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I presented this at the Global Learning Summit 2013 in Singapore on the 6th of March 2013. The session was received well by the 25-30 learning leaders and CLOs who attended.
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3D Virtual learning
Mobile learning
Online trainings Instructor led training
Immersive learning
Is L&D an Expense or an Investment in today’s climate?
The business challenge in all times
• It takes an outsider 4 years to reach the same level of performance
• It takes an insider 7 years to reach the same salary levels
The expense is higher on an outsider, while the investment is longer on an insider… yet…
Today’s Climate
• Going up
i. Speed of change
ii. Business ambitions
iii. Individual aspirations
iv. Technology & Innovation
v. Business complexity
• Going down
i. Time to learn
ii. Ability to manage complexity
• Customer expectations
• Economic climate - fiscal austerity measures of developed countries are first retrenchment of spending, and then revenue collection. The same is true of organizations.
• Industry climate – competitive
• Workforce climate – impatient, has money to spend
• Corporate climate – ambitious
• Social climate – networked
The Gap that Nobody Knows
“Execution”, the book that hit the world in 2002, began with the discovery of the Gap that Nobody knows! The gap between what the CEO wants and what the organization achieves.
“The gap nobody knows is the gap between what a company’s leaders want to achieve, and the ability of their organization to achieve it.”
- Larry Bossidy, Ram Charan
Strategy Ability Performance
How Competencies Contribute to Business
• Revenue
• Expenses• Costs
- SolutioningVal Proposition
- Work Methods- Competencies
Business Results Operations
- Work Products-Services
- Running Costs- Fixed Costs
- Research & Innovation
- Processes- Recruitment
- Trg & Dev, PMS
Delivery
Outcomes
Strategic
Plans
Execution of
Tactical
Plans
EXECUTION
Results
Strategy
DOMAIN
CONTENTSales & Mktg
Core Processes Must Integrate for Execution
People
Strategy Operations
Customer
ProcessesCompetencies
Skills
Understanding Expense vis-à-vis Investment
# Expense Investment
1 Relatively small Relatively large
2 Close to the point of benefit Earlier than the point of benefit
3 Predictable benefits/returns Unpredictable benefits/returns
4 Relatively small time period Larger time period
Expense
Benefit( )
Investment
Benefit( )X R
Time
It is clear that anything that is spent on people’s future improved performance will have to be an investment in this moment.But it can be considered differently.
Performance Result
So What’s the Problem in Making an Investment in People?
Is it that we do not have the confidence that people will perform to their capacity…
Or
Is it that we do not have the confidence that we will be able to get them to perform to their capacity…
The Difference Between Managing & Leading
• When you see it as an expense, you can only manage the cost of the benefit, not its value. You work towards results, not necessarily benefits.
• When you see it as an investment, you work towards a return from the investment, leading to greater performance. You work towards benefits, not only results.
Results
Benefits(Investments)
(Expense)Costs
Time
Manage
Lead Results
Is L&D an Expense or an Investment?
For Managers it may be an Expense
For Leaders it is an Investment
How to protect investments in L&D
How can we be more certain of the returns from investments in L&D?
Consider the factors that link L&D Investments to Performance, and how much we know of them:
Returns
Performance
Implementation
Skills
CompetenciesMotivation
Understanding of Process
Rigor/Commitment
Value Proposition
Thank you!
Mukul Saxena
Sr.Vice President
Sify Technologies Ltd.
Chennai-Delhi (India)
