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Building the Next Generation L&D Function

Excerpt of Findings

A Framework for Member Conversations

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© 2015 CEB. All rights reserved. LDR153245PRINT

TWO KEY PRIORITIES FOR BOOSTING THE IMPACT OF LEARNING

How Learning Is Consumed

Source: CEB analysis.

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Focus of Today’s Conversation

Building a Productive Learning Culture (2014)

Output: 12:40AM May 22 2015

Modifi ed 03:58PM Jun 05 2015

CEB Learning & Development Leadership Council

Building a ProductiveLearning Culture

Key Questions Addressed

■ How can organizations help learners choose the right learning opportunities?

■ How can organizations build learners’ abilities to learn effectively?

■ How can organizations build a productive learning environment?

How Learning Is Supplied2

Building the Next Generation L&D Function (2015)

Output: 12:40AM May 22 2015

Modifi ed 03:58PM Jun 05 2015

CEB Learning & Development Leadership Council

Building the Next Generation L&D Function

Key Questions Addressed

■ How can L&D identify all the learning being supplied across the organization?

■ How can L&D work with other learning suppliers more effectively?

■ How can L&D ensure all learning across the organization is high quality?

L&D is focusing on two key priorities to increase impact: how learning is consumed and how learning is supplied across the organization.

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L&D is currently focusing on being a best-in-class learning supplier that is attractive in a crowded landscape.

FOCUSED ON BEING THE BEST-IN-CLASS LEARNING SUPPLIER

59% of heads of L&D have been focusing on improving the quality of their function’s processes.

Established Learning Standards for the Function

60% of heads of L&D have been focusing on providing more types of content and delivery channels.

Improved L&D’s Supply of Learning

62% of heads of L&D have tried to increase the function’s impact through branding its services.

Invested in Marketing the L&D Function

Inventory Management Process Management Brand Management

n = 61; 110.Source: CEB 2014 Head of L&D Learning Culture Survey; CEB 2015 Head of Learning Functional Effectiveness Survey

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THE CHANGING LEARNING LANDSCAPEIncreased availability and accessibility of learning content, as well as a new locus of accountability for talent development have changed the learning landscape today.

Changing Availability Growing amount of freely available learning content and suppliers

Changing Accessibility Increased accessibility of learning content lowers the requirement for specialized learning expertise

Changing Accountability Locus of talent development accountability now in the business, not just in L&D

Two-Thirdsof business leaders believe they are held more accountable for developing learning opportunities for their team than they were three years ago.

n = 1,519.Source: CEB 2015 L&D Functional

Effectiveness Survey.

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L&D Function Spending as a Percentage of Total Organizational L&D Spending

L&D FUNCTIONS LOSING MARKET SHAREL&D’s supply of learning is shifting over time, as the function has begun losing market share to other learning suppliers.

Defining Line-Led L&D Spending

The investment in learning beyond the formal L&D function, consisting of spending by HRBPs, line leaders and managers, vendors, and line-created L&D teams

n = 110.Source: CEB 2015 Head of Learning Functional Effectiveness Survey.a The data for 2017 is projected.

45% 44%41%

Line-Led L&D Spending

L&D Function Spending

38%a

2008 2011 2014 20170%

50%

100%

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A DIVERSE GROUP OF LEARNING SUPPLIERS

Learning Suppliers Around the World Within a Typical Organization

In a typical organization, a growing and diverse group of learning suppliers beyond the L&D function supplies learning to employees.

Learning supply is defined as the activities, content, tools, and resources that are intentionally designed to help employees learn skills, processes, and concepts that are professionally relevant for them.

L&D Team in HQ leads development program for HIPOs from across the organization.

Learning Vendor works on contracts for

leadership training with groups across the organization.

HR Business Partner creates training program for aspiring leaders in his

business unit.

$$$

Line Employee uploads her own training video on how to improve

leadership skills.

Learning Supplied by L&D Function Learning Supplied from Outside the L&D Function


Line Manager runs leadership training

sessions for junior HIPOs.

Business Leader sends high-potential

employees to university leadership program.

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Unfortunately, this crowded learning supplier landscape has led to a growing amount of wasted learning beyond the function.

Learning Outside L&D Is Mostly Redundant or of Poor QualityPercentage of Learning Spend Outside L&D

MORE LEARNING GOING TO WASTE

n = 1,519.Source: CEB 2015 L&D Functional Effectiveness Survey.a This amount represents the portion of learning happening outside L&D that is not redundant

(56%) multiplied by the percentage of learning outside L&D that is not applied (47%).

Wasted Learning = Redundant Learning + Low-Quality Learning

70%of line-led learning is wasted for the average business unit.

Key Question: How can L&D reduce wasted learning across the organization?

0%

50%

100%

0%

50%

100%

22% 22%

22%

44%

26%

70%

30%

26%a

Redundant Learning Between

Business Unit and L&D

Redundant Learning Between Business

Units

Learning That Is

Low Quality (Not Applied)

Learning That Is High

Quality and Not

Redundant

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CEB’S TWO-PRONGED RESEARCH APPROACH

Quantitative Research

We surveyed more than 500 L&D professionals, over 100 heads of L&D, and over 1,500 line leaders to test hypotheses for building a more effective L&D function.

Partial List of Research Participants

Qualitative Research

We extensively reviewed existing research and interviewed L&D leaders at more than 140 organizations to understand their challenges when trying to boost the effectiveness of their function and identify the solutions profiled in this study.

To understand how L&D can reduce wasted learning across the organization, we conducted a large-scale qualitative and quantitative research initiative.

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Rationalize total supply of products and services across the entire franchise.

Franchise Objective 1: Streamline Inventory

Create standard procedures to ensure operational effectiveness and efficiency.

Franchise Objective 2: Standardize Operations

Deliver a singular brand across all entities that guarantees a consistent level of quality.

Franchise Objective 3: Deliver a Single Brand

Shared Gains Profits, Ideas, and Best Practices

Shared Efficiencies Resources, Processes, and Vendor Costs

Benefits of a Franchise:

LESSONS FROM A FRANCHISE BUSINESS MODEL

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L&D functions must shift their value delivery focus from supplier of learning to franchisor of learning.

FROM SUPPLIER OF LEARNING TO FRANCHISOR OF LEARNING

n = 1,519.Source: CEB 2015 L&D Functional Effectiveness Survey.

Best-in-Class Supplier of Learning

Deliver Value by Improving the L&D Function’s Effectiveness

1. Improve L&D’s Supply of Learning: Manage the quantity and quality of the content offered by the L&D function.

2. Create Learning Standards for the Function: Establish learning standards for the L&D function to ensure consistency and quality.

3. Invest in Marketing the L&D Function: Build a strong L&D brand by communicating the value of L&D’s services.

Franchisor of Learning

Deliver Value by Enfranchising the Learning Community

Streamline Inventory1. Assess Hidden L&D Sources: Partner with the

learning community to identify and reduce redundancy across the organization.

Standardize Processes2. Increase Ownership of L&D Standards: Enable

learning partners to participate in creating enterprise-wide L&D standards.

Deliver a Single Brand3. Extend L&D Capabilities: Improve all suppliers’

capabilities to deliver high-quality learning.

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Learning franchises reduce costs and improve employee performance, thus improving overall functional effectiveness.

Percent Reduction in Total Spend Outside L&D Improvement in Employee Performancea

Maximum Impact of Learning Franchise on Employee Performance

LEARNING FRANCHISES REDUCE COSTS AND IMPROVE PERFORMANCE

$3.1 MillionFranchise Reductions in Wasted

Learning Costs Outside L&D

Learning franchises improve…

■ Business impact by 26%

■ Learning relevance by 28%

■ Learning timeliness by 27%

…for all learning suppliers.

Average L&D

Function

Best-in-Class Supplier

Learning Franchise


n = 1,519.Source: CEB 2015 L&D Functional Effectiveness Survey.a Employee performance is defined as the extent to which business leaders agree

that the L&D function is central to improving the performance of their employees.b Not statistically significant.

∆ = 7% ∆ = 13%

70

85

100

70

85

100

Average L&D

Function

Best-in-Class Supplier

Learning Franchise

∆ = 21%

∆ = (3%)b

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Only one in five L&D functions are franchisors of learning, and these functions are able to address three key challenges.

LEARNING FRANCHISORS ADDRESS THREE KEY CHALLENGES

1 Lack of Visibility into Learning Supply

2 Inconsistent Learning Standards

3 Underdeveloped Learning Suppliers

Few Franchisors of LearningPercentage of L&D Functions

20%


Three Key Challenges for Learning Franchisors

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ENFRANCHISING THE LEARNING COMMUNITY

1Streamline Inventory

2Standardize Processes

3Deliver a Single Brand

Assess Hidden L&D Sources

Increase Ownership of L&D Standards

Extend L&D Capabilities

Identify known and unknown shared needs.

Crowdsource common operating standards.

Build capability to execute, not just understand, learning best practices.

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Allocate learning activities based on comparative advantage.

Reinforce development through work experiences.

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1 Pseudonym.

Appendix

Motivate the learning community to collaborate.

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BUILDING THE NEXT GENERATION L&D FUNCTION

Working with You to Turn Insight into Action

For Heads of L&D For L&D Staff For Line Leaders and Managers

STEP 1:

Set Functional Strategy and Identify Learning Suppliers

STEP 2:

Standardize Learning Processes

STEP 3:

Build L&D Capabilities Beyond the Function

■ Playbook: Redefine Your L&D Function Establish your strategy and plan of action for building a learning franchise with our step-by-step guide.

■ CNA: L&D Activity Audit Identify who is supplying learning outside the L&D function and decide how to divide responsibilities based on demonstrated expertise.

■ Redundant Learning Inventory Tool Assess the level of redundant learning being provided by all suppliers across your organization.

■ Shared Needs Identification Guide Roll out a simple process for working with learning suppliers to surface and address shared known and unknown needs.

■ Conversation Guide for Prioritizing Standardization Opportunities Work with learning suppliers to identify learning processes to standardize across the organization.

■ Ericsson: Collaborative Standard Setting Crowdsource standard learning processes to ensure that they are relevant across the learning community.

■ Allstate: User-Centric L&D System Design Ensure that learning systems reinforce standards by making them easy for learning partners to use.

■ Personal Value Identification Tool Motivate learning partners to follow standards using our checklist for identifying personal value.

■ Franchisee Starter Kit Give line leaders this toolkit to build their own learning franchise, including governance rules, operating procedures, and branding resources.

■ Learning Supplier Development Guide Employ this step-by-step guide to determine the best methods for addressing learning community capability gaps.

■ JetBlue: Community Development Program Equip the entire learning community to execute against, not just understand, best practices in needs analysis and learning measurement.

■ Resource Center for Line-Led Learning Use these tools and job aids to help managers and employees design and deliver learning solutions.

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