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62 Part 1 The Context for Training and Development

measures include attainment of competence and resource strategy in all parts of the com-
pany. Top management believes that the largest benefit of the learning is that employees
have opportunities to network, creating more knowledge, reinforcing continuous learning,
and creating committed employees.

Identify Strategic Training and Development Initiatives That

Support the Strategy
Strategic training and development initiatives are learning-related actions that a com-
pany should take to help it achieve its business strategy.15 The strategic training and
development initiatives vary by company depending on a company’s industry, goals,
resources, and capabilities. The initiatives are based on the business environment, an
understanding of the company’s goals and resources, and insight regarding potential
training and development options. They provide the company with a road map to guide
specific training and development activities. They also show how the training function
will help the company reach its goals (and in doing so, show how the training function
will add value).
There is a tendency to have a disconnect between strategy and execution of the strategy.
To avoid this, learning professionals need to reach out to managers to ensure that the strate-
gic training initiatives and training activities are aligned with the business strategy and the
necessary financial resources and support are provided to carry out the training activities.16
This requires consideration of people and cultural issues that might inhibit execution of
training initiatives. In addition, the success or failure of previous training activities should
be identified and addressed to ensure that future training activities support strategic train-
ing initiatives and are successfully implemented.
Table 2.2 shows strategic training and development initiatives and their implications for
training practices. Diversify the learning portfolio means that companies may need to pro-
vide more learning opportunities than just traditional training programs. These learning
opportunities include informal learning that occurs on the job through interactions with
peers; new job experiences; personalized learning opportunities using mentors, coaches,
and feedback customized to the employee needs; and the use of technology (including
Web-based training). Such training is self-paced and available outside a formal classroom
environment (these learning opportunities are discussed in Chapters 5, 7, 8, and 9). Con-
sider how Freddie Mac, the mortgage finance company based in Virginia, provides learn-
ing when it is needed.17 A Freddie Mac employee who has a learning need can go to the
learning portal on the Web to find solutions. The learning portal includes online courses,
books, videos, discussion groups, and articles. Learning consultants are available to help
employees use the learning portal, address special needs, and incorporate learning needs
into their personal development plan. Accenture Resources Group, a consulting company
in New York, uses informal learning as a way to increase communications between execu-
tives, managers, and consultants in the field. Each Accenture consultant is assigned to a
community of 100 people that meets four times a year. The community meetings often fea-
ture senior executives leading discussions on topics such as leadership and the creation of
shareholder value.
Expand who is trained refers to the recognition that because employees are often the cus-
tomer’s primary point of contact, they need as much if not more training than managers do.
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Chapter 2 Strategic Training 63

TABLE 2.2 Strategic Training and Development Initiatives and Their Implications

Strategic Training and

Development Initiatives Implications
Diversify the Learning Portfolio • Use new technology such as the Internet for training
• Facilitate informal learning
• Provide more personalized learning opportunities
Expand Who Is Trained • Train customers, suppliers, and employees
• Offer more learning opportunities to nonmanagerial employees
Accelerate the Pace of • Quickly identify needs and provide a high-quality learning solution
Employee Learning • Reduce the time to develop training programs
• Facilitate access to learning resources on an as-needed basis
Improve Customer Service • Ensure that employees have product and service knowledge
• Ensure that employees have skills needed to interact with customers
• Ensure that employees understand their roles and decision-making
authority
Provide Development • Ensure that employees have opportunities to develop
Opportunities and Communicate • Ensure that employees understand career opportunities and personal
to Employees growth opportunities
• Ensure that training and development addresses employees’ needs in
current job as well as growth opportunities
Capture and Share Knowledge • Capture insight and information from knowledgeable employees
• Logically organize and store information
• Provide methods to make information available (e.g., resource
guides, Web Sites)
Align Training and • Identify needed knowledge, skills, abilities, or competencies
Development with the Company’s • Ensure that current training and development programs support the
Strategic Direction company’s strategic needs
Ensure that the Work • Remove constraints to learning, such as lack of time, resources, and
Environment Supports equipment
Learning and Transfer of Training • Dedicate physical space to encourage teamwork, collaboration,
creativity, and knowledge sharing
• Ensure that employees understand the importance of learning
• Ensure that managers and peers are supportive of training,
development, and learning

Source: Based on S. Tannenbaum, “A Strategic View of Organizational Training and Learning,” in Creating, Implementing, and Managing Effective Training and
Development, ed. K. Kraiger (San Francisco: Jossey-Bass, 2002): 10–52.

Also, to provide better customer service to suppliers, vendors, and consumers, companies
need to distribute information about how to use the products and services they offer. Com-
panies are beginning to train suppliers to ensure that the parts that suppliers provide will
meet their customers’ quality standards. To be successful, companies have to be able to deal
with changes in technology, customer needs, and global markets. Training needs have to be
quickly identified and effective training provided. That is, companies have to accelerate the
pace of employee learning. Also, companies are relying on electronic performance support
systems (EPSS) that provide employees with immediate access to information, advice, and
guidance (EPSS are discussed in more detail in Chapter 5). EPSS can be accessed through
76 Part 1 The Context for Training and Development

TRAINING NEEDS IN DIFFERENT STRATEGIES

Table 2.7 describes four business strategies—concentration, internal growth, external
growth, and disinvestment—and highlights the implications of each for training practices.42
Each strategy differs based on the goal of the business. A concentration strategy focuses
on increasing market share, reducing costs, or creating and maintaining a market niche for
products and services. Southwest Airlines has a concentration strategy. It focuses on pro-
viding short-haul, low-fare, high-frequency air transportation. It utilizes one type of
aircraft (the Boeing 737), has no reserved seating, and serves no meals. This concentration
strategy has enabled Southwest to keep costs low and revenues high. An internal growth
strategy focuses on new market and product development, innovation, and joint ventures.
For example, the merger between two publishing companies, McGraw-Hill and Richard D.
Irwin, created one company with strengths in the U.S. and the international college text-
book markets. An external growth strategy emphasizes acquiring vendors and suppliers
or buying businesses that allow the company to expand into new markets. For example,
General Electric, a manufacturer of lighting products and jet engines, acquired the
National Broadcast Corporation (NBC), a television and communications company. A
disinvestment strategy emphasizes liquidation and divestiture of businesses. For exam-
ple, General Mills sold its restaurant businesses.
Preliminary research suggests a link between business strategy and amount and type of
training.43 Table 2.7 shows that training issues vary greatly from one strategy to another.
Divesting companies need to train employees in job-search skills and to focus on cross-
training remaining employees who may find themselves in jobs with expanding responsi-
bilities. Companies focusing on a market niche (a concentration strategy) need to
emphasize skill currency and development of their existing work force. New companies
formed from a merger or acquisition need to ensure that employees have the skills needed
to help the company reach its new strategic goals. Also, for mergers and acquisitions to be

TABLE 2.7 Implications of Business Strategy for Training

Training
Strategy Emphasis How Achieved Key Issues Implications
Concentration • Increased market • Improve product • Skill currency • Team building
share quality • Development of • Cross training
• Reduced operating • Improve existing work force • Specialized
costs productivity or programs
• Market niche innovate technical • Interpersonal
created or processes skill training
maintained • Customize • On-the-job
products or training
services
Internal Growth • Market • Market existing • Creation of new • High-quality
development products/add jobs and tasks communication
• Product distribution • Innovation of product value
development channels • Cultural training

Continued
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Chapter 2 Strategic Training 77

Training
Strategy Emphasis How Achieved Key Issues Implications
Internal Growth • Innovation • Expand global • Development of
continued • Joint ventures market organizational
• Modify existing culture that
products values creative
• Create new or thinking and
different products analysis
• Expand through • Technical
joint ownership competence in
jobs
• Manager
training in
feedback and
communication
• Conflict
negotiation
skills
External Growth • Horizontal • Acquire firms • Integration • Determination
(Acquisition) integration operating at same • Redundancy of capabilities of
• Vertical integration stage in product • Restructuring employees in
• Concentric market chain (new acquired firms
diversification market access) • Integration of
• Acquire business training systems
that can supply • Methods and
or buy products procedures of
• Acquire firms that combined firms
have nothing in • Team building
common with • Development of
acquiring firm shared culture
Disinvestment • Retrenchment • Reduce costs • Efficiency • Motivation, goal
• Turnaround • Reduce assets setting, time
• Divestiture • Generate revenue management,
• Liquidation • Redefine goals stress
• Sell off all assets management,
cross training
• Leadership
training
• Interpersonal
communications
• Outplacement
assistance
• Job-search skills
training