EXECUTIVE PERSPECTIVE bersin.

com

High-Impact Learning
Organization: Move
Beyond L&D
OVERVIEW This article discusses what comprises a true learning
organization, as well as the role of C-suite executives in
The learning function can no longer focus solely on helping developing an organization that learns—continuously adapting
employees develop the knowledge and skills they need today. and renewing itself. It provides a high-level overview of our
Instead, organizations must develop a workforce capable of new Learning Organization Maturity Model, outlining shifts in
learning many new skills and responding to constant change. mindsets about employee development as companies move up
Traditional employee development strategies often assume a the maturity curve. Finally, it also provides several immediate
relatively stable and predictable world. But to stay competitive actions that CEOs, CHROs, and CLOs can take to help their
in a global economy driven by rapid technological advances and companies evolve into learning organizations.
a more networked business landscape, organizations must take
action with modernized employee development systems and
mindsets that motivate and inspire workers to anticipate and adapt
to changing conditions as they continuously learn and improve.
KEY MESSAGES
Shrewd leaders are testing long-held beliefs about how learning
Our new High-Impact Learning Organization research1 reveals should occur in their organizations. Our new High-Impact
that successful learning organizations have moved beyond Learning Organization research explores what these leaders
L&D and training; instead, they are developing their entire should be doing to enable modern workforces and reveals a bold
organization to fully integrate learning within the flow of work new vision for learning organization maturity. Our data confirms
and at the point of need. Importantly, our findings also uncover that mature learning organizations are not just doing the same
that these organizations see development as an organizational things better; rather, they have taken a quantum leap forward
responsibility that should involve executives, line-of-business in their approach to learning and how they define employee
leaders, managers—and employees themselves—in addition development in the workplace.
to those in L&D roles. If you’re a C-suite executive, that means
there’s a lot of work to do.
BEYOND L&D: THREE CRITICAL
MINDSET SHIFTS TO EVOLVE YOUR
KEY POINT ORGANIZATION
More mature organizations see development as Leaders seeking to evolve their learning functions should pay
an organizational responsibility that should involve attention to several significant shifts:
executives, line-of-business leaders, managers, and • The convergence of learning and work. Our research shows
employees themselves, in addition to those in L&D roles. that to be effective, the entire company should become a
learning organization adept at anticipating and adapting to
1 High-Impact Learning Organization: Maturity Model and Top Findings, Bersin by Deloitte / Dani Johnson, 2017.

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 EXECUTIVE PERSPECTIVE High-Impact Learning Organization: Move Beyond L&D Page 2

changing conditions. In this new environment, employees over their tasks, using work for learning, and using mistakes
learn and improve continuously—and work and learning are as learning opportunities.
inseparably intertwined. Innovations such as advanced data
These three findings lead to the natural conclusion—one we
analytics, artificial intelligence (AI), wearables, continuous
have been aware of but that hasn’t always been quantified—that
feedback loops, integration with calendars, databases, and
L&D must do things differently. If traditional methods and
instant delivery systems are rapidly becoming an everyday part
mindsets no longer have an impact on business results or learner
of the world of work, making it easier for organizations to use
experience, it may be time to rethink what L&D actually does, as
work itself to develop employees.
well as how it does it.
• The rise of the learning organization. As learning and
work converge, mature companies are evolving into learning
KEY POINT
organizations. “Learning organization,” a term long used to
describe the L&D function and its responsibilities, is now It’s time to rethink what L&D does—as well as how it
being applied to organizations that create the right conditions does it.
to encourage continuous growth and development among
employees. True learning organizations are actually organisms
that learn—they share information, they become wiser, they THE LEARNING ORGANIZATION
make better decisions, and they evolve as necessary. MATURITY MODEL
• Traditional L&D methods may now be less impactful. Maturity assessments are often used to help C-suite executives
Of the 96 items included in our survey, only 12 were understand their current state as well as the next set of skills,
predictive of business and learner experience results. And of tools, and systems they will need to advance. Our Learning
those 12, only 2—design thinking and offering high-value Organization Maturity Model (see Figure 1) offers a unique
development opportunities—fall directly under the purview roadmap to help leaders understand the progression of
of the L&D function itself. Other predictive items included capabilities from lower to higher maturity levels, specifically
focusing on developing employees for their future careers describing how companies should approach employee
(in addition to current needs), allowing employees influence development and learning. The four levels of maturity are:

Figure 1: The Learning Organization Maturity Model*

Level 4
Anticipatory / Flow
Effects Change by Anticipating Needs and Then Augmenting & Leveraging the
Developmental Opportunities Intrinsic in Work • Concentrates on Long-Term
Career Success & Creating Enduring Commitment to Development • Fosters a
6%
Culture of Courage & Innovation • Integrates Feedback Loops & Data into Work
Design • Focuses on Supporting Employees’ Ability to Evolve & Adapt

Level 3
Continuous / Empowering
Effects Change through Empowering Individual-Driven Development • 20%
Leverages Experiences & Consistent Feedback for Development • Continuously Evolves
Technology Infrastructure • Focuses on Creating Conditions That Enable Development

Level 2
Responsive / Contextualized
Effects Change through Creating Employee-Centric Learning • 39%
Applies Design Thinking to Employee-Development Initiatives • Focuses on
Bersin by Deloitte

Implementing Transparent Systems & Processes That Personalize Development

Level 1
Episodic / Programmatic
Effects Change through Courses / Programs • Relies on a Top-Down Approach 35%
to Development • Drives Development of Selected Knowledge & Skills •
Focuses on Enabling Performance in Current Role

*Note: The percentages displayed for each maturity level represent the percentage of survey respondents at that Source: Bersin by Deloitte, 2017.
level of maturity.

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 EXECUTIVE PERSPECTIVE High-Impact Learning Organization: Move Beyond L&D Page 3

• Level 1: Episodic / Programmatic. Level 1 organizations tend

to have fairly traditional ideas about development in general, Mature Learning Organizations Have Better
and see all or most development as a top-down effort. These Business Outcomes
organizations often focus on developing employees in their
current roles and struggle to move beyond offering traditional Mature learning organizations think more systemically and
courses as a way to influence or deliver development. organizationally, resulting in more innovative, agile processes
and better financial outcomes compared to those that stick to
• Level 2: Responsive / Contextualized. Level 2 organizations more traditional L&D methods. Our research used a three-year
still focus on learning and development opportunities created average for two financial performance metrics to gauge whether
by the L&D department. But instead of “pushing” specific high-maturity learning organizations outperformed and found
development and training opportunities on employees, these maturity matters to an organization’s bottom line.
organizations allow for more personalized learning by letting
people choose the resources that work best for them.
Figure 2: Financial Outcome Metrics
• Level 3: Continuous / Empowering. Level 3 organizations focus Difference in
largely on creating the right experiences and culture in order to Financial Mean for Mean for Performance, Level
empower individual learners to drive their own development. Performance Level 1 Level 4 4 Organizations
They generally have less structure and more freedom for Indicator Organizations Organizations versus Level 1
Organizations
employees, and they integrate development more fully into the
daily flow of work than do organizations at lower maturity levels. Three-year
average
$2.02 $4.19 +107%
• Level 4: Anticipatory / Flow. Level 4 organizations think earnings
holistically about their role in employee development and per share
integrate feedback loops and data into the design of work so Three-year
$45.50 $72.73 +59%
employees have consistent access to performance information average
that can help them improve within the current system while Source: Bersin by Deloitte, 2017.
also contributing to decisions about how to modify or evolve
that system.

CASE IN POINT: SUFFOLK SYSTEMATIZES LEARNING FROM MISTAKES

Founded in 1982 and headquartered in Boston, Massachusetts, Suffolk’s leadership is passionate about innovation—but innovation
Suffolk is one of the most successful privately held contractors in in the construction industry differs slightly from innovation in other
the country and is the largest construction management firm in industries. Because it is a business with rigid margins, mistakes are
the Northeast. It is listed as number six on The Boston Globe’s list costly; large ones can quickly eat up margins, possibly putting the
of top places to work and prides itself on being one of the most organization in a position in which it is under contract to deliver
innovative and forward-thinking organizations in its industry. buildings on which it will make no money. Innovation at Suffolk
therefore focuses on creating effective systems and processes that
Although Suffolk’s core business is “building buildings,” its virtually eliminate mistakes and change orders.
employees do not wear tool belts; rather, they manage the trade
partners and specialty contractors that excavate the foundations, For example, Suffolk utilizes virtual design and construction
erect the steel, mount the façade, connect the mechanicals, (VDC) and 3-D modeling technologies. While airplane and
and install the finishes. As part of its project management automobile manufacturers have used this technology for years,
responsibilities, Suffolk is also responsible for leveraging the the construction industry has been playing catch-up. VDC
most state-of-the-art technologies and processes to develop, allows project managers to design and engineer entire buildings
plan, engineer, design, and help clients visualize sophisticated so they can identify design flaws and conflicts long before the
buildings long before the construction process even begins, ground is broken on a project. Once a client signs off on the
while also managing project costs and schedule. As such, the VDC models, the entire project team can be relatively certain
company often relates more to professional services firms than the building can be built to those specifications. This virtually
other construction companies and general contractors. eliminates change orders once construction actually begins,
(cont’d on next page)

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 EXECUTIVE PERSPECTIVE High-Impact Learning Organization: Move Beyond L&D Page 4

Case in Point (cont’d) CALL TO ACTION

which is when changes and rework can be most expensive and Organizational leaders should integrate learning throughout
time-consuming. While VDC modeling may cost a client more the organization, enabling employee development wherever
money up front, it can save significant time and money once and whenever it happens. This admittedly requires a different
construction begins. mindset for the organization as a whole, but especially for the
L&D function. Consider the following three practices to support
Interestingly, the L&D organization plays a significant role in this your journey to becoming a learning organization—one that
type of innovation. Part of the reason it has so much impact is encourages employees to develop and learn in the flow of work,
because the L&D department at Suffolk is structured differently shares information, makes better decisions, and evolves as
from most. Its responsibilities include owning and modifying necessary to meet market demands.
the standard operating procedures (SOPs) for the entire
organization, metrics and analytics for performance, as well as
the education and leadership development of all employees. Figure 3: Three Practices for Becoming a
Learning Organization
The fact that one group owns these three responsibilities makes
it easier for the organization as a whole to view mistakes as data
and use them as learning experiences. How? With its culture of
continual improvement and innovation, the organization does
the following: Own the
stewardship of
• Innovates on systems and processes and then tries them on one employee Focus on the Develop new
development in right things L&D skills
or two sites to test them out, work out the kinks, continue to
all areas of the
improve them, and weed out those that do not quickly deliver business
improvements. Once such an innovation has been proven
effective, the L&D group can then modify the SOP and roll out
training on the new process in a relatively short amount of time. Source: Bersin by Deloitte, 2017.

• Reviews 40 jobs every quarter against a scorecard of metrics

Own the stewardship of employee development in all areas
(including financial, efficiency, safety, and time line metrics) to
of the business. As learning becomes integrated with work,
determine which projects are running well and which require
the entire organization must take ownership of development.
remediation. For those that require remediation, the process is
However, C-suite executives, particularly CHROs and CLOs,
looked at as a learning opportunity both for the organization
have the responsibility or stewardship for what employee
(which might explore, for example, whether SOPs need to be
development looks like—and to represent this new mindset
modified) and for individual employees (who might explore
throughout the organization and in all business decisions. For
what they don’t know but should).
example, leaders should:
Suffolk continues to improve and innovate by leveraging the
• Ensure that employee development is considered in all areas
technologies and processes it already has in place. The company
of the business, including the design of work, technology and
has plans to use the power of Big Data to identify trends and
infrastructure choices, and metrics and analytics.
early indicators of potential challenges, allowing teams to make
earlier and more accurate predictions to optimize productivity • Align points of view on learning culture and learner
and efficiencies on projects and allow for continuous experience to organizational culture and employee experience,
improvement. The company is also working on productizing respectively.
its innovation and improvement processes (similar to the way
software companies launch annual product releases), which will • Help other leaders understand the repercussions decisions
enable Suffolk teams to continuously innovate the construction may have on employee development (either encouraging or
process, add value for clients and partners, and transform the discouraging it).
construction experience by building smart. Focus on the right things. Several of the findings that emerged
from our High-Impact Learning Organization research2 point

2 High-Impact Learning Organization: Maturity Model and Top Findings, Bersin by Deloitte / Dani Johnson, 2017.

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 EXECUTIVE PERSPECTIVE High-Impact Learning Organization: Move Beyond L&D Page 5

to the idea that mature learning organizations and their L&D • Business capabilities such as strategy development, budget
departments aren’t just doing the same old things better; rather, allocation, and marketing and communications allow the L&D
they are doing entirely new things. For example, they focus on: function to run like a business.

• Developing conditions, not content. User experience continues • Performance capabilities help to increase the overall
to be important, but if it is only being considered as it relates performance of the organization. These include performance
to traditional learning methods, you’re missing the boat. consulting and performance improvement. While the first of
Learning organizations should focus on creating conditions these may not be new, its application is now much broader
that make the overall environment more conducive to as applied to a learning organization and development that
employee development. is integrated into work rather than stand-alone learning
experiences. 
• Measuring outcomes, not activity. Our data shows that
mature organizations focus less on activity (training
completions, employee satisfaction, etc.) and more on
key performance indicators and talent metrics that are of
concern to the entire organization.
• Moving from a mindset of conformity to one of empowerment.
More mature organizations are less worried that everyone
learns the same way—or even learns the same things—and
instead trust employees to know what they need and when
they need it. Click to access our core High-Impact
Develop new L&D skills. As we mentioned, learning Learning Organization research:
organizations are much more than the L&D department; • High-Impact Learning Organization: Maturity
however, L&D departments will need new skills in order to take
Model and Top Findings
the lead in stewarding employee development. As a part of our
study, we asked 30 questions about L&D capabilities. We found
three categories to have an indirect but significant impact on
business and / or learner experience outcomes:

• Conditions capabilities such as maintaining a technology stack, A U T H O R

continuously sensing and utilizing data, creating experiences Dani Johnson
versus programs, and being responsive to organizational needs Vice President, Learning & Career Research Leader
enable the L&D function to create the right conditions in the Bersin by Deloitte, Deloitte Consulting LLP
organization.

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