Trends in Training “ What Business Teaches Us”

1. Trends in Training“What Business Teaches Us” Annual Meeting June 18, 2004 ASTD New Hampshire Chapter Presented by: Brecca Loh Cobalt Strategic Partners

2. Know the Business Climate • Discover training trends by studying business trends. • Stay current. • Understand cultural and societal happenings • Read business journals, newspapers, magazines • Access related internet sites • Attend professional meetings devoted to organizational change. • Follow your passion with a firm knowledge base Copyright Cobalt Strategic Partners 2004

3. The Times They Are a Changing • Thanks in large part to the aging of the workforce, the Bureau of Labor Statistics projects a shortfall of 10 million workers in the United States in 2010. The problem is even worse in Western Europe. • Companies have focused so much on downsizing to contain costs that they've largely neglected this looming threat to their competitiveness: a severe shortage of talented workers. • How are organizations going to cope with the changing demographics of the workforce? • What are the implications for hiring and retention efforts? • How will retirement programs and other programs cope with this “age wave?” • What are the opportunities presented by this demographic trend? Copyright Cobalt Strategic Partners 2004

4. The Hard Numbers • Demographics: • General population is aging • Labor pool is aging • Birthrate is at an historic low • Ages 16-24 are growing at a rate of 15% • 25 to 34 age segment is growing at half that rate • 35 to 44 (prime executive development years) is declining In the next 15 years, 80% of workforce in North America is going to be over 50 years of age! Copyright Cobalt Strategic Partners 2004

5. Changing Face of Retirement • Skills, knowledge, experience, and relationships walk out the door every time somebody retires – and they take time and money to replace. • Retirement as we know it will have to change. • Corporate organizations and culture will have to change. • Need to retain older workers and attract new talent. There will be a ‘war for talent’. Organizations who win the war will be those invested in progressive workforce development strategies. They will engage their target workforce and maximize the skills of their existing workers – motivating and retaining their most value resource. Copyright Cobalt Strategic Partners 2004

6. Human Capital(productivity and profits) • Human Capital = people = assets = profits • People are an organization’s greatest asset • People define an organization’s character and capacity to perform • Goal is to align ‘people’ to support organizational mission and performance goals: • More competitive in attracting and retaining new employees with critical skills • Create performance incentives and training programs that motivate and empower • Build management-employee relationships that are based on common interests and org. trust. Copyright Cobalt Strategic Partners 2004

7. Talent Keepers(mining and retaining human capital) Established at ‘Retention Works’ at AngloGold to: • Assess and develop the skills of current leaders • Develop and retain future managers, especially those from historically disadvantaged populations • Improve safety by retaining more experienced workers • Accurately determine the real reasons employees join, stay, and leave the company • Assess and monitor employees’ job satisfaction levels and their propensity to leave • Achieve five- and 10-year charter objectives • Four stages: 1)launch, 2) awareness building, 3) competency development, and 4) sustaining momentum. • Train employees to become “retention coaches” Copyright Cobalt Strategic Partners 2004

8. Training Implications Copyright Cobalt Strategic Partners 2004

9. No creature can fly with just one wing. Gifted leadership occurs where heart and head – feeling and thought – meet. These are the two wings that allow a leader to soar. -Daniel Goleman Copyright Cobalt Strategic Partners 2004

10. Leadership for the 21st Century • Labor shortfall • Need to retain talent • Cultural diversity • Corporations agents of social change • Need for new leadership paradigm Copyright Cobalt Strategic Partners 2004

11. Primal Leadership“It’s More than Pounding Your Chest”It is the Hidden Driver of Performance Two Models Resonance Dissonance Copyright Cobalt Strategic Partners 2004

12. Leader drives emotions positively Bring out everyone’s best Collaborative model Attuned to other people’s feelings New generation of leaders Views employees as asset Embraces heart and mind Leader drives emotions negatively Undermine emotional foundations that let people shine Dispirits people Burns them out Sends them packing Views employees as commodity Emotion a dirty word Resonance vs. Dissonance Copyright Cobalt Strategic Partners 2004

13. Self Awareness(personal leadership competence) • Reading one’s own emotions and recognizing their impact; using “gut sense” to guide decisions • Accurate self-assessment: Knowing one’s strengths and limits • Self-Confidence: A sound sense of one’s self-worth and capabilities Copyright Cobalt Strategic Partners 2004

14. Self-Management(personal leadership competence) • Emotional self control: Keeping disruptive emotions and impulses under control • Transparency: Displaying honesty and integrity; trustworthiness • Adaptability: Flexibility in adapting to changing situations or overcoming obstacles • Achievement: the drive to improve performance to meet inner standards of excellence • Initiative: Readiness to act and seize opportunities • Optimism: Seeing the upside of events Copyright Cobalt Strategic Partners 2004

15. Social Awareness(social leadership competence) • Empathy: sensing others’ emotions, understanding their perspective, and taking active interest in their concerns • Organizational awareness: Reading the currents, decision networks, and politics at the organizational level. • Service: Recognizing and meeting follower, client or customer needs Copyright Cobalt Strategic Partners 2004

16. Relationship Awareness(social leadership competence) • Inspirational leadership: Guiding and motivating with a compelling vision • Influence: Wielding a range of tactics for persuasion • Developing others: Bolstering others’ abilities through feedback and guidance • Change catalyst: Initiating, managing, and leading a new direction • Conflict management: Resolving disagreements • Teamwork and collaboration: Cooperation and team building Copyright Cobalt Strategic Partners 2004

17. Leadership Repertoire(fostering resonance) • Visionary • Moves people toward shared dreams • Strong positive impact on climate • Use when change requires a new vision, or when a clear direction is needed • Coaching • Connects what a person wants with the organization’s goals • Highly positive impact on climate • Use to help employee improve performance by building long-term capabilities • Affiliative • Creates harmony by connecting people to each other • Positive impact on climate • Use to build buy in or consensus, or to get valuable input from employees • Democratic • Values people’s input and gets commitment through participation • Positive impact on climate • Use to build buy-in or consensus, or to get valuable input from employees Copyright Cobalt Strategic Partners 2004

18. Training Implications Copyright Cobalt Strategic Partners 2004

19. Creativity(The New Power behind the US Economy) • Limitless resource • Everyone has it – scientists, engineers, technologists, artists, designers, etc. • Able to cultivate Copyright Cobalt Strategic Partners 2004

20. Rise of the Creative Class • Creative class has risen dramatically • 1900 – less than 10% of workforce • 1980 – more than 15% of workforce • 2000 – 33% of the workforce • Accounts for half of all income in US • $1.7 trillion = manufacturing & service sectors • Conformity is no longer profitable • Creativity and innovation will become the defining feature of economic life. • Human creation Innovation Competitive Copyright Cobalt Strategic Partners 2004

21. Creative Economy • Astounding Growth: • Investment in creativity (R&D) has increased from $5 billion in 1953 to $250 billion – 800% increase • Technical creatives – scientists and engineers - have grown from 625,000 in 1950 to 5 million in 1999 • Patents granted annually has increased from 43,000 in 1950 to 150,00 in 1999 – 250% increase • People who make a living from artistic and cultural creativity – artists, writers, performers – increased from 525,000 in 1950 to 2.5 million in 1999 – 375% increase • Need to restructure organizations to meet the demand and stay competitive • Economic leaders of the future will be those able to attract creative people and come up with next-generation products and business processes Copyright Cobalt Strategic Partners 2004

22. ‘MFA’ is the new ‘MBA’The Art of Business • Businesses have come to realize the most effective and profitable way to differentiate their products and services is to make them beautiful and emotionally compelling • Demand for artistic aptitude is surging – a graduate arts degree is now a hot credential in management • Corporate recruiters are out visiting the top art graduate schools • Arts graduates are occupying key corporate positions • Supply of MBA’s is up and the demand is down • This century’s “blue-collar workers” • Many of their jobs are moving overseas • US financial service companies will transfer a half-million jobs to low-cost locales such as India – displacing 8% of the American workforce Copyright Cobalt Strategic Partners 2004

23. Workplace of the Future • Emotionally Intelligent • Team-oriented • Collaborative • Amplify positive attributes – loyalty, resilience, trustworthiness, humility and compassion • Agents of social change • Profitable Copyright Cobalt Strategic Partners 2004

24. Liberation • Changing workforce • Changing leadership • Need for increased creativity and innovation • Need for organizational realignment • Need to find a way to help organizations get stronger and better at what they do. “This is about looking at your organization as a living organism that needs to be fed, inspired, protected, and nourished.” -Keith Yamashita Copyright Cobalt Strategic Partners 2004

25. Signs that Your Team is Stuck • Overwhelmed • Too much going on, not enough people or time • Exhausted • Your team is paralyzed, burned out • Directionless • No big picture; action but no results • Hopeless • The passion is gone; the team lacks purpose • Battle-Torn • Your team is at war • Worthless • Poor metrics make measuring success impossible • Alone • Your team isn’t in sync. Copyright Cobalt Strategic Partners 2004

26. Unsticking • Overwhelmed • Be clear about which mode your team is in – “Blue sky” (big picture) or “tuning (what works now). • Exhausted: • Look at your watch. Companies that measure results against the time invested tend to outperform their peers • Directionless • Put your ideas in words. Articulating it will help you see potential problems that can then going forward be addressed. • Hopeless • Come up with a moon shot – a big, ambitious goal to unite and motivate the team • Battle-torn • Build a community identity or choose a common enemy before going forward • Worthless • Prototype the end objective rather than constantly debating where the team is going • Alone • Use public recognition and praise as a motivator Copyright Cobalt Strategic Partners 2004

27. Training Implications Copyright Cobalt Strategic Partners 2004

28. Remember: Copyright Cobalt Strategic Partners 2004

29. Sources • Books: • Primal Leadership, Daniel Goleman • The Rise of the Creative Class, Richard Florida • Unstuck, Keith Yamashita & Sandra Spataro • Harvard Business Review on Change, Harvard Business Review Press • Articles: • “Breakthrough Ideas for 2004”, Harvard Business Review, February 2004, Reprint #R0402A • “Mining Human Assets”, T+D, American Society of Training and Development • “Primal Leadership: The Hidden Driver of Great Performance”, Harvard Business Review, Harvard Business Review, December 2001 • “The Liberator”, Fast Company, June 2004 Copyright Cobalt Strategic Partners 2004

30. Brecca Loh Cobalt Strategic Partners 132 Chapel Street Portsmouth, NH 03801 T: (603) 498-1272 E: bloh@cobaltsp.com www.cobaltsp.com (coming soon!)