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EDUCATION GUIDE 2016
HR’s ability to improve the bottom line
HR directors are becoming increasingly aware of the importance of linking their strategies with those of the organization as a whole. HRD sat down with one expert to find out what impact interlinking strategies can have for a business
THE ROLE of senior HR professionals has developed significantly in recent years, and the partnerships that HR leaders have built are allowing businesses to operate more efficiently. By aligning their practices with organizational goals, HR departments are streamlining processes and helping companies cut costs and improve the bottom line. “Think about two people pulling on a rope in the same direction, or two people pulling in different directions,” explains Paul Juniper, director of the Industrial Relations Centre [IRC] at Queen’s University. “That’s the impact that an integrated HR strategy can have. It doesn’t matter if it’s in the public or private sector; HR has a valuable role to play. Interlinked strategies can have a massive impact.” In the modern business world, HR
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leaders have a responsibility to know their organization’s business cycle and strategic planning, which is usually managed by the
of the process and gather the information that will help the financial and planning teams make the right decisions.”
“Usually people go into CEO jobs from marketing, finance and sales. That is changing, but for it to happen, HR needs to understand the business in an intimate and detailed way” Paul Juniper, Queen’s University Industrial Relations Centre finance department. “HR needs to understand that process, get themselves involved and make sure they contribute in a positive and constructive way,” Juniper says. “HR departments need to get ahead
The employer/employee disconnects An organization with disconnected strategies is missing an opportunity to optimize its profit margin. Juniper uses the
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example of a misleading mission value statement to illustrate how skewed strategies can impact an organization. Developing a clichéd, politically correct value statement is a mistake that many organizations make. “An organization says they believe in teamwork, but as part of their compensation structure, employees are paid based on individual performance,” Juniper says. “That doesn’t make any sense. Either you want team structures and you support teams, or you give people the opportunity to earn extra revenue based on their personal performance. Interlinked strategies are so important, but unfortunately some organizations aren’t quite there yet.”
New skill sets for HR Developing strong relationships with senior figures across the organization should be a key priority for a progressive HR leader. In his personal experience, Juniper has found it beneficial to develop a relationship with the CFO – the individual who is most likely controlling the budgets. “It’s also good to have a strong relationship with the marketing department; the marketers always have money,” Juniper says. Aligning with the marketing department can create significant opportunities for HR. For example, if marketing is planning to release a new brand statement to customers, HR could create an employee brand to link with the marketing department’s goals. “This sort of strategy helps employees see themselves as an integrated part of the organization as a whole.” In order to directly align practices with organizational goals, HR professionals need to develop new skill sets. HR leaders need to show, in a way that makes sense to the business, the value that they’re adding. That could include outlining a strategy for improving the training of frontline staff or proposing a method for helping sales leaders manage performance and improve business results. “It depends on the organization and where you’re positioned, but the rest of the organization needs help to understand how best to use HR’s
expertise,” Juniper says. “HR has to empower line managers to help them get the best possible work from their employees.” To begin the process of interlinking strategies, the HR department must first learn the intricacies of how the business runs. Historically, HR departments have worked in silos, but Juniper believes this inhibits overall business performance and limits the potential of HR leaders. “There’s an extremely limited number of CEOs who came out of HR,” he says. “Usually people go into CEO jobs from marketing, finance and sales. That is changing, but for it to happen, HR needs to understand the business in an intimate and detailed way. That means understanding the things that keep senior leaders awake at night and then solving those problems.”
Help at hand There are good options for an organization that wants to help its HR team develop business skills. Launched 18 months ago, Queen’s University’s Linking HR Strategy to Business Strategy program was designed to give HR professionals the knowledge to understand core business goals and map strategies to connect HR practices to organizational aims. “Senior HR people are aware they need more knowledge,” Juniper says. “The course teaches practical skills and techniques that staff can use to make themselves more valuable and the organization more successful. Also, employee satisfaction is improved when you pay attention to your workers’ careers and give them opportunities to grow.”
QUEEN’S UNIVERSITY INDUSTRIAL RELATIONS CENTRE [QUEEN’S IRC] Changing demographics, new technologies and a globally competitive market are transforming the work we do and the way we do it. How do you keep up with the skills and tools to manage and thrive in this evolving business environment? Queen’s University IRC, a professional development unit within the Faculty of Arts & Science, delivers programs in labour relations, human resources and organizational development, based on more than 75 years of experience and research. Our programs are led by industry leaders and designed for busy practitioners who want to directly apply their knowledge to their work environment. Human resources: Learn how to build and engage teams in multidisciplinary environments, manage change, and transform key HR data into business strategy. Labour relations: Develop the skills to effectively handle disputes and negotiations, build trust, and manage unionized environments. Organizational development: Diagnose organizational challenges, explore design issues and develop robust solutions. Choose from two- to five-day open-enrolment programs delivered across Canada, or customized on-site training solutions that address your organization’s specific needs. We also offer certificate programs in advanced human resources, organizational development, labour relations and advanced labour relations for professionals who want to continue to develop their skills and contribute to their organization’s success. Why Queen’s IRC? • Opportunities to network with high-level colleagues from across the country • Coaching from internationally renowned facilitators with real-world experience • Experiential programming to test theories and ideas • Skills and strategies that directly apply to work environments • Mentoring beyond classroom sessions Learn more: www.irc.queensu.ca
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LEARNING STREAMS • Human resources – learn how to build and engage teams in multidisciplinary environments, and how to transform key HR data into business strategy.
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EDUCATION GUIDE 2016
Moving with the times
From MBAs to specialist master’s degrees, business schools are becoming more creative in how they connect with students
IN A WORLD of nonstop change, it might appear from an external perspective that the world of executive education is stuck in a time warp. However, appearances can be deceiving – business and manage ment schools are moving with the times.
Competition for the MBA The MBA was once – and in some cases still is – the shining jewel of post-graduate business qualifications. It remains in many cases the generalist degree of choice, preparing students with a broad knowledge of business. However, the student market has changed. “MBA programs worldwide are moving more and more towards recruiting younger students with less than two years of work experience,” says Hamid Noori, program director of the Lazaridis School of Business & Economics. “What this means is that more experienced managers who want to build their knowledge are finding that MBA programs – and I’m speaking generally; not all programs are like this – are not suitable for what they need.” Alan Middleton, executive director of the Schulich Executive Education Centre, says that in North America, the number of people applying to MBA programs is declining. The reason for that is twofold, he says. “Firstly, employers are saying that not all MBAs are equally valued, and frankly, they’d rather employ people on a lower salary and do the training themselves. Secondly, there are now so many MBAs on the market. However, the top schools still offer in-
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demand MBAs, and this means the brand in front of the MBA has become more important.” Of course, brand recognition brings with it higher costs to students. “You’ve now got people questioning whether they want to undertake an MBA, especially if they can’t get into or can’t afford an MBA from Wharton, Harvard, INSEAD, IMD or London Business School – so they’re getting their undergrad degree and trying to get a job that will train them,” Middleton says. Business schools have reacted to fill the gap, and there are several new alternatives on the market.
Executive master’s Executive master’s degrees, including executive MBAs [EMBAs], are designed to specifically meet the education needs of managers and executives, allowing students to earn an MBA (or another business-related graduate degree) in two years or less while working full-time. Middleton notes that EMBAs in particular appeal to people who may not have an undergraduate degree but are highly valued by their organization. EMBAs are used as both a retention tool and for the students to network with other senior leaders. “Most people who go on an EMBA have the course paid for by their employer,” Middleton says. “The reason for that is for most EMBAs, you’re still working – you don’t take time out of work for a year or two. At Schulich, we require eight years of work experience. Most courses take place Friday/
Saturday every two weeks.” The Lazaridis Executive Masters in Technology Management [EMTM] is another example and is a unique alternative to traditional MBA, EMBA and MSE programs. The 11-month course is tailored to suit people at middle management level and upcoming CEOs who work in technology or technology-enabled companies. “The focus in this program is not to teach management of technology; it’s to teach strategic management of technology enterprises,” Noori says. “In other words, we’re not emphasizing the importance or building IT executives; we’re focusing on training people who want to have an understanding of the current wider business issues and the impact of those issues on their company.” As such, EMTM learners come from a wide range of backgrounds – including HR
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and engineering – and all have a decade or more of work experience under their belt, which is considered if the student does not hold a master’s or undergraduate degree. The EMTM is a one-year program consisting of three modules, similar to the traditional terms or semesters used in universities; however, a key difference is that a learner will register in all the subjects offered in the program. Instead of the traditional path of undertaking, for example, three subjects and moving onto the next three when the first are passed, the subjects are offered in an integrated fashion. “Depending on the theme of the week or month, we could combine different elements of the program together,” Noori says. “For example, strategy and finance & accounting could all have a session in a particular weekend. The following weekend, it could change to a different combination of topics, all based on the theme of the week.” At the end of each module, the learners are divided into groups to work on a practical problem. Their solutions are then presented to a panel of practitioners and faculty members. This is a key way for the facilitators to assess if someone should move to the next module or not.
CORPORATE LEARNING SNAPSHOT
WHAT DO HIRING MANAGERS WANT?
In what ways do employees strengthen or acquire new skills?
When evaluating mid-level candidates, which of the following skills and capabilities are most important to your company?
On-the-job experience 99% Company-sponsored formal training
64%
93%
Leadership skills
57%
People skills/relationship-building
53%
49%
Collaboration/teamwork skills
Industry-specific knowledge and experience
Formal mentoring and/or coaching 84% Shadowing or observing others 73%
46%
Attending training on their own outside of work 71%
Problem-solving skills
44%
Communication skills
28%
39%
Creative/innovative thinking
Functional knowledge
Other informal means (e.g. reading articles and books, watching videos, speaking to colleagues) 67% 0%
20%
40%
60%
80%
100%
Source: Aon Hewitt, “Developing Canada’s Future Workforce”
28%
Analytical capabilities
12%
Project management skills
18%
Customer service skills
9%
Technological literacy
9%
Sales skills
Source: Aon Hewitt, “Developing Canada’s Future Workforce”
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EDUCATION GUIDE 2016
In addition, each learner completes a major research paper, working with a designated faculty member on a problem that he or she brings from his or her own company. “The objective is to use all the areas we discussed during the year to, as much as possible, address the issues and problems facing the employer,” Noori says. One example he cites relates to big data management. A particular company had a website where it collected information from its client base about its products. This student was able to use a data mining technique to decipher information from these client responses. “She was able to develop a mechanism through which she could see to what extent the company should be pitching products to different age groups,” Noori says. “The result is practical, hands-on learning for the student and a genuine business solution for the employer.”
Professional master’s Specialized professional master’s degrees “are where most business schools around the world are starting to go,” Middleton says. “The US has done this for a long time because they have a big market. They’ve created master’s degrees in marketing, in HR and other areas, because the market is big enough. Smaller markets, including most of Europe, Canada, Australia and New Zealand, haven’t been able to do that until recently, but you now have a wave of this happening.” For example, Schulich offers a one-year master’s degree in business analytics and a master’s in not-for-profit management. “Most of those master’s degrees are aimed at people who haven’t done an undergraduate business degree,” Middleton says. “So if you’ve done an arts degree, or a math, science or engineering degree and you want to use those skills but also make yourself more employable, you may take one of those specialist programs. Most of them won’t require significant work experience.”
Other study options A third option is a non-degree program.
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Schulich offers short – sometimes called ‘just-in-time’ – courses, which are two-, three- or five-day programs. “The range of topics mainly targets middle management who are either trying to improve their skills, or they have moved into a new area that they know nothing about,” Middleton says. “For example, an engineering company says, ‘We want you to handle the marketing in the company.’” These courses are ideal for those who require a “quick fix,” he adds. “They can’t spend a year out studying, but they can get permission and have the time to do two, three or five days.” There are also longer-term non-degree programs that might have an industry qualification at the end. Schulich offers a Master’s Certificate in Business Leadership for HR professionals. The course, which is designed to give learners a better understanding of business strategy and how the HR strategy must tie in with overall business plans, usually takes place over three months, typically consisting of three five-day sessions. In addition, training programs might be run by an industry entity like the Project Management Institute, whereby students undertake PMBOK [Project Management Book of Knowledge] training and eventually emerge as a qualified project manager. “You have a number of industries that have that kind of accreditation program, all of which have training programs supplied by the institutions or other organizations attached to it,” Middleton says. “You’ll find that in supply chain, in purchasing, in HR, most professions. These are open to anybody – you pay your money and attend.” Finally, there are customized programs. Organizations will hire an outside training firm or a business school to build a customized course for a group of employees. “There are cost benefits because you have numbers – 25, 30 people going through,” Middleton says. “In our customized training programs, there’s the ability to work with individuals on specific problems and challenges that are unique to their role and their organization.”
CORPORATE PARTNERSHIPS More than three-quarters of companies surveyed by Aon Hewitt have entered into a formal talent development partnership with a university, college or polytechnic. The most common types of partnership programs include: Co-op programs 74% Internship programs 69% Curriculum/program development 53% Apprenticeship programs 40% Classroom instruction 35% Student mentorship program 28% Faculty development 15% 0%
10%
20%
30% 40%
50% 60%
70% 80%
Source: Aon Hewitt, “Developing Canada’s Future Workforce”
Business ties Business schools wear their ties to the business world as badges of honour. Less and less of what happens in terms of formal learning is in the classroom; more of it is being done on the site of corporate clients. Even when there are face-to-face meetings between the academic and the students, it’s no longer in the context of just a lecture. For example, in some master’s degrees, students may be divided into teams of five that work for an actual client. The lecturer effectively advises them as if he or she were the head of a consulting team. Middleton says the links to the business world are critical for any successful business school; however, he warns there is one critical proviso: Get close, but not too close. “You want to be as close as possible to meeting the needs of the business community – either for when they are hiring students at the bottom end or for those who are updating their skills throughout the organization. However, you can’t let the business sector dictate the programs, especially degree programs. More so on customized programs and non-degree courses, but good universities fiercely guard
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their independence.” There will, inevitably, be a lag in what business schools can teach. Again, Middleton believes this is positive, despite the rapidly changing business world. “Why is there a slight delay? It’s because business education is a social science,” he says. “You’re drawing conclusions from empirical data, from the research or cases you’re looking at. To that extent, there’s always going to be a delay. Otherwise you could be teaching passing fads, or as they say, teaching stuff that’s on the internet, which is the biggest rumour mill in the world.” However, Middleton adds that if he is not up-to-date with his undergraduate students on technology, for example, they simply wouldn’t listen to him. “If I don’t know what’s going on with social media and have a view of it, even if there’s no good research on it, I
will tell them: ‘No, we’re not sure of the effects of this; there hasn’t been good research done on it, but here’s what seems to be happening.’”
Essential questions Regardless of the option chosen, Middleton says further study is a big commitment. He suggests that mid-level professionals ask themselves three questions before embarking on further study: Where do I want to end up? “No one knows what skill sets might be required in 20 years’ time, but look ahead to the next three or four years. Ask yourself where you want to end up and what the possible skill set will be.” Where am I now? “What’s my capability and what’s my ‘failability’? What are the holes in my skill set? For many people who haven’t come up
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through accounting & finance, the hole is often accounting & finance. Do I understand how to put together a deal? Do I understand how the market works? Do I understand a balance sheet? Other holes might be a result of a siloed career – you’ve only spent time in marketing roles or HR roles.” What’s the best way to fill in those gaps? “Do I say no, now is not the time to take a year or year and a half to take a proper degree? Or perhaps I want to network, in which case I might go to a Harvard program because they have really good networking.” However, Middleton emphasizes that ultimately it’s up to each individual to drive career development. “Even if the company doesn’t pay, it’s still your responsibility to either persuade them or pay yourself to keep your skills up to date.”
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EDUCATION GUIDE 2016
Post-graduate study: To support or not to support? Hopefully your employees have weighed the pros and cons of further study – but have you? Here are some considerations to ponder, including the burning question: Should you fund study or not? THE BENEFITS for companies that have employees who have undertaken or are undertaking post-graduate study are well documented. Not only are these employees better qualified, they also tend to be more well-rounded and motivated. And for many companies, sponsoring employees to undertake post-graduate studies can also be a good retention tool, securing qualified employees for the long term. However, supporting post-graduate study is not without its challenges. Employers have a raft of issues to consider before committing, not least of which is the decision about whether to fund or partly fund this study on behalf of employees.
Operational challenges Some issues could be described as purely operational – seemingly trivial issues that are actually extremely important. If these are not handled well, it can work against the intention of the employer, which is ultimately to encourage continuous learning and retain employees. Key operational challenges will be exam and assignment time, which can be busy and stressful for students – especially as
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they will likely be working full-time and have partners, families and other commitments. For JD Clarke, executive director of master’s programs, recruitment and admissions at Ivey Business School, it comes down to open communication between employee and employer. Even though Ivey’s executive MBA has a schedule
ization to be aware they are taking the program and [agree] to support them in the time required for classes,” Clarke says. “It’s important so the candidate can engage in the class sessions and disengage from their work commitments for the four days a month they are in class.” Best practice is to provide time to study
“The biggest mistake we see is an organization using covering the cost of the program as a retention strategy for a key employee, rather than a development strategy” JD Clarke, Ivey Business School that enables participants to maximize their time in the program with minimal work disruption, participants do require time off to attend classes and residence sessions. As part of the application process at Ivey, a letter of endorsement from the candidate’s organization is required. “The reason is that we like the organ
– be it annual leave or specific study leave entitlements. Again, two-way, open communication is vital if the student is to succeed without dropping the ball at work. Clarke emphasizes that any study commitment, let alone something as time-consuming as an EMBA, needs to be discussed openly and honestly.
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“It is important that the organization sit down with their employee and discuss this commitment and how the program aligns with their development in the organization,” he says. “An EMBA is a considerable undertaking. It requires full commitment from the participant and full backing by his or her employer — it is a joint venture. Employers need to start by planning how they and their employee will share and benefit from the educational experience. You need to give employees a formal opportunity to express their new ideas and how they can apply them to their company.” Another recommendation is for large employers who may have a number of students studying simultaneously. Even if they are not all part of the same program,
some form of cohort experience can be beneficial. Having a relationship with people who are going through the same stresses and strains can help busy executives come to grips with the work-study-life balance.
Strategic challenges There are also strategic issues to consider. For example, most employers will agree to support study for the simple reason that they want to invest in their employees. Yet that also means they must be cognizant of ROI. There may well be a nagging feeling for HR that, should they provide this investment in someone’s development, how will it pay off? It’s a highly strategic question for employers to deal with. “Many organizations will ask the
employee to sign a retention agreement to remain with the organization for a time period after completing the program,” Clarke says. “The biggest mistake we see is an organization using covering the cost of the program as a retention strategy for a key employee, rather than a development strategy. To expect graduates to be content to stay in the same job is myopic. Leaving their roles and responsibilities the same would mean missing the opportunity to leverage their education for the organization.” Questions must also be asked about whether the employer selects the participants or makes the decision to fund those individuals for further study. Secondly, at what point in their career do they do it?
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EDUCATION GUIDE 2016
MAKING THE CHOICE What should employers be looking out for if they are confronted with a request by an employee to fund post-graduate study? 1 Look for courses that have a high degree of practical exposure and lecturers who have real-world experience. 2 Get your hands dirty. Research and understand the pros and cons of particular programs or courses – they all have strengths and weaknesses. What are the likely benefits to the employee and the employer? Are there reputational issues to be aware of? 3 Gauge the program with the employee and education provider, as there is room for creative direction in most study programs. Most education providers will also be flexible if exams fall during a time when a student is travelling for work, etc. 4 Keep it targeted. The days of widespread employer financial support are gone. Instead, use your high-potential programs to provide the support to those employees who are truly beneficial to your organization. 5 Consider the geographical location of the campus. If most employees are based in the CBD, does the campus offer facilities there as well? 6 Offer flexibility and understanding – particularly around exam time and assignments. Large employers with multiple employees studying simultaneously might benefit from in-house study groups.
“As a country, we’re spending 20% less on training our workforce and our managers than we were 10 years ago” Alan Middleton, Schulich Executive Education Centre Kevin Jameson, director of the Macquarie Applied Finance Centre in Sydney, Australia, categorizes post-graduate courses as being either ‘pre-experience’ or ‘post-experience’ programs, depending on whether students undertake them immediately after completing their bachelor’s degree or after gaining some work experience. “With post-experience programs, there’s much more chance that the theory will integrate with the practice,” Jameson says. “For high-quality people with high potential, funding further study is absolutely appropriate and a valuable retention strategy. My impression is that those who are funded value their employer more, and there is usually an improved employeremployee relationship as a result.” He adds that if employers fund early
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career employees, the risk is the employees might undervalue that support and make poor decisions. “Whereas if it’s aimed more at mid-career employees, those who are more bonded to the organization and have more of an investment in the organization, they can actually get something out of the study that’s relevant to the workplace. Day by day, it’s useful to them.”
To fund or not? The burning question, of course, is whether employers should be funding the study. Alan Middleton, executive director of the Schulich Executive Education Centre at York University, says employer support for post-graduate study is declining. “As a country, we’re spending 20% less on training our workforce and our managers than we were 10 years ago. This is what
happens with all management education if an organization is paying – it’s at the vagaries of the economy. During good times, the budgets stay. Go down in the business cycle, and guess what budgets get hit first? Marketing and advertising, and training.” On the other side of the world, Jameson has noticed the same trend. “I can’t speak for every employer, but my sense is it’s more a privilege now than an expectation,” he says. “It’s much more targeted now – perhaps only for high-potential employees – and even then there might be an encumbrance around the funding. It might be a co-funding as opposed to outright funding; it might involve some clawback in terms of the employee staying with the organization for a certain amount of time after the degree.” The type of study undertaken also has an impact on whether employers will pay. EMBAs, for example, are typically more expensive than regular MBAs. These EMBAs appeal to people who may not have had a formal educational background – they may not have an undergraduate degree, for instance, but are highly valued by their organization. “They are used as preparation for management roles and networking with other senior people, but more importantly, they are used by corporations as part of a professional development strategy, which in turn is part of a larger retention strategy: ‘We’re going to put you through this course, and we’ll pay for it.’ So most people who go on an EMBA get it paid for.” Middleton notes that for two other popular executive education routes – specialist master’s and non-degrees – up to 75% to 80% of students would be authorized and paid for by their employer. However, he also suggests there has been a shift in North America over the last 20 years. “If I was an executive discussing education options with HR, recruitment heads and headhunters 20 years ago, they would all say to put onto your CV your degree programs, but don’t worry about adding any short courses you undertook.
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Now they say put every course you’ve taken on your CV, because in order to get employment, you must show that you have your skills up to date.” So although the majority of courses are still paid for by employers, Middleton has also noticed a trend toward more individuals who are between jobs, or even in a job, paying for courses themselves. “Lifetime careers with one organization are very rare these days,” he says. “If you’re out on the market, let’s say, five to 10 times during your lifetime, you’re selling yourself based on the work you’ve done and the experience you’ve gained, but also a demonstration that you’ve kept your skills up to date and you’re in touch with what’s going on. If individuals can’t get their organization to pay, they’ll often do it themselves.” Jameson agrees and suggests the thinking needs to be recalibrated; the calculation for individuals should be one of personal investment: “If I put this amount into it, what do I get over a period of time?” Far more effective for employers, Jameson feels, is reframing the equation so that further education is both a reward and a retention tool – particularly for highpotential employees. “The employee gets the benefit of the education, but they also get the benefit of knowing the employer is thinking carefully about their role in the organization,” he says. “It’s not just a financial transaction. I’m not saying if it’s done purely as a financial transaction, it’s got no value – but I believe it has far less value than if such education is viewed as part of a development plan for the individual. If you’ve got a program independent of any development plan for the employee, I think you’ve gone down the wrong path, and you risk not getting payback. You haven’t built that thoughtful, deep relationship with the employee that plants that seed with the employee: ‘I want to be here in five years’ time because I’ve got this relationship with my employer who clearly understands me. We’re working together to enable me to take on bigger
roles with the same employer.’”
Agnostics beware If Jameson has one golden rule for employers, it’s this: Do not be agnostic about development choices. “I talk to a fair few employers, and there aren’t many who will take an active role in helping their employees decide what to study. Even if they are helping to fund the study, there is a fair amount of agnosticism.” He would much prefer it be part of a deeper discussion between the two parties, which clearly outlines what the benefits will be short term, medium term and long term. Ivey Business School suggests five ways for organizations to get the best value from their sponsoring their employees in their EMBA program: During the program, periodically talk about what is being learned and how it is applicable to the company – don’t wait until the end. During the program, set up a one- to three-year plan for the individual in terms of roles and responsibilities – announce the next move ideally just before the participant ends the program. Celebrate their successful completion of the program. After the program, raise the bar on performance. Expect and encourage the individual to apply what has been learned in the EMBA program – give them stretch assignments, put them in crossfunctional roles, etc. After the program, acknowledge their commitment to self-development and encourage them to teach others what they have learned. Jameson adds that any decision about supporting employees’ post-graduate study should not be taken lightly. “One of the biggest issues students face is that they forget that good master’s degrees are not trivial,” he says. “If you’re going to do it, it will take some work and effort. Most people who are funded are in the 25–30 age range, so a lot of them are beginning to settle down and focus on their
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CORPORATE SPEND ON TRAINING: FAST FACTS In 2014, Canadian organizations spent about $800/employee (up from $705 in 2013) on training and development. The top 10% of organizations spent $1,858 (up from $1,643 in 2013) – that’s approximately 1.41% of annual payroll (down from 1.5% in 2008), or 1.10% of annual revenues. This is a dramatic decline: In real terms it has dropped 20% in the last 20 years. Canada ranked 28th out of 60 nations in terms of the importance placed on workforce training in 2013, down from 19th in 2012 and being constantly in the top 20 prior to 2000. Annual hours of formal training: 31 hours per employee. Training by job type: 35 hours or 12% of budget for senior management/ executive, 28 hours (22% of budget) for middle management, 22 hours (20% of budget) for supervisory and 27 hours (or 21% of budget) for professional, technical and scientific employees. Approximately 37% of a company’s training budget is spent on outside trainers, up from 34% in 2012/13 and equal to 37% in 2010; 37% is spent on L&D staff salaries, down from 40% in 2012/13 Sources: Conference Board Learning and Development Outlook; IMD World Competitiveness Yearbook
career development – this tends to put a lot of pressure on them. Our experience is that the main reason people don’t succeed in their degree is because they’re trying to manage the pressures of balancing study with work and family.”
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EDUCATION GUIDE 2016
L&D: New challenges, new approaches From MOOCs to ‘swarming,’ Gary Taylor explores the brave new world of corporate learning HR division, it was the OD people who owned the portfolio of change management, but we are seeing an exciting value-add role for L&D in delivering change capability.
Keeping up with the changing world
A CIPD research report from the UK just five months old caught my attention because of its wide referencing of literature related to the role of L&D in helping organizations deal with business challenges in the second half of this
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decade. The training departments of yesteryear were stereotyped by mundane skills training or eager L&D professionals experimenting with the latest leadership development theories. Within the broader
The external environment for many organizations can be characterized by the acronym VUCA: volatile, uncertain, complex, ambiguous. With increased connectivity, the L&D department might well be offering programs to include the staff of suppliers, clients and even competitors (when organizations decide to embark on ‘coopetition’ with the competition). For instance, L&D professionals are now facilitating sessions to promote the concept that Gartner terms ‘swarming.’ This is a work style characterized by feverish collective activity by a temporary group of people – anyone who can add value. Swarms allow the irregular multidisciplinary group to form quickly in order to attack a problem or opportunity, and then dissipate just as quickly when the task is accomplished. This is a different model than traditional teams, which usually are composed of individuals who know each other and work for the same boss, and a different L&D approach is needed.
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The top L&D departments are looking to help their organizations develop the capacity they need to cope in a VUCA environment. Research indicates that organizations need to be: • Adaptive: Attuned to the external environment in such a way as to sense and recognize change and its implications. It is too general to know that ‘change is a-comin,’ because institu-
Similarly, Disney’s animated filmmakers originally hired creative artists to draw thousands of cartoons on acetate sheets, and then hired photographers to take thousands of still photos and splice them together to create the illusion of a moving character. Pixar films have no cameramen but took to hiring postgraduate mathematicians to construct the algorithms necessary to create the
The new breed of L&D professional needs to be more content-, organizationaland context-savvy tions also need to recognize the type or patterns of change and then make sense of it. This requires a high absorptive capacity in order to internalize the change. • Agile: Have the dynamism to be able to shift strategies in response to oppor tunities as well as threats, and then develop new organizational competencies. This might entail the integration of new ways of working, which has all kinds of L&D implications. • Ambidextrous: Able to balance change and stability (both at the same time). Being organizationally ambidextrous entails exploiting present capabilities while still being open to breaking with the past.
Theory into practice We have witnessed some exciting examples of this. Just think how the new young management team at LEGO conceived the idea of The LEGO Movie as a means of re-energizing their brand among children. This entailed partnering with those who had the competency to make it happen, and then adapting existing competencies within LEGO to take hold of the opportunities that have flowed from the film medium. Instead of merchandise flowing from the movie, this was an example of merchandise driving the movie.
patterns for movement on the fur of a monster, and for his shadow to follow him correctly. It’s a case of a graphic artist working side-by-side with a mathematician in a fascinating interdisciplinary effort. Disney bought Pixar in order to stay ahead of the game.
The implications for L&D The new breed of L&D professional needs to be more content-, organizational- and context-savvy. Off-the-shelf training programs cannot just be adapted to the organizational context after one focus group to gain relevant illustrations. Embedded commercial acumen is essential to forge an affecting and aligned L&D unit, in which staff play different roles. The L&D function must be both strategic and operational if it is to make a meaningful impact, and this means getting hands dirty. We hear of L&D departments engaging with MOOCs [massive open online courses], which are accessible to anyone and allow unlimited participants. Variants of this approach include xMOOC, an online version of the traditional class, and cMOOC, which is connectivist and encourages collaborative learning rather than mass broadcast. To create organizational capability in the skills listed above, experiential learning
ALL ABOUT MOOCs The MOOC market has exploded for consumers as well as employers. According to Forbes research, more than 70% of employers are interested in exploring the use of MOOCs for corporate training, and 31% have some plans to leverage MOOCs for corporate training. Coursera, Udacity, Udemy and edX are all starting to license courses and their platforms to businesses and for-profit education companies, a trend that will continue to grow. Yahoo is already reimbursing employees for the cost of verified course-completion certificates from Coursera. Online retailer 1-800-Flowers announced it would create an online education portal on the Udemy platform for its network of independent florists. The portal offers a mix of general business courses and custom-developed courses on topics specific to the floral industry. Tenaris, a US$10 billion manufacturer of steel pipes, has licensed edX’s software platform and course materials for its employee learning. The World Bank, the IMF, GE and several major government ministries are licensing MOOC content and technologies for their constituents. seems to be the approach of choice. Simulation games have been seen to enhance cognitive gains and teamwork, and stimulate positive reactions among learners. These games are complex and require skilled design, as they are intended to be cognitively demanding. Simulation games mimic reality in that the use of technology gives learners more control of their environment. The learning space is immersive – participants are fully absorbed – and stretches learners out of their competency comfort zone. The L&D professional can no longer just be a broker of knowledge; they need to also be a facilitator of connections across the organization. Gary Taylor is an HR director who has worked for Australian, South African and British multinationals on two continents, including the Middle East. He is registered as a Master HR Practitioner with the South African Board for People Practice, and served as vice president of the Institute of People Management.
www.hrmonline.ca
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EDUCATION GUIDE 2016
From campus to career Goodman School of Business has a well established reputation for preparing students to undertake new ways of doing business e-business applications and analytics to your busy work environment. Meet MBA graduate Regan Fitzgerald (MBA ’16). Fitzgerald completed her BA in psychology at Brock, through which she discovered her passion for statistical analysis. After working collaboratively on consumer behaviour research projects with Goodman School of Business professor Antonia Mantonakis, she recognized the potential an MBA in business analytics could have for her career. Fitzgerald made the MBA program her own, taking advantage of numerous opportunities to enhance her formal training. These took the form of multiple co-op terms at Hydro One in research and analytics, advanced Excel training offered
BROCK UNIVERSITY’S Goodman School of Business, located in the picturesque Niagara region just an hour from the Greater Toronto Area, takes students from campus to career path. Through our respected co-op program or our dedicated career office, you will find students and graduates who are professional and prepared to meet the challenges of today’s business world in your business environment. We work with our employer partners in a consultative and cooperative manner and provide you with a customized and personalized service to support your recruitment goals, increase your on-campus profile and connect you with qualified business students and graduates. If you are looking to upgrade your skills or those of your staff, we offer a competitive MBA with both full-time and part-time options and specializations in accounting (CPA/MBA), business analytics, finance, human resource management, marketing
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Our MBA program offers the flexibility to choose your area of interest and includes the foundational courses that set you up for success and operations management. In addition, our MBA program offers the flexibility to choose your area of interest and includes the foundational courses that set you up for success.
A new era of business partnerships The Goodman School of Business understands that the way of doing business is changing, and we have adapted our program offerings and capabilities accordingly. We focus on partnerships and collaboration, not competition; on passion, not routine; and on priorities and values, not only the bottom line. Our newly launched MBA specialization in business analytics is one-of-a-kind and will bring database management, systems, and
through Wall Street Prep and an executive role on the Goodman Graduate Business Council. Upon graduation, Fitzgerald has been hired as part of PepsiCo Canada’s New Graduate Program and will hit the ground running with a fantastic combination of analytical skills and leadership experience that will be a powerful asset to any organization that takes data-driven decisions seriously. Goodman set her up for success, teaching her not only how to make sound business decisions, but also how to understand the data behind them.
For further information about Brock University’s Goodman School of Business, visit www.brocku.ca/business.
www.hrmonline.ca
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