While the technology behind learning and development has changed considerably over the past decade, organisations still need to ensure investments in this area pay off. Teresa Russell examines how companies make the most of their L&D initiatives
While the technology behind learning and development has changed considerably over the past decade, organisations still need to ensure investments in this area pay off. Teresa Russell examines how companies make the most of their L&D initiatives
New research released by human capital consulting firm, the Cape Group, found that the three main drivers behind learning outsourcing in the Asia Pacific region are cost reduction, the need to gain a competitive advantage and accessing technology. These drivers are similar to those of organisations in other parts of the world.
These three drivers have all played a part in recent changes to learning and development strategies at The Nuance Group and Suncorp. Both organisations use a blend of modalities, outsourcing some aspects of their L&D while remaining fiercely specific in their requirements before going out to the market to find a provider.
The Nuance Group
The Nuance Group’s name is not well known, but you know the chain of stores it operates: Downtown Duty Free. This privately-owned global corporation (with head office in Europe) employs more than 1,200 people in Australia. Roles range from retail staff working 18-24 hour rosters at airport and city locations, to marketing, logistics, promotional and corporate support staff.
Competency-based training was introduced around five years ago, and online learning was launched in October 2004. “We needed another mode of training that would give us a greater level of penetration and add to what we were already doing with face-to-face training and workplace assessment,” says Richard East, staff development manager, Australia, of the company’s online learning. The Nuance Group has dedicated online learning computers in the back office of stores and employees are rostered during their shifts to log on.
When measuring the performance of different learning initiatives, East explains that the methods he uses depend upon the subject matter. “Sometimes performance is measured in sales of a specific product or the use of a particular system. It can also be useful to use sales of a control store, where the training was not done, and compare that to sales in a store where training occurred,” he says. The organisation also uses the services of ‘mystery shoppers’ in each store about once per month to provide structured feedback about their shopping experience.
The Nuance Group includes reports from its front-line management program in communications with the directors of the organisation about its competency-based programs. East says it is vital to ensure that internal customers agree with the way you intend to measure a learning outcome. “Training is making an investment in your people. Any investment has to pay off, so it is important to measure it properly,” he says.
East outsources learning only after performing a needs analysis. “After you ask yourself, ‘what outcomes do I need and what resources do I have to deliver it?’ both the mode of delivery and whether you need to outsource at all become obvious,” he explains. East insists that course content and the adult learning principles are developed in-house and that he “leaves the consultants to design what the page looks like”.
Recent research conducted by the American Society for Training and Development in conjunction with IBM (Learning Outsourcing, May 2005) found that only 2 per cent of surveyed organisations were outsourcing their entire learning function. The trend in Asia Pacific is to “out task” part of the learning function, as reflected in The Nuance Group’s operations.
The changes that have occurred at the group in the last five years are well demonstrated in its evolving induction program. It was originally a totally face-to-face program and then workplace assessment was built in a few years ago. It has now added online learning to the mix. “The trick to any training is to get the right blend of approaches. The current program has more self-paced learning, with good access to subject matter specialists when required. It’s now part of the management system, so the standard is consistent and much easier to manage, supervise and follow up,” says East.
He also believes that the biggest problem with setting up a training system and aligning it all with the company’s KPIs is that things change. “You have to revisit your training needs analysis on regular dates and adjust things as required – especially when you compete worldwide for customers. We always challenge ourselves to seek improvements in the way we do things. We’re now much better than we used to be at responding to market changes.”
Suncorp
Suncorp employs over 8,500 people around Australia under its Suncorp, GIO and LJ Hooker brands. Adam Taylor, Suncorp’s team leader of instructional design, says that after several structural changes over the last few years, the learning function in the publicly-listed company is now a hybrid model. “We have centralised learning strategy, training design and development, learning advice and group-wide facilitation of programs such as leadership, sales and orientation. But all job readiness training is now decentralised,” he explains.
His department used to be called “Corporate Training” because it delivered only that, but a large gap was identified in the business that has now been filled by a strategic learning function. Leadership development has been a major push for the last 18 months. “From 1999 till 2001 when online learning became possible, we were involved in heavy cost cutting. As a result, we let the new technology drive the learning. We did things like requiring staff to undertake four or five hours of computer-based training in one sitting – not adhering to adult learning principles. We also had no standard methodology for evaluating learning,” says Taylor.
Suncorp turned things around a few years ago. Learning requirements of internal clients are now evaluated using a time, cost and quality triangle. This then dictates the mode of delivery and whether the learning will be provided internally or outsourced. Taylor says that using this model helps to develop standards for why you do a particular type of training.
The company has also adopted an evolved Kirkpatrick evaluation model across the business to assess learning effectiveness, where 0 = attendance, 1 = reaction, 2 = knowledge, 3 = behavioural change and 4 = return on investment (ROI). Taylor concedes that evaluating ROI for particular learning initiatives is still a work in progress at Suncorp, but that the rest of the model is applied to all programs.
A recently introduced performance management program (known internally as Building Performance) highlights the positive changes to learning that have taken place at Suncorp. It replaces a generic external program that was reviewed and seen to be lacking. Development of the program began in November 2004 and it was piloted in August 2005.
Building Performance is a blended learning program for 900 staff that uses online learning, face-to-face training, coaching sessions and leader and participant meetings. “The feedback has been fantastic so far,” he says, attributing its success to the fact that the company took the time to do a thorough needs analysis and careful training design, engaging all the stakeholders during the development process.
Another feature of Suncorp’s current training programs is the participation of the organisation’s leaders, which is first visible to all employees during their orientation program. Most of Suncorp’s staff are based in Queensland, so the company runs regular orientation programs at Suncorp Stadium’s function rooms in Brisbane. The CEO and the group executive committee all attend every program. “Suncorp’s leaders know that they need to be involved in all training, so that the training programs are seen to be supported from the very top, back at the workplace,” Taylor says.
