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?