Have you ever been questioned about the value of a training program you’ve just spent tens of thousands of dollars on? Are you concerned about justifying a training initiative in next year’s budget? Three companies talk to Teresa Russell about tying learning and development objectives to wider organisational performance
Have you ever been questioned about the value of a training program you’ve just spent tens of thousands of dollars on? Are you concerned about justifying a training initiative in next year’s budget? Three companies talk to Teresa Russell about tying learning and development objectives to wider organisational performance
They don’t come any better known than the Sydney Opera House, the ABC and Wrigley’s. Each of these companies operates in very different environments, yet each has recently spent a lot of time, money and effort on training programs directly linked to company goals.
Sydney Opera House
“There’s a lot of rhetoric around linking L&D to wider organisational performance,” says Sally Davis, manager, organisational development and learning at the Sydney Opera House. In the past 18 months, this iconic, unique organisation has raised the profile of internal training and boosted the connection between training and business outcomes – walking the walk, as it were.
In the past few decades, most L&D energy went into specialised technical training at the Sydney Opera House. Now a registered training organisation, employees can get national qualifications in areas such as stage management, lighting, sound, staging etc. “We also have a great record with indigenous trainees and have more than 60 graduates who have nationally recognised entertainment qualifications,” says Davis. “We are now building on that strong base and focusing our efforts on accountability and meeting strategic goals,” she adds.
A broad range of employees, many of whom are casual, comprise the 600 plus employees who work in areas as diverse as bookings, security, tourism, stage management, maintenance and finance in this not-for-profit organisation. Davis attributes the recent strategic focus to a few factors. “Because we are part of the government sector, as well as being an architectural icon, we are subject to government, public and media scrutiny,” says Davis. The arrival of its new CEO and his executive team two years ago heralded some changes including senior management support, interest and commitment to training.
“It’s a battle to get people to stay committed to training in any organisation,” concedes Davis. A company-wide IT literacy campaign (launched following skills benchmarking surveys) has now seen 80 to 90 employees complete Microsoft Office training – a very immediate and transferable skill which raised the profile of training across the whole organisation and made staff feel special. “It’s all about building blocks of training and this was a great start.”
Davis says it is vital that there is strong support, interest and commitment from senior management for an organisation’s learning and development strategies to succeed. With that in place, training needs across the organisation were then identified through needs analysis. Key stakeholders were involved in working up the training brief and gave sign off to any third party supplier of training. “Sydney Opera House is a very empowered consumer of L&D. Our providers have to customise programs to suit our needs. They can’t just come and run their courses,” she asserts.
“We also do a thorough evaluation of the training that has been run – not just smiley sheets,” quips Davis, who says the organisation gives active feedback to the provider. She also stresses the importance of investing in training to make sure it works, so that staff will be keen to do more in the future.
The Wrigley Confectionery Company
With well-known and widely distributed brands such as Juicy Fruit, PK and Extra in its portfolio, FMCG company Wrigley relies heavily on receiving timely market information from its sales force, in order to make tactical decisions. James Turnbull, Wrigley’s IT projects manager recently managed the national roll-out of WERA (Wrigley European Reports Analyser) – an internally developed tool now used in over 50 countries with more than 4,000 users. To non-IT types, Turnbull describes it as “software on gizmos”.
“Each territory manager is issued with an iPAQ – like an upmarket palm pilot – which records all the details of both Wrigley’s and competitors’ products and merchandising by store. There is also a plug-in camera. The information is then uploaded via modem for analysis and decisions are made according to the data,” he explains.
WERA replaced a previous system that had been quite unsuccessful, partly because the internal training to the territory managers was not adequate. There was a company-wide view that it had to be done right this time and the national sales manager explicitly stated that he wanted no one left behind during system implementation. Wrigley needed the training to be pitched at the right level, to ensure territory manager buy-in. Turnbull hired a consultancy after getting a referral from an ex-colleague. “We spent more than 10 per cent of the total project budget on training, because the company believed that accurate field data would provide a major positive impact on sales. This information complements the AC Nielsen data we pay hundreds of thousand of dollars a year for,” he says.
According to Turnbull, the rollout of training for Wrigley’s territory managers was successful for several reasons. The trainers worked with Wrigley’s field force before designing the training. “Sales people get bored sitting down all day in a classroom. They are mobile people. So much of the training was done standing on their feet with the unit in their hands. On the second day, 1:2 coaching was done in real stores,” he explains. The company also identified some sales people who they dubbed “power users”. These people were involved in training development and were trained separately before the major roll-out and are now used as trouble shooters by the sales force before problems are referred to the IT help desk. “We also designed training materials that could fit in the glove-box of a car. This is now being used in other Wrigley’s sites around the world,” says Turnbull.
Following the training, the sales force was asked to evaluate its quality. Almost all the responses marked the training at 7/7. There was room for comments and Turnbull proudly quotes one of the many accolades recorded in this section: “Thank-you Wrigley management for listening to us regarding training.”
“Process change is usually not given the attention it deserves, which then undermines the new systems,” says Turnbull. Everyone from Wrigley’s CEO to its sales force is pleased with the outcome of the WERA training, because improved individual performances have added up to improved organisational performance.
Australian Broadcasting Corporation (ABC)
The ABC has a strong history of skills training in radio and TV – broadly acknowledged as the gold standard in Australian media training. According to Jenny Ferber, ABC head of training, past training has been very skills oriented, but since 2001, there has been a refocus to align all training with business goals. Now a registered training organisation, the ABC offers 14 national qualifications across film, TV, production and retail.
Ferber’s team of 19 works within each division to help managers develop divisional training plans. With more than 4,500 employees working in radio, TV, new media, production resources and business services, the organisation’s training needs are highly diverse. “There have been at least five reviews of the training function over the past few years, due to changes in management and external scrutiny,” says Ferber. All ABC training is now aligned with the concept of corporate sustainability and renewal.
The executive has pledged a minimum of 2 per cent of the salary budget on staff training and development. It occasionally markets its training programs to outside organisations. The most recent example of this was the ABC’s digital technology and widescreen training being purchased by other networks.
Ferber says it’s important to try to measure return on investment especially when you have invested in an accredited training program. “You have to make sure you’re getting a good bang for your buck.” At the ABC, Ferber and her team believe it’s vital to accurately report on the effectiveness of any activity and its cost, which is then tracked in their database.
They also measure ROI of pilot programs, using them as models for a national rollout. The most recent examples of this have been in its frontline management course and leadership development program. Ferber says it’s very gratifying to see effective change in the workplace brought about by L&D, or the immediate application of newly learned skills. She cites one example of a person participating in the recent leadership pilot and then being asked to act as a director a short time later.
There has been no resistance to training across the organisation – quite the contrary. “ABC staff are hungry for training and development opportunities. When the accredited training was new, it took a bit of time for people to adjust to undergoing assessments, but they were thrilled when they got their qualifications,” says Ferber.
The two key recommendations Ferber makes for other L&D managers trying to link L&D to wider organisational performance is, “the old concept of partnering. You have to listen to what the business wants and work with line managers to develop relevant training. Maintain your professionalism and don’t be inward focussed. Make sure you have an external network to keep you stimulated in your profession,” she advises.
