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Entered 05/06/03

MY PROGRAM IS ABOUT TO BE CUT !
Kesner, I. (2003) Leadership Development: Perk or Priority
Consultant Panel Case Study. Harvard Business Review. May P.29-35

You know the essentials of your business with what you keep in a recession.
Do you keep your leadership development program ?

This consultant panel hypothetical case study looks at the main protagonist, Karen. Her support service has been advanced people development programs (executive university training programs) that can well be applied to KM services. Her predicament may be familiar to you. Due to a recent merger her HR department services are likely to be cut by 75 % of last years budget because to date little hard evidence on ROI has been shown from it. Her manager quoted below thinks its a "perk" rather than a priority !.....

"Listen, Karen. When you have been in the business as long as I have, you can spot a perk a mile away....

Yeh, I read the comparison report (the value of having program developed and delivered in-house versus outsourcing it). You highlighted a lot of qualitative advantages, but the analysis was woefully short of quantitative benefits.

If you can put together data that show how much executive education can add to the bottom line, I'm willing to listen.Welcome to the real world, Karen. I have to do that (type of thing) at every budget meeting !"

Her manager's background and attitude:
"No-nonsense leader" "Bulldog energy and tenacity" Methodical, detailed and devoted.
No leadership development programs himself. One divison lifer. Wants bottom-line impact, but "reasonable guy -make a case" "You must be willing to fight for resources like the rest of us."

__________________________________________________________

CONSULTANTS' PERSPECTIVE
AND ADVICE

Mike Morrison
Dean, Toyota University.
Los Angeles

'Demonstrate how it can improve business  results. Run it like a business !'

1. Read the Drivers !
Determine the pressing needs. In this case, it is merger issues: Leveragement, Inculturation, Global Integration. Talk up the centralisation of the global training. Talk up the necessity of re-orienting global leadership styles.

2. Link any Business Case to Drivers.
Speak increase in skills transfer, competitiveness and/or profits.

3. Customise all Arguments.
Tailor arguments to each buisness unit's specific needs to the point of skills transition measurements.

4. One-Stop-Shop Versatility.
Promote and use numerous training delivery modes. Develop a repertoire of methods.

5. One Year Wins.
Develop tangible short-term proposals. Involve key clients with programs that 'will produce return in the next year !'

 

____________________

Susan Burnett,
VP, Workforce Development and Organisational Effectiveness.

______________________________________________

Always link your activities to business drivers.

'Executive development is not about creating a university or a line up of great speakers. It is about bringing new knowledge, new practices and new thinking to the challenges of the day.'

1. Company Stategy.
Fully understand the company's strategy.

2. Respond to Strategy.
Develop an optimal set of interventions to achieve the company strategy faster.Use the following model to assist your CEO where they want their leaders to actually be.


"What is the desired level of competitive leadership competencies you really want ?"
"What is the desired level of succession planning / depth of bench you want ?"

[So...Depth of Skills, Depth of Bench]

3. Convince CEO of Speed.
The CEO must see how you are the premier catalyst process to essential change. Convince them of optimal intervention strategies.

4. Metrics Clear.
Find the agreed business measures to intervention effectiveness. It could be Speed to Merger Integration or Speed to Productivity, etc.

5. Customised Services.
Involve key consumers of your services in both the planning and evaluation of your services. They are your voters.

6. From the Top.
Find, nurture and/or develop senior leaders as vocal advocates to your service initiatives.

 

____________________

Noel M. Tichy
Professor of Business, Michigan Business School.

______________________________________________

1. Seniority Level.
You must be directly reporting to the CEO. 'Otherwise find another company.' You seniority level in the company tells you whether your services are strategic or not. Currently your chances of program survival are grim.

2. Classroom On The Job.
Focus mostly on action learning methodologies, not textbooks and momentary programmed learning events.

3. Succession Planning.
Develop apprenticing strategies for long-term leadership.

4. Educate Leaders on ROI
Provide a balanced perspective of Investing versus Returning parameters. 'Create the right mindset in the organisation.' There are 'too many intervening factors' to make safe cause and effect relationships in leadership development initiatives let alone more technical training.

 

____________________



David Owens
Chief Knowledge Officer, VP
Bausch & Lomb University, New York.

______________________________________________

1. Have Evidence.
To wait till a mega-merger to play catch-up in justifying your existence is suicidal. You should have been accumulating solid quantitative papers internally and externally on the ROI business case regardless of circumstances.

2. Company's Business Issues.
You should be fluent in company drivers and strategies.

3. Company's Talent Pool.
You should be fluent in the depth of skills in employees and skill gaps.

'Unfortunately many HR departments only have a superficial understanding of both (their business issues and staff competency profiles).'

4. One-Stop-Shop Versatility.
Avoid a reliance on classroom training. You must present a robust set of instructional methodologies.

5. Metrics
Design new valid metrics if you have to so as to provide long-term justification for your program interventions. For instance, develop a Service Guarantee indicator levels or retrospective metrics like the percentage of business unit revenues attributed to executive development by actual unit managers.

_________________________________________________________________

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