Training and Development at

Motorola

Setting Training Objectives

• Align/match identified training needs with training objectives.

• Define objectives in specific, measurable terms:– In terms of desired employee behaviors.– In terms of the results that are expected to follow

from such behaviors.

• Information for setting objectives should come from the organization’s performance management system.

• But…….

HOW TO WE GET TRAINING OBJECTIVES?

Business Strategy

• A plan that integrates the company’s goals, policies, and actions

• The strategy influences how the company uses its resources:– physical capital (plants, technology, and

equipment)– financial capital (assets and cash reserves)– human capital (employees)

• Business strategy helps direct the company’s activities toward specific goals

Business Strategy & Training

• How Does Strategy influence Training and Development?– Indirectly Training can help employees

develop skills needed to perform their jobs, which directly affects the business.

– Directly Strategy has an impact on the type and amount of training that occurs, whether resources should be devoted to training, and the type, level, and mix of skills needed in the company.

Examples

• Will we train for current job or develop skills for future jobs?

• How customized should training be?– employee, team, unit, or division

• Should trainers be internal or external?• Who should be trained?

– Restricted to certain employees or open to all?

• Should training be reactive when problem emerge or proactive (preventative)?

• Should we invest resources in T&D or in other HR functions (i.e., selection)?

Strategic Training and Development Process

Motorola

Business Strategy

• A plan that integrates the company’s goals, policies, and actions– strategy influences how the company uses its

physical capital (plants, financial capital, and human capital

• Business strategy helps direct the company’s activities toward specific goals

What is Motorola’s business strategy?

Business Strategies & Training Implications

Concentration Internal Growth

External Growth Disinvestment

Motorola Case A

• At the end of Case A, Bob Galvin wants to increase training and development activities at Motorola?– How is what he is proposing different from

what Motorola is already doing?– What are the reasons to expand training as

he suggests?– What are the reasons NOT to expand

training as he suggests?

Is his suggestion strategic? Why or why not?

Motorola Expands Training (Case B)

• All employees to be trained (from entry level up)

• Focus: near perfect quality• How did this training influence

corporate culture?

A Little about Six Sigma

• Six Sigma at Motorola• Goal = quality measures six standard deviations

better than the mean!• Six Sigma Model

– Define Opportunity for Performance Improvement

– Measure Performance – Identity what and how– Analyze Opportunity – Root Causes of

Problem– Improve Performance – Choose & implement

solution– Control Performance – Implement

performance monitoring system

How did Six Sigma fit Motorola’s staffing strategy?

Motorola ROI study

• Does Training deliver a return-on-investment?• Three Types of Plants

– Taught curriculum of both quality tools and process skills & senior managers reinforce training $33 per $1 ROI

– Taught either quality tools or process skills & manager reinforcement broke even

– Plants that taught curriculum but did not reinforce through management negative ROI

• Lesson: Training must be reinforced from the top for transfer to occur

Cross-Functional Training

• Management buy-in identified as critical Now train the senior managers first, before employees to facilitate transfer

• Training content– Unity of Purpose – Quality is achieved by

cross-functional collaboration (marketing, product design, manufacturing)

• The BIG problem – Basic Skills of manufacturing employees– Only 49/480 applicants can pass a basic math test

Should Motorola Train Basic (Reading & Math) Skills?

• Reasons to train Basic , General Skills

• Reasons Not to Train Basic, General Skills

General vs. Specific Skills

• General skills are useful at all or most firms.– T&D which develops skills useful at other firms. – Increases the likelihood that employees will be bid

away or “poached” for higher salaries.

• Specific skills are useful for only certain jobs at certain firms.– Increases job performance but does not prepare

employees for future jobs.

General Skills Training:Tuition Reimbursement

October 15, 2001

BusinessWeek's 2001 survey say their employers should have more clearly defined how an EMBA degree would affect their career paths. No surprise, then, that recent EMBA grads report that anywhere from 40% to 70% of their classmates changed jobs during or after the program.

Reasons to Provide General Skills Training

• Attract Quality Employees– “Employer of Choice”– Who values skills training?

• Improve Employee Skills– Stay on the “cutting-edge”– Enhance employee ability to contribute

• Retain Skilled Employees– “Employability” or learning contract

“You Paid for Them” Study Info

• ~10,000 full-time salaried employees.

• ~12,000 current and former employees 1996-2000 were analyzed using HRIS records.

• ~1,000 survey responses.

• U.S. employees only.

• Tuition-reimbursement 1996-2000– 38% salaried employees participated– 9% salaried employees earned a degree

Participation in Tuition Reimbursement and Voluntary Turnover 1996-2000

6.1%

10.6%

8.3%

14.1%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

Not Participated(N=7410)

Took Classes(N=5303)

Earned Degree,NoPromotion (N=835)

Degree thenPromotion (N=392)

N = 12,360

Those who earned a degree split by receiving reward afterward

Promotion, Tuition-Reimbursement and Voluntary Turnover 1996-2000

0%

2%

4%

6%

8%

10%

12%

14%

16%

Promoted Not Promoted

Vo

lun

tary

Tu

rno

ve

r 1

99

6-2

00

0

Not Participated(Promoted 96-00)

Took Classes(Promoted 96-00)

Earned a Degree(Promoted After)

N = 12,360

χ2 (p < .001)

Findings

• Those receiving current tuition-reimbursement more likely to stay

• After earning a degree– Promoted Likely to stay– Not promoted Likely to leave

• If well managed, tuition-reimbursement can:– Attract high-quality employees– Strengthen employee capabilities– Reduce turnover – But only if you USE employee skills

Back to Motorola

• Should Motorola develop general skills among its employees? Why or why not?

Manufacturing Employees

• 60% of current manufacturing employees could not do basic arithmetic– “Ten is what percent of 100?”

• Why not? • Yet employees had improved quality 10X

– How?

• Lesson:

• Problem:

Basic Education Problem

• Remedial elementary education added to training requirements – Huge revenue investment – Morale issues

• Motorola’s Position: Remedial math & reading are like all other skills training

• Policy – If refused retraining fired– If retrained by failed new job, reassigned

Partnering with Community Colleges

• Early Foundation for Motorola University• Share resources

– Faculty– Curriculum– Equipment– Facilities– Students (interns)

• College gains resources and insight into real-world issues

• Motorola develops employees and recruits new ones

Motorola University is born

• 1989: Emerged from MTEC• “University” positively received by

Colleges• Motorola U must be relevant

• To the corporation• To the job• To the individual

• 1993: Motorola University expands to China• Works with 21 higher

education institutions in China• Involved in Chinese EMBA

market

Motorola’s More Recent History

• October 26, 2007 – Chicago Daily Herald– CEO Ed Zander is optimistic change is coming– Motorola has had no hits with cell phones for 3 years

since the Razr

• November 30, 2007 – Ed Zander steps down, former COO Greg Brown

appointed new CEO– Brown deemed a rising star by Fortune (2006), can

he revive Motorola? Will he spin off the handset division?

Motorola Today

• August, 2008, Sanjay Jha appointed as co-CEO with Greg Brown– Former COO at Qualcom

appointed to take over handheld business until it is spun out into its own company in Q3 2009

– Challenge to overcome “engineer-driven” culture and change to a more market-driven culture

– Possible move of division to west coast

Motorola Today

July 10, 2008

“Motorola's Market Share Mess”The company's lack of compelling new phones continues to depress market share, which threatens plans to spin off the handset division

Motorola as an Investment

Motorola’s Comeback

Can Today’s Motorola Innovate?

The Motorola Aura

The Motorola Aura

The Motorola Droid

http://Motorola Droid

Motorola Cliq (T-Mobile Android Devise)

The Droid Reviews

• “Every now and then a phone comes along that shakes up the market. The Motorola Droid is one such device.”– Generous, high-resolution display, a large keyboard,

16 GB of storage, and a laundry list of other features.

• Verizon hopes the Droid will be able to go head-to-head with the Apple iPhone, and has priced it accordingly: $200 with a two-year contract and $100 mail-in rebate. And those who purchase it through Best Buy don't have to hassle with mailing in the rebate.

• Motorola Droid

Xoom

• Intro to Xoom

• “Motorola Xoom Could Launch February 17”

• “Motorola Xoom priced at $800 at a minimum, according to Verizon leak”

• Demo of Xoom

Motorola

• Motorola on the upswing due to entry into smartphone market

• More recent focus on innovation and addition of many products to the marketplace

• Still, some areas for concern– Motorola closed aligned with Google due to use of

Android operating system (Google’s battle with Chinese government; launching own smartphone)

– Cliq has not been as well received as Droid– What do we expect from the XOOM?

Motorola Strategy & T&D

Business Strategy

Training & Development

Former Motorola

Current Motorola

Fewer Quality, Error-Free Products

Multiple InnovativeProducts

• Six Sigma• Train front-line

manufacturing staff

• Min. Training hrs.

???

Today’s MotorolaStrategic Analysis

Today’s MotorolaStrategic Analysis

• Based on your SWOT analysis, answer the following questions:– What challenges is Motorola facing?– What continuing strength does Motorola possess?– What is Motorola’s business strategy?

• Based on your answers to questions above, make recommendations for Motorola’s Training and Development TODAY?– Who should be trained?– What should be trained?– How should this be trained?

• Report Out

What Happened to Bob Galvin?

• 1990 - Retired from Motorola board• 1991 – Awarded National Medal of

Technology• 1991 - Elected to Business Hall of Fame• 2004 – Founds Galvin Electricity Initiative

– Goal to build perfect electric system that will never black out

• 2005 – Awarded Vannevar Bush Award for Visionary Leadership from National Science Board

• Now lives with wife Mary in Barrington, IL– Four children, 13 grandchildren

Some References

• http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9126803&intsrc=news_ts_head

• http://www.techtree.com/India/News/LG_Replaces_Motorola_as_3rd_Largest_Handset_Maker/551-98056-893.html

• http://www.techtree.com/techtree/jsp/article.jsp?article_id=97933&cat_id=893

• http://techdirt.com/articles/20090113/0753123392.shtml• http://www.motorola.com/content.jsp?globalObjectId=3082• http://www.motorola.com/content.jsp?globalObjectId=8892• http://investing.businessweek.com/research/stocks/snapshot/s

napshot.asp?symbol=MOT• http://www.businessweek.com/investor/content/jan2009/pi200

90115_717627.htm