Andrew Mayo , Professor of Human Capital at Middlesex University,President of the HR Society and

1. Creating (or renewing) a Business Driven L&D Strategy Andrew Mayo, Professor of Human Capital at Middlesex University,President of the HR Society and Director, Mayo Learning International Ltd Melbourne, December 2008

2. AGENDA • Expectations and Experiences • A Systematic Framework • The “General” Drivers of our Strategy • “Current” initiatives needing support • Processes and Tools • Implementation

3. The truth is…. • Nothing can be achieved without people – the right people at the right time with the right skills in the right place • Every problem in organisations is ultimately due to an issue with people – their capability, their motivation and the way they are organised • HR/L&D are (should be) the professionals who work in partnership with managers to maximise achievement and minimise problems in the business

4. STRATEGY- a much overused word! • Its about: • what we should do, and why • what we should not do, and why • and then: • how we will deliver Strategy is about choices of direction, which lead to policies, processes and plans

5. BY “WHAT?” WE MEAN……. • Policies, programmes and processes for • the culture for learning • the enhancement of knowledge and skills • the development of potential and careers • the personal development of employees

6. A FRAMEWORK FOR L&D STRATEGY Processes and tools BELIEFS AND PRINCIPLES Programmes - ongoing - customised Populations POLICIES

7. A LEARNING AND DEVELOPMENT STRATEGY Beliefs and Principles Policies Processes Programmes Success indicators

8. POSSIBLE PURPOSES OF AN HRD STRATEGY • Required as part of the Strategic Planning Process • Communication - to top management - to line managers - to all staff • Managing Expectations * Visibility/Credibility • Consultations with Management * External Publicity • Meeting External Standards * HRD Planning • Approval/Endorsement * Integration Across Units • Influencing change * To establish competitive advantage

9. TARGET AUDIENCES FOR AN HRD STRATEGY • Chief Executive • HR Director “approval” & “resources” • Line Managers “developing people” “meeting business goals” • Employees • HRD Staff • TU/Staff representatives • External People - Committees - IIP - Fund Providers - Political overseers

10. WHERE DO WE START FROM? We may not have a strategy written down, but unless we are starting a “green field” we do have one – it is what we are currently doing and how we deliver it So our discussion is about “reviewing and renewing” as much as about “creating”.

11. 1 2 3 4 A SUMMARY OF THE INFLUENCES ON HR STRATEGY Internal issues to address What the organisation is trying to achieve as a business External constraints impacting us The Organisation for which we need a strategy Group Policies and Professional best practice

12. “PESTLE” ANALYSIS FACTORS IMPLICATIONS FOR L&D Political Economic Social Technological Legal Environmental

13. “SWOT” ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

14. HOW BUSINESS STRATEGY DRIVES HR/HRD STRATEGY DELIVERING THROUGH EFFECTIVE ORGANISATION AND THROUGH MANAGING HUMAN CAPITAL BUSINESS DIRECTION Organisational strategy and philosophy Organisational and cultural strategy People Management and Development strategy Medium to long term Structure, systems and processes, measures, behaviours Mission, vision, values, principles, long term goals Policies and processes for people management/ development Operating strategies objectives and targets Operating problems, deviations and issues Organisation and resourcing changes Change projects Short term goals Remedial Supporting HR/HRD initiatives Supporting HR/HRD Initiatives Nothing is achieved without people; + every problem has people behind it! Delivering the Strategy

15. THE DRIVERS OF HRD STRATEGY Mission, Vision & Long Term Goals Maintaining Core Competences The external environment The OD Strategy “MEDIUM/LONG TERM GOALS” Values and Beliefs in People Development HRD STRATEGY

16. TO BE OR NOT TO BE……... • Investors in people? • A learning organisation? • Promoting self management of learning and • self ownership of career progress? • A developer of internal talent and the potential • of all employees? • A “knowledge sharing” organisation?

17. SMITH AND NEPHEW: “MANAGEMENT PRINCIPLES” Our company will succeed through its people Our published values, PERFORMANCE INNOVATION TRUST set challenging standards for the way we manage at every level and in every part of the Smith and Nephew world. • Management at all levels have the responsibility for defining and implementing policies, • programmes and training to achieve these standards. In so doing however all managers • in S&N subscribe to a company-wide belief that our employees are entitled to expect: • clearly communicated goals and performance standards • an open constructive relationship with managers and supervisors • the training, information and authority needed to do a good job • fair recognition and reward based on performance • equality of opportunity based on merit • encouragement to learn and progress • respect and dignity at all times • encouragement to participate fully in the quest for continuous improvement • Group Executive Committee July 2001

18. TO BE OR NOT TO BE……... Do the exercise “What We Believe In” - share and discuss on your tables

19. Core Capabilities • Essential knowledge and skills needed to win at our business • Capabilities which differentiate us from competition Build them to be: • Valuable (in relation to the market) • Rare • Hard to imitate • Hard to substitute • Owned by us We need to continuously acquire and develop these

20. THE FRAMEWORK OF POLICIES IN HRD Policies may cover ALL employees and/or be for specific groups * Central control vs local discretion; authority levels * Education/accreditation * Approach to national initiatives * Policy towards non -core staff * Induction, mentoring, performance reviews & other processes * “Mandatory” requirements for “training” * Application of diversity requirements

21. Processes and tools linked together productivity Complete dictionary of capability Role profiling Effective resourcing motivation and commitment organisational mapping Performance management personal profiling High levels of expertise talent retention Individual continuity Complete classification of potential personal career planning Organisational continuity Succession planning ££ Higher revenues through greater competence personal potential analysis Organisational health audit ££ reduced costs through more efficient resourcing

22. HRD PROCESSES and TOOLS A learning culture Growing knowledge and skills Developing potential and careers Personal development of employees

23. “CAPABILITY” the core of a person’s asset value

24. Measuring “Know-how” – levels of expertise = Aware = Basic = Competent = Distinguished = Expert A B C D E

25. MEASURING CAPABILITY • PERSONAL SKILLS: 360 feedback • +ve and -ve behaviours • NETWORK/CONTACTS: • The proportion of customers known personally # prospects we have based on a personal relationship # of competitors with whom we have a personal link # of relevant officials known # of experts outside the organisation who are known # of potential employees who are known.

26. MEASURING CAPABILITY • EXPERIENCE: • Time spent • Scope and stretch • Parameters of size. • Special circumstances • VALUES/ATTITUDES: • 360 feedback

27. EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGY

28. EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGY Your own examples

29. A MODEL FOR BUILDING HRD STRATEGY Maintaining Core Competences The external environment The OD Strategy “THIS YEAR’S BUSINESS GOALS” Business Strategies and goals Organisation & manpower plans Change initiatives “MEDIUM/LONG TERM GOALS” Mission, Vision & Long Term Goals Values and Beliefs in People Development HRD STRATEGY

30. A MODEL FOR BUILDING HRD STRATEGY Maintaining Core Competences The external environment The OD Strategy “PROBLEMS/ISSUES TO BE ADDRESSED” “THIS YEAR’S BUSINESS GOALS” Business Strategies and goals Organisation & manpower plans Change initiatives Operational Issues Individual needs Team needs External Changes “MEDIUM/LONG TERM GOALS” Mission, Vision & Long Term Goals Values and Beliefs in People Development HRD STRATEGY

31. What is the business goal What problem are we are trying to achieve? we trying to solve? What are the milestones, What is the quantified If any, en route to the goal? gap to be closed to solve the problem? What will influence success What are the possible in achieving the milestones? causes of the problem? 1 2 FROM BUSINESS GOALS TO LEARNING GOALS IN EIGHT STEPS

32. 3 • Who is involved in achieving the milestone or in the causes • of the problem? • How does their capability need to increase and to what level? • Do we need diagnostic tools to measure the capability? • What therefore are the capability gaps to be closed? • (= the learning goal) • Are the people involved able to make the capability change? • Do we have the time to make the capability changes? • or should we recruit? 4 5 6 7 8

33. FROM BUSINESS GOALS TO LEARNING GOALS • Choose one of the major “strategy drivers” in your • part of Centrica. Working in pairs, Person A describes the • driver to Person B, who applies the eight steps as an L&D • consultant. • Develop possible learning objectives as a result. • When completed, swap roles and repeat. At the end of • the exercise note the learning points for you personally.

34. PRIORITISATION OF DEMANDS High First priorities Second Priority -needing project management Impact Quick wins Bottom of the in-tray High Low Costs/difficulty of implementation

35. A MODEL FOR BUILDING HRD STRATEGY Maintaining Core Competences The external environment The OD Strategy “PROBLEMS/ISSUES TO BE ADDRESSED” “THIS YEAR’S BUSINESS GOALS” Business Strategies and goals Organisation & manpower plans Change initiatives Operational Issues Individual needs Team needs External Changes • Approach to Learning • Populations • Methodologies • Resources and Funding • Marketing and • Communication • Monitoring “MEDIUM/LONG TERM GOALS” Mission, Vision & Long Term Goals Values and Beliefs in People Development HRD STRATEGY “PROFESSIONAL CHOICES”

36. STRATEGIC CHOICES IN HRD MANAGEMENT • APPROACHES: Training delivery vs learning consultancy • On-the-job learning - whose responsibility? • Managerial/ Individual / HRD roles in the learning process • Central control vs distributed learning activities • Building training schedules • Focus on individual vs team and organisational learning • Use of technology • RESOURCES: Internal/external; organisation, roles and skills; • funding, pricing and facilities; partnerships • MEASURES OF SUCCESS: Targets, strategic and operational • MARKETING AND COMMUNICATION; media, sponsorship, credibility, gaining support

37. “THE WHEEL of PEOPLE DEVELOPMENT ” managers learners Senior management Learner colleagues HRD FUNCTION “ • roles in the • learning process? • Capabilities • needed? suppliers subordinates

38. ASSESSMENT OF WHERE WE ARE ON OUR OWN STRATEGIES Please complete the strategy assessment checklist, and define the gaps to be filled

39. In a new role, when the MD was asked for my annual objectives he said “I wouldn’t have hired you if I thought you didn’t know what needs to be done professionally. But I shall judge you by whether our colleagues find you helpful in achieving their objectives” . Some years later, at the end of my annual appraisal with the Divisional President, he said “I sometimes have the impression that your own agenda is more important than mine………”

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