ideas@work vol. 1

VOLUME 1

BUSINESS INSIGHTS FROM UNC EXECUTIVE DEVELOPMENT

WHITE PAPERS
FEATURED:

Making the Business Case for
Learning and Development:
5 Steps for Success

Ready, Aim, Coach:
How HR Can (and Should)
Coach Managers on Problem
Employee Behaviors

Putting Success Back in
Succession Planning: The Role
of Learning and Development

Passing the Torch: 5 Steps
for Turning the Baby Boomer
Brain Drain into a Brain Trust

Unlocking the
Potential of
On-Demand Learning
in the Workplace

A message from the
President and Associate Dean of
Executive Development at
UNC Kenan-Flagler Business School

About ideas@work
Greetings from the University of North Carolina at Chapel measure and demonstrate the value of learning and
Hill and welcome to the first edition of ideas@work, a new development. Another addresses the importance of
journal designed specifically for business leaders who are succession planning and includes suggestions to identify
involved and interested in talent development issues. and develop talent to fill key leadership positions. A third
paper tackles the challenges caused by a rapidly aging
Here at UNC Executive Development, we partner with workforce with tips to leverage valuable knowledge and
organizations to help them solve real business challenges experience before the baby boomer generation starts to
while developing their top talent. Our approach to retire.
program design and delivery draws upon the power of real-
world, applicable experiences from our faculty and staff, I sincerely hope that you’ll find some useful, actionable
integrated with the knowledge our client partners share ideas that you can apply in your own organization, and I
about the challenges they face. ideas@work was created encourage you to share ideas@work with your peers and
to share some of the ideas and experiences we’ve gained colleagues as you see fit. Our goal is to feature topics that
from working with our partners, and to highlight best are relevant to you, so please feel free to email me any
practices from other organizations. ideas that you have for future topics at unc_exec@unc.edu.

This issue includes five papers covering a variety of topics Thank you for your interest in UNC Executive Development.
which I hope you’ll find to be interesting and thought-
provoking. One paper offers suggestions to help you Warm regards,

Consistently ranked one of Our commitment to At UNC Executive
the world’s best business developing socially Development, we believe
schools, UNC’s Kenan- responsible, results-driven that managing employee
Flagler Business School leaders distinguishes our talent is vital to the success
is known for experiential programs. We educate of any organization, and we
learning and teamwork, people at every stage provide unique learning and
superior teaching, of their careers and development experiences
innovative research and a prepare them to manage for our partners.
collaborative culture. successfully in the global
business environment.

2 ALL CONTENT © UNC EXECUTIVE DEVELOPMENT 2011 www.uncexec.com

Inside this issue

Making the Business Case for Learning and Development:
5 Steps for Success
page 4

Ready, Aim, Coach: How HR Can (and Should) Coach Managers on
Problem Employee Behaviors
page 16

Putting Success Back in Succession Planning: The Role of Learning
and Development
page 26

Passing the Torch: 5 Steps for Turning the Baby Boomer Brain Drain
into a Brain Trust
page 38

Unlocking the Potential of On-Demand Learning in the Workplace
page 50

(Note: The information or conclusions expressed in the following white papers are the authors’ review of findings expressed by the
organizations. All brand representations are registered trademarks owned by the respective companies or organizations.)

3

Making the Business Case for
Learning and Development:
5 Steps for Success
Susan N. Palmer, Ph.D
Program Director
UNC Executive Development

Introduction Our Promise
Human resource and talent management professionals This white paper draws lessons from our work with a
can turn today’s economic challenges into opportunity range of organizations. It outlines steps you and other
and become true strategic partners by creating strong learning and development leaders can take to show your
business cases for their learning and development CEO and CFO the top and bottom-line value and the ROI
initiatives. To do so, HR can no longer measure the of learning and development initiatives.
return on investment (ROI) of learning and development
after the programs have been implemented. Instead, These steps can change your own and your senior
they should calculate and anticipate the returns these management’s perception of learning and development
initiatives will have on their organization’s bottom line. programs and of the value these programs provide to
the organization:
This white paper explores how organizations can retool
their learning and development programs to reflect 1. Know your organization’s strategic priorities.
how they should be doing business and provides
2.
Understand how the learning and development
steps you can make to show your CEO and CFO the
function can contribute to those priorities.
top and bottom-line value and the ROI of learning
and development initiatives. With the proper focus 3.
Determine what learning and development programs
and understanding of how learning and development will support the organization’s strategic direction.
programs contribute to corporate profits, spending
on training and development will be viewed as an 4. Build it with metrics.
investment with the potential for strong returns rather
5. Pitch it like you’re the CFO.
than as a disposable business cost.
With the proper focus and understanding, you can have
leaders view training and development as a worthy
investment instead of as a cost.


MAKING THE CASE FOR LEARNING DEVELOPMENT

Step 1: Know Your Organization’s Strategic Priorities
The turbulent economy of the past few years has put Gathering this knowledge will help you to communicate
even seemingly recession-proof industries like health better with your top management and improve your
care and utilities on edge. Such volatility often makes ability to ask the right questions. These enhanced
it easier to think in terms of short-term survival, rather communication skills will also put you in a better
than long-range strategy. Yet it is crucial to focus on position to offer human capital recommendations that
what is important (long-term strategic priorities), align with your organization’s strategic priorities.
rather than on what is urgent (today’s employee
relations problem).

Make it your business—even a job duty—to know and
understand your organization’s strategic priorities and
Learning and development
keep these priorities in mind when developing your professionals who can
learning and development programs:
show how their
1. ead about your industry and organization on
R
the Internet. organizations’ top and
2. Learn about your competition. bottom lines ultimately
3. nderstand how your organization is rewarding
U improve from investing in
its executives and how this compares to others in
your industry.
training and development
4. earn how your company is viewed externally
L
will grab the attention of
and what your customers are saying about you— senior management and
both positive and negative.
quickly become a valued
This environmental scan will help you understand
and anticipate where your organization needs to strategic business partner.
be in three to five years, and how effective talent
management can push your organization
in this direction.

5

Example:
Top management at Duke Energy understands the value of long-term planning.
At a time when most organizations slashed their training budgets, Duke Energy
actually increased its spending on leadership development.

2008, the company launched the Strategic Leadership Program, intended to develop
In
the next generation of leaders to be more strategic and less tactical in their thinking
and actions.

The two-week program focused on developing the leadership skills of mid-level managers.
Participants learned how to evaluate business decisions, how to execute business
strategies, and then how to put the theory to practice:

• t started with in-depth sessions on understanding the industry and the business.
I

• uring the first week, participants identified actual business challenges in their own
D
business units and then developed solutions to address these challenges.

• uring the second week, they worked on emerging company challenges identified by
D
the senior executives.

The challenges had measurable bottom-line impact for the organization, and they
piqued the interest and generated ongoing support of senior management.

According to a recent Bersin Associates
survey, corporate learning and development
budgets were cut by 11 percent in 2009, and
by a total of 22 percent since 2008.
ource: O’Leonard, K. (2010). The Corporate Learning Factbook: Benchmarks, Trends
S
and Analysis of the U.S. Training. Oakland, CA: Bersin Associates



Step 2: Know How Your Department
Contributes to Those Priorities
Understanding your organization’s strategic initiatives will help you better focus on how
the learning and development function can contribute to achieving these priorities.
Two key questions to ask are:

1. ow can your existing learning and development programs help support the
H
business strategy?

2. hat new learning and development programs may be needed to assist in
W
achieving those goals?

Two Examples
For example, if your organization plans to expand its
business internationally within the next several years, “ nce senior leadership
O
determine how the training and development function
can support this goal. Will current employees need to
understands that your
do work overseas? If so, then evaluate the training focus is the same as
that employees will need to succeed in these new
business environments. theirs, it leads to better
Will the organization need to hire new employees in support to obtain your
other countries? If so, then careful thought should
be given to the training needs of these employees,
goals.”
as well as to how to deliver the training efficiently
and effectively overseas. Also, understand how those
employees who do not work overseas will support
Lori Antieau
the strategic objectives and develop training
Vice President, Human Resources
programs that align with those global priorities.
Talecris Biotherapeutics

The impact of training and development on a
strategic priority, such as expanding globally, can
be multilayered, so it pays to think outside of
the box.

Providing a clear picture of how work will change
and preparing employees for these changes can
be an invaluable contribution. Knowing what
learning and development opportunities are needed
to help employees adjust to new or changed roles
can offer great results and pay back.

7

Step 3: Determine What Programs Will Support
the Strategic Direction
Now that you understand your organization’s strategic priorities and how the learning
and development function can help make them a reality:
• hat specific learning and development opportunities are needed?
W
• hat existing training programs should be included or excluded moving forward?
W
• hat new training programs may be needed?
W

Except for those required by law, evaluate how your existing learning and development
programs support your organization’s strategic direction. Keep those that support the
strategic direction and discontinue the rest. And even with programs that are required by
law, evaluate them to make sure they are working and getting the results your organization
expects and needs.

For example:
• s your organization developing a new product, service, or solution?
I
• f so, do you have the knowledge and skills in-house to design and deliver it?
I
• f not, can you help develop the knowledge and skills that will be critical to bring this
I
new offering into a highly-competitive marketplace?

Examples for training and development may be preparing the sales force to sell the new
product or building a customer-focused organization that can deliver it, particularly if it is
outside your organization’s normal offerings.

Example:
Caterpillar, the world’s leading manufacturer of construction and mining equipment,
diesel and natural gas engines, and industrial gas turbines, has done exactly this.
Caterpillar has hundreds of locations worldwide to serve and support their customer base and to
respond quickly to their needs.

Jose (Pepe) Brousset, regional director for Americas South at Caterpillar, focuses on how Caterpillar
can maintain its leadership in the industry.

According to Brousset, “While we continue to invest in the differentiation of our products, we
recognize that we need to change the (85 year-old) organization to become much more customer-
centric. We need to understand, really, the solutions that our customers are seeking.

“Our talent development efforts are designed to drive this organizational change; to become more
customer-centric, starting with top leadership and continuing down through the operating managers.
In this way, we’re able to transform the organization and impact the bottom line.



“To be successful, talent development needs to start with the leadership; they need to
be committed to driving the culture change down through the organization. They also
need to empower their managers and provide support. From there, it will cascade
through the organization.

“At the operating manager level, our talent development efforts are designed to
provide the training and tools to enable organizational change. We help our executives
throughout the organization see their roles in supporting this strategy so they will
better understand how their contribution drives results.

“As a result, we have a direct impact on market performance by imparting knowledge
that drives the behaviors which will change attitudes.”

79
of CEOs who
%
79 %
of CEOs in that same
68 %
said they intend to
responded in a survey said they want increase investment
recent Pricewaterhouse- to change their strategy in leadership and talent
Coopers survey said for managing talent. development as a result
they intend to increase of the global recession,
focus and investment suggesting that existing
on how to manage people practices did not
people through change. support businesses when
This includes redefining the global recession hit.
employee roles within
their organizations.

Source: PwC Saratoga (2010). Managing People in a Changing World: Key Trends in Human Capital. PricewaterhouseCoopers

9

Step 4: Build It with Metrics
Too often, CEOs and CFOs view employees as Measuring outcomes that have a real and demonstrable
depreciating assets, and frankly, learning and effect on the organization’s top and/or bottom line is
development professionals have given them little reason not as hard as it sounds. Learning programs can have
to change their minds. A recent McKinsey Quarterly measurable results such as increased sales or improved
report found that only 8 percent of respondents said productivity. Reductions in recruiting costs from lower
they track the return on investment of training and employee turnover and improved customer service
development programs. Learning and development also can have positive and very measurable impacts on
professionals must be prepared to show at the planning corporate results.
stage the top and bottom-line impact learning programs
will have on the organization. However, no single set of metrics will apply to every
program, so talent management professionals must be
prepared to develop specific measurements for each
program.

Example:
According to a recent McKinsey Quarterly report (July 2010), officials with the Boys and
Girls Clubs of America (BGCA) analyzed and created a set of metrics when developing a
leadership training program for more than 650 volunteers.

2007, BGCA management realized that an anticipated wave of retirements among local club leaders
In
would leave them with a severe leadership shortage. With the changing demographics, this leadership
gap is a consistent theme seen today in many for-profit and non-profit organizations.

BGCA management also found themselves in a situation not uncommon among non-profit
organizations; donors preferred that their money go directly to those in need and not to overhead
costs like training and development. BGCA quickly understood they would have to make the business
case for the leadership training at the outset and ensure that they could demonstrate how the training
would pay for itself.

First, BGCA officials narrowed the focus of its leadership training down from 50 to 4 key aspects. They
accomplished this goal by analyzing which leadership traits contributed the most to job performance.
By designing a program based on leadership aspects tied directly to performance, BGCA officials found
that developing metrics and assessing the success of the program was straightforward and tied directly
to the association’s strategic priorities.

BGCA compared the pre- and post-training results of leaders who completed the training program.
The BGCA officials also gathered benchmarking data from a control set of member organizations that
had similar characteristics, such as budget size and operating revenue; however, the leaders in the
control group did not receive the training. The results for leaders who participated in the training
programs were markedly better than leaders in the control group on every outcome measured.



Boys Girls Clubs of America (BGCA) training attendees’
performance before and after training
Difference between performance gains of highest-quartile
training participants1 and average ones, 2009 vs 2007
Values in percentage points.

Mission metric:
+10-12
Increase in club membership

Financial metric:
+8-10
Increase in total revenue raised

Mission metric:
Increase in % of members with +3-4
club tenure of 2 years or more
1
D
efined as 75th percentile.
Source: BGCA; McKinsey analysis

Officials estimated that if all 1,100 member organizations matched the success level of the groups whose
leaders participated in the training programs, then the BGCA would have added 350,000 new members and
increased revenue across all its organizations by $100 million—or approximately a 3 percent increase in the
average local organization’s budget.

Estimated impact of Boys Girls Clubs of America (BGCA) training program
Impact of advanced- Cost of advanced- Return on investment
leadership program on ÷ leadership program, = (ROI)
revenues, $ million $ million

Increase, 2008–2009 All-in cost, 2007–2009
30-35 7.3 4-5X

Future annual increase Future annual cost
15-20 2.5 6-8X

Source: BGCA; McKinsey analysis

The BGCA officials also calculated that the training programs generated more than four times the return on the
program’s cost—including the cost of time and travel for all the participants.

11

Example:
Duke Energy also measures the success of its leadership program, but takes a venture
capitalist view; if just one of the business plans generated from the program comes to
fruition, the cost savings to the organization or the increase in revenue will pay for the
program and more.

This is a lesson we can all be reminded of: Don’t be afraid to think unconventionally. According to
Atul Nerkar, associate professor of strategy and entrepreneurship at the University of North Carolina’s
Kenan-Flagler Business School, who was involved in the development of the Duke Energy program,
“We wanted activities that lead to either cost savings or an increase in revenues. We wanted to show
where [the program] impacts the top and bottom lines. This is a unique approach which we believe
helps make the program pay for itself.”

According to Mark Short, managing director of organizational development at Duke Energy, this
venture capitalist approach to its leadership program has paid off. “We wanted to create an
environment of innovation and empowerment; an environment where our leadership talent is
encouraged to think outside of the box when seeking solutions, and they feel safe in pushing
those solutions forward.

“ he impact from the program has been tremendous, both culturally and on the bottom line. You
T
know the program has made an impact when every new participant in the program knows the
successes of the preceding class, and they all strive to top.”

“ etting a seat at the table is imperative; however, you have
G
to be a respected voice at the table or you are doing nothing
more than keeping the chair warm. Business is the key word,
not the kumbaya-hold-hands-and-sing-the-praises-of-people
approach.

“
Business means putting your numbers up and presenting
your viewpoint or proposal from a quantitative instead of a
qualitative approach.”
Carrie Alden, SPHR-CA
Human Resources Manager
Sierra Nevada Brewing Co.



Step 5: Pitch It Like You’re the CFO
It’s time to change your mindset and think like a
finance person. As you identify how future learning
and development programs can affect your Talent management
organization’s strategic priorities, you need to be professionals must be
able to make the business case to obtain and retain
program funding. prepared to develop specific
This principle applies to both for-profit and not-
measurements for each
for-profit organizations. The key to success for any program.
organization is how to get the best returns from its
available resources.

Your Assignment
This will require you to shelve your HR or training
and development role for a while and start thinking
about how your job and your department create
“ e have aligned our HR
W organizational value. While HR professionals stress the
efforts more closely with need to get senior management support for training
and development programs, it is unlikely that they
the business strategy. will get or maintain this support without being able
Although there was some to demonstrate the effect on the organization’s key
performance metrics.
resistance from managers
at the beginning, early and At the end of the day, training and development
programs should not be seen by the CEO or CFO as a
frequent communication cost, but rather as an investment in the organization’s
and involvement of staff and human assets. An investment that you can demonstrate
has a real, positive top and/or bottom-line impact.
managers in the development
of new, more effective talent In most cases, other departments or divisions within
organizations have been doing this for years. Marketing
management processes has and operations directors normally can make strong
substantially reduced the business cases and have measures in place to show
how their functions and programs directly affect the
resistance to change.” organization’s bottom line.

CFOs are not likely to support what appear to be
Milton E. Barrios disposable costs which offer no measurable positive
Assistant Senior Personnel Manager impact to corporate profits—especially in tough
International Monetary Fund economic times when resources are limited. However, a
positive return on a cash outlay will elicit a completely
different response from most finance officers.

13

The challenge that many learning and development planning to enter the international market? Many times
professionals face is calculating the return from what organizations tend to chalk up such a training exercise
some call a “soft set” of measures. as a direct but necessary cost.

“A basic rule of capital budgeting is to only fund However, even a training program which appears
investments where the net present value is positive; to support a “soft set” of skills can have a hard and
the challenge to HR and learning and development measurable impact on corporate profits by improving
managers is how to calculate the real value that training external and internal customer satisfaction. This
and development programs add to the bottom line,” satisfaction can be measured through customer or client
said Robert A. Connolly, associate professor of finance at retention, which in turn can directly affect corporate
the University of North Carolina’s Kenan-Flagler Business profits and costs savings.
School.

“Since HR and learning and development projects
generate human capital, change management processes,
affect job satisfaction and have a direct impact on other The challenge that many learning and
hard-to-measure outcomes, these types of investments development professionals face is
tend to be much more difficult but not impossible to calculating the return from what some
quantify,” Connolly says.
call a “soft set” of measures.
For example, how might one measure the impact
of a cross-cultural training program for a business

Conclusion
An organization’s financial officer will be much more No one can predict the future with 100 percent
likely to fund learning and development proposals that accuracy, so cost and return projections which provide
project a return on the initial investment. Metrics such best and worst-case scenarios and the probabilities of
as customer retention and the positive impact repeat success are what CFOs think about and want to see.
customers have on the bottom line can be ways to
illustrate the efficacy of a learning and development Simply put, do your homework. And if that homework
program. clearly shows how learning and development programs
offer a strong return on investment on the organization’s
The trick is learning to use a financial perspective to view performance metrics that matter, then a business will be
the possible outcomes of learning and development much more likely to provide the resources. It’s a formula
programs and then apply the appropriate metrics to for success that many top organizations (both profit and
project the possible returns. As most any financial not-for-profit) are now using.
professional will tell you, it’s not an exact science.

O’Leonard, K. (2010). The Corporate Learning Factbook: Benchmarks, Trends and Analysis of the PwC Saratoga (2010). Managing People in a Changing World: Key Trends in Human Capital.
U.S. Training . Oakland, CA: Bersin Associates. PriceWaterhouseCoopers.


If you’re ready totake the
next step in your career,
make a quick trip back to
the classroom first.

E X E C U T I V E D E V E L O P M E N T I N S T I T U T E

At UNC’s Executive Development Institute,
you’ll gain the core knowledge of an MBA program
without the long-term time commitment. You’ll
also learn how to view the business world from a
senior executive’s perspective. And you’ll develop the
UNC EXECUTIVE DEVELOPMENT
key leadership characteristics that lead to effective
The Power of Experience.
strategic performance. The result? In two weeks,
you’ll be fully prepared for that next step.

To learn more, visit www.edi.uncexec.com.

15

Ready, Aim, Coach:
How HR Can (and Should)
Coach Managers on Problem
Employee Behaviors
Melodie Howard
Program Director

A Common Problem
We’ve all been there. It’s
Monday morning. You’ve
had a good weekend and
arrive in the office ready
for a new week. Carol had
a good weekend too. She
had plenty of time to mull
over the situation with
her direct report, Joe.
He’s good at what
he does—really good.
But Joe has to go.
He’s a thorn in her side
and is lowering morale
in the IT department.
She can’t wait to share
her news with you and
walks into your office
shortly after you arrive.
It’s time, she announces,
that you fire Joe.


COACHING MANAGERS ON PROBLEM EMPLOYEES

Introduction
Problem employees are the bane of everyone’s existence
in an organization. They cause productivity to plummet
and damage morale. Because few people enjoy conflict,
According to one 2004 study,
managers often go to extremes to avoid addressing the executive coaching at Booz
problem behavior. It seems inevitable that it winds up in
the HR department. Unfortunately, by the time it does,
Allen Hamilton returned $7.90
the damage has already been done and the clean-up for every dollar the business
can take months.
consulting firm spent on
This white paper will show HR and talent managers how coaching.
to use coaching skills to help managers handle problem
employee behavior and reduce the workplace costs
associated with problem employees.

The High Cost of Problem Employees
Problem employees and “toxic” workplaces are, bullied at work said they lost work time worrying about
unfortunately, more prevalent than ever. A 2008 SHRM/ the incident and 78 percent said their commitment to
Ethics Resource Center survey found that 57 percent their employer decreased (Porath and Pearson, 2009).
of respondents said they had witnessed abusive or
Lower productivity and morale are not the only costs
intimidating behavior (excluding sexual harassment)
associated with problem employees. Employees who
toward co-workers.
experience or witness uncivil behavior are more likely
Nearly half of all respondents to a survey conducted by to quit, taking their talent with them and costing
the Employment Law Alliance reported that they had employers an estimated 150 percent of a mid-level
worked for abusive bosses. The Workplace Bullying manager’s salary to replace (Porath and Pearson, 2009,
Institute estimates that approximately 54 million U.S. SHRM).
workers have been bullied at work. When bystanders
To make matters worse, bad behavior and attitudes
are included, workplace bullying affects nearly half of
are like the common cold; they are easily spread to
all full and part-time employees in the United States
co-workers. If problem behavior is not checked, other
(SHRM, 2010).
employees (consciously or unconsciously) perceive that
Problem employees add stress to the workplace which the employer accepts the behavior and will tend to
costs U.S. employers an estimated $300 billion annually adopt it as well. Problem behavior can undermine an
in lost productivity and turnover. In terms of productivity, organization’s culture.
80 percent of employees who reported being insulted or

17

Types of Manageable Problem Behavior in Employees
Let’s take the example of Carol, the IT professional who believes her direct report, Joe, must go.
Carol’s background is probably not in human resources, social services or psychology. She is probably
a technical professional who was promoted into a position where managing others is required. Carol
may know that Joe irks her and others around her, but she simply may not be able to articulate why—
making the opportunity to coach her with her problem employee all the more challenging.

my experience as an organizational development professional, manageable problem employee
In
behavior generally falls into one of eight categories:

1. Technician-Turned-Managers:
Their high proficiency in their technical areas of expertise (e.g., IT, Finance, RD) probably led them to
be promoted into a management position. Unfortunately, what made them great technicians may not
match the skills they need as a manager.

They are used to doing their work as individual contributors and are unclear on how to get work done
through others. They earn a reputation of being a micromanager because they cannot delegate and
are often heard saying that they can’t get anything done because of “all these people showing up
at my door and asking questions.” Because their previous roles were so insular and their expertise so
specialized, they are ill-equipped for managing others and being more extroverted.

2. The Oblivious:
This category includes any and all permutations of a “lack of self-awareness.” These employees
are generally unaware of their surroundings or themselves and as a result, clash with others in the
workplace. These are the employees who think they are better, smarter, more productive than everyone
else. They simply don’t understand that their behavior is disruptive to co-workers or why others react to
them in such an exaggerated manner (“I’m just a straightforward type guy. It’s not my problem that
they can’t handle the truth.”).

This category includes employees who don’t “show up” in appropriate ways; the senior leader who has
no executive presence or the customer service supervisor who uses inappropriate speech.

3. Naysayers:
These employees generally have bad attitudes or an underdeveloped ability to solve problems. If there is
a challenge at hand, they tend to add to it. They can give you all the reasons it won’t work, but seldom
offer a solution. They are constant “kvetchers” who tend to bring the entire unit’s morale down a few
notches. Beware of the cheerful naysayers—the ones whose discouraging comments are delivered with
a cheerful smile or sotto voce. They are likely to express their disapproval outside the meeting versus
directly in the meeting.



It is important to note that these categories are not mutually exclusive. It is entirely possible to have
an employee or manager who is an oblivious naysayer with a bad attitude. However, all of these
categories can offer coachable moments that can lead to real behavioral improvement.

4. People Pleasers:
Believe it or not, people pleasers can get in the way of employee morale and productivity. These people
are incapable of saying no and because of that, they tend to feel and act overwhelmed and victimized.
Their inclination to “over-promise and under-deliver” earns them a reputation of being untrustworthy.

People pleasers are frequently fence sitters. They are the leaders who can’t or won’t make a decision
for fear of upsetting people. Their inability to make decisions can leave subordinates feeling frustrated,
confused and stressed out.

5. The Passive-Aggressive:
Passive-aggressive employees avoid addressing problems at all costs but can inflame them by stirring
the pot with negativity or innuendo. Like naysayers, they prefer to stir the pot outside of meetings.

6. Poor Communicators:
all know how critical good communication is to organizational success, but few employees are
We
actually trained in what good communication is. Bad communicators either fail to pass on critical
information, fail to do so effectively, or do so in a manner that is perceived as ineffectual or abrasive.

7. Credit Hogs:
Credit hogs may be the antithesis of the oblivious employee. They are absolutely aware of themselves
and others and are quick to use others to raise themselves up. They tend to claim credit for everything
and share credit for nothing. They are corporate climbers in the worst sense of the term.

8. Volatiles:
These are the tightly wound, overly emotional and unpredictable employees. They can be bullies or
simply highly unpleasant to work with.

19

The Un-Manageables
Unfortunately, there are some problem behaviors that are simply un-manageable. In most cases, these behaviors lead
to termination of employment.

Incompetents: One-trick ponies: Liars/cheaters:
These employees are simply One-trick ponies have been Liars and cheaters are
bad hires who cannot meet the extremely successful at fundamentally flawed
requirements of the job. something but can’t or won’t individuals who will break
learn something new as job an organization’s code of
requirements and company ethics and perhaps even
demands shift and change. the law to get ahead.

Coaching the Manager
Y
ou would never hire someone to be an engineer Traditional HR methods to handle (or head off) problem
who lacks an engineering degree—yet organizations employees, like performance improvement plans, should
constantly hire or promote managers who don’t have be the last step in any disciplinary process. Before it
the needed people skills. reaches that point, managers should be taught the
tools needed to address problem employee behavior.
Employers will promote an introverted number cruncher They must be coached, and this is where HR and talent
to head the finance department because he raised his management professionals can truly contribute.
hand for the job, thinking that was the only way to get
ahead in the organization. Coaching is simply moving valuable people from where
they are to where they want or need to be.
It should come as no surprise, then, that he is completely
unprepared for the human interaction the new job Some of the most effective coaches are also exemplary
requires. He lacks the skills needed to manage people, models—they “walk the talk.” As it applies to
so when his former (and now disgruntled) co-worker addressing problem employees, HR and talent
starts acting up because she was passed over for management professionals can help managers identify
the promotion, he ignores it. Suddenly, the requests the problem behavior, analyze it, develop approaches
for internal transfers and departmental turnover spike. to discuss it with the employee, create an employee
Unfortunately, HR often becomes aware of the problem “contract” to address the behavior, and in general,
far too late. develop a culture that is supportive of open dialogue.



The Benefits of Coaching Managers
for Organizations
• ostly and time-consuming problems overcome.
C • Better retention; employee loyalty and

motivation are improved when their supervisors
• ncreased employee skills so managers can
I take time with them to help them improve
delegate more tasks, allowing managers to their skills.
focus more on managerial responsibilities like
planning. • More effective use of company resources;

coaching costs less than formal training.
• mproved productivity by helping people work
I
smarter. Source: HBS Press Book, 2006

Step 1: Help the Manager Identify the Problem
Behavior
G
ood coaches ask good questions. Ask some variation T
hese questions will help managers identify the problem
of the following questions to help the manager behavior. By asking if the behavior has happened before,
articulate the problem behavior (consider using some of you are establishing a baseline for the behavior.
the types of problem behaviors as a framework): Managers also tend to focus on recent events, so asking
if the behavior has happened before will allow them to
• “ et’s focus on the employee’s behavior. What types
L focus on broader themes rather than one-time events.
of behavior is she exhibiting?”
Finally, the last two questions will establish if there has
• “
Has this happened before? Was it a one-time been any communication with the employee regarding
incident or is it ongoing? When does it happen?” the behavior. There is a good chance the answer to both
of these questions will be “no”, and for now, that’s fine.
• “ hat do you want her to stop doing? What do you
W Your job is to coach the manager to acquire the skills
want her to do differently?” and confidence to have a constructive conversation with
the employee focused on behavior.
• “ ave you discussed this behavior directly with the
H
employee before?”

• “ ave you or previous managers documented this
H
behavior in any previous performance reviews?”

21

Step 2: Help the Manager Analyze the Behavior
O
nce you’ve helped the manager identify the problem behavior, analyze it. Ask the manager what he or she thinks the
implications would be if nothing was done to address the problem behavior. Help them establish a decision tree.

I
s the problem behavior important enough to address? These questions should be considered at this stage:

Encourage the manager to analyze the costs and
benefits of addressing the behavior. If it is not affecting • Is the employee aware that his or her job performance

the productivity or morale, addressing it may do more is not meeting expectations?
harm than good. Assess with the manager his or her
• If the employee is meeting job expectations, is it how

patience with the employee in terms of giving the
he or she accomplishes it that’s the problem?
employee the time to change the behavior.
• Does the employee clearly understand his or her roles

A
sk the manager to consider how doing nothing about and responsibilities?
the problem may affect the rest of the departmental
team, customers, clients and organizational profitability. • Has the employee’s roles and responsibilities shifted

Is it really an ingrained problem behavior that is affecting in the recent past (e.g., promotion, new boss,
productivity and morale? Is it affecting organizational different projects)? Is he or she having personal
profitability? Is it endangering others? If the answer is issues outside of work (e.g., death, divorce, illness)?
yes to any of these questions, intervention is needed. Could these changes be affecting work performance
and/or attitude?

Step 3: Develop Approaches on How to Discuss it with
the Employee
Unless the behavior is clearly against the organization’s Now that the manager can articulate the problem
policies or code of conduct or is illegal, then it is most behavior, coach him or her in the ways to deliver
likely an opportunity to manage the employee towards behavioral feedback. Try role playing with the manager
better behavior. It is important to let the manager know to analyze different approaches to take. Encourage
that the objective of the discussion with the employee is the manager to provide concrete examples to help the
not to terminate employment but to work together to employee identify the issue. Coach the manager to
address the problem behavior. include how the employee’s behavior is affecting others
(“Joe, you’ve been late to work four times last week.
The reason for this is twofold. First, it is highly likely Other employees had to cover for you, causing them
that the manager entered your office with his or her to get behind in their own work.”) and what the
mind already made up; it’s time to fire the employee. manager can do to help the situation. Be sure to
Reframing the context of the meeting from termination discuss possible reactions the employee may have
to an employee development opportunity is vital at this (denial, embarrassment, defensiveness) and how
stage—the manager has to support the new approach. to handle them.
Secondly, it reframes the meeting with the employee
from “confrontation” to “conversation.” A conversation
isn’t nearly as daunting to all parties involved.



Ask the manager to identify desired outcomes of
the meeting.
• hat goals will the manager and employee mutually agree to that will address the problem behavior?
W

• hat will success look like?
W

• hat timeframe will be established for successful resolution?
W

• t the end of the meeting, will the employee clearly understand the implications of
A
not correcting the problem behavior?

• ill the employee understand that the outcomes of the meeting will be documented and why?
W

Step 4: Show the Manager How to Create a Contract
with the Employee
The meeting with the employee to address the problem Coach him in how good behavioral descriptors provide
behavior will no doubt be emotional for both parties, detail on the problem behavior, including instances
and it may be easy to forget some of the desired when it occurred, and a recommendation on how to
outcomes and timeframes agreed to during the meeting. effectively address it.
The manager should put this all in writing to help the
employee and to establish a good legacy for future Bad behavioral descriptors (“You are just not a team
managers regarding the employee’s development. player.” “You are rude in meetings.” “You are too
negative.”) fail to provide the employee context and a
Unfortunately, for many managers, writing is a solution. Good behavioral descriptors (“When bringing
stumbling block. Remember the introverted number concerns forward about project implementation, you
cruncher? He hates to write and has never heard of the focus on what will not work. In the future, I’d like
term “behavioral descriptors.” It’s all HR speak to him. for you to focus on bringing some positive aspects
He’s going to need some more coaching to learn how to or potential solutions to these issues as well as your
effectively document the discussion. concerns.”) will help the employee identify when the
behavior likely occurs and how to effectively address it.

23

The Benefits of Coaching Managers
for Managers
• nhanced skills and knowledge to advance their careers.
E

• Feeling of organization’s support and encouragement.

• More pride and satisfaction that comes with surmounting new challenges.

Source: HBS Press Book, 2006

Follow Up with the Manager: You’ve Been Coached
Follow-up with the manager to see if the employee’s problems. In fact, let them know you may call on
behavior has improved and review the steps you and them some day to help another manager through a
the manager took together to address the problem. similar situation—each one, teach one. This will not
Let them know that they were coached and learned only help them become effective coaches, it will
valuable skills (you may want to recap them) that you help move your entire organization toward a more
hope they will apply to future employee behavioral developmental culture.

Bergman, A. (2009, July 30). It Pays to Be HBS Press Book (2006, November 23). Porath, C. Pearson, C. (2009). The Cost of SHRM (2010, December 23). Managing
Nice: Rudeness in the Workplace Comes Coaching People: Pocket Mentor Series. Bad Behavior: How Incivility Is Damaging Your Difficult Employees and Disruptive Behaviors.
with a Hefty Price Tag. Newswise. Retrieved Cambridge, MA: Harvard University Press. Business and What to Do About It. London: SHRM Online. Retrieved February 15, 2011
February 17, 2011 from Portfolio Hardcover. from www.shrm.org.
www.newswise.com/articles/view/554773.


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To learn more, visit www.bhr.uncexec.com.

25

Putting Success Back
in Succession Planning:
The Role of Learning and
Development
David Leonard, Ph.D
Program Director

Promise
Do you believe that your organization is developing A recent Towers Watson survey found that similar to
the talent it needs to reach business objectives and the 2001 recession and recovery, high performers plan
meet future challenges? If not, you are not alone. to jump ship as soon as the economy and job market
This white paper will show you how successful revives.
succession plans are more than filling out forms.
They are real, living programs that combine learning The same survey found that employee engagement has
and development opportunities and experiential dropped nearly 10 percent since 2008 and approximately
learning to prepare leaders at all levels for tomorrow’s 25 percent for high performers.
business challenges.

If you, as a learning and development professional,
don’t have succession planning on your radar, • Less than half of all organizations have

you should. succession plans at any level. Among those
that do have them, the plans are likely to be

Introduction at the department director level and above,
ignoring leaders at lower levels.
After nearly two years of economic gloom, there is
• 37% of succession candidates fail.

some good news these days. According to the
National Bureau of Economic Research, the world’s • About half of all organizations have a

worst recession in 70 years ended in June 2009. process in place to identify high potential
leaders, but less than two in five have a
Most experts agree that the recovery will be slow program to accelerate their development.
and arduous, but if history is any indication, talent
management and learning and development Source: Howard Wellins, 2008

professionals must start planning now to staunch
the anticipated loss of their organizations’ top talent.


PUTTING SUCCESS BACK IN SUCCESSION PLANNING

Today, most employers are more concerned about Employee engagement and leadership development
retaining their top performers and skilled employees work hand-in-hand. Research has shown that employers
than before the economic crisis of 2007 and 2008 with the most engaged and satisfied workers are
began (Towers Watson, 2009). those who provide their employees with meaningful
learning and development opportunities. Learning and
Another issue organizations must factor into their development specialists who understand how leader
succession-planning equation is the imminent retirement development programs can merge with and support
of baby boomers. In a 2009/2010 report on trends succession planning will be in the position to shape and
in executive development by Executive Development direct the future success of their organizations.
Associates (EDA), respondents named the lack of
“bench strength” as the second most influential factor Adequate succession plans identify high potential
in executive development for the next two to three employees who will assume key leadership roles left
years, primarily because of the expected number of vacant by departures or retirement. Successful plans not
baby boomers who are set to retire as the economy only prepare employees for those roles but also prepare
recovers (Hagemann Chartrand, 2009). them to meet the challenges of tomorrow’s workplace.
Learning and development professionals have a crucial
If you combine all these factors, this can add up to role in these processes and in putting success back in an
a huge opportunity for learning and development organization’s succession planning process.
professionals who are in a unique position to shape
learning programs that develop leadership skills and
identify employees’ potential leadership abilities.

The Impact of an Integrated Approach to Talent Management

Companies that Take an Integrated Approach to Reward and Talent
Management Are…

25% 20% 18% 33% 18%
Less Likely Less Likely Less Likely Less Likely More Likely
to experience to experience to report to report to be high-
problems problems having trouble having trouble performing
attracting attracting retaining retaining organizations
top-performing critical-skill top-performing critical-skill
employees employees employees employees

Source: Towers Watson 2008/2009 Global Strategic Reward Report

27

Look Forward When Developing a Talent
Management Program
Succession planning is not just about recognizing the Organizations are now concerned with developing a new
talent gaps that exist in your organization today but set of competencies and skills in tomorrow’s leaders.
identifying future talent needs and creating solutions to These include strategic thinking and planning, crisis
address those needs. The challenge most learning and management, judgment and decision-making, tolerance
development professionals face is how to craft programs of ambiguity and the ability to implement rapid change
that adequately address the leadership skills needed in (Towers Watson, 2010).
tomorrow’s rapidly changing workplace.
The EDA survey showed similar results. EDA researchers
Although future talent needs will vary according to found that employers were looking for strategic
an organization’s industry, some common leadership thinkers and those who could inspire others. The
skills and talents necessary for success have emerged. survey respondents identified weaknesses of the next
Employers realized during the recession that most generation of leaders, including the ability to think
managers could communicate—a skill that has been a strategically, lead change, create a vision and rally others
focus of executive development for years—but few around that vision (Hagemann Chartrand, 2009).
could handle ambiguity well or were able to deal with By focusing on these competencies, leader development
rapid change. professionals can have profound and lasting effect
on their organizations’ succession plans and their
companies’ leadership bench strength.

Example: Thinking Ahead
Operating in 60 countries with 35 distinct business units and 76,000 employees, 3M, the maker
of Scotch-Brite™ cleaning products and Post-it Notes®, is a prime example of how effective good
succession planning can be. Early in the design of their succession planning program, 3M identified
a common set of leadership attributes they will need in tomorrow’s workplace.

For 3M, high-potential employees in their organization must:
• Think from the outside in.
• Drive innovation and growth.
• Develop, teach and engage others.
• Make courageous decisions while holding themselves and others responsible.
• Lead with energy, passion and urgency so that teams can respond quickly to innovation.
• Live 3M values of integrity, honesty and professional ethics.

These leadership attributes underlie 3M’s succession planning process and inform leaders about
what they need to know and do and what kind of employees the organization needs to succeed
(SHRM Foundation, 2008).



Example: Evaluating Leadership Potential
For aerospace manufacturer Lockheed Martin, succession planning begins
with a leadership assessment program that not only evaluates business
achievements, but also examines personality traits such as ethical behavior, integrity and the ability to
foster teamwork. The assessment also evaluates potential, including the ability to assume roles with
increased complexity and accountability, the capacity to make future contributions and aptitude for
continuous learning.

Based on the outcome of the assessment, employees are identified as high potential, moderate potential
or “well-placed.” These more broadly defined (yet measurable) talent needs were identified because an
analysis found that Lockheed’s leadership was stove-piped, and its leadership bench resembled Swiss
cheese (SHRM Online, 2007).

Succession Planning Is Not Just for the
C-Suite Anymore
Although most employers have traditionally focused Learning and development professionals have an
succession planning on the top levels of management, opportunity to add value to succession planning by
there is evidence that they are expanding their plans designing and delivering leadership development
to a broader employee base. According to a December programs to mid- and low-level employees. As with
2007 Novations Group survey, nearly half of large Lockheed, when designed and implemented correctly,
organizations have expanded their planning to include succession programs can help identify high-potential
mid-level managers. employees, which can further strengthen organizational
succession plans.

Developing Future Skills at Multiple Leader Levels
When looking at their succession planning results, a

75 69
global energy company realized they had significant
gaps in their leadership pipeline at multiple levels across
their organization. Based on a talent analysis, they
% %
realized that senior leaders, mid-level directors and
front-line managers lacked key capabilities that would Of Employers Of Employers
be required to execute their business strategy. To address said that increasing said that accelerating
those skill gaps, the company created three unique leadership “bench the development
leader development programs. strength” was a of high potential
priority. employees was a
Their ongoing senior-level development intervention high priority for
spans eight months and includes face-to-face learning, their organizations.
immersive experiential learning and robust action
learning team projects. The leadership capabilities
addressed include strategic thinking, strategy execution,
innovation, team effectiveness, polarity management Source: Hagemann Chartrand, 2009
and constructive conflict.

29

The mid-level leader group participates in a shortened version of the senior-leader program,
with the content and learning methods tailored to the challenges mid-level leaders encounter
on a daily basis. The front-line managers participate in a four-day program that focuses on
implementing change, team effectiveness and constructive conflict.

Where and How Is Talent Identified In Your Organization?

Employee Segments Considered Talent
Senior leadership 66%

Those with leadership potential at mid-level 62%

High performers 58%

Key contributors / technical experts 49%

Those in roles critical to delivering the business strategy 46%

Those with skills in short supply and high demand 42%

The entire workforce 36%

Those with leadership potential at an entry level 33%

Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009 October)

Build Leadership Development Programs to
Meet Organizational Needs
Organizational capabilities may include innovation, the ability to effect rapid change or
providing excellent customer service. While many organizations may share the same goals
in terms of developing talent for the future workplace, many will identify talent gaps that
are unique or more pressing in their industry or organization.

3M’s award winning leadership development program includes the following characteristics:
• eadership participation (more than 300 3M leaders teach in the succession planning
L
program annually).
• usiness-needs focus.
B
• elationship building with executives.
R
• ncorporation of business-critical content.
I
• ction learning.
A
• evelopment of customized training.
D



3M keeps their business strategy in mind when planning their leadership development
activities. “Business strategy plays the central role,” according to Sandra Tokach, Ph.D.,
Vice President of HR at 3M. “Without the strategic direction or without understanding
the strategic direction, it’s hard to discuss succession planning.” (SHRM Foundation, 2008).

What Are Your Talent Development Priorities?

Talent Management Priorities Over the Next 18 Months
High Priority Medium Priority Low/No Priority

Assessing/developing high potentials and top talent
66% 27% 7%

Recognizing exceptional performers
57% 36% 7%

Performance management
55% 37% 8%

Assessing/developing senior leaders
55% 33% 12%

Strengthening the talent pipeline and succession management
54% 35% 11%

Training managers
42% 41% 17%

Measuring/increasing employee engagement
42% 35% 23%

Deploying key talent across roles/functions/regions
41% 43% 16%

Mentoring of key talent
38% 39% 23%

Identifying and integrating competencies
30% 39% 31%

Career pathing and planning
25% 45% 30%

Onboarding
24% 44% 32%

Developing/implementing an employee value proposition
14% 45% 41%

Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009, October)

31

The Value of Action Learning in Talent Development
“Including action learning in learning and development Mid-level leaders are often given more challenging
programs really helps employers identify high-potential issues with the same reporting structure. Requiring them
employees—those you want to groom for future to report their solutions to senior management gives
positions,” says Susan Cates, Associate Dean of them exposure to higher levels in the organization and
University of North Carolina Executive Development. allows senior leaders to identify employees they feel may
“We use this approach quite effectively with many of benefit from further leadership development activities.
our clients.”
Senior leaders may be challenged even more by
Action learning is about integrating real work being assigned “stretch” action-learning projects that
challenges into learning and development programs challenge them to really think strategically. These
and can be tailored to meet each groups’ needs. For action-learning work challenges may not have any real
example, when dealing with low-level managers, clear resolution, but the goal is to have senior leaders
micro-projects can be assigned where they are think at an enterprise level and in more strategic,
challenged to solve actual workplace issues. innovative ways.
Employees may be assigned to work through the
challenge individually or in small teams and can be
required to report their solutions to senior leaders.

Action Learning at an International Professional Services Company
Action learning is a key component of an international The executive team often provides resources to the
professional services company’s succession planning and team–including new leader role assignments–to further
leader development processes. develop and implement their recommendations.

Mid-level leaders identified as high potential are Examples of projects include identifying new markets,
assigned to small project teams and are assigned tasks developing new products and services, and redesigning
designed to test their critical thinking and leadership existing business processes and methods. Projects
skills. They are given the freedom to complete their work typically take six to twelve months to complete.
and in the end, present their findings to the executive
operating team, where they are required to defend their
findings and recommendations.

Action Learning Through Assessment Centers
Other employers use this action-learning approach UGI Corp, a Valley Forge, Pa-based distributor of
through assessment centers. Assessment centers can energy and energy services, used the assessment center
evaluate an employee’s future performance through model when the company teamed with Development
real-world scenarios either in person, over the phone or Dimensions International (DDI) to get a strategic view
even online. Interpersonal, decision-making and critical- of their talent management system. The assessment
thinking skills can be assessed using these scenarios. process included creating a leadership simulation and
developing leadership personality inventories. The
process helped UGI realize that they could be making
better decisions about who their high-potential
employees were and the existing capabilities of their
leaders. (SHRM Online, 2007).



Where is the Highest Turnover Risk in Your Organization?

“Turnover Risk” for Employee Segments
Data in percentages | Scale = 100%
High Risk Moderate Risk Low / No Risk

Those with skills in short supply and high demand
55 35 10
High performers
38 47 15
Those with leadership potential at mid-level
29 40 31
Key contributors/technical experts
28 51 21

Those with leadership potential at an entry level
25 45 30
Those in roles critical to delivering the business strategy
2323 47 30
Senior leadership
13 13 27 61
The entire workforce
5
5 41 54

Source: Towers Watson, Managing Talent in Tough Times: A Tipping Point for Talent Management? (2009, October)

33

Executive Buy-In and Participation Is Key
It can be daunting to get senior leader buy-in for the
leader development programs needed to support
succession planning, but starting that task can be as
simple as starting a conversation—and executive buy-in “ e see the
W
is absolutely critical for succession planning.
hesitancy
Ask senior leaders to not only support the succession
planning program but to be a part of it. Ask them to many talent
share their knowledge with others, and then follow
up and ask them about their impressions of particular management
employees.
professionals
“We see the hesitancy many talent management
professionals have about having a conversation with have about
their CEO or other senior leaders. It really doesn’t have
to be difficult. Start the conversation by explaining to having a
the CEO what you think about the employee and ask
them what they see. Is the person a match? The key is conversation
to know what questions to ask to keep the conversation
going,” says Keri Bennington, Account Director for with their CEO
University of North Carolina Executive Development.
or other senior
3M firmly believes that executive-level support of
the succession planning process can help motivate leaders. It really
managers and make the process a priority. More than
300 senior leaders teach in their program annually, doesn’t have
sending a message to all participants that succession
planning matters. to be difficult.”
This has carried over into the company’s corporate Keri Bennington,
culture. “I have a philosophy that our business will Account Director
grow at the rate we grow our leaders,” says H.C. UNC Executive Development
Shin, Executive Vice President of 3M’s Industrial
Transportation Business.

“First of all, I set aside my time for the customers.
Then, my second priority is people development
and leadership. Everything else can wait.” (SHRM
Foundation, 2008.)

This “leader as teacher” philosophy has become a
best practice in the talent management industry and
is growing in popularity.



Talk About It
Should employees know they’ve been identified to demonstrate that it values employees’ talent and
as key players in a succession plan? Some business leadership potential. Research has shown repeatedly that
leaders believe that it can be detrimental to do so, the most engaged and satisfied employees are those
potentially pigeonholing employees into certain roles or who feel their employers offer them opportunities to
responsibilities. Others believe it can discourage other grow and develop their work and leadership skills.
high-potential workers to apply for promotions or to
learn new job skills, or worse, it can lead employees to There is more to communication, however, than
believe that a particular promotion is guaranteed. letting employees know they have been identified in
a succession plan. A successful succession plan must
The answer and solution to this issue is not as clear- encourage communication among executives and
cut as you might hope. Much of the communication managers at all levels. Top-level executives should
of succession plans can depend on corporate culture. be clear about the type of talent and leaders the
More and more employers are choosing to let people organization wants and needs, while lower-level
know they have been identified as one of several managers should feel comfortable identifying potential
employees selected for a particular role, simultaneously leaders and discussing leadership potentials with their
communicating to workers that their leadership skills bosses.
have been identified and valued—but that the future
position is in no way ensured. Clear two-way communication and understanding
how to best use communication channels not only
The key is to let employees know that their skills and will support the success of a succession plan, it also
experience are highly valued and needed. Employees can be an excellent indicator of leadership potential.
who feel underappreciated and unvalued tend to be the Learning and development professionals should be
most dissatisfied in their jobs and more likely to move on keenly aware of this fact and use it to their advantage
to other organizations when opportunity knocks. in demonstrating the value that leadership development
programs add to succession planning.
Providing the opportunities to develop leadership and
work skills is the most effective way for a business

Measure It and Report It
Once communication channels are in place and a plan is defined leadership development programs. However,
put into motion, many learning development specialists tracking those numbers alone may not show the true
struggle with how to measure and report the success value of the programs.
of the leadership development and how it supports
organizational succession plans. Probably the easiest and By comparing costs of new hires for leadership
most common measure is to track turnover numbers. and skilled positions versus the cost of developing
Businesses can easily track the number of employee talent internally and promoting from within you can
resignations, new hires, promotions and “success in role” demonstrate the bottom-line value of an effective
placements. succession plan that is achieving its strategic objectives.

Reducing turnover and improving retention in skilled
positions and managerial level jobs will be the result of a
successful succession plan and therefore a result of well-

35

Other metrics can include productivity, innovation and
employee engagement. Improved productivity can be
one of the easiest measures to track, while innovation Nearly half of human
and engagement are often called more “soft measures.”
However, by tracking sources of improved productivity resource executives
through employee satisfaction and improved processes
(innovation), organizations can get a clear picture of responding to a
how well a leadership development program is working
and aligning with their strategic business goals.
2010 Society for
Human Resource
Reporting and communicating these successes in a
manner that clearly shows the bottom-line value of Management poll said
succession plans and leadership development will
strengthen the buy-in factor from top-level executives
the biggest investment
and help ensure the success of your organization’s challenge facing their
succession plans and leadership bench strength for
years to come. organizations over
the next 10 years was
obtaining human capital
and optimizing human
capital investments.

Hagemann, B. Chartrand, J. (2009). Palmer, S. (2010). Making the Business Case SHRM Online. (2007). Succession Planning: Tie Towers Watson. (2010). Five Rules for Talent
2009|2010 Trends in Executive Development: for Learning and Development: 5 Steps for Talent Needs to Current, Future Org Direction. Management in the New Economy. New York,
A Benchmark Report. Oklahoma City, OK: Success. Chapel Hill, NC: University of North Retrieved in September 2010 at http://www. NY: Towers Watson.
Executive Development Associates. Carolina, Kenan Flagler School of Business. shrm.org/hrdisciplines/staffingmanagement/
Articles/Pages/CMS_016356.aspx. Towers Waston. (2009, October). Managing
Howard, A. Wellins, R. (2008). Global SHRM Foundation. (2008). Seeing Forward: Talent in Tough Times: A Tipping Point for
Leadership Forecast 2008|2009. Bridgeville, Succession Planning at 3M. Retrieved in Society for Human Resource Management. Talent Management? New York, NY: Towers
PA: Development Dimensions International. September 2010 at http://www.shrm. (2010). SHRM Poll: Challenges Facing Watson.
org/about/foundation/products/Pages/ Organizations and HR in the Next Ten Years.
Minton-Eversole, T. (2010, June 21). Most SeeingForwardDVD.aspx. Alexandria, VA: SHRM.
Companies Unprepared for CEO Succession.
Alexandria, VA: SHRM Online.


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understanding of your business and industry.
Then we create unique executive learning
experiences designed to develop your executives
as they address and overcome these challenges.
Multi-tasking at it’s best.

To learn more, visit www.uncexec.com.

37

Passing the Torch:
5 Steps for Turning the
Baby Boomer Brain Drain
into a Brain Trust
Kip Kelly
Director of Marketing

Promise
As aging baby boomers reach retirement age over the next two decades, many organizations face a potential mass
exodus of their senior leaders. While the economic downturn may have delayed retirement for many baby boomers,
these valued employees will retire eventually, taking with them a lifetime of knowledge and skills that are difficult, if
not impossible, to replace. This paper discusses the five steps you should take now to avoid the baby boomer brain
drain and create a brain trust.

Introduction
The statistics of an aging workforce tell
the story. As of January 1, 2011, a baby
boomer turns 65 every eight seconds --
over 7,000 per day. While many may
delay retirement for financial and personal
reasons, employers are worried—and
rightfully so—that they will face a shortage
of experienced workers over the next five
years. A recent Ernst and Young survey
of Fortune 1000 companies found that
62 percent of employers believe future
retirements will result in a labor
shortage (Johnson, 2010). With every
passing year there will be fewer workers
with the knowledge and experience to
lead effectively. For some industries
like health care, energy and construction,


PA S S I N G T H E T O R C H : B R A I N D R A I N T O B R A I N T R U S T

this talent gap is already acutely felt (Davis, 2008). The brain drain resulting from retirements in key
Few industries, however, will be unaffected. Research business functions can be devastating. Organizations
indicates that employers are unprepared for the that ignore the looming crisis will suffer the
inevitable departure of these workers: consequences later. The good news is that many senior
leaders want to give back and create a legacy in their
• A Sloan Center on Aging and Work survey found
organization. You can seize the opportunity and engage
that 68 percent of employers had not analyzed the your most senior leaders before they retire and harvest
demographics of their workforce and that 77 percent their collective experience to shape the next generation
had not analyzed the projected retirement rates of of leaders in your organization. If you want to take
their employees (Pitt-Catsouphes, 2009). action, here are five steps to avoid the brain drain and
turn your baby boomers into a brain trust.
• A series of AARP surveys found that few employers

(between 19 and 37 percent) had taken active steps
to prepare for baby boomer retirements (Johnson,
2010).

Step 1: Conduct a Strategic Workforce Analysis
Nearly half (48 percent) of the employers surveyed in a Questions for a strategic workforce analysis should
SHRM-AARP poll (SHRM, 2009) said they had no plans include:
to conduct a strategic workforce analysis to see how 1. How many of your employees will become eligible
their organizations would be affected by the loss to retire?
of retiring workers. This could be a huge oversight 2. How many of your senior leaders will become
with potentially catastrophic consequences for an eligible to retire?
organization. The ability to accurately forecast when you 3. How many skilled technical workers and individual
will lose top talent across the organization is critical to contributors will become eligible to retire?
succession planning and business continuity. A strategic 4. How many front-line managers will become eligible

workforce analysis should be conducted internally to to retire?
anticipate the effect of retirement over the next five and 5. o you have a succession plan in place for key
D
10 years and beyond. positions that are most at risk?

Example: Workforce Assessment Tool
A
ARP offers a free online workforce assessment tool. The tool helps employers assess how the
aging of their workforce will affect their organizations. In addition, it maps out an organization’s
current employer practices, identifies areas of improvements, and makes recommendations on ways
to create an age-friendly workplace. Nearly 2,000 employers have used the tool since its launch in
2007 (Jackson Rand, 2010).

39

Step 2: Refine Your Retention Strategy
Although retirement is inevitable, keeping senior workers • ase layoffs on organizational needs and employees’
B
in the labor force a little longer will provide more time skills, knowledge, ability, reliability, performance and
to transfer knowledge. Baby boomers, however, aren’t length of service.
looking for business as usual. They want flexibility. To
keep them in the labor force, employers must offer • Offer retirement savings plans or pension plans with

flexible work options that will appeal to them. specific provisions for older workers.
(Source: Gurchiek, 2011.)
In recent testimony before the U.S. Equal Employment
In addition to these recommendations, consider offering
Opportunity Commission, Cornelia Gamlem, president
other benefits of interest to mature workers such as
and founder of the Herndon, Va.-based GEMS Group,
long-term care insurance, pre-retirement planning,
offered these suggestions for recruiting and retaining
health and wellness programs, comprehensive medical
older workers:
coverage, health coverage for retirees and part-time
• ffer part-time employment and hire retired
O workers, and pro-rated benefits for employees on
employees as consultants or temporary workers. flexible work schedules.

• ncourage employees with specific expertise to
E Many employers are already taking these and other steps
mentor or coach others and to remain on call after to keep their valued older employees working longer—
they retire. and in some cases, luring retirees back.

• stablish forums where older workers can discuss
E
how the employer can make the workplace more
accommodating to their needs.

Example: Freedom-to-Work Program
New York-based Abbott Laboratories created a “Freedom to Work” program that allows employees to
reduce work schedules to four days a week or to take up to 25 more vacation days a year. The program
is open to employees with 10 years of service and who are 55 years of age or older. Although overall pay
is reduced, 401(k) contributions are still made as a percentage of their full salaries and pension formulas
remain intact. Abbott Laboratories also allows senior technical staff to take on “emeritus” status,
giving up some of their management and administrative responsibilities to return to full-time scientific
endeavors. This opens up management opportunities for rising leaders while keeping older staff working
and available to advise or share insights as needed (McGregor, 2009).

Example: Bridges Program
Energy giant Chevron Corporation has established its Chevron Bridges Program for former employees
who are interested in continuing a working relationship with the corporation. Former technical and
professional Chevron employees can enroll in the program through the Chevron Alumni Community
Web site. Applicants are considered for specific contract assignments that may include working on
projects as technical specialists, partner representatives, guest speakers, recruiters, mentors, peer
reviewers and advisors on focus areas (Chevron Bridges Program, undated).



Step 3: Identify, Prioritize and Engage Potential Retirees
There was a time when predicting the retirement Once you’ve identified the employees who represent the
of your senior leaders may have seemed relatively greatest retirement risk, talk to them about their future
straightforward. However, attitudes about retirement plans and aspirations within the organization. This is not,
are changing, and there will be an ongoing shift as baby strictly speaking, a conversation about retirement.
boomers transform expectations about retirement. This should be a voluntary conversation designed to
This shift is compounded by recent changes in the recognize the individual’s unique value and contributions
political and economic landscape. Employees have to the organization and explore ways to transfer and
pushed back retirement an average of nine years retain their knowledge and experience. Ask them what
because of the recession, which ravaged 401(k) accounts knowledge they feel is most critical; the answers may
and caused home values to plummet (Hewlett, 2009). surprise you. Explore how they might contribute to the
In addition, high unemployment rates, ongoing development of future leaders. Be prepared with a range
economic instability and potential changes to social of options such as mentoring, coaching and direct
security and health care coverage have created a great involvement in training and development efforts.
deal of uncertainty. All of these factors make it
difficult--but not impossible--to anticipate and prepare You may find that your employees actually appreciate
for the departure of your senior leaders. the opportunity to discuss their future plans. It should
come as no surprise that loyal, long-serving employees
Employers face retirement from all parts of the would welcome the chance to transfer their knowledge
organization, from top to bottom. Efforts to identify the and skills to the next generation. As leaders in your
individuals who represent the greatest risk of knowledge organization, they want to take an active role in
loss will differ from one organization to the next, and creating a legacy and ensure the future success of
how they prioritize and respond to this risk will also vary. the organization.
In general, the employees who present the greatest
immediate risk include those closest to retirement
age who serves in vital roles, and possess unique,
irreplaceable knowledge and skills.

41

Example: Knowledge Retention Program

The Tennessee Valley Authority (TVA), headquartered in Knoxville, Tenn., identifies employees planning
to retire through two annual surveys, one designed for line managers and one designed for all 13,500
employees. To alleviate anxiety, HR makes it clear that while the survey is necessary to collect data
about workforce planning, it is voluntary. Nearly 80 percent of TVA employees complete the annual
questionnaire (Leonard, 2003).

The line manager survey asks three questions:
1. What knowledge will be lost when an employee retires?
2. What are the consequences of losing this knowledge?
3. How can the organization retain this knowledge?

These surveys help the TVA’s HR staff identify those employees who, according to their supervisors, hold
critical knowledge and skills. HR staff members then interview both the supervisor and the employee to
learn about the employee’s specific knowledge and skills.

Jerry Landon, senior consultant for assessment and evaluations at TVA University, realized early on that
these conversations are not as difficult as you may think. “This interview process is very important,
because we found…that retiring workers really care about TVA and their jobs,” reports Landon. “They
have devoted a good part of their lives to this organization, and many are very concerned that their
knowledge of what makes this utility run will be lost or, even worse, just ignored when they retire.”
(Leonard, 2003).

After the interview, HR assesses each employee’s skills and knowledge on a five point scale, with a five
meaning that transferring and retaining the employee’s skills and knowledge should be a top priority.
Those with high scores receive special attention and are asked to take on some new roles as consultants,
instructors and mentors.

some cases, capturing knowledge is simply a matter of writing down procedures or processes. In
In
other cases, reports Langdon, the interviews shed light on where processes could actually be improved,
saving TVA money. “For example, there might be one worker who has a very specialized skill in how to
operate or repair an ancient type of electrical switch at a power station,” Landon says.

“Well, the answer here may not be to keep doing this the same old way. The answer might be, let’s
upgrade the switch. In the long run, we’re going to save the organization a lot of money by finding
solutions like this.” (Leonard, 2003).

TVA’s knowledge retention initiative has also had some unexpected benefits. TVA senior leaders say the
process has improved team building and made employees more cohesive, enhanced employees’ self-
esteem as they realize that what they do counts, and lowered stress levels among supervisors who were
concerned about losing valuable knowledge with employee retirements (Leonard, 2003).



Step 4: Prepare Senior and Emerging Leaders
Your efforts to engage senior leaders before they retire they have demonstrated. They should also understand
will be more successful if you provide the skills and tools that the transfer of knowledge and experience is critical
they need to be effective. For example, a senior engineer to the long-term success of the organization, and that
may possess a lifetime of technical expertise but may they should appreciate the value it represents. Finally,
lack the ability to share that knowledge effectively. Even they should recognize that absorbing and applying the
the most seasoned, successful business leaders will knowledge and experience shared by the senior leaders
benefit from some guidance and preparation. The type will lead to their own success in the company. This is
of preparation they require will depend on the individual an invaluable opportunity, and they should be properly
and how you plan to engage them in the organization. motivated to take full advantage of it.
Developing specific skills can mean the difference
between their success and failure. (If you want more information about identifying and
preparing future leaders, you might be interested in
As you prepare your senior leaders to make a more the white paper, Putting Success Back in Succession
significant impact, do the same with your emerging Planning: The Role of Learning and Development found
leaders. These future leaders should know that they under the White Papers heading at www.uncexec.com.)
have been selected because of the talent and potential

43

Myths about Older Workers
1. Older workers are less productive than younger workers.

2. Older workers cost more to employ.

3. lder workers are not really motivated—they’re just biding their time
O
until retirement.
4. Older workers are preoccupied with the past and have little interest in the future.
5. Older workers have old-fashioned values and are traditional thinkers.

They are overly conservative.

6. Older workers are mentally and physically impaired.

7. Older workers are often ill and absent from work.

8. Older workers are resistant to change.

9. Older workers are unable to learn new skills and new ways of doing things.

The Truth about Older Workers
1. lder workers have lower absenteeism rates than younger workers,
O
making them more dependable.

2. Because of their life experience, older workers can better relate to others.

3. Older workers are, in fact, highly productive.

4. Older workers often require less supervision.

5. Older workers are less likely to abuse drugs and alcohol.

6. Older workers have stability that comes with maturity.

7. Older workers are willing to work part-time and flexible hours.

8. Older workers have a strong work ethic.

9. Older workers waste less time on the job.

10. Older workers have higher writing and math skills.

11. Older workers are highly motivated to do a job well.

12. Older workers are willing and able to learn and acquire new skills.

13. Older workers are less distracted by outside interests.

14. lder workers have a lifetime of experience dealing with people
O
and changing conditions.

Source: Davis, 2008



Step 5: Create Knowledge Transfer Opportunities
There are a number of ways to facilitate the transfer method or combination of methods you employ, it is
of critical knowledge in your organization. There is no critical to identify the outcomes and objectives you hope
“one size fits all” approach—it will depend on your to achieve to ensure that the investment of time and
organization’s capabilities and culture. Regardless of the effort provides real value to everyone involved.

Proven Methods Of Knowledge Transfer

1. Formal and Informal Mentoring and Coaching Programs
Coaching and mentoring programs provide an that lead to greater individual and organizational
effective way to transfer knowledge and skills– success. Your senior leaders are stewards of your
as well as the wisdom gained from years of organization’s history, culture and values. The stories
experience. Coaches and mentors can share they pass on to the next generation of leaders
valuable information on a one-on-one basis, can be more meaningful and powerful than any
sharing personal insights and professional advice corporate mission statement.

Example: Mentoring Program

The YMCA of Greater Rochester, New York, a non-profit organization with more than 2,700
employees, has been recognized by AARP for five consecutive years as an outstanding place to
work for older workers. For the past several years, the YMCA’s HR team has made a concentrated
effort to recruit and retain older workers. A full-time staff member serves as a liaison with a group
of 40 retirees in its workforce, managing employee support and relation activities. In addition, the
organization keeps a roster of outside retirees who are interested and available for work and calls
on them for temporary jobs, consulting projects and part-time work. The YMCA also offers phased
retirement and works with recruiters from outside agencies to identify qualified older job seekers
(SHRM, 2010).

As part of its professional development programming, the YMCA gives employees the opportunity
to participate in their Mentoring Across Generations program (also known as “Generation YMCA”),
in which baby boomer employees are paired with Gen X and Gen Y employees to exchange
information and skills (AARP, 2009).

45

Coaching Characteristics
1. Managers coach their staff as a required part of the job.

2. oaching takes place within the confines of a formal manager-employee
C
relationship.

3. The focus is to develop individuals within their current job.

4. The interest of the relationship is functional, arising out of the need for

individuals to perform the tasks required to the best of their ability.

5.
Managers tend to initiate and drive the relationship.

6. he relationship is finite, ending when an individual has learned what
T
the coach is teaching.

Mentoring Characteristics
1. entoring occurs outside of a line manager-employee relationship,
M
at the mutual consent of a mentor and employee.

2. entoring is career focused or focused on professional development
M
that may be outside the employee’s area of work.

3. elationships are personal—a mentor provides professional and
R
personal support.

4. elationships may be initiated by mentors or created through matches
R
initiated by the organization.

5. elationships cross job boundaries.
R

6. elationships last for a specific period of time (nine months to a
R
year) in a formal program, at which point the pair may continue in
an informal mentoring relationship.

Source: Management Mentors



Proven Methods of Knowledge Transfer (continued)

2. Intergenerational Work Teams
Like mentoring and coaching programs, pairing 20 years of experience in the company and a 25-year-
older, more experienced workers with emerging old employee just starting his career. The team works
leaders can greatly facilitate both the transfer of well because the skills sets of the older and younger
knowledge and the development of future leaders. worker complement each other. The older worker has a
Though communication between the generations deep knowledge of processes and procedures and how
can sometimes be challenging, it can also be vastly to complete work projects on time, while the younger
rewarding to all parties involved. worker uses technology to the best advantage. “The
result is that as a team, they are very productive and
This is what LaRhonda Edwards, an HR manager enjoy learning from each other,” Edwards says. “They
for a large office supply distribution center in have taught me a lot, too, about finding the right role or
Alabama, has learned. In an article for SHRM Online niche for workers and how crucial that is to successful
on employee relations trends for 2011, Edwards and effective employee relations.” (Leonard, 2011).
noted that one of her most productive work teams
includes a 63-year-old employee with more than

3. Involve Senior Leaders in Learning and Development Opportunities

as Instructors or Participants
Senior leaders can also serve as valuable instructors, Consider including those senior leaders who would
speakers and facilitators because they can offer prefer to stay off the podium but still want to contribute
knowledge and a unique perspective that can their knowledge in action learning projects. Action
enhance learning and development programs. learning is about integrating real work challenges
3M, the maker of Post-it® Notes and ScotchBrite™ into learning and development programs. By pairing
cleaning products, has tapped into its senior experienced senior leaders with emerging leaders in
leadership base through the company’s “Leaders action learning projects, you can facilitate the transfer
Teaching Leaders” program. More than 300 senior of critical knowledge and skills while developing future
leaders teach in 3M’s program annually, sharing leaders and addressing real business challenges.
their knowledge, experience and 3M’s values with
employees who have been identified as future
leaders.

4. Web 2.0 Technologies
Many employers are turning to technology to Internal websites provide employees with online
preserve valued workers’ knowledge. Web 2.0 retirement planning tips and tools to ensure a successful
technologies such as blogs and wikis provide useful transition to the next stage of their lives. This is a simple
tools for employees to develop a detailed library and effective way to provide useful information, while
of knowledge, processes and procedures that can also collecting accurate, real-time data about retirement
be updated, expanded and shared throughout intentions. Voluntary and anonymous surveys can capture
the organization. While most experts agree that useful data that provides insights you can use to plan and
knowledge transfer cannot be conducted through prepare. An internal website is also a great platform to
technology alone, employees can use these solicit volunteers for coaching and mentoring, provide
inexpensive Web tools to complement other efforts. them with valuable resources to do so, and then organize
these efforts.

47

Conclusion
You can turn the impending baby boomer brain drain into a brain trust by developing programs that will transfer
critical knowledge and skills to the next generation of leaders. In doing so, you can ensure your organization’s future
success and prevent the loss of valuable knowledge and experience. Follow the five steps outlined in this paper and
proactively approach baby boomer retirement:

1. Conduct a strategic workforce analysis
2. Refine your retention strategy
3. Identify, prioritize and engage potential retirees
4. Prepare senior and emerging leaders
5. Create knowledge transfer opportunities

As the global economy recovers from the deepest recession in 70 years, organizations need every competitive
advantage they can find to survive and thrive. Employers that explore and develop ways to leverage the knowledge
and experience of employees approaching retirement age will discover that
these workers offer a lasting legacy of outstanding corporate performance.

Anonymous (undated). Chevron Bridges Evans, P. (2010, December 15). Baby Boomer James, B. (2008, April 8). Capitalizing on Moore, J. (2009, April 17). Knowledge
Contract Positions. Chevron Alumni Retirement: Is Your Data Center Ready? the Baby Boom Brain Drain. The HR Edge. Retention Helps Agencies Retain Employee
Community. Retrieved December 2010 from CIO Network. Retrieved January 2011 from Retrieved December 2010 from http:// Expertise. Federal Computer Week.
http://alumni.chevron.com/index.aphp. http://blogs.forbes.com/ciocentral/2010/12/15/ thehredge.wordpress.com/2008/04/08/ Retrieved January 2011 from http://fcw.
baby-boomer-retirement-is-your-data-center- capitalizing-on-the-baby-boomer-brain-drain/. com/articles/2009/04/20/tips-for-knowledge-
Barnhart, M. (2009). Keeping Top Talent: ready/. retention.aspx.
The Value of Employee Retention. Katz, Johnson, R. (2010). Phased Retirement
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from http://www.touchpointrecruiting.com/ Workers Can Shine—But Will They Get Opportunities and Challenges. Focus on Aging Workforce: It’s Time for Employers
doc/KSMTPRAdvisor2009.pdf. a Chance? Michigan Business. Retrieved Workplace Flexibility. Retrieved December to Accept Reality. Citizen Economists.
December 2010 from http://www.freep.com/. 2010 from http://workplaceflexibility.org/ Retrieved December 2010 from http://www.
Cauchon, D. (2010, December 14). American images/uploads/program_papers/johnson_-_ citizeneconomics.com/blogs/2008/10/22/
Workforce Growing Grayer. USA Today. Gurchiek, K. (2011, January). Older Workers phased_retirement_and_workplace_flexibility. americas-aging-workforce-its-time-for-
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usatoday.com/money/workplace/2010-12-14- Alexandria, VA: Society for Human Resource
older-workers-employment_N.htm. Management. Leonard, B. (2003, July). More than 2,500 Pitt-Catsouphes, M. (2009, October). Talent
Employees Riding the Age Wave. HR Management Study: The Pressures of Talent
CEO Consultant (2010, August 12). Aging Hastings, R. (2008, October 2). Global Magazine. Alexandria, VA: Society for Human Management. Boston, MA: The Sloan Center
Workforce—10 Key Points on Training. Employers Lauded for Support of Workers Resource Management. on Aging and Work at Boston College.
CEOConsultant.com. Retrieved December Over 50. SHRM Online. Retrieved December
17, 2010 from http://www.ceoconsultant. 2010 from http://www.shrm.org/hrdisciplines/ Leonard, B. (2010, January 10). Economic Roth, R. (2010, September 5). How BMW
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training/. aspx. Trends for 2011. SHRM Online. Retrieved Retrieved December 2010 from http://www.
January 2011 from www.shrm.org. cbsnews.com/stories/2010/09/05/sunday/
Davis, D. (2008, September 24). Strategies to Hewlett, S. (2009, September 4). Reward main6837469.shtml.
Employ and Retain Older Workers. Forum on Older Workers with What They Really Want. McGregor, J. (2009, November 13). How Older
North Carolina’s Aging Workforce. Raleigh, Bloomberg. Retrieved on December 2010 Workers Can Lighten the Load. Bloomberg SHRM (2009, November 17). SHRM-AARP
NC: National Council on Aging. from http://www.bloomber.com/news/2009- Businessweek. Retrieved December 2010 from Poll Shows Concern About Aging Workforce.
09-04/reward-older-workers-with-what-they- http://www.businessweek.com/managing/ SHRM Online. Retrieved December 2010 from
Delong, D. Mann, T. (2003). Stemming the really-want.html. content/nov2009/ca20091111_435788.htm. http://www.shrm.org.
Brain Drain. Accenture. Retrieved January
2011 from http://www.accenture.com/Global/ Jackson, H. Rand, A. (2010, October). Management Mentors (undated). Corporate Smith, D. (2010, Dec. 22). Leading Edge
Research_and_Insights/Outlook/By_Alphabet/ HR and the Aging Workforce: Two CEO Mentoring vs. Corporate Coaching. of U.S. Baby Boomers Content Survey.
StemmingTheBrainDrain.htm. Points of View. HR Magazine. Alexandria, VA: Management Mentors. Retrieved January Washington, DC: Reuters.
Society for Human Resource Management. 2011 from http://www.management-mentors.
com/resources/coaching-and-mentoring/. Tennessee Valley Authority (undated).
Knowledge Retention. TVA. Retrieved
January 2011 from http://www.tva.gov/
knowledgeretention/.


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49

Unlocking the Potential of
On-Demand Learning in the
Workplace
Jessica Brack
Managing Director

Promise Introduction
Employees and employers face the same dilemma these One solution to the dilemma of providing quality training
days when it comes to keeping skills sharp; neither have opportunities as corporate resources continue to dwindle
the time nor the money to spend on long-term learning is on-demand, online learning programs. Many training
and development opportunities. Most training and and development professionals shelved earlier E-learning
human resource professionals know, however, that there prototypes because they lacked key components to
is a direct, positive link between providing meaningful the transfer of learning—the ability to interact and
learning and development opportunities to employees collaborate with instructors and fellow students. Over
and job satisfaction--when you train employees, job the years, E-learning programs have matured into
satisfaction increases, as does employee retention. interactive experiences that engage all types of learners.

Today‘s E-learning takes what worked from earlier
versions of distance learning (such as video conferencing)
E-learning Benefits and combines it with new Web technologies, to provide
richer, more dynamic learning experiences than ever
• educes costs
R before.

• Saves time This white paper will discuss the evolution of online,
on-demand learning and what to look for when
• ffers flexibility
O
designing or purchasing E-learning programs for your
• llows social interaction with other
A organization. Through case examples, it will also provide
participants and instructors training and development professionals with ideas about
how to apply on-demand learning in their workplaces
• ngages all types of learning styles
E to meet strategic objectives and succeed in today‘s
fast-paced global marketplace.


ON-DEMAND LEARNING POTENTIAL IN THE WORKPLACE

The E-learning Explosion
E-learning in the workplace has evolved rapidly over The trend toward providing more E-learning and/or
the past 10 years, growing from a traditional, transfer- blended learning opportunities is gaining more
of-learning approach to include new technologies, acceptance among training and development
such as discussion boards, blogs, wikis and other social professionals; a 2008 survey by the American Society
interaction tools, which allow program participants to of Training and Development found that nearly one-third
engage with each other and their instructors. A recent of all training content is now delivered electronically.
Ambient Research study found that the U.S. market for Given the overall satisfaction rates regarding the quality
self-paced E-learning products reached $16.7 billion in of online learning versus face-to-face instruction, it is
2009, an unprecedented growth rate in the last decade. highly likely that this number will continue to increase
(Allen Seaman, 2010).
This emerging E-learning format, known as E-learning
2.0, addresses concerns about earlier E-learning As technology continues to evolve and improve,
technology that there was little interaction among most employees will likely participate in some form
instructors and learners and, therefore, wasn‘t as of E-learning during their academic and professional
effective as face-to-face instruction. Increasingly, careers. These employees will expect on-demand,
E-learning models are taking a more blended approach online learning programs from their employers,
to presenting content, encouraging social interaction particularly when time constraints and geographic
among students using new social media technologies. boundaries are challenging.

As the technology has improved, the demand for
online learning has increased exponentially. Today,
more than one in four students are taking at
least one course online and while the demand
for face-to-face courses increased by 1.2
percent in 2009 (due in no small part
to the 2008-09 recession), the growth
in demand for online courses was
far greater at 17 percent (Allen
Seaman, 2010).

51

{ e’- lûrn-ing }
Negotiating E-learning Jargon
E-learning is the general term used for all varieties of electronic teaching and learning.
Varieties of E-learning include Web-based learning, computer-based learning and virtual
classrooms. Content can be delivered through the Internet, intranet or extranet, audio or
videotape, satellite TV or CD-ROM. It can be self-paced or instructor-led and includes media in
the form of text, image, animation, streaming video and audio.

E-learning 2.0 emerged with the launch of Web 2.0 technologies, which emphasized
information sharing and collaboration. E-learning 2.0 technologies supplement E-learning
by adding social learning components such as discussion boards, wikis, blogs, podcasts and
virtual worlds.

Blended learning integrates computer-based learning with practical or classroom
based interactions.

Computer-based learning refers to the use of computers as the primary
component of the educational environment.

Computer-based training refers to the use of computers as the primary component
of the training environment. Computer-based training activities are usually self-paced and
present content in a linear fashion (e.g., “Unit 1”, “Unit 2”, etc.).

Web-based training is similar to computer-based training, however the delivery
differs. In computer-based training, the content is usually delivered by CD-ROM. In Web-
based training, content is delivered via the Internet.



E-learning’s Evolution to a Dynamic Learning
Environment
On-demand, online learning can be a powerful tool This blended-learning approach uses time and dollars
used on its own but can be extremely effective when more effectively. A 2006 Bersin Associates study found
combined with a blended-learning strategy. The concept that self-paced study helps prepare learners for later
of blended learning has been around for decades but interactive learning and can reduce time investment by
more recently has evolved to mean a combination of nearly 50 percent.
traditional face-to-face learning and technology.
E-learning‘s evolution is leading training and
For example, E-learning used alone can be a cost- development and HR professionals to re-evaluate its
effective way to teach introductory concepts like potential as an efficient, flexible and cost-effective
business basics or sales techniques to get people on method to deliver quality learning and development
the same page quickly and efficiently. The value of this opportunities to employees. Today‘s high quality
learning is real and could stop there, but when used as a E-learning content includes video conferencing,
prelude to instructor-led training, provides a foundation interaction, creative story lines and exercises developed
for the next level of development. This same program or by recognized subject matter experts (Avalon Consulting,
course can precede instructor-led sessions, allowing class 2008).
time to be spent on more advanced concepts where
face-to-face discussion is critical.

Getting Employee Buy-in
Despite the fact that a recent U.S. Department of without a class‘ to ‘I‘ve tried it in the past and didn‘t like
Education study found that students participating in it‘,” reports Mike Cain, program and student services
E-learning conditions actually out-performed their peers manager of UNC Business Essentials, an online business
learning the same material in a traditional, face-to-face training program. “We find that most of these excuses
classroom, some employees may be reluctant to engage melt away once we show them part of our online
in online learning opportunities (Means et al, 2010). Business Essentials program. In fact, that resistance
Training and development professionals are well aware usually changes to enthusiasm. On-demand, online
of this reluctance and as a result, may be hesitant to learning is much more exciting than in the past. Done
embrace E-learning. right, it can be very effective.”

A key to achieving buy-in from all employees is to Flexibility is also a key selling point when it comes to
provide them with a quality E-learning experience that E-learning. Since on-demand, online, learning can occur
includes interaction, videos and exercises designed any place and at any time, participants can work at their
to engage adult learners. “The reasons people resist own pace and on their own schedule.
online learning run the gamut, from ‘I don‘t learn well

53

For training and development professionals considering
incorporating E-learning into their training offerings,
seeing a demo of the product is an absolute must. “ was impressed with the
I
Develop a checklist listing the benchmark features you
are looking for in an E-learning environment. Items on
comprehensiveness of the UNC
the checklist may include: Business Essentials program.

• f the training is to be asynchronous, does it allow
I
participants easy entry and exit points? How easy is it “ he coursework provided a
T
for participants to stop and pick up later where they well-rounded set of tools that
left off?
I can use for thinking and
• oes it offer learning checkpoints along the way
D acting in business situations.
to assess learning? These checkpoints can include The level of personal attention
quizzes but may also involve video conferences or
by the tutors challenged me to
collaborative bulletin board postings where
students work on a project together or discuss approach discussion questions
a particular subject. with depth and clarity. The
• hat other interactive features are included to
W
material was practical and
help students learn? Is there tutor or instructor urged me to connect my
support available? working experience with
• hat reports are made available to the employer to
W
the themes presented in the
ensure employee participation and completion? lectures. Lastly, the delivery
format is very accommodating
• s the technology easily accessible by all participants?
I
to students’ schedules and
• or the less technically adept, are there clear, simple
F timely in the light of emerging
directions and tutorials for use?
work practices. I began the
• re there case studies included to help bring the
A coursework in Chapel Hill
learning into the workplace and real-life situation? and finished in Buenos Aires,
Argentina.”
If possible, consider piloting the E-learning program
with a smaller group of employees and ask for their
feedback at the end of the training. These employees Andrew Cary
can provide excellent testimonials and help support a Co-founder of Infused Industries, Inc.
wider launch of the E-learning activity. Raleigh, N.C.
Recent UNC Business Essentials graduate



Example: On-Demand Learning for Corporate Education
Existing E-learning “The Business Essentials program is affordable, which
programs can offer is certainly important in today‘s economy, but more
excellent examples of important, it is flexible. By allowing participants access to
how on-demand, online the courses at anytime and anywhere, it is designed to
learning may be applied fit the variables in their life – not force them to fit their
in workplace training and lives around it,” says Susan Cates, associate dean of
development situations. University of North Carolina Executive Development.
Educational institutions and innovative businesses have
developed programs that clearly demonstrate how Corporate education programs like Business Essentials
E-learning can deliver flexible and high-quality training are not an online-or-nothing proposition. Online courses
opportunities to employers and their workforces. can be paired with traditional learning opportunities or
interactive video sessions to accommodate geographic
Designed to provide basic business skills to people constraints. “Instructors can spend significant time
without a business degree, the University of North during a three-day executive education program laying
Carolina at Chapel Hill launched its online Business out the basics to get everyone up to speed. On-demand,
Essentials certificate program in mid-2009. Today, nearly online courses covering those basics can be developed
200 people have enrolled in this comprehensive online and assigned as pre-work for participants. That way,
learning system. Programs like UNC‘s Business Essentials instructors can start an executive development program
may offer training professionals and their employers at a higher level and spend more class time engaging
the educational solution they are searching for by the participants to push their thinking in ways that relate
providing flexible and meaningful career development to the challenges they face at work,” says Cates.
opportunities to employees in a cost-effective package.
The program has been so successful, UNC Kenan-Flagler
The certificate program is self-guided and includes a expanded the offering to allow businesses to customize
mix of audio, graphics, quizzes, discussion boards and it to their organizational goals. A leading global
live tutors, making it attractive for corporate education entertainment content company recently partnered
because of its flexibility and interactive features. The with UNC to offer the Business Essentials program to
program works much like Microsoft Outlook. Individuals their human resource staff. While most of the business
can work online or download the application onto a content remained the same, staff from Kenan-Flagler
local hard drive which automatically syncs with a server worked with the company to customize parts of the
the next time they have Internet access. This flexibility program to meet its organizational goals and to facilitate
allows people to work on the program from virtually multiple program checkpoints where application
anywhere, such as an airplane while in flight. is discussed. UNC and their client already plan to
customize the program further for future participant
Checkpoints along the way and application exercises groups with mini-case studies specific to the company‘s
help participants stay interested and connect their industry.
learning to the workplace. At the end of the six-course
program, successful participants earn a certificate of
completion from UNC‘s Kenan-Flagler Business School.

55

Example: E-learning for the Health Care Profession
Saint Elizabeth Health Care (SEHC) has served Canadians across Ontario for more than
a century. The system began with four nurses who went by foot or streetcar to care for
patients. Today, SEHC has more than 4,500 employees and delivers 3.8 million health
care visits annually.

SEHC also provides health care services to 200 First Nation (or native Canadian) communities in British
Columbia, Manitoba and Saskatchewan. With such a large service area, SEHC began investigating online
learning technology in the late 1990s to help educate their patients about their own health care. They
soon realized that the E-learning technology could be applied to staff training as well.

S
EHC developed @YourSide Colleague, a 24/7 accessible training program for their employees.
Employees from any location with Internet access can go to the site and access training and support,
including discussion forums monitored by experts who can offer advice on specific case issues, which
can then be viewed by the entire SEHC community.

Health care professionals can upload images to the system, allowing for virtual consultations—a great
benefit for nurses working in remote locations. “These consultations make a real difference in patient
care since nurses can immediately apply the feedback they get. They don‘t have to wait for a physician
to fly to their location. Access to expert consultation literally brings care closer to home for patients,”‖
reports Linda Forster, SEHC‘s product manager.

The online program allows SEHC to track usage and performance. These metrics help SEHC determine
what topics may require additional training opportunities. SEHC reports that their online training portal
has improved confidence and performance of field staff and has reduced costs, travel and lost clinical
time associated with live training. Other benefits include standardization of training content throughout
the organization and streamlined distribution of HR policies and procedures because they have been
added to the platform. SEHC‘s experience and success with the program illustrates how organizations
are finding new and innovative uses for on-demand, online learning initiatives.

Example: Online Sales Training Goes Virtual
Automatic Data Processing, Inc. (ADP), with nearly $9 billion in revenue and about
550,000 clients, is one of the world‘s largest providers of business outsourcing solutions.
With more than 60 years of experience, ADP offers a wide range of HR, payroll, tax and
benefits administration solutions from a single source.

key element to ADP‘s success has been the company‘s commitment to continuous learning for sales
A
associates—a process that starts from the day they are hired. Until 2004, new sales associates were
given two weeks of face-to-face training at ADP‘s Atlanta training center, followed by two weeks off
and then another two-week training period, also in the Atlanta training center. According to Tim Dewey,
ADP employer services sales distance learning manager, the process was effective but, with 7,500 sales
associates nationwide, extremely costly. ADP decided to rein in costs by piloting an online training
program. The results were so positive that ADP quickly adopted it for all new sales associates.



The online training program has reduced the time

spent in Atlanta from four weeks to one, a benefit to
ADP Benefits from Online not only ADP but to employees as well. The company‘s
new sales associates “enjoy the process more because
Learning it is less intrusive in their family lives and they are more
productive right off the bat,” reports Dewey. The
• early $1.6 million savings in training
N
online training program has increased comprehension,
expenses.
retention and even final grades. The program was
• 0-day increase in sales productivity
6 initially designed for new hires, but has been expanded
for trainees. to include every aspect of training for the sales
• 2 percent increase in first-year annual sales.
1 organization.
• ncreased retention.
I
I
n addition to a better-prepared sales force, ADP saw
• ncreased comprehension.
I
substantial cost savings. The organization saved $1.2
• ncreased engagement.
I million in travel and accommodation expenses the first
• mproved grades.
I year alone. Additional benefits have included more than
$1.5 million in annual savings, a 12 percent increase in
Source: Blackboard.com first-year annual sales per sales associate, and a 10 times
faster time-to- deployment of new content.

Emerging Evidence of Bottom Line Impact
The development and delivery techniques of online more innovative and responsive workforce. These factors
learning solutions for businesses are new, leading-edge often aren‘t easy to quantify; however, the benefits are
ideas, yet evidence is emerging that the cost-to-benefit certainly real and can have a long-term positive impact
ratio now surpasses most traditional instructor-led and on an organization‘s bottom line.
in-person training programs. While reductions in travel
and accommodation expenses are the most obvious and Organizations with the best and most innovative
easily measured cost savings, other cost benefits can management development programs are always ranked
include improved productivity, increased innovations and among the most successful businesses. On-demand,
reduced turnover. online learning clearly offers training and development
professionals a tool for crafting the flexible and high-
Research has found that employees who are offered quality learning programs that their organizations need
substantive career development opportunities tend to to meet strategic objectives and succeed in today‘s fast-
be more engaged, and therefore more loyal and more paced global marketplace.
productive. New and improved skills also equate to a

Allen, I.E. Seaman, J. (2010). Learning on Bersin Associates. (2003, May). Blended Howard, C. (2008, March 21). Learning On- Rossett, A. Marshall, J. (January 2010).
Demand. Online Education in the United Learning: What Works? Retrieved October Demand: A New Role for Enterprise Learning. E-learning: What’s Old Is New Again.
States, 2009. Babson Park, MA: Babson 2010 from www.e-learningguru.com/wpapers/ Oakland, CA: Bersin Associates. Alexandria, VA: American Society for Training
Research Group. blended_bersin.doc. and Development. Retrieved November 2010
Means, B., Toyama, Y., Murphy, R., Bakia, M., from http://www.astd.org/TD/Archives/2010/
Bersin Associates. (2006). Blended Learning Blackboard. Corporate Case Studies. Retrieved Jones, K. (2010). Evaluation of Evidence- Based Jan/Free/1001_eLearning_Whats_Old.htm.
in Leadership Programs. Retrieved October November 2010 from http://www.blackboard. Practices in Online Learning. Washington, DC:
2010 from www.bersin.com. com/Solutions-by-Market/Corporate/Case- U.S. Department of Education.
Studies.aspx.

57

Business Basic Training…
Build the Essentials
Online.

ONLINE BUSINESS
U N C B U S I N E S S E S S E N T I A L S C E R T I F I C AT E P R O G R A M

Companies need employees to do more within
the organization, and employees need a strong
foundation in business to be more effective. The
UNC Business Essentials program is designed to
help employees gain this essential business knowledge
in a flexible e-learning environment that limits
associated costs and time away from work. Taken
on an individual basis or customized to meet
an organization’s specific needs, UNC Business
Essentials provides the best in business basic training.

To learn more, visit www.uncbusinessessentials.com.

58

Managing employee talent is vital to the success of
any organization. At UNC Executive Development,
we provide unique learning experiences to create
solutions for our partners.

We listen to the needs of our partners and develop
a deep understanding of their businesses and
industries. We also make a commitment to the
organizations we work with to meet their goals
and objectives while providing ongoing support
and client management.

We call our approach The Power of Experience.
We combine traditional with experiential and
unique learning. Through action learning and
business simulation activities, we challenge
participants to think, reflect, and make
decisions differently.

Our goal is to provide unique, memorable, and
transformational learning impacting individuals,
as well as the organization itself.

Nonprofit Organization
U.S. Postage
PAID
Permit Number 177
The University of North Carolina at Chapel Hill Chapel Hill, NC
Kenan-Flagler Business School
Executive Development
Campus Box 3445
Rizzo Conference Center
Chapel Hill, NC 27599-3445

In this issue:
Making the Business Case for Learning and Development:
5 Steps for Success

Ready, Aim, Coach: How HR Can (and Should)
Coach Managers on Problem Employee Behaviors

Putting Success Back in Succession Planning:
The Role of Learning and Development

Passing the Torch: 5 Steps for Turning the Baby Boomer
Brain Drain into a Brain Trust

Unlocking the Potential of On-Demand Learning
in the Workplace

ideas@work vol. 1

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