The cost of training in
North American companies exceeds $60 billion per
year. Try to visualize that. Picture a stack of
1,000,000 $1 bills. Now try to picture 60,000 of
those stacks. Amazed? Then consider this fact:
estimates of training costs worldwide approach a
quarter of a trillion dollars ($250,000,000,000)
when indirect costs and opportunity costs are
included. Do you find those numbers as difficult to
comprehend as I do?
Understandably, senior executives are concerned
about the ROI (return on investment) on these
massive investments. Many executives are not
convinced that the benefits of training exceed the
costs.
Corporations are now looking for organizational
learning (OL) consultants who can serve as partners
in the strategic decision making about these large
investments of resources. These OL consultants will
be expected to help improve not only learning, but
ultimately performance.
To serve as strategic business partners, OL
consultants must have expertise in adult learning
theory, methods to promote self-directed learning,
usage of learning and development agreements,
knowledge capture, knowledge transfer, management
and professional development, expatriate training
and support, corporate universities, and what I call
“strategic learning.”
The first step for the OL consultant is to be
sure the organization has a well-crafted strategic
plan that clearly communicates how senior management
intends to fulfill the organization’s mission.
Frequently, the organization has a vague mission
and/or unrealistic strategic plan. There is no way
to develop strategic learning and development
systems until senior management has completed the
strategic planning process.
Only after the organization has a well-crafted,
well-communicated strategic plan can the OL
consultant recommend learning and development
systems that will help implement the plan.
“Strategic learning” is learning that is focused on
helping the organization fulfill its strategic plan.
Senior management must be able to depend on OL
consultants to maximize the organization’s
investment of money, time, and other resources to
build its human capital into a sustainable
competitive advantage. In an era when human capital
is far more important than physical assets, the role
of the OL consultant is critical.
Raymond Noe has made the following predictions:
- the focus of learning will become business
needs and performance
- there will be increased emphasis on the
capture and storage of intellectual capital
- new training technologies will be developed
- the demand for training for virtual work will
increase
- the use of learning management systems will be
widespread
- HRD departments will develop partnerships with
outside vendors (e.g., traditional universities)
- the practice of outsourcing training
activities will continue
Senior management will be seeking the OL
consultant’s advice on all of these issues. Are you
and your organization prepared to address these
issues?