The essential components of a
successful L&D strategy PART II
The L&D function in transition
Over
the years, we have identified and field-tested nine dimensions that contribute
to a strong L&D function. We combined these dimensions to create the
ACADEMIES framework, which covers all aspects of L&D functions, from
setting aspirations to measuring impact (Exhibit 2). Although many companies
regularly execute on several dimensions of this framework, our recent research
found that only a few companies are fully mature in all dimensions.
Exhibit 2 IN THEORIGINAL ARTICLE
1.
Alignment with business strategy
One of an L&D executive’s primary tasks is to develop and
shape a learning strategy based on the company’s business and talent strategies.
The learning strategy seeks to support professional development and build
capabilities across the company, on time, and in a cost-effective manner. In
addition, the learning strategy can enhance the company culture and encourage
employees to live the company’s values.
For many organizations, the L&D function supports the
implementation of the business strategy. For example, if one of the business
strategies is a digital transformation, L&D will focus on building the
necessary people capabilities to make that possible.
Every business leader would agree that L&D must align with a
company’s overall priorities. Yet research has found that many L&D
functions fall short on this dimension. Only 40 percent of companies say that
their learning strategy is aligned with business goals.6 For 60
percent, then, learning has no explicit connection to the company’s strategic
objectives. L&D functions may be out of sync with the business because of
outdated approaches or because budgets have been based on priorities from
previous years rather than today’s imperatives, such as a digital
transformation.
To be effective, L&D must take a hard look at employee
capabilities and determine which are most essential to support the execution of
the company’s business strategy. L&D leaders should reevaluate this
alignment on a yearly basis to ensure they are creating a people-capability
agenda that truly reflects business priorities and strategic objectives.
2.
Co-ownership between business units and HR
With new tools and technologies constantly emerging, companies
must become more agile, ready to adapt their business processes and practices.
L&D functions must likewise be prepared to rapidly launch
capability-building programs—for example, if new business needs suddenly arise
or staff members require immediate training on new technologies such as
cloud-based collaboration tools.
L&D functions can enhance their partnership with business
leaders by establishing a governance structure in which leadership from both
groups share responsibility for defining, prioritizing, designing, and securing
funds for capability-building programs. Under this governance model, a
company’s chief experience officer (CXO), senior executives, and business-unit
heads will develop the people-capability agenda for segments of the enterprise
and ensure that it aligns with the company’s overall strategic goals. Top
business executives will also help firmly embed the learning function and all
L&D initiatives in the organizational culture. The involvement of senior
leadership enables full commitment to the L&D function’s longer-term
vision.
3.
Assessment of capability gaps and estimated value
After companies identify their business priorities, they must
verify that their employees can deliver on them—a task that may be more
difficult than it sounds. Some companies make no effort to assess employee
capabilities, while others do so only at a high level. Conversations with
L&D, HR, and senior executives suggest that many companies are ineffective
or indifferent at assessing capability gaps, especially when it comes to senior
leaders and midlevel managers.
The most effective companies take a deliberate, systematic
approach to capability assessment. At the heart of this process is a
comprehensive competency or capability model based on the organization’s
strategic direction. For example, a key competency for a segment of an
e-commerce company’s workforce could be “deep expertise in big data and
predictive analytics.”
After identifying the most essential capabilities for various
functions or job descriptions, companies should then assess how employees rate
in each of these areas. L&D interventions should seek to close these
capability gaps.
4. Design
of learning journeys
Most corporate learning is delivered through a combination of
digital-learning formats and in-person sessions. While our research indicates
that immersive L&D experiences in the classroom still have immense value,
leaders have told us that they are incredibly busy “from eight to late,” which
does not give them a lot of time to sit in a classroom. Furthermore, many said
that they prefer to develop and practice new skills and behaviors in a “safe
environment,” where they don’t have to worry about public failures that might
affect their career paths.
Traditional L&D programs consisted of several days of
classroom learning with no follow-up sessions, even though people tend to
forget what they have learned without regular reinforcement. As a result, many
L&D functions are moving away from stand-alone programs by designing
learning journeys—continuous learning opportunities that take place over a
period of time and include L&D interventions such as fieldwork, pre- and
post-classroom digital learning, social learning, on-the-job coaching and
mentoring, and short workshops. The main objectives of a learning journey are
to help people develop the required new competencies in the most effective and
efficient way and to support the transfer of learning to the job.
5.
Execution and scale-up
An established L&D agenda consists of a number of strategic
initiatives that support capability building and are aligned with business
goals, such as helping leaders develop high-performing teams or roll out safety
training. The successful execution of L&D initiatives on time and on budget
is critical to build and sustain support from business leaders.
L&D functions often face an overload of initiatives and
insufficient funding. L&D leadership needs to maintain an ongoing
discussion with business leaders about initiatives and priorities to ensure the
requisite resources and support.
Many new L&D initiatives are initially targeted to a limited
audience. A successful execution of a small pilot, such as an online
orientation program for a specific audience, can lead to an even bigger impact
once the program is rolled out to the entire enterprise. The program’s cost per
person declines as companies benefit from economies of scale.
CONTINUES
IN PART III
By
Jacqueline Brassey, Lisa Christensen, and Nick van Dam
https://www.mckinsey.com/business-functions/organization/our-insights/the-essential-components-of-a-successful-l-and-d-strategy?cid=other-eml-alt-mip-mck&hlkid=609edfa945254ceeac7a25092f5ce385&hctky=1627601&hdpid=4a586936-e25d-452d-83b4-969eb0daa091
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