This page intentionally left blank “Highly effective CLOs are true leaders. All in one, they are executives, coaches, teachers, trusted advisors, strategists, champions and implementers of change. They are catalysts for some of the most precious assets an organization has . . . stim- ulating individuals, teams and entire organizations to think, learn and apply their insights in ever more effective ways.” —Ed Betof, Vice President, Talent Management & Chief Learning Officer, Becton, Dickinson & Co. “Now, more than ever, the role of Chief Learning Officer has become strategic and pivotal to the success of organizations around the world. There is a storm that is threatening all of our organizations, and if we don’t do something about it soon, it will disrupt the global marketplace. There has been much research lately about the future of the workforce-global popu- lation shifts, widening skills gap, and not enough people enter- ing the workforce combining to create a “perfect storm” that could threaten all industries and employee groups. In order to rise to the challenge, we as CLOs need to enhance our business acumen to deliver learning services linked directly to business issues, trends, and projections.” “The role of learning is central to the success of business. It reaches throughout the organization and beyond, requiring us to think more broadly about the solutions we implement and how we go about determining our priorities. This is a very pivotal and exciting point in history for Chief Learning Officers.” —Ed Cohen, Senior Vice President, Satyam School of Leadership, Satyam Computer Services Ltd. “Organizations are continually seeking a competitive advan- tage that will ensure their profitable growth and value to their customers. The CLO plays a critical role in achieving that goal by working with management to design and implement the structures, processes and skills that enable both the organiza- tion and its employees to achieve their potential.” —Cheryl Getty, Vice President of Learning, SAIC “In a world full of leadership advice Elkeles and Phillips provide an excellent road map telling us what all CLOs need to know to accelerate learning and development. Every company should incorporate a leadership development strategy. This excellent book will help countless CLOs.” —Cindy L. Johnson, Manager, Leadership Development, 3M “In the midst of so much change and unrest in our world and in our organization’s, the CLO’s role is critically important. Learning is leverage . . . It can leverage and launch the organi- zation strategy at the macro and micro levels of the organiza- tion. It is mechanism that can reach all employees at both the heart and heads level to reach constantly increasing expectations.” —Lynn Slavenski, Senior Vice President Global Learning & Development, Equifax University “In a flat world, organizations remain competitive by clearly focusing on the capabilities that distinguish them in the mar- ketplace. The role of the CLO is crucial in leading and imple- menting a strategy for the constant renewal of the core capabilities of the organization.” —Dr. Karie Willyerd, Vice President & Chief Learning Officer, Sun Microsystems THE CHIEF LEARNING OFFICER Driving Value Within a Changing Organization Through Learning and Development TAMAR ELKELES, Ph.D. JACK PHILLIPS, Ph.D. AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY Butterworth-Heinemann is an imprint of Elsevier Butterworth–Heinemann is an imprint of Elsevier 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2007, Jack Phillips and Tamar Elkeles. Published by Elsevier Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, E-mail: Contents Foreword by Norm Kamikow, ix Preface, xiii Acknowledgments, xvii Author Biographies, xxi A Note on the Position of the CLO by Tony Bingham, xxv 1 The Chief Learning Officer: Trends and Issues, 2 The Evolution of the CLO, 2 Current Status of the CLO, 10 Challenges in Learning, 18 Final Thoughts, 27 References, 28 2 Developing the Strategy, 29 The Importance of Linking Learning to Strategy, 29 Strategic Planning Model, 36 Final Thoughts, 57 References, 58 3 Setting the Investment Level, 59 Let Others Do It, 60 Invest the Minimum, 63 Invest with the Rest, 67 Invest Until It Hurts, 71 Invest as Long as There Is a Payoff, 75 Final Thoughts, 81 References, 82 v vi Contents 4 Aligning the Learning Enterprise with Business Needs, 83 It Is About the Business, 83 The Challenge, 84 Status of Needs Assessment, 96 Needs Assessment Tactics, 103 Final Thoughts, 108 References, 109 5 Shifting to Performance Improvement: Learning Is Not Always the Answer, 110 Major Influences, 111 Performance Improvement Issues, 112 Plan of Action, 124 Final Thoughts, 132 References, 133 6 Creating Value-Based Delivery, 134 Why the Shift?, 135 Use of Technology, 140 Alternative Delivery Systems, 147 Outlook, 155 Final Thoughts, 158 References, 159 7 Managing for Value, 160 The Budgeting Process, 161 Monitoring and Controlling Costs, 167 Exploring the Profit Center Concept, 175 Managing Suppliers for Value, 182 Final Thoughts, 186 References, 186 8 Demonstrating Value from the Learning Enterprise, Including ROI, 187 Trends and Issues, 188 The Learning Value Chain, 194 A Comprehensive Evaluation Process, 207 Branding the Learning and Development Enterprise, 216 Final Thoughts, 219 References, 220 Contents vii 9 Managing Talent for Value, 221 Talent Management Issues, 222 Why Talent Is Critical to Success, 226 Needed: A System for Talent Management, 233 Planning for Talent, 239 Acquiring Talent, 241 Developing Talent, 247 Managing Talent, 248 Retaining Talent, 250 Final Thoughts, 254 References, 255 10 Developing Productive Management Relationships, 257 Key Concepts, 257 Improving Commitment for Learning, 261 Building Management Support, 266 Increasing Reinforcement of Learning, 270 Improving Management Involvement, 271 Developing Partnerships with Managers, 277 Final Thoughts, 283 References, 285 11 The Voices of CLOs, 286 Frank Anderson, President, Defense Acquisition University, 288 Susan Burnett, Senior Vice President of People & Organization Effectiveness, The Gap, 289 Tim Conlon, Director of Learning and Chief Learning Officer, Xerox, 291 Bob Corcoran, Vice President of Corporate Citizenship and Chief Learning Officer and President of GE Foundation, 292 Pat Crull, Vice President and Chief Learning Officer, Time Warner Cable, 294 Fred Harburg, Former CLO Motorola & SVP Leadership and Learning, Fidelity Investments, 295 Ted Hoff, Vice President of Learning, IBM, 297 Steve Kerr, Managing Director and Chief Learning Officer, Goldman Sachs, 300 Michael Lee, Executive Vice President of Human Resources, LG Corp., 303 viii Contents Donna MacNamara, Vice President of Global Education & Training, Colgate Palmolive, 305 Rick O’Leary, Director, Human Resources & Diversity, Corning, 307 Donne Ramelli, President, General Motors University, 308 Bonnie Stoufer, Vice President for Learning, Training & Development, Boeing, 311 David Vance, President, Caterpillar University, 313 Allan Weisberg, Vice President of Organization Capability, Johnson & Johnson, 315 Bill Wiggenhorn, Former President, Motorola University and Vice Chairman of Global Ed-Tech Management Group, 318 Kevin Wilde, Vice President and Chief Learning Officer, General Mills, 321 Additional Quotes about the CLO. . . from Unknown Sources, 323 Index, 324