which focuses on driving business performance and building a global mindset, is divided into local and international components. The program combines 360-degree feedback, classroom training, self-study online training and virtual collaboration. Further, participants work in diverse groups of geographical location and are assigned real-time Alcatel business issues to solve.

During the program, participants also receive support on other components of their individual development plans through coaching, mentoring, project assignments and job rotations.

Philips’ Navigator program is very robust and supports a year-long continuous learning approach by incorporating a number of learning and delivery mechanisms. The following methodologies are applied to their leadership learning solution:

• Classroom Training – On the topics of performance management, coaching and team dynamics;

• Coaching – Professional one-on-one coaching for each participant;



Figure 5: Alcatel’s STRETCH Leadership Program Model

• Peer Learning Groups – Seven to 10 peers facilitated to reinforce skills, practice and strategize, and support each other;

• Feedback – Received from direct reports, managers and executive team via the organization’s scorecard tool;

• Development Planning – A development plan created for all program participants and many of their direct reports; and,

• Action Learning – Applied real-time learning to the participants’ most important goals.

Figure 5: Alcatel’s STRETCH Leadership Program Model

Source: Alcatel, 2007.

Alcatel Leadership Development Program Model

STRETCH Leadership Program – Blended Solution18 – 24 months

Platform Work (virtual) 4 weeks• Self assessment• Learning resources

6 weeks• Business games in teams

International Modules

Residential Seminar(face-to-face)

6 days• Group project• Executive Forum

3-wayagreement* on

furtherdevelopment

Mobility, project assignments, on-the-job learning, coaching, etc

* v3-way agreement refers to an agreement between participant, line manager and HR

Local / Regional Modules

12 days of businessknowledge with at least three

days of e-learning

Knowledge Track

8 days on behavioralcompetencies

Behavior Track

1 day

ContextSetting

EntryPoint

360° Feedback

3-wayagreement* ondevelopment

plan



Figure 6: Philips Medical Systems Leadership Development Program Model

Talent Management Integration

Everything that occurs in talent management has an impact on leadership development – from recruiting to learning and performance to career development. At the end of the day, leadership development and creating the necessary bench strength within a company require that organizations focus on every aspect of a leader’s lifecycle within the company. Simply, all processes for assessing and developing leaders need to feed one another. The two most commonly integrated processes with leadership development today are performance management and succession planning.

Figure 6: Philips Medical Systems Leadership Development Program Model

Source: Bersin & Associates, 2007.



Figure 7: Alcatel’s “3-Way” Agreement

Leadership development is clearly integrated into Alcatel’s overall talent management processes (see Figure 7). “Organization and People Review” is the leadership development process that includes talent identification and succession planning. Leadership development programs are offered for the identified talent populations; program participants have to be formally identified in one of the leadership talent categories, and must have a development plan agreed upon with their managers and the HR personnel supporting them with their career development.

The leadership development program at Philip’s Medical Systems is intricately tied to the organization’s performance appraisal system – since the development plans and action learning are extracted from the employee’s annual goals evaluated through that process. Finally, the program is touted in the recruiting process and has been cited as a factor in the decision of high-potential individuals for joining the organization.

Figure 7: Alcatel’s “3-Way” Agreement

Source: Alcatel, 2007.

Supports & coaches

Allows time

Provides feedback

on performance

Informs & explains

Supports & coaches

Facilitates the

process

Local HR / Career Development

LineManager

Participant

Takes ownership

Follows through

Invests personally



Results

The programs that were presented by each of the winners in this category not only exhibit best practices but are also supported by having achieved a positive impact on their businesses. Below is a description of some key measures for each program.

Alcatel’s STRETCH program has been extremely successful and has become a well-recognized brand within the company. Testimonials of participants include:

• High quality with value-added;

• Good to meet and work with people from other businesses and countries; good to be done on a global basis;

• Gives a better vision of Alcatel on both the company’s principles and the actual situation;

• Helps to develop employees while contributing to build the future for Alcatel; confidence in Alcatel's future; and,

• Motivating to continue professional career in Alcatel and transmit this to other colleagues.

Recent measurement data at Digitas reported the following results:

• Forty-two percent improvement in "I feel confident that I have the necessary tools to understand and diagnose my client's strategic challenges";

• An increase in promotions; and,

• A decrease in attrition among attendees.

Philip’s Navigator program provided good results for the company, including these key measurements:

• Promotion Rates – Fifty-four percent of program participants were promoted into more prominent roles with broader scope and responsibility following the program;

• Employee Engagement Scores – Twenty percent increase in the scores from the participants’ direct reports; and,



• Scorecard Ratings – Twenty-two percent increase in average overall scorecard ratings.

In addition, Philips has also found there to be a disproportionate amount of success in participants reaching goals versus other managers who have not gone through the program. This is also reflective of and in line with managers’ annual incentive compensation payments.

Summary and Considerations

Organizations are struggling every day to develop more leaders more quickly. At the same time, L&D executives and professionals are striving to create programs that are relevant and engaging for leaders – and also effective for helping the organizations move forward and achieve their goals.

Leadership development, first and foremost, has to have the support and sponsorship from senior management. Without this, it will be very difficult to achieve the successful execution of a long-term strategic solution for building a high-quality leadership pipeline within the company. Without senior management support, L&D professionals will experience a constant struggle to:

• Align content with business strategies;

• Provide key opportunities for the application of learning; and,

• Integrate leadership development with other talent management functions.

To improve in the area of leadership development, L&D professionals must partner closely with business and line managers to determine the key competencies of leaders – and to develop a leadership strategy. Their involvement in these two key areas will ensure their understanding, investment, involvement and overall commitment to the success of leadership development within the company.



Initiative ExcellenceFor the purposes of this program, Bersin defines “initiative” as an enterprise learning project, program or activity that results in recognizable business impact. Category winners all shared a key commonality – a focus on competencies was at the core of each initiative. This illustrates a growing trend that Bersin has recently reported upon that closely links business objectives, competency and performance, and learning.1�

Overall, all of the applicants’ initiatives:

• Were driven by a business need;

• Were comprised of one or more learning programs or activities;

• Incorporated evaluation, measurement or cross-functional leadership;

• Resulted in recognizable business impact; and,

• Generated best practices that were leveraged for other learning initiatives.

Performance-Focused Learning

As of 2005, MetLife knew it needed to make major changes in L&D, which was still primarily conducted through instructor-led training. The company took dramatic actions. It centralized the training organization – and made important investments in the staff, processes and supporting technologies. An LMS was installed in early 2005, an LCMS in early 2006 and a virtual classroom solution later in 2006.

The initiative, called “MetLife Performance-Learning,” focuses on job performance, expansion of knowledge and the development of new skills. Specific goals include improved alignment with lines of business and linkage of employee development to performance. The company also increased efficiencies through the use of Eedo’s ForceTen LCMS,

12 For more information, Performance Management 2006: Comprehensive Industry Study:

Market Analysis, Trends, Best Practices, and Vendor Profiles, Bersin & Associates / Josh

Bersin, June 2006. Available to research members at www.elearningresearch.com or for

purchase at www.bersin.com/perfmgt.

Bob Danna,Vice President, Strategic Services


http://www.bersin.com/perfmgt



including standardization of content creation and improved content reusability.

By leveraging best practices from other organizations, MetLife avoided common pitfalls. Early on, the L&D leadership committed to develop associates, and hire the talent required to support the implementation of new systems and processes. The company also developed solid business partnerships with a limited number of key vendors.

Upfront, MetLife recognized that “it’s all about performance.” Everything about its initiative is focused on the transfer of knowledge and skills based on performance expectations.

Linking Competency to Learning

Saks recognized a problem common to many other organizations – it lacked internal “bench strength.” In Saks’ case, the most acute shortage was in qualified personnel for positions of buyer and divisional merchandise manager. The company lacked a process that identified future needs to develop executives, and spent most of its training dollars on new hires and trainees, not promotable employees.

The company set out to develop a competency database for merchant positions and a corresponding curriculum. Since merchant jobs had changed significantly in recent years, developing and validating competencies was critical in order to build new skills requirements for both new and incumbent merchants. Saks then conducted an extensive gap analysis and training needs assessment based on approved competencies.

The company is now developing and deploying an extensive curriculum to address competency gaps (see Figure 8). Saks University courses range from business analysis to retail math, from trend analysis to vendor negotiations. Competencies are currently used as part of the recruiting, selection and onboarding processes, and in the company’s performance appraisal system.

This is proof that focus on competencies actually has business value. Through the use of technology and defined curricula, the company has significantly improved its training efficiency and improved training consistency. Today, Saks’ merchandising merchants are up to speed in six to 12 months. The industry average is two years.



Figure 8: Developing and Validating Competencies at Saks

Cross-Functional Leadership of Learning

In 2003, the Institute of Nuclear Power Operations (INPO) realized that 60 percent of its workforce would turn over by the year 2010. Immediate and dramatic changes were needed to existing learning and development processes. A year later, INPO launched its Leadership and Learning Center (see Figure 9).

Figure 8: Developing and Validating Competencies at Saks

Source: Saks, Inc., 2007.



Figure 9: INPO L & L Center Matrix by Professional Levels and Development CategoriesFigure 9: INPO L&L Center Matrix by Professional Levels and Development Categories

Source: INPO, 2007.Reproduced with permission from INPO.

DEVELOPMENTCATEGORIES Senior Managers Manager Section Leader/ Principal Nuclear Professional Non-nuclear Professional Technicians Administrative

Orientation New Employee Orientation New Employee Orientation New Employee Orientation New Employee Orientation New Employee Orientation New Employee Orientation New Employee Orientation

Required DialogueSmarts DialogueSmarts DialogueSmarts DialogueSmarts DialogueSmarts DialogueSmarts DialogueSmarts

Valuing Diversity (tbd) Valuing Diversity (tbd) Valuing Diversity (tbd) Valuing Diversity (tbd) Valuing Diversity (tbd) Valuing Diversity (tbd) Valuing Diversity (tbd)

Intro to INPO Web Intro to INPO Web Intro to INPO Web Intro to INPO Web Intro to INPO Web Intro to INPO Web Intro to INPO Web

Core Leadership Targeted Selection Targeted Selection

Required Coaching and Developing Others

Coaching and Developing Others

Conducting Performance Reviews

Conducting Performance Reviews

Core Competencies Senior Manager PMP Competencies

Manager PMP Competencies

Individual Contributor PMP Competencies





Required Performance Management and Personal Development Resource Guide

Performance Management and Personal Development Resource Guide






Position-Specific Required Exit Representative (nuclear managers)

Team manager (nuclear managers)

noitacifitreCratSrevliSnoitacifilauQtnemtrapeDnoitacifilauQtnemtrapeDnoitacifilauQtnemtrapeD(tbd)

Technology Development INPO Planning System MS Word Basic MS Word Intermediate MS Word Intermediate MS Word Intermediate MS Word Basic MS Word Intermediate

Required People and Places Basic MS Outlook Basic MS Power Point Basic MS Power Point Basic MS Power Point Basic MS Outlook Basic MS Power Point Basic

ISS Basic INPO Planning System MS Excel Basic MS Excel Basic MS Excel Basic ISS Basic MS Excel Basic

MS Outlook Basic ISS Basic MS Outlook Basic MS Outlook Basic MS Outlook Basic People and Places Basic MS Outlook Advanced

decnavdASSIcisaBSSIcisaBSSIcisaBSSIcisaBsecalPdnaelpoeP

decnavdAsecalPdnaelpoePcisaBsecalPdnaelpoePcisaBsecalPdnaelpoePcisaBsecalPdnaelpoeP

Project Management PM Basics PM Basics Project Leader Project Leader Project Leader PM Basics PM Basics

TBD PM Support Tools (ION/Employee

PM Support Tools (ION/Employee

RORORO PM Support Tools PM Support Tools

PMI Certification PMI Certification PMI Certification

PM Support Tools PM Support Tools PM Support Tools

Career Development Outside Executive Development Programs

Outside Management Development Programs

Outside Supervisory Development Program

SRO Certification Cross-discipline assignment Cross-discipline assignment Gold Star Certification (tbd)

Leader as Trainer Leader as Trainer Reverse-loan position Reverse-loan position Member of Professional Society

Star of Excellence Certification (tbd)

Loaned Executive Program Reverse-loan position Member of Professional Society

Cross-disciplinequalification

Cross-discipline assignment

Officer of Professional Society

Member or officer of Professional Society

Member of Professional Society

Technical/Business Utility Business or Corporate Finance Course

Utility Business or General Finance course

Technical expert Technical expert Technical specialty or focus area

Technical specialty or focus area

INPO Planning Process

Conduct a Cost/Benefit Analysis





Mentoring/Coaching Executive mentor Mid-career mentor Management Coach Management Coach Management Coach Senior Peer Coach/Mentor Senior Peer Coach/Mentor

Serve as a mentor Serve as a mentor Serve as a Coach Serve as a Coach Serve as a Coach Serve as a Peer Coach/Mentor

Serve as a Peer Coach/Mentor

The Principles and Qualities of Genuine Leadership





Professional Levels

De

ve

lop

me

nt

Act

ivit

ies



Figure 9: INPO L & L Center Matrix by Professional Levels and Development Categories (cont’d)Figure 9: INPO L&L Center Matrix by Professional Levels and Development Categories (cont’d)

Source: INPO, 2007.Reproduced with permission from INPO.

Leadership Bridging Strategies to Outcomes (AG)

Managing the Performance of Others Workshop (AG)

Managing the Performance of Others Workshop (AG)

Officer in a Volunteer Organization





Coaching Others for Top Performance Workshop





Change Management Support Tools







Meeting Toolkit

Meeting Toolkit Change Management Support Tools



Meeting Toolkit Meeting Toolkit

Management Presentation Planning Tool

Meeting Toolkit Meeting Toolkit Meeting Toolkit Management Presentation Planning Tool





Issues Management Toolkit

Issues Management Toolkit Issues Management Toolkit Issues Management Toolkit

Interpersonal Individual Effectiveness Workshop (AG)

Individual Effectiveness Workshop (AG)





Partnering Workshop (AG) Partnering Workshop (AG) Partnering Workshop (AG) Partnering Workshop (AG) Partnering Workshop (AG) Partnering Workshop (AG)

The Basic Principles of Teamwork




Keeping Your Team on Course




Playing A Vital Role In Team Decisions




Raising Difficult Issues With Your Team




Participate on a project team Participate on a project team Participate on a project team Participate on a project team

Building A Foundation of Trust

Building A Foundation of Trust

Lead a project team Lead a project team

Launching and Refueling Your Team

Launching and Refueling Your Team

Lead a PE mini-team Effective Team Practices Inventory

Expanding Your Teams Capabilities

Expanding Your Teams Capabilities

Effective Team Practices Inventory

Helping Your Team Reach Consensus

Helping Your Team Reach Consensus

Lead a project team Lead a project team



Advanced Education Masters degree Masters degree BS/Masters degree BS degree BS/BA degree BS degree or certificate Business degree or certificate

Profiler for Executives Profiler for Managers Profiler for Managers Profiler for Managers Profiler for Individual Contributors

Profiler for Individual Contributors

Profiler for Individual Contributors

Learning Tactics Inventory Learning Tactics Inventory Learning Tactics Inventory Learning Tactics Inventory Job Challenge Profile Job Challenge Profile Job Challenge Profile

Development Needs Self Assessment



Job Challenge Profile Personality Profile Personality Profile Personality Profile





Support Tuition Assistance Tuition Assistance Tuition Assistance Tuition Assistance Tuition Assistance Tuition Assistance Tuition Assistance

Career Counseling Career Counseling Career Counseling Career Counseling Career Counseling Career Counseling Career Counseling

Assessment Administration Assessment Administration Assessment Administration Assessment Administration Assessment Administration Assessment Administration Assessment Administration

Learning Plan/PDP Development







Team Participation

Assessment

Team Leadership



Rather than reacting hastily, INPO took a very methodological, process-oriented approach. INPO recognized that a solid competency model would guide present and future development needs. Executive sponsorship and a defined change management model kept the initiative on-track.

The workforce was divided into six major professional groups. A core set of skills and associated development activities were identified for each group. Benchmarking research and employee focus groups were used to design and fine tune development processes and programs.

INPO chose an LMS created by Learn.com® to manage skills and competencies, track job skills requirements, manage learning content and allow for self-enrollment in instructor-led training. The company’s focus on competencies has had several side benefits. The competency model prompted an update of the performance appraisal process, and is now used for 360-degree feedback and hiring guidelines.



Organizational Management ExcellenceOver the last five years, the training industry has been deluged with technology – LMSs, development tools, blended learning13, simulations and much more. Our estimates show that as much as 20 percent to 30 percent of all training (by student hour) is delivered by e-learning in many organizations – a massive shift in delivery approaches and cost models in only the last few years.

In effect, technology has been the impetus for the corporate training function to redefine how it is organized, managed and governed. Our research over the last three years has delved into these issues to uncover best practices and models – giving us insights into what makes a high-impact learning organization14. The following are the most common and critical practices:

• Having a “chief” executive (e.g., chief learning officer or chief talent officer);

• Governance that includes line-of-business management;

• Use of shared services and technologies;

• Direct alignment to business goals;

• Dedicated performance consulting; and,

• Rigorous measurement15 with metrics that show business value.

These practices allow organizations to be highly effective and efficient. High-impact learning organizations are effective – meaning they proactively identify needs and execute quickly to respond to those needs with programs that are results-oriented. But this cannot happen at any

13 “Blended learning” is the combination of a wide range of learning media (e.g.,

instructor-led classes, web-based courseware, simulations, job-aids, webinars and

documents) into a total training program designed to solve a specific business problem.14 For more information, The High-Impact Learning Organization: WhatWorks® in the

Management, Operations and Governance of Corporate Training, Bersin & Associates,

June 2005.15 For more information on measurement, High-Impact Learning Measurement: Best

Practices, Models, and Business-Driven Solutions for the Measurement and Evaluation of

Corporate Training, Bersin & Associates / Josh Bersin, November 2006.

Leighanne Levensaler,Principal Analyst



cost to the organization. With two percent to three percent of payroll spent annually on training and development, high-impact learning organizations are focused on being efficient with the resources with which they are entrusted. This means:

• Developing and delivering training at an affordable cost;

• Streamlining expenditures and the use of vendors;

• Eliminating duplicate spending; and,

• Implementing supporting technology to automate and augment processes.

The Organizational Management Excellence category honors two organizations – Caterpillar Inc. (in the global enterprise category) and Symantec Corporation (in the enterprise category). These organizations exemplify what it means to be a high-impact learning organization. Most notably, both organizations are extremely focused on providing training that impacts the business and allocating budgets to programs with the greatest business impact.

Caterpillar, Inc.

As Caterpillar has learned, one of the challenges of managing training is partnering with the entire enterprise to ensure alignment, commitment, support and, therefore, positive business results. Caterpillar University’s (Cat U) president manages the worldwide $100 million learning budget. To ensure the budget is appropriated to the most critical learning initiatives, Cat U implemented its governance structure.

Advisory boards were formed for all colleges within the corporate university. These advisory boards bring the “voice of the business” to each college, and have a direct impact on college planning and decision-making. They are, in effect, the compasses that help to guide the colleges’ strategic learning directions and financial decisions. Deans within the colleges have dual reporting relationships with lead learning managers at the business units. The relationships with the advisory boards and the lead learning managers are valuable in prioritizing learning and learning spending to have the greatest business impact.

All learning at Cat U is directly aligned with the enterprise strategy through the year 2010 via the enterprise learning plan and divisional



Figure 10: Alignment of Learning to Business Goals

learning plans (see Figure 10). Creating a learning plan for each employee allows the organization to push the required learning directly to each learner by job-role level. With Cat U’s implementation of Saba’s LMS in 2006, the LMS also ensures that learner progress and results are tracked quickly and effectively.

Each year, Cat U publishes the “Business of Learning” document, which communicates the learning investment, strategic impact and the return on investment (ROI) for all major programs. More than $75 million of total efficiencies were identified in this document for 2005, including a net benefit of:

• $100 per e-learning course for a total of more than $30 million; and,

• $100 per collaborative session conducted, producing $43 million in savings.

The company has also eliminated duplication in the development of programs to meet common global learning needs, resulting in an additional $2 million in annual savings.

Figure 10: Alignment of Learning to Business Goals

Source: Caterpillar, 2007.

Enterprise Strategy

Division Strategy EnterprisewideOwnership for CSFs

Individual Goals

Individual Learning Plans

Division Learning Plans

Executive OfficeDirection

Learning Plans for Each CSF

Enterprise Learning Plan



Symantec Corporation

Symantec’s Support Readiness Training (SRT) organization has established well-defined processes and a governance model to meet the technical training needs of its employees and partners. Management from all teams within the SRT organization collaborates on the development and delivery of the top priority learning requirements of the company. “Development paths” are created for all support staff positions, documenting both the technical skills and the soft skills to assist the learner on his / her journey to becoming not just an expert technician, but also a customer-centric employee.

SRT works with the release management and support management staffs to identify learning requirements as new products are announced. These staffs provide SRT with an estimate on the supportability of a product and what the anticipated adoption rate will be with the customer base. With this information, SRT prioritizes what courses have been requested and provides a development dashboard for release tracking.

Recommendations

For training executives and professionals who want to improve organizational management practices or become a “high-impact learning organization,” consider the following questions.

1. A “Chief” Executive – Should your company have a chief learning officer (CLO) and, if so, how do you make the case? What are the characteristics and key attributes of a high-impact CLO?

�. Governance That Includes Business Leadership – Does your governance model support sound, well-aligned, efficient decisions about learning programs, investments and infrastructure? Does your steering team include representation from the lines of business management?

3. Use of Shared Services and Technologies – How can your organization best meet the needs for technology, performance consulting, measurement, content development, delivery and support? What organizational models are best practices? How can you share best practices across your enterprise?



4. Direct Alignment to Business Goals – What organizational models and services can most effectively and efficiently support the needs of business units? Are your learning plans directly linked to the performance planning and evaluation process?

5. Dedicated Performance Consulting – Do you have performance consultants who work to identify the root causes of gaps in business performance? If so, do the performance consultants partner with management to identify and achieve performance excellence?

6. Rigorous Measurement with Metrics That Show Business Value – Do you have processes and systems in place to measure “actionable information16” that is specific, reliable and consistent enough that it can be used to make pragmatic and immediate decisions?

If you are seeking to increase the effectiveness and efficiency of your training organization, our winners offer a first-rate blueprint.

16 “Actionable information” provides data that can be used to make specific business

decisions. Actionable information is specific, consistent and credible.



Learning Leaders® 2006 Award Winners: Company Profiles



Alcatel

Leadership Program Excellence

Alcatel has evolved from a European telecom into a global communications company. Today the company, known as Alcatel-Lucent (the result of a 2006 merger), has 79,000 employees in 130 countries and more than $18 billion in revenues.17

During the downturn years of the high-tech industry, most companies operating in this sector had to dramatically reduce costs in order to survive in a difficult market context. However, despite cost-containment pressure, senior management decided to continue investing in developing future leaders.

In order to maximize return on investment, Alcatel made two major adjustments to its leadership development plans – focusing the investment on the most likely to succeed as future leaders (identification and focus on high potentials) and local delivery of significant portions of program components. This included the introduction of e-learning technologies in program delivery.

Focus on High Potentials

Alcatel formed a project group made up of senior representatives from HR, corporate training and business units to design guidelines for a new leadership development program targeted at high potentials (approximately 2,000 employees identified as the next generation of leaders). With input from the executive committee on corporate goals and long-term expectations, the project group interviewed line managers throughout the company to help determine program needs and content.

17 Source: Alcatel-Lucent, “About Us,” http://www.alcatel-lucent.

com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_

QjzKLd4w3cjUDSUGYpvqRKGIG8Y4IkSB9b31fj_zcVP0A_YLc0IhyR0dFAJgg_-M!/delta/

base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfMkhL.

http://www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3cjUDSUGYpvqRKGIG8Y4IkSB9b31fj_zcVP0A_YLc0IhyR0dFAJgg_-M!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfMkhL






In 2000, the company’s training organization rolled out a new blended-learning program for high potentials, called STRETCH. Deployed through Alcatel-Lucent University, the program (in use today) has two major components.

1. A local / regional component brings together leaders across business and functional areas for core business knowledge and behavior training. Delivered by accredited local Alcatel-Lucent University programs, it is a combination of classroom and e-learning instruction.

2. An international component brings together for one week global participants who have completed the knowledge and behavior tracks. Included are teamwork activities, global strategy games, a forum with a top 40 Alcatel-Lucent executive and opportunities for individual coaching. Also, online components for self-assessment in core business topics, as well as several weeks of virtual team projects, are integrated into this component.

The use of e-learning content in the program has continually increased and today accounts for more 30 percent of training.

The STRETCH program also includes 360-degree feedback exercises and additional development actions, such as:

• Project work;

• Job rotations;

• International assignments; and,

• Coaching and mentoring.

STRETCH was initially rolled out in France, Belgium, Italy, Germany and Spain, and has continued to expand globally. Today, STRETCH is also offered in North America, Brazil, Central America, Romania, Asia-Pacific and the Middle-East.

Strong Connection to Talent Management

All program participants are formally identified during Alcatel-Lucent’s Organization and People Review Process. The process has helped line management and HR build its leadership pipeline, define succession plans and minimize vacancies in key positions.



The development planning process for selected participants is based on a three-way agreement among the high potential, his or her manager, and HR. Alcatel-Lucent points out that a key success factor of its leadership training is this three-way collaboration and commitment. Career development plans are designed to support participants in preparing for their next career moves. Detailed development plans (including strengths, needs and actions) are put in place to focus their development. After a participant completes STRETCH, development plans are reviewed and revised by the three-way team.

Alcatel-Lucent uses a global career development information system, called CADIS™ (from PeopleSoft®, now Oracle™), for managing talent identification and status, succession planning, and career development. Alcatel-Lucent University’s virtual campus is based on a Saba™ LMS, used for documenting training plans, enrollment, management approval, automatic invoicing, training history, reporting and online delivery of e-learning.

Strong Alignment with Strategic Priorities

Alcatel-Lucent University’s program manager for leadership development, based at the Paris headquarters, is responsible for the program. STRETCH program managers handle operations locally and are part of the ongoing reflection and decision-making process on program evolution. A council for leadership development programs (which is comprised of corporate and regional representatives from HR) ensures that program focus and offerings are consistent with current needs. A senior management advisory board reviews the program regularly and one of the top 40 executives of the company participates in a full session of the international training module.

Program content and delivery are continuously modified and improved to ensure relevance to changing business goals and competitive pressures. While there is emphasis on global consistency, Alcatel-Lucent also leaves room for flexibility to adapt content to local / regional issues and culture. Training managers conduct surveys at the end of each module and collect feedback on impact through follow-up surveys with participants and managers one year after program completion.

STRETCH has become a well-recognized program within Alcatel-Lucent. Many of its graduates have embarked on faster-than-average



career tracks in the company and are now in key leadership positions throughout the organization. Based on a global identification and development process, STRETCH has also contributed to increasing diversity among various leadership teams.

Alcatel-Lucent believes that STRETCH has contributed to meeting the challenges of a highly competitive and rapidly changing global business environment. High potentials have a better understanding of the contributions expected from them and the opportunity to improve the skills that will increase their abilities to meet Alcatel-Lucent’s business needs. Since its launch, STRETCH has motivated and retained talented people, encouraged networking and sharing across boundaries, and stimulated innovation and change.



American Power Conversion Corp. (APC)

Operational Training Excellence

American Power Conversion Corp. (APC) is a FORTUNE 1000 provider of high availability systems for network-critical physical infrastructure (NCPI). Several years ago, the Rhode Island-based company set global expansion as a strategic corporate goal. APC realized that the accomplishment of this goal could be facilitated through educating its customers – data center professionals throughout the world – many of whom had not had formal data center training.18

However, while IT software and hardware training was widely available, training programs for the design, building and operation of physical data centers were limited. APC conducted hands-on training events, but these were not scalable and lacked clear learning objectives.

APC needed to find an efficient way to educate customers. It realized that developing an online university accessible to professionals around the globe would be the most efficient way to deliver the wide range of training – from fundamentals in power and cooling to advanced data center technologies. Named the Data Center University™ (DCU), the effort became a key corporate initiative in 2005.

Thorough and Careful Planning

In February 2005, APC hired a director of worldwide customer education to lead the University initiative. The company also leveraged its leadership role with the NCPI Science Center, an international consortium

18 Source: APC website, “Corporate Overview, http://www.apc.com/corporate/profile.cfm.

Data Centerby

Data Centerby

Data Centerby

Data Centerby

Data Centerby

Data Centerby

http://www.apc.com/corporate/profile.cfm



of data center experts, whose members helped APC to identify the core competencies related to the design, building and operation of data centers.

Next, APC categorized training materials that existed in different areas of the organization, and identified information gaps and the courses that should be built. Then it developed a detailed business plan, which included a marketing and sales plan to align the project with company goals and provide target objectives.

The business plan was approved by APC executives in May 2005. APC’s objectives were to educate the market while, at the same time, generating leads, increasing awareness of APC, reducing costs and strengthening customer relations.

In order to attract the widest audience possible, APC decided to offer basic courses at no charge and to charge fees for certification exams. To ensure that courses would meet continuing education requirements for maintaining professional credentials, APC sought input and accreditation from influential professional organizations, including IEEE19, IFMA�0, BICSI�1 and state engineering boards.

The audience for data center training is highly diverse, with job roles including IT managers and executives, facilities managers, consultants, engineers and professional contractors. APC’s team of instructional designers developed a revised version of the ADDIE (analysis, design, development, implementation and evaluation) Instructional Design Model to meet the customized needs of the program. The team used Macromedia Breeze (already in use for course development at APC) to support the media-rich functionality required by DCU courses.

A critical step was finding a partner experienced in implementing and delivering customer training using a fully hosted distance-learning infrastructure. APC selected the Global Learning Platform™ from Global Knowledge®, which incorporates Oracle®’s iLearning™ LMS. APC selected this vendor for its experience with global customer training, track record of reliability and high performance with media-rich content.

19 The Institute of Electric and Electronics Engineers, Inc., www.ieee.org.20 International Facility Management Association, www.ifma.org.21 Building Industry Consulting Service International, Inc., www.bicsi.org/.

http://www.ieee.org

http://www.ifma.org

http://www.bicsi.org/



In addition, this software platform had the feature flexibility, database support and e-commerce capabilities that would enable APC to collect information needed to determine lead value, analyze marketing effectiveness and conduct financial transactions. Another key advantage was that Global Knowledge offered a financial model that enabled APC to pay only for services used, thereby avoiding large, upfront capital expenditures and offering budgeting predictability.

Well-Orchestrated Launch

In September 2005, APC conducted a “soft launch” of DCU with 12 courses and 1,000 users. This allowed the company to test the learning portal, evaluate surveys, fine tune courses, and ensure reliability and performance with a controlled audience.

The official, worldwide launch of DCU took place in January 2006. APC marketed the initiative through news releases, and demonstrations and giveaways at more than 12 global industry tradeshows. It also ran a national print advertising campaign and web-based promotions, such as banner ads and sponsored links on Google™. Other marketing activities included direct mail, articles in APC publications and registration promotions.

Since the launch, the number of new DCU users has grown consistently. Exam passing rates have also been strong – with target groups achieving average scores greater than 80 percent. In addition, the first certification became available at the end of 2006. The DCU Associate Certification is an international, vendor-neutral credential that recognizes a professional’s ability to participate on a team that designs, builds and operates a data center. Other certification programs planned include professional- and expert-level designations.

Far-Reaching Participation

Today, all DCU courses are self-paced and delivered electronically. Courses also have associated job-aids that can be downloaded. Links are provided for learners to search and locate live, hands-on product education events provided by APC. All courses have associated assessments for material retention and level of understanding. APC also uses the assessments to better understand the market and to evolve course materials.



Global Knowledge currently hosts 48 courses for APC – from financial planning for data centers to blade server integration – with delivery of 300,000 learning hours per month. APC creates 80 to 90 percent of DCU courses internally. All registrations, course enrollments, course deliveries, course assessments, surveys and course completion tracking are handled by Global Knowledge using the Oracle iLearning platform.

The program has been an overwhelming success. Since its official launch in January 2006, 30,000 students from more than 100 countries have accessed DCU courses. Industry recognition in the form of accreditation has been very strong. User satisfaction with DCU has remained consistently high, with more than 90 percent of learners saying that they would recommend DCU to a colleague.

DCU also is generating significant leads for APC. Based on the success of DCU, APC has begun to implement e-learning programs for its sales and services organizations, and is also planning to expand partner education through e-learning.

The success of DCU is directly tied to the time invested in developing a carefully crafted strategy with specific objectives and metrics, along with a comprehensive results-focused business plan. The project also shows the benefit of adopting a financial model that minimized risk and upfront investments, giving the project time to demonstrate its value.



Bellevue University

Technology Excellence

Bellevue University provides professional, business, information technology and liberal arts education at the

undergraduate and graduate levels. With a main campus in Bellevue, Nebraska, and satellite campuses throughout Nebraska and Iowa, the University has an enrollment of more than 11,000 students.��

Several years ago, as the University expanded across 10 locations (there are 12 today), it found that holding in-person staff meetings with a growing remote faculty was becoming impractical and expensive. In addition, the University wanted to find an effective way to capture live classroom activity for real-time web broadcast to remote students or for use later in online courses.

At the same time, plans were underway for a renovation of the auditorium on the main campus in Bellevue. An architect suggested this would be the opportune time to equip the auditorium with the latest communications technology. The University began to conduct research and interviews with providers of broadcast solutions that could help create a venue for more effective, interactive communication across campus communities.

The University selected technology from Sonic Foundry®. The company’s Mediasite™ solution allows organizations to capture events and deliver them over the web, so that users can access content in real-time or on-demand later through the Internet. Bellevue integrated this solution with classroom presentation equipment from Crestron®, which provides a touch panel at the podium and in a separate control room for integrating all necessary components for broadcast (such as cameras, microphones, incoming and outgoing telephone calls, and laptop access).

In addition to the technology solution, Bellevue paid attention to the interior design of the auditorium. Plans included controlled lighting and

22 Source: Bellevue University website, “History,” http://www.bellevue

edu/cs/Satellite/bu/bu/1172638670278.

http://www.bellevue.edu/cs/Satellite/bu/bu/1172638670278

http://www.bellevue.edu/cs/Satellite/bu/bu/1172638670278



sound, an accessible stage, and user-friendly seating with low-rise / run angles.

When the auditorium renovation was completed, it was then time to roll out the new technology system. In order to handle logistics, the University created a dedicated staff of two people onsite for event planning, coordination and technical support. To minimize technical glitches and increase usability for new users, the University issued a two-page operational “flight check,” which coordinators use in advance of every auditorium event.

The system has worked exceptionally well and far exceeded expectations – saving time, money and resources. The biggest benefit has been the ability to record and rebroadcast information with a high degree of flexibility and interactivity. The University simply sends a link via email to remote audiences, which can access the live or recorded event through their Internet connections.

An unexpected beneficiary has been the local business community. Several regional organizations have rented the auditorium on a regular basis for recording and broadcast purposes. For example, the Nebraska Logistics Council (which provides Nebraska Trucking Association members with educational advancement) uses the Bellevue facility once a month to broadcast information and training. This gives its 40 members the option of getting the material online, live or at their own convenience – and can save members many hours of travel time. Local community use has provided an additional revenue stream for the University, which is planning to actively market the service in a 2007 marketing campaign.



Caterpillar

Organizational Management Excellence

With 2006 sales and revenues of more than $41 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The Caterpillar brand is recognized the world over for its powerful machinery. The company has also become a moving force as a learning organization with a highly efficient and effective learning and development strategy that supports the business.�3

In 2001, Caterpillar re-structured its learning community into Caterpillar University, which today provides overall leadership to support the learning and development needs of 94,000 employees in 30 business units, as well as more than 100,000 dealer employees.

The company’s 285 full- and part-time learning professionals are organized in a federated model�4. Approximately 50 percent of learning staff work in centralized organizations providing shared services and enterprisewide training resources; others provide dedicated support to specific business units. The Caterpillar learning management system supports and manages learning throughout the enterprise.

The University president is responsible for Caterpillar University, and all learning and development functions. An enterprise learning plan, supported by 30 divisional learning plans, aligns learning with enterprise strategy through 2010, as well as with performance management, succession planning, and skills and competency management.

�3 Source: Caterpillar website, “Corporate Overview,” http://www.cat.

com/cda/layout?m=115061&x=7.�4 A “federated model” has a small core team that manages some technology and

corporate programs, and empowers business and functional units to run their own

training programs.

http://www.cat.com/cda/layout?m=115061&x=7

http://www.cat.com/cda/layout?m=115061&x=7



Many Flavors of e-Learning

In addition to formal learning resources, the company promotes continuous learning through its “Knowledge Network.” More than 47,000 Caterpillar and dealer employees, suppliers, and customers have access to more than 4,000 communities of practice to exchange information, share files, ask questions and contact subject matter experts around the world.�5 A rich resource of attachments, entries and discussions, the Knowledge Network is searchable and contains easily available information created in all parts of the organization.

In one dramatic example of this functionality, a supplier whose factory was totally destroyed in a tornado was able to use the Knowledge Network to coordinate production from temporary facilities and marshal resources during the reconstruction of the original facility. The availability of this mission-critical information not only kept assembly lines at Caterpillar running, it put the supplier’s employees back to work sooner. Everyone agreed that the Knowledge Network had played a central role in recovering from this disaster.

An ROI study determined the estimated value of thousands of Knowledge Network discussions for the first half of 2006 at just more than $8.4 million, with a projected value of $17 million for the entire year. These benefits represent ROI in the range of 200 percent to 700 percent.

Caterpillar employees have clearly embraced learning as part of their daily jobs. Usage of the knowledge network, collaboration tools, LMS and synchronous online learning has increased dramatically over the last few years. For example, the number of online courses completed increased more than 700 percent from 2004 through July 2006, and the number of online assessments taken increased more than 200 percent during the same time period. Since its introduction to the company in 2003, the use of virtual collaboration has soared with 2006 year-end usage estimates hovering around the half-million mark. All of these global systems allow Caterpillar to reap the benefit of cost-effective training delivery.

25 For more information on communities of practice, Communities of Practice: Lessons

Learned from the Defense Acquisition University’s Acquisition Community Connection,

Bersin & Associates / Chris Howard, May 2007. Available to research members at

www.elearningresearch.com.




Clear Line-of-Sight between Learning and the Business Strategy

Caterpillar University’s governance structure (which includes a board of governors chaired by the CEO, college advisory boards and a lead learning manager for each business unit) ensures its $100 million learning investment is focused on the most critical learning initiatives. Caterpillar University also has a dedicated metrics team to drive accountability for results and demonstrate business impact. The enterprise learning plan is updated annually to document the investment value, strategic impact and ROI for all major programs. According to Caterpillar, “following the numbers” creates a clear line-of-sight between learning and the business strategy. Learning initiatives are evaluated according to the Kirkpatrick�6 / Phillips�7 five levels, performance scorecards and ROI studies.

At Caterpillar, the bottom line is whether performance – of individuals, of business units and of the enterprise – is improved as a result of learning. Caterpillar University has demonstrated it is highly effective and efficient – results show that eight key learning initiatives subjected to ROI analysis have contributed more than $160 million in benefits from 2002 through 2007. Measurements also showed that Caterpillar University’s introduction of technologies and the adoption of common processes and programs have produced more than $111 million in efficiencies for 2006.�8

26 Donald Kirkpatrick’s four-level Measurement Model has been widely published in

many articles and its terminology is well-known to most training professionals. The

original model was published in Training and Development Handbook, R. L. Craig,

McGraw-Hill, 1976.27 For more information, Handbook of Training Evaluation and Measurement Methods,

Jack Phillips, Gulf Publishing, 1991. (Jack Phillips’ ROI, or “fifth level,” was first published

in this book.)28 For more information, High-Impact Learning Measurement: Best Practices, Models, and


Bersin & Associates / Josh Bersin, November 2006.



The Children’s Place Retail Stores, Inc.


The Children’s Place™ is a leading specialty retailer of children’s merchandise. The company sells merchandise in approximately 1,200 stores in North America and online.�9

In February 2005, the company’s credit card group set out to increase the number of card applications. Meeting this goal would require training store associates on how to approach customers, explain the features and benefits of the card, and convince customers to apply. The challenge was to deliver training quickly and cost-effectively in a way that would engage store associates, most of whom are in their teens and early twenties.

Members of the credit card group and the training organization worked as a team to understand and agree on how to benchmark success and develop an initiative that would help the group accomplish its goal.

The biggest challenge the team faced was the timely delivery of training to all retail outlets. The company wanted to avoid any potential network-related issues that could cause delays in delivery and additional IT resources. The team knew that store associates were familiar and comfortable with computer-based training, and would be more attracted to that than other forms of learning. The decision was made to deliver training on CD-ROMS that could be accessed via the PC terminals in each store.

The team also knew that the training must be brief, given that employees would most likely take the training before or after shifts, or during non-peak business hours. To maintain employee interest, the training also needed to be entertaining and “grab” learners. The

29 Source: The Children’s Place website, “About Us,” http://www.childrensplace.

com/webapp/wcs/stores/servlet/AboutUs?storeId=10001&langId=-1&catalogId=10001.

http://www.childrensplace.com/webapp/wcs/stores/servlet/AboutUs?storeId=10001&langId=-1&catalogId=10001

http://www.childrensplace.com/webapp/wcs/stores/servlet/AboutUs?storeId=10001&langId=-1&catalogId=10001



Children’s Place team decided to feature avatars30 (lifelike conversational characters) as training agents. The team chose to work with Oddcast® and its VHost™ technology with the goal of creating a CD-ROM that was fun and interactive, and could be delivered quickly and cost-effectively.

Customization and Interaction

The vendor created a “facilitator” for the training that looked similar to an associate in the store. The facilitator introduced the credit card, and provided background and key features. For variety, other characters (also based on real-life store associates) appeared throughout the training to talk about additional benefits of the card and techniques for introducing the card to potential applicants. Customer situations (for example, where a customer says no to the card) and interactive role-playing activities were included; the avatars offered ideas on how to sway customer decisions and influence outcomes. The tutorial ended with a quiz to test learners on their information retention.

In a pilot test, the team found that associates were highly engaged with the training, and easily recalled the situations and characters by name.

Training was rolled out in March 2005, just weeks after the business goal was set. The CD-ROM was sent to 700 stores along with a printed guide for managers. Once associates completed the CD-ROM (approximately 12 to 13 minutes in duration), managers reinforced the training with live role plays with associates.

Dramatic Results

After store associates completed the program, The Children’s Place recorded a 29 percent increase in credit card application volume over the same period the previous year.

30 According to Wikipedia, an “avatar” is an Internet user’s representation of himself /

herself, whether in the form of a three-dimensional model used in computer games, a

two-dimensional icon (picture) used on Internet forums and other communities, or a text

construct found on early systems such as MUDs or currently on the wikipedia. The term

“avatar” can also refer to the personality connected with the screen name (or “handle”)

of an Internet user. Source: http://en.wikipedia.org/wiki/Avatar_%28icon%29.

http://en.wikipedia.org/wiki/Avatar_%28icon%29



The Children’s Place cited the following success factors:

• The collaborative planning process among multiple groups helped to ensure that the program would be implemented quickly and successfully, and that the overall objective would be met; and,

• Content was customized to meet the learning styles and interests of the target audience.

The team recognized the importance of developing the content, so that store associates would not only be very engaged, but would walk away with knowledge about the card. Associates reported that presenting the information via interactive talking characters made the program fun and interesting, and put a fresh spin on training.



Digitas


Digitas helps blue-chip global brands develop, engage and profit through digital, direct and indirect relationships. Over recent years, the company has grown from a direct-marketing agency to a family of digital and direct-marketing agencies with offices in the U.S. and the U.K.

With this expansion came the need for better senior manager training. The company realized that, as account executives climbed the corporate ladder, they needed to demonstrate to clients more strategic thinking and understanding of the “big business picture.” The Digitas learning and development team believed that this ability to shift from program execution to strategizing was not something to be learned on the job but, rather, required intensive, dedicated training.

In 2001, the L&D team conducted a formal needs assessment. During interviews with senior leadership within the company, a common message was heard – that vice-president-level executives needed to improve strategic client services skills. The team considered having senior vice presidents coach the vice presidents, but determined that coaching alone was not enough given the broad, urgent need.

Intensive, Focused Training

In 2002, the Digitas team created a training program that combines the company’s own proprietary approaches to client service, as well as some tried-and-true business school frameworks. The ultimate goal was to drive and build higher-quality marketing solutions for clients and, ultimately, to retain and grow Digitas’ client roster.

Called Strategy Bootcamp™, it is held twice a year, usually in Boston (the company’s headquarters location). The three-and-a-half-day program is designed to teach vice president-level employees how to improve



analytical skills, better understand clients’ businesses and make more strategic marketing recommendations.

To select participants, the Digitas HR team works closely with regional staff to nominate eligible employees. Ultimately, 32 employees are selected to participate in each Bootcamp session. Participants are organized into four working teams. Each team represents cross-capability, cross-organization and cross-geography synergies – in other words, a “mini” Digitas team.

The Bootcamp program (which is managed by a team of three from the Digitas learning and development group) is reviewed and updated after each Bootcamp session. The content is based on needs assessments, interviews and surveys with senior managers, as well as quantitative and qualitative feedback from participants.

The program has moved from using a Harvard Business School case as the final assignment to using a real-life business problem of a Digitas client. The company has found that using such a client-specific problem better approximates what managers are expected to do on the job and has generated great ideas for clients in the process.

Integration throughout the Business

Senior leadership is involved in every stage of the program, including the nomination process, the development and delivery of content, serving as the panel of experts who judge the final presentations – even so far as to help clear participants’ calendars to enable them to attend and focus.

Digitas also has in place an extensive goals and development planning (GDP) process. Every six months, an employee is measured against his / her individual GDP. Strategy Bootcamp often becomes an integral part of a new vice president’s GDP. This tool also allows for 360-degree feedback, which includes an assessment of an employee’s ability to implement and communicate strategy. In addition, all participants are tracked in the company’s Lawson® learning management system.

Once employees complete the Bootcamp, they have access to program materials online. They are expected to share their learning informally with their teams as appropriate. Another important byproduct of the program is the networking and knowledge-sharing among participants that inevitably occurs both during the program and afterwards.



Bootcamp Considered a Rite of Passage

Digitas surveys every attendee at the end of each day of the program to determine the effectiveness of the day’s content. In addition, it gathers pre- and post-information from each attendee’s manager to understand the person’s strengths and gaps, and subsequent improvement. The learning and development team has also conducted pre- and post-measurement of attendees – for example, it recently found a 42 percent improvement in feedback on the indicator, “I feel confident that I have the necessary tools to understand and diagnose my client’s strategic challenges.”

In addition to survey data, Digitas routinely analyzes promotion and attrition data, and benchmarks Bootcamp attendees against the agency as a whole. It has observed an increase in promotions and a decrease in attrition among attendees.

Today, Strategy Bootcamp has become a “rite of passage” at the company and is one of its most sought-after learning programs. For its spring 2006 program, there were almost 150 nominations. This is a big contrast from just several years ago when the company first introduced it – the learning and development team invited more than 40 employees with roughly 50 percent attendance.

Strategy Bootcamp has also been used as a selling tool for the recruiting team to attract top vice president-level talent to the company. In addition, Bootcamp has been used as a way to teach the “Digitas approach” to senior leaders at newly acquired agencies.



General Motors


General Motors® Corp. (GM), the world’s largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs approximately 284,000 people around the world. With global headquarters in Detroit, Michigan, GM manufactures its cars and trucks in 33 countries.31

In the late 1990s, GM implemented an ambitious production schedule for new vehicles, turning out a new model every 45 days. This required training for GM’s dealer service technicians – numbering about 80,000 in the U.S. – on many new, complex, high-tech features and service protocols. GM needed the new model content brought to more technicians at a faster pace.

At the time, GM’s training was delivered though instructor-led classrooms located in regional training centers. GM’s training organization realized that this model could not support the new production schedule – and forecasted that the added costs for facilities leasing and maintenance, and hiring instructors would quickly become exorbitant.

Partnering with training vendor Raytheon Professional Systems® (RPS), GM’s training organization used a Six Sigma™3� process to guide the training needs analysis and planning. This process included extensive interviews with more than 40 executives and field managers to identify areas for improvement that would help GM to better meet its dealer service mission, “fix it right the first time.”

31 Source: General Motors, “The Company: Corporate Information,” http://www

gm.com/company/corp_info/.32 For more information on Six Sigma, please visit http://www.sixsigma.com, which offers

articles and easy-to-read examples of how to apply Six Sigma to any business process.

http://www.gm.com/company/corp_info/

http://www.gm.com/company/corp_info/

http://www.sixsigma.com



The challenge facing GM was to improve service technician knowledge and skills – and, in turn, increase customer satisfaction and loyalty – while reducing training costs and minimizing the time technicians spent for training. GM set out to adopt a blended-learning approach that would shift much of the training out of the regional training centers and into its 7,000 dealerships.

From Nameplates to Systems

GM’s existing technical service training was organized around the different nameplate divisions (Chevrolet™, Cadillac™, Pontiac™ and so on). Each division was responsible for developing much of the technical training related to its own models, which led to considerable redundancies in training. For instance, technicians in dealerships that sold multiple GM vehicle lines were covering the same content multiple times, due to the fact that several different nameplates share product platforms.

To address this problem, the RPS and GM teams organized training by vehicle system (e.g., brakes, engine performance, steering / suspension), rather than by vehicle model. Under each vehicle system, the curriculum was organized into three categories: general systems fundamentals, family products (vehicles that share similarities) and new product features.

Named the GM Service Technical College33 (STC), the new training was rolled out in January 2000. The initial mix included computer-based training supplemented with print materials (for training on basic theory and function, for example) and interactive distance-learning events (for training on diagnostic procedures, for example). Over time, the delivery mix grew to include web-based training (WBT), simulations, streaming video, hands-on training and DVDs – all of which are coordinated and / or delivered through a web-based learning management system (LMS).

Today, three types of courses are available:

• Those required to enable the dealership to meet mandated training standards;

• Those required for the technician to become certified as a GM master technician; and,

33 For more information, http://www.gmstc.com.

http://www.gmstc.com



• Those that help to enhance the technician’s knowledge and skills (but are not included as requirements for minimum dealer training requirements or master technician certification).

The training team established a web-based assessment / placement process, which enables the technicians to “test out” and receive credit for a course, and to create training plans better suited to individual needs.

To access the web-based components, a technician can log into a secure portal, access personal training records, review a training path of a recommended series of courses, check out the schedule of upcoming interactive distance-learning events, take a course or view available technical information. These components are available 24 hours a day / seven days a week to technicians from any computer with Internet access.

Only when technicians need to demonstrate their skills (as in hands-on training and certification assessments) is it necessary for them to travel to a training center for instructor assistance and evaluation. This is provided at six GM training centers (now managed by RPS) and 29 affiliated satellite locations.

GM Service Technical College runs on a customized LMS, which today houses more than 350 courses; these courses are under continual review for updating or deletion, and new courses are added often. In 2006, more than 63,000 unique technicians completed nearly 1.5 million courses online.

Various real-time reports are available to help dealership managers determine their employees’ training needs and identify their accomplishments. These include the dealership’s progress toward its minimum service training standards requirements, technician training gap analyses, employees’ progress toward certification by position, and enrollment and wait-list information for training center courses and enrollment information by learner.

Training Leads to Higher Customer Satisfaction

GM STC has proven to be a major success. Based on service satisfaction surveys that are sent to all customers, “fix it right the first time” scores have increased, demonstrating a significant correlation between the new training initiative and technicians’ skills levels. An assessment of dealer



satisfaction conducted twice each year by the National Automobile Dealers Association (NADA) showed that GM dealers’ ratings have improved substantially, surpassing the industry average in 2003 and remaining high ever since.

At the same time, GM has reduced the cost of providing technician training every year since the launch of the Service Technical College. Today, technician training expenditures are less than half of what they were in 2000.

In the seven years since the GM Service Technical College was launched, GM has increased the number of trained technicians – and has improved their product knowledge, and diagnostic and repair skills, while sharply reducing the technicians’ time away from the dealership from more than 50 percent to about 10 percent.

Prior to the launch of GM Service Technical College, approximately 35 percent of all dealership technicians received training each year. Today, nearly 90 percent enroll for one or more training components. In addition, each participating technician previously completed an average of six courses. In 2005, participating technicians averaged eight course completions – a 60 percent increase.

Now that approximately 75 percent of the training is available online, technicians are better able to incorporate training as a part of their weekly routines. This added convenience and flexibility fosters a greater level of professional growth, and encourages technicians to complete more training on additional topics. The result is a technician pool that is better equipped to make accurate repair decisions and to implement them efficiently.

GM is working to bring the STC to Canada and Mexico. It has also extended access to GM STC courses to government and corporate owners of fleets of GM vehicles (which perform their own vehicle maintenance / repairs), and has created a comparable training system for service technicians of medium-duty trucks. In addition, GM provides STC resources to those responsible for training service technicians in foreign markets in which many of GM’s North American-built products are distributed. GM’s training experience has shown that technology solutions, when implemented through a well-designed process, can dramatically improve the efficiency and effectiveness of training for all involved.



The Institute of Nuclear Power Operations (INPO)

Initiative Excellence

The Institute of Nuclear Power Operations (INPO), created by the nuclear electric utility industry in 1979, promotes safety and reliability for nuclear power plants. All U.S. organizations that operate commercial nuclear power plants are INPO members.

In 2003, INPO was facing a challenge typical of many of America’s mature industries – an aging workforce. Projections by INPO’s human resources department showed that up to 60 percent of its workforce would retire by 2010. INPO’s situation was particularly urgent, given its mission of nuclear power safety and reliability. In addition, INPO expected the nuclear industry to experience significant growth in the next two decades and wanted to ensure it could maintain a high level of service to its members.

Around this same time, an organizationwide survey revealed a need for a more structured employee development and career-planning process. Many were not satisfied with training, and did not see a tie between training and their jobs. Benchmarking activities by INPO’s employee development group confirmed the need to better organize, update and improve INPO learning and development processes.

INPO set out to identify and develop the core skills and competencies needed by all personnel to function effectively. Goals included supporting the continuing development of INPO employees for improved performance, future assignments and increased leadership responsibility.

Methodological, Process-Oriented Approach

INPO formed a personnel development taskforce in early 2004, with the sponsorship of two members of the senior leadership team. The taskforce



looked at best practices for leadership and employee development at nuclear as well as other organizations. Based on these benchmarking efforts, an initial design for employee development was proposed in mid-2004. Internal employee focus groups were used to fine tune the proposed process and programs.

The taskforce defined a set of core competencies and improved job descriptions for all positions. Several competency models were reviewed with an eye to both the current performance of employees and the future needs of the organization. To simplify the task of determining which skills and competencies applied to which employee, the workforce was divided into six major professional groups – senior managers, managers, nuclear professionals, professionals, coordinators / technicians and administrative. A core set of skills and associated development activities were identified for each group.

This process resulted in several side benefits. The competency model prompted an update and revision of the performance appraisal process. The company began using a 360-degree feedback instrument for employee development that was based on the competency model. Interview and selection guides were also developed based on the job descriptions and its associated competency model.

As the development activities that would be required to support the new skills and competency model were identified, the taskforce realized that it needed a new system for tracking the completion of required training and skill development. It purchased a learning management system from Learn.com that could manage skills and competencies, track job skills requirements, manage learning content and allow for self-enrollment in instructor-led training.

A New Learning Mindset

In November 2004, INPO rolled out its new Leadership and Learning Center, which now serves as the central point for all employee development activities. Prior to officially launching the center, the taskforce educated all department managers on the new system and engaged them as advocates for change. Other marketing activities included departmental Q&A sessions and email communications to the entire workforce. The vendor’s LMS made it possible for INPO to



customize the user interface and conduct a phased rollout of the various system features.

Today, the center is an integral part of INPO’s culture, viewed by managers and employees as the “go-to” place for employee development. All INPO employees track their own training and managers regularly turn to the center to track the development progress of their direct reports. In some cases, member companies have used INPO’s model as a benchmark for their own training.

INPO attributes its success to the fact that competency and development needs were clearly defined upfront, with input from all levels of the organization. In addition, INPO believes technology was a key factor in making the new system effective and efficient. INPO also cites its adherence to a basic change management model (which guided the initiative), and good overall project management with an executive sponsor, timeline and milestones.



MetLife


MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the United States, and the Latin America, Europe and Asia-Pacific regions. Through its domestic and international

subsidiaries and affiliates, MetLife reaches more than 70 million customers around the world and has 47,000 employees.34

MetLife is driving increasingly higher levels of performance by tightly aligning learning with strategic goals and utilizing learning best practices. MetLife learning and development is multifaceted, with a central structure of teams aligned to several lines of business, as well as leadership and management development that supports the enterprise and field development. Recently, MetLife adopted a learning philosophy called “MetLife Performance Learning,” which utilizes three components: better learning, faster learning and high transfer to performance – each tied to the company’s mission and goals.

A Major Strategic Shift

In 2005, MetLife set out to implement a new, enterprisewide platform and programs to better serve the needs of its rapidly expanding global workforce. MetLife’s strategy included transforming its entire L&D organizational structure to increase efficiencies. It redefined and aligned jobs while maintaining dedicated training support for business units, and hired employees to fill new roles and support technologies planned for implementation.

In addition, MetLife created a team to provide shared learning resources – encompassing technologies, design and curricula services – across the

34 Source: MetLife website, “Investor Relations,” http://investor.metlife.com/phoenix.

zhtml?c=121171&p=irol-irhome.

http://investor.metlife.com/phoenix.zhtml?c=121171&p=irol-irhome

http://investor.metlife.com/phoenix.zhtml?c=121171&p=irol-irhome



enterprise. Its strategy also included a focus on enterprisewide learning needs, such as customer service and sales skills, new hire orientation and in-depth product knowledge. It created a learning council, comprised of senior vice presidents from major operational, service and sales units, to provide input into these initiatives.

By March 2005, the L&D team had selected and installed an LMS (PeopleSoft) and began conducting pilot tests. To provide a centralized design and development environment for instructor-led and e-learning content, MetLife also installed an LCMS (Eedo®’s ForceTen™) in early 2006. This included a standardized learning design and development process called EasyPath™, to ensure enterprisewide consistency and ongoing reusability. The team also implemented a virtual classroom solution later that year.

Building the Workforce of the Future

MetLife Performance Learning was unveiled to the entire MetLife learning organization at its third annual conference, held in Tampa in May 2006. Less than one year later, the company is already seeing results. Currently, twenty-five e-learning initiatives are complete or in progress that address a variety of learning needs across the business units.

One recently completed project was the redesign of a ten-week curriculum for customer response centers. By utilizing the EasyPath approach to content creation and taking advantage of new technology infrastructure, the course length was reduced to eight weeks. Pass rates rose from an average of 65 percent to 80 percent. Even more significant, learners completing the revised curriculum are handing more calls sooner and with higher accuracy than peers trained using the previous curriculum.

MetLife L&D executives point to several key success factors, including a highly methodical approach and careful change management. They also attribute success to conducting a detailed needs assessment (involving L&D team members and all major business stakeholders across the enterprise) and learning as much as possible from other organizations’ successes and lessons learned. In addition, MetLife believes it is critical to have the right L&D talent, including team members with the skills to support the implementation of new systems and processes. The



company also benefited from limiting the number of vendors involved as much as possible to reduce complexity – and from creating a solid business proposition that encouraged select vendors to become vested in supporting MetLife’s success. MetLife has a strong foundation in place, and will aggressively leverage the newly implemented tools and growing talent to heighten the impact of learning to support business outcomes.



Philips Ultrasound


Philips Medical Systems is a global leader in medical technology ranging from X-ray, ultrasound and magnetic resonance to nuclear medicine, radiation oncology systems and resuscitation products. The company is a division of Royal Philips Electronics®, one of the world’s biggest electronics companies, and employs 31,000 people with manufacturing facilities in the United States and Europe.35

In 2003, a new CEO joined Philips Medical with a mission to improve profitability. One of the biggest problems facing the company was that projects were running over time and over budget, which was affecting the company’s bottom line. To help solve this problem, the CEO’s vision included higher levels of leadership and employee engagement, and a shift to a management culture and techniques typified by larger companies.

A team of performance consultants used a variety of proven tools to assess goals, needs and solutions. First, the team conducted a goals analysis with the CEO and executive team. It then used a Five Dimensions Analysis™ from iinteg®, Inc. to help further analyze the executive team’s desired outcomes and identify obstacles. This included interviews with a broad range of managers, their direct reports and their supervisors in individual and group sessions.

In addition, the team used a measurement and development model, called the Four Stages of Contribution from Novations®. This model proposes that all managers should be operating at a Stage 3 or 4 (defined as a manager who “stimulates ideas and knowledge, provides direction to the organization and sponsors promising individuals to prepare them for leadership roles”). The team also assessed employee strengths using a scorecard process.

35 Source: Philips Medical Systems, “About Us,” http://www.usa.philips.com/about/.

http://www.usa.philips.com/about/



The in-depth analysis showed leadership problems including unclear expectations, and a lack of competencies, consequences, upper management support and tools. The team proposed a leadership development strategy leveraging the Five Dimensions of Human Performance framework. The strategy ensures that managers have everything they need to be successful, including:

• Clearly communicated performance expectations;

• Appropriate consequences;

• Environmental support (upper management, peers, policies and procedures);

• Necessary tools;

• Resources; and,

• Competencies.

Designed to Build Individual and Team Leadership

A leadership development program was launched in January 2004 with a class of 20 directors, hand picked by the executive team. Managed and administered by the HR organization for the Philips Ultrasound business, it included:

• Detailed, documented expectations;

• Classroom training on performance management, coaching and team dynamics;

• Professional one-on-one coaching;

• Peer learning groups (seven to 10 peers facilitated to reinforce skills, practice, strategize and support each other);

• Feedback from upward and downward, via the organization’s scorecard tool;

• Development planning; and,

• Action learning applied real-time to the participants' most important goals.



The training was delivered in classroom, small group and one-on-one settings. The program’s content and design were based on input from the performance consulting process, industry experts and an independent benchmark study from the Corporate Leadership council.

Subsequent leadership development sessions have expanded beyond hand-picked directors to include their direct reports, and self-nominated directors and managers. Since its launch, the program has been regularly reviewed and revised, and is considered today by the CEO among the vital initiatives that have contributed to the organization's increased profitability.

Today, the program is supported online with a website that provides detailed information, self-paced instruction, access to forms, job-aids and tools, program calendar, and frequently asked questions and answers. A scorecard evaluation tool is also administered online, and participants and their managers can access real-time results. The program also offers elective courses made available from the organization’s large online learning catalog.

The leadership development program is linked to the organization’s performance appraisal system. Development plans and action learning are extracted from the performer’s yearly goals, evaluated through the leadership development process. In addition, the program is designed to improve succession planning.

Importance of Executive Support

Philips Ultrasound believes a key to its success is the active role of senior management in shaping, marketing, supporting and executing the leadership development program. The CEO and executive team were instrumental in defining the deficiencies, and identifying the critical content and topics that are the key to successful leadership within the organization. Further, senior leaders work closely with program participants to create individual development plans and help them to select the top two priorities for action learning. Senior leaders continue to meet with participants to coach and monitor progress on action learning throughout the year.

Philips Ultrasound has reported that the program has been highly successful. The executive team says that it has seen a significant increase in cross-functional coordination and teamwork, and trickle-down improvements in performance of direct reports. In one case, better



teamwork led to a 20-minute reduction in a manufacturing process, causing significant savings.

In addition, based on the Stages of Organizational Contribution Scores, HR reports that 92 percent of program participants were evaluated by their direct reports and supervisors as operating at a Stage 3 or 4 following the program. The company also points to the fact that 54 percent of program participants have been promoted to higher levels of responsibility. Additional evidence of success includes a 22 percent increase in participant’s average overall scorecard rating, with a 20 percent increase in employee engagement scores of their direct reports.



Saks Incorporated


Saks Incorporated operates 54 Saks Fifth Avenue stores, 50 OFF 5TH stores and saks.com. The company also operates specialty store chain Club Libby Lu.

Several years ago, when Saks also operated more than 200 department stores, the company recognized a problem common to many other organizations – it lacked internal “bench strength.” In Saks’ case, the most acute shortage was in qualified personnel for positions of buyer and divisional merchandise manager. The company was spending most of its training dollars on new hires and trainees, and lacked processes and training for ongoing development. In addition, Saks was using only traditional classroom methods of delivery, and had inconsistent program offerings and structures across divisions.

Saks Incorporated’s training and development organization set out to develop a competency database for merchant positions and a corresponding curriculum. Since merchant jobs had changed significantly in recent years, developing and validating competencies was critical in order to build new skills requirements for both new and incumbent merchants. The training group then conducted an extensive gap analysis and training needs assessment based on approved competencies.

The assessment revealed that among the biggest gaps were skills for financial analysis, developing and implementing strategies, formulating alternative solutions, and negotiation. Based on these conclusions, combined with business imperatives to accelerate top line sales and improve margin percentages, the goal was to design, develop and implement a progressive learning process to build competence in a shorter period of time.



More Strategic Merchandising Skills

Saks’ corporate training and development group built a business case to obtain support and funding from senior management on a new standardized core curriculum for merchant positions, as well as a series of management development programs to build bench strength and higher-performing teams. It also made the case for leveraging technology to improve training delivery methods, increase training efficiencies and track training investments to determine a return.

With support established, Saks corporate training and development organized a curriculum design team comprised of top-performing merchants and internal learning strategists, and partnered with an e-learning production vendor. One of the key tasks for the design team was to develop content to help merchandisers shift from being task-driven to more strategic decision-makers. The team designed a four-level curriculum that included:

• The business of buying, retail math and merchandise management;

• Business analysis;

• Financial planning and analysis; and,

• Communication and negotiation.

The Saks team partnered with an e-learning vendor, Convergys®, to produce the courses. Using the vendor’s tools, members of the team were able to easily share information, such as storyboards, character choices, audio and visuals. This helped streamline decision-making and simplify the review process.

Exceeding Expectations

The new e-learning courses were launched in early 2006 through the new Saks University. Through its LMS, employees can register for courses and organize their development plans. The training group can automatically position required courses on an employee’s development plan and track completions.

Nearly 600 employees took courses in the first month. The training organization has observed that merchants are applying new knowledge



and skills quickly. They are incorporating the language of the curriculum into their daily business lives and contributing to strategic planning meetings. Many now view their job accountabilities at a higher level, because the curriculum helped define what merchants need to demonstrate on the job and how they can influence business results.

Through the use of technology, defined competencies and consistent curriculum, Saks Incorporated has significantly improved its training. Merchants are up to speed in six to 12 months versus the industry average of two years. In addition, Saks anticipates that in 2007 it will exceed its goal for promoting from within the organization.



Scottrade


Scottrade® is a leading online, discount brokerage firm. Founded in 1980 as Scottsdale Securities, the company changed its name to Scottrade in 2000 to reflect its web presence. Today, the firm has 1,700 associates in 290 branch offices with annual revenue of $789 million.36

In 2005, Scottrade realized that, to remain a leading competitor in the brokerage industry, the company needed to become more proactive in growing and preserving its market share through customer service. While Scottrade was consistently recognized for high customer satisfaction – ranked highest in investor satisfaction by J.D. Power and Associates in 2005 for the sixth consecutive time – it also believed that many opportunities to prospect for additional business were being lost.

To better understand its needs, Scottrade’s training team conducted internal and external audits. This included evaluating hundreds of branch associate phone calls to determine the extent of lost opportunities when dealing with a customer or prospect. Scottrade also surveyed several branch managers on how the company could improve customer service and generate additional business.

In conjunction with the internal activities, Scottrade contracted with two Atlanta-based consulting firms, CompeteNet® and Greene Consulting to conduct external audits. These firms conducted several “secret shopper” exercises (both in person and by phone), and evaluated archived phone recordings.

The findings of both internal and external audits showed that branch associates needed training in soft-selling skills that included:

36 This information has been reviewed and approved by Scottrade.



• Asking probing questions;

• Exhibiting proper listening skills;

• Positioning a value proposition relative to the situation of the prospect or customer; and,

• Asking permission to move to the next level and asking for the business.

Scottrade set out to provide training that would help branch managers improve their customer interaction skills, thereby helping the company to meet its goals of providing exceptional customer service and growing the business.

Real-to-Life Training

Scottrade formed a committee made up of branch, training, compliance, IT and communications employees to further identify needs for the learning solution. It identified key factors for consideration that included Scottrade culture, existing employee knowledge, logistics and proven learning styles.

After interviewing several companies and exploring multiple options, the committee selected a real-to-life simulation training approach. The rationale was that simulation training could be deployed via the web or through in-house servers, and tailored to reflect Scottrade’s culture and business environment. It also had a level of excitement and fun associated with the overall learning objectives.

Real-to-life simulation places the participant in everyday, Scottrade-specific customer and prospect situations. It recreates typical scenarios the company’s branch associates face each day, allows the associate to practice how to correctly handle these situations – all without the risk of compromising the relationship with a real customer or prospect.

Scottrade partnered with the two consulting firms to develop the simulations. This process consisted of reviewing the internal and external audit results, interviewing branch associates, creating storyboards and scripts, selecting actors, and filming and editing.



The simulations focus on the following learning objectives:

• Soft skills;

• Consultative selling; and,

• Conversational competencies.

Each simulation consists of an initial briefing, best-practices demonstration, interactive customer meeting and scoring / debriefing – all geared toward asking probing questions, exhibiting proper listening skills, positioning Scottrade’s value and asking permission to move to the next level.

Interactive, flash-based technology was the primary delivery method for this training. A dedicated website was created to house the simulations and all additional resources used in the program.

Branch Level Champions

The program was first launched to all branch managers at Scottrade’s annual branch manager’s meeting. An entire day was dedicated to hands-on interaction with the simulator. A promotional DVD was also created that featured the firm’s founder and CEO highlighting the program’s benefits.

The official companywide launch came approximately one month after the branch manager’s meeting. Branch managers became the facilitators of this program, ensuring that their employees successfully participated.

Brief assignments were used to gauge employee understanding and application of key concepts. Ongoing assessments to determine improvement levels and skills set mastery were conducted at the branch level and from the home office by observation, mentoring and call monitoring.

Today, certain key performance indicators (KPIs) are also reviewed to gauge changes in lead conversions, assets under management per branch and new account openings. Because of their realized effectiveness and value, the simulations are no longer just a training tool; practical application of simulation concepts are now used in the quarterly and yearly performance evaluations of branch associates, and when assessing the leadership and development skills of branch managers.



A Renewed Focus on Customer Relationships

The simulations have received an overwhelmingly positive response from Scottrade associates. Based on call monitoring both before and after simulation training, Scottrade has witnessed continuous improvements in branch associates interactions with prospects and customers. In fact, in 2006 Scottrade recognized a six percent higher lead conversion than the marketing department’s already aggressive goal over the previous fiscal year.

The training team has received numerous requests from branch managers and brokers in the field for more of this type of training. Not only was this training a tremendous success at all levels of the firm, it prompted the creation of an entire department dedicated to the firm’s approach to customer relationships. Scottrade also has future plans to release additional simulations to meet the growing needs of each associate.

Scottrade’s attributes its success to using cutting-edge, fun, interactive and innovative training. It also credits the team approach, engaging branch managers to facilitate and manage at the branch level. Other departments in the firm have observed the success of this form of training, leading to companywide involvement and ownership in the training mission.



Symantec


Symantec, founded in 1982, provides software for security, systems management and storage for consumers, small businesses and enterprises. Headquartered in Cupertino, California, Symantec has more than 17,000 employees and operations in 40 countries. The company ranks 672 on the 2006 FORTUNE 1,000.37

To meet the technical training needs of its employees and partners, Symantec (which Forbes magazine called one of “The Best Managed Companies in America,”) has implemented well-defined, time-tested processes to ensure tight alignment with product development and rapid delivery of high-quality training for new products.

Symantec’s Technical Training and Enablement (TTE) organization provides training to the company’s technical support, consulting and pre-sales teams, as well as to external business and support partners. A staff of 83 learning professionals supports an audience of approximately 4,000 people. TTE offers 340 instructor-led titles, 150 e-learning titles and several hundred recorded engineering TOIs (transfers of information).

To help technical support employees master Symantec’s technology, processes and tools, TTE provides development paths from the time people begin training to the time they become senior-level technicians. Each path is tailored according to the role and the product groups the employee serves. The learning program blends both technical and soft-

37 Source: Symantec, “Corporate Profile,” http://www.symantec.com/about/profile/index.jsp.

http://www.symantec.com/about/profile/index.jsp



skills education. TTE offers the same training portfolio to its support partners and business critical customers.

To keep in sync with business needs, TTE works closely with Symantec’s product release managers as new products are being introduced. The release management team provides estimates on customer adoption rates and support needs, so that the TTE team can prioritize course development. TTE has a well-established courseware development, review and publishing process that has been refined over many years.

TTE also coordinates with release management to capture engineering TOIs, which can be used as an alternative for training for lower priority products and to augment other forms of learning materials once they become available.

Given the technical nature of the content, TTE has found that instructor-led, lab-driven classes to be most effective. However, the organization has over the past several years begun to supplement training with e-learning courses that are available anytime / anywhere through Symantec’s LMS portal.

The TTE organization has adopted new, cutting edge e-learning technologies that allow the organization to quickly produce high- quality online materials. In addition, it offers online resources, such as SkillSoft’s Books24x7. TTE is also currently investigating virtual classroom technologies.

TTE makes the most of its resources in a variety of ways. This includes cross-training instructors, and “sharing” them among regions and other education groups to provide effective coverage. TTE also develops courses that apply to multiple product groups. In addition, TTE shares training best practices through regular meetings within regional and vertical teams in the global TTE organization.

Using its LMS, TTE managers can run reports on learning activities ranging from instructor utilization to satisfaction levels for a specific course. An automatic weekly report provides a snapshot of all of the learning that has taken place that week, including resource utilization, scoring, and feedback from learners and instructors. Results are important for meeting service-level agreements and for reporting quality metrics to senior management. TTE follows up directly with any dissatisfied learners to find ways to improve the learning experience.



In order to maximize operational efficiencies in both internal and external training, TTE managers also serve on Symantec’s corporate learning council, alongside two other learning organizations – Sales Training / Customer Education (responsible for end-user training) and Learning and Performance Group (which is responsible for management, leadership and personal development training).



Appendix I: Directory of Companies




American Power Conversion Corp. (APC) www.apc.com

General Motors Corp. www.gm.com

Scottrade, Inc. www.scottrade.com


Alcatel (now Alcatel-Lucent) www.alcatel-lucent.com

Digitas, Inc. www.digitas.com

Philips Ultrasound www.medical.philips.com


Institute of Nuclear Power

Operations (INPO) http://hss.energy.gov/CSA/CSP/inpo

MetLife www.metlife.com

Saks, Inc. www.saksincorporated.com


Bellevue University www.bellevue.edu

CIBC www.cibc.com

The Children’s Place Retail

Stores, Inc. www.thechildrensplace.com

Appendix I: Directory of Companies

http://hss.energy.gov/CSA/CSP/inpo/




Caterpillar, Inc. www.cat.com

Symantec Corp. www.symantec.com



Appendix II: Table of Figures



Figure 1: Scottrade Sales Training Simulation Portal 12

Figure 2: GM Service Technical College Portal 14

Figure 3: APC Data Center University Portal 15

Figure 4: Bersin & Associates Leadership Development Maturity Model® 16

Figure 5: Alcatel’s STRETCH Leadership Program Model 24

Figure 6: Philips Medical Systems Leadership Development Program Model 25

Figure 7: Alcatel’s “3-Way” Agreement 26

Figure 8: Developing and Validating Competencies at Saks 31

Figure 9: INPO L&L Center Matrix by Professional Levels and Development Categories 32, 33

Figure 10: Alignment of Learning to Business Goals 37

Appendix II: Table of Figures

89


Bersin & Associates Learning Leaders® 2006

About UsBersin & Associates is the only research and advisory consulting firm focused solely on WhatWorks® research in enterprise learning and talent management. With more than 25 years of experience in enterprise learning, technology and HR business processes, Bersin & Associates provides actionable, research-based services to help learning and HR managers and executives improve operational effectiveness and business impact.

Bersin & Associates research members gain access to a comprehensive library of best practices, case studies, benchmarks and in-depth market analyses designed to help executives and practitioners make fast, effective decisions. Member benefits include: in-depth advisory services, access to proprietary webcasts and industry user groups, strategic workshops, and strategic consulting to improve operational effectiveness and business alignment. More than 3,500 organizations in a wide range of industries benefit from Bersin & Associates research and services. Bersin & Associates can be reached at http://www.bersin.com or at (510) 654-8500.

About This ResearchCopyright© 2007 Bersin & Associates. All rights reserved. WhatWorks® and related names such as Rapid e-Learning: WhatWorks® and The High Impact Learning Organization® are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or re-used without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.

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