1. Creating (or renewing) a Business Driven L&D Strategy
Andrew Mayo, Professor of Human Capital at
Middlesex University,President of the HR Society
and
Director, Mayo Learning International Ltd
Melbourne, December 2008

2. AGENDA
Expectations and Experiences
A Systematic Framework
The “General” Drivers of our Strategy
“Current” initiatives needing support
Processes and Tools
Implementation

3. The truth is….
Nothing can be achieved without people – the right people at the right time with the right skills in the right place
Every problem in organisations is ultimately due to an issue with people – their capability, their motivation and the way they are organised
HR/L&D are (should be) the professionals who work in partnership with managers to maximise
achievement and minimise problems in the business

4. STRATEGY- a much overused word!
Its about:
what we should do, and why
what we should not do, and why
and then:
how we will deliver
Strategy is about choices of direction, which
lead to policies, processes and plans

5. BY “WHAT?” WE MEAN…….
Policies, programmes and processes for
the culture for learning
the enhancement of knowledge and skills
the development of potential and careers
the personal development of employees

6. BELIEFS AND PRINCIPLES
A FRAMEWORK FOR L&D STRATEGY
BELIEFS AND PRINCIPLES
Processes
and tools
Programmes
- ongoing
- customised
Populations
POLICIES

7. A LEARNING AND DEVELOPMENT STRATEGY
Beliefs and
Principles
Policies
Processes
Programmes
Success
indicators

8. POSSIBLE PURPOSES OF AN HRD STRATEGY
Required as part of the Strategic Planning Process
Communication - to top management
- to line managers
- to all staff
Managing Expectations * Visibility/Credibility
Consultations with Management * External Publicity
Meeting External Standards * HRD Planning
Approval/Endorsement * Integration Across Units
Influencing change * To establish competitive
advantage

9. TARGET AUDIENCES FOR AN HRD STRATEGY
Chief Executive
HR Director “approval” & “resources”
Line Managers “developing people”
“meeting business goals”
Employees
HRD Staff
TU/Staff representatives
External People - Committees
- IIP
- Fund Providers
- Political overseers

10. WHERE DO WE START FROM? We may not have a strategy written down, but
unless we are starting a “green field” we do have
one – it is what we are currently doing and how we
deliver it
So our discussion is about “reviewing and renewing”
as much as about “creating”.

11. 3 2 1 4 A SUMMARY OF THE INFLUENCES ON HR STRATEGY Internal issues
to address 3 2 1
What the
organisation
is trying to
achieve as a
business
External
constraints
impacting us
The Organisation
for which we
need a strategy 4
Group Policies and
Professional
best practice

12. “PESTLE” ANALYSIS Political Economic Social Technological Legal
FACTORS IMPLICATIONS FOR L&D
Political
Economic
Social
Technological
Legal
Environmental

13. “SWOT” ANALYSIS
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

14. HOW BUSINESS STRATEGY DRIVES HR/HRD STRATEGY
Organisational
strategy and
philosophy
Medium to
long term
Mission, vision,
values, principles,
long term goals
BUSINESS
DIRECTION
DELIVERING
THROUGH
EFFECTIVE
ORGANISATION
and cultural
strategy
Structure, systems and
processes, measures,
behaviours
AND THROUGH
MANAGING
HUMAN CAPITAL
People Management
and Development
Policies and processes for people management/
development
Short term
goals
Remedial
Operating strategies
objectives and targets
Operating problems,
deviations and issues
Organisation and
resourcing changes
Change projects
Supporting HR/HRD
initiatives
Initiatives
Nothing is achieved without people; + every problem has people behind it!
Figure 1. 4 – Linking Support Functions with Business Strategies
Delivering the Strategy

15. Figure 1.6 – Drivers of the HRD Strategy
THE DRIVERS OF HRD STRATEGY
“MEDIUM/LONG TERM GOALS”
Mission, Vision
& Long Term Goals
Maintaining
Core Competences
The external
environment
The OD
Strategy
Values and Beliefs in
People Development
HRD STRATEGY
Figure 1.6 – Drivers of the HRD Strategy 5

16. TO BE OR NOT TO BE……... Investors in people? A learning organisation?
Promoting self management of learning and
self ownership of career progress?
A developer of internal talent and the potential
of all employees?
A “knowledge sharing” organisation?

17. Figure 2.1 Smith and Nephew’s “Management Principles”
SMITH AND NEPHEW: “MANAGEMENT PRINCIPLES”
Our company will succeed through its people
Our published values,
PERFORMANCE INNOVATION TRUST
set challenging standards for the way we manage at every level and in
every part of the Smith and Nephew world.
Management at all levels have the responsibility for defining and implementing policies,
programmes and training to achieve these standards. In so doing however all managers
in S&N subscribe to a company-wide belief that our employees are entitled to expect:
clearly communicated goals and performance standards
an open constructive relationship with managers and supervisors
the training, information and authority needed to do a good job
fair recognition and reward based on performance
equality of opportunity based on merit
encouragement to learn and progress
respect and dignity at all times
encouragement to participate fully in the quest for continuous improvement
Group Executive Committee July 2001
Figure 2.1 Smith and Nephew’s “Management Principles”

18. TO BE OR NOT TO BE……...
Do the exercise “What We Believe In”
- share and discuss on your tables

19. Core Capabilities We need to continuously acquire and develop these
Essential knowledge and skills needed to win at our business
Capabilities which differentiate us from competition
Build them to be:
Valuable (in relation to the market)
Rare
Hard to imitate
Hard to substitute
Owned by us
We need to continuously acquire and develop these

20. THE FRAMEWORK OF POLICIES IN HRD
Policies may cover ALL employees and/or be for specific groups
* Central control vs local discretion; authority levels
* Education/accreditation
* Approach to national initiatives
* Policy towards non -core staff
* Induction, mentoring, performance reviews & other
processes
* “Mandatory” requirements for “training”
* Application of diversity requirements 2 14

21. Processes and tools linked together
productivity
Complete
dictionary
of capability
Role
profiling
Effective
resourcing
motivation and
commitment
organisational
mapping
Performance
management
personal
profiling
High levels of
expertise
Individual
continuity
talent
retention
Complete
classification
of potential
personal
career
planning
Organisational
continuity
Succession
planning
Figure An overview of tools and processes in career management
££ Higher
revenues through
greater competence
personal
potential
analysis
Organisational
health
audit
££ reduced costs
through more efficient
resourcing

22. HRD PROCESSES and TOOLS
A learning culture
Growing knowledge
and skills
Developing potential
and careers
Personal development
of employees 2 14

23. the core of a person’s asset value
“CAPABILITY”
the core of a person’s asset value

24. Measuring “Know-how” – levels of expertise
= Aware
= Basic
= Competent
= Distinguished
= Expert B C D E

25. PERSONAL SKILLS: 360 feedback +ve and -ve behaviours
MEASURING CAPABILITY
PERSONAL SKILLS: feedback
+ve and -ve behaviours
NETWORK/CONTACTS:
The proportion of customers known personally
# prospects we have based on a personal relationship
# of competitors with whom we have a personal link
# of relevant officials known
# of experts outside the organisation who are known
# of potential employees who are known.

26. MEASURING CAPABILITY
EXPERIENCE:
Time spent
Scope and stretch
Parameters of size.
Special circumstances
VALUES/ATTITUDES:
360 feedback

27. EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGY

28. EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGY
Your own examples

29. Figure 1.6 – Drivers of the HRD Strategy
A MODEL FOR BUILDING HRD STRATEGY
“MEDIUM/LONG TERM GOALS”
Mission, Vision
& Long Term Goals
Maintaining
Core Competences
The external
environment
The OD
Strategy
Values and Beliefs in
People Development
“THIS YEAR’S
BUSINESS GOALS”
Business Strategies
and goals
Organisation &
manpower plans
Change initiatives
HRD STRATEGY
Figure 1.6 – Drivers of the HRD Strategy 5

30. Figure 1.6 – Drivers of the HRD Strategy
A MODEL FOR BUILDING HRD STRATEGY
“MEDIUM/LONG TERM GOALS”
Mission, Vision
& Long Term Goals
Maintaining
Core Competences
The external
environment
The OD
Strategy
Values and Beliefs in
People Development
“THIS YEAR’S
BUSINESS GOALS”
Business Strategies
and goals
Organisation &
manpower plans
Change initiatives
“PROBLEMS/ISSUES
TO BE ADDRESSED”
Operational Issues
Individual needs
Team needs
External Changes
HRD STRATEGY
Figure 1.6 – Drivers of the HRD Strategy 5

31. FROM BUSINESS GOALS TO LEARNING GOALS IN EIGHT STEPS
What is the business goal What problem are
we are trying to achieve? we trying to solve?
What are the milestones, What is the quantified
If any, en route to the goal? gap to be closed to
solve the problem?
What will influence success What are the possible
in achieving the milestones? causes of the problem? 1 2

32. Who is involved in achieving the milestone or in the causes
of the problem?
How does their capability need to increase and to what level?
Do we need diagnostic tools to measure the capability?
What therefore are the capability gaps to be closed?
(= the learning goal)
Are the people involved able to make the capability change?
Do we have the time to make the capability changes?
or should we recruit? 3 4 5 6 7 8

33. FROM BUSINESS GOALS TO LEARNING GOALS
Choose one of the major “strategy drivers” in your
part of Centrica. Working in pairs, Person A describes the
driver to Person B, who applies the eight steps as an L&D
consultant.
Develop possible learning objectives as a result.
When completed, swap roles and repeat. At the end of
the exercise note the learning points for you personally.

34. First priorities Second Priority -needing project management
PRIORITISATION OF DEMANDS
High
First priorities
Second Priority
-needing project
management
Impact
Quick wins
Bottom of the
in-tray
High
Low
Costs/difficulty of implementation

35. Figure 1.6 – Drivers of the HRD Strategy
A MODEL FOR BUILDING HRD STRATEGY
“MEDIUM/LONG TERM GOALS”
Mission, Vision
& Long Term Goals
Maintaining
Core Competences
The external
environment
The OD
Strategy
Values and Beliefs in
People Development
“THIS YEAR’S
BUSINESS GOALS”
Business Strategies
and goals
Organisation &
manpower plans
Change initiatives
“PROBLEMS/ISSUES
TO BE ADDRESSED”
Operational Issues
Individual needs
Team needs
External Changes
HRD STRATEGY
Approach to Learning
Populations
Methodologies
Resources and Funding
Marketing and
Communication
Monitoring
Figure 1.6 – Drivers of the HRD Strategy
“PROFESSIONAL CHOICES” 5

36. STRATEGIC CHOICES IN HRD MANAGEMENT
APPROACHES: Training delivery vs learning consultancy
On-the-job learning - whose responsibility?
Managerial/ Individual / HRD roles in the learning process
Central control vs distributed learning activities
Building training schedules
Focus on individual vs team and organisational learning
Use of technology
RESOURCES: Internal/external; organisation, roles and skills;
funding, pricing and facilities; partnerships
MEASURES OF SUCCESS: Targets, strategic and operational
MARKETING AND COMMUNICATION; media, sponsorship, credibility, gaining support 8

37. Figure 4.2 – Stakeholders in the organisation’s people development
“THE WHEEL of PEOPLE DEVELOPMENT ”
managers
learners
Senior
management
Learner
colleagues
HRD
FUNCTION “
roles in the
learning process?
Capabilities
needed?
Figure 4.2 – Stakeholders in the organisation’s people development
suppliers
subordinates

38. Please complete the strategy assessment
ASSESSMENT OF WHERE WE ARE
ON OUR OWN STRATEGIES
Please complete the strategy assessment
checklist, and define the gaps to be filled

39. In a new role, when the MD was asked for my annual
objectives he said “I wouldn’t have hired you if I thought
you didn’t know what needs to be done professionally. But I
shall judge you by whether our colleagues find you helpful
in achieving their objectives” .
Some years later, at the end of my annual appraisal with
the Divisional President, he said “I sometimes have the
impression that your own agenda is more important than
mine………”

40. Thanks for
being here!