Also in today's USA Today is an op-ed piece by Fast Company founding editor Alan Webber. Webber recounts how executive development is often one of the first programs cut during a downturn as leaders look for short-term quick-fix ways to eliminate "non-essential" investments.
While the economy seems to be starting to stir again, Webber indicates that little of the uptick has reached workers yet -- suggesting that rather than hire, organizations would rather nurse still more productivity gains from the people who've remained employed. But the most interesting part of his commentary is the parallel he draws to the '70s.
Then, as American manufacturers faced increasing competition from Japan, they focused on what Webber terms "financial engineering" rather than innovation and quality. Now we face increasing competition from China and India, and Webber contends that the current cuts in leadership development are short sighted and -- in the end -- undermining American business.
During last year's Company of Friends Roadshow, Laurie Bassi, chairwoman of KnowledgeAssetManagement, told me that it was more cost-effective to invest in training during a downturn. Some Fast Company readers have disagreed, telling me that remaining workers' time is more valuable during slower times because we're continually expected to do more with less. "It's hard to rationalize taking a day off for training when you now have the jobs of three people," one woman said.
What do you think? Is cutting back on training and development short sighted -- or a solid survival strategy? Add a comment and let us know what you think.
Related Stories: | Topics:Management, learning, training, + development, Alan Webber, Fast Company Magazine, USA TODAY, Japan, Laurie Bassi |
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Recent Comments | 4 Total
November 4, 2003 at 11:59am by mark
Absolutely it is short sighted. It is survival strategy but it's not solid if the company wants to be successful beyond pleasing stockholders.
Your magazine has continually been writing about significance and meaning in business and I truely believe there is an undercurrent of opportunity to invest in people and social capital within organizations. The pursuit of financial wealth can only take our society so far. Business financial values are "driving" our democracies but are eliminating the hearts and souls of people from the center.
We are closing in on a potential capitatistic enlightenment of democracy and it seems like we may be moving through the friction points now.
Maybe the next question could be "How do we invest in training and what kind of training do we invest in for our organizations future abundance?"
November 5, 2003 at 11:54am by Mike Richardson
I read Mr. Webber's article in the USA Today paper and he is," right on target." It is refreshing to have someone write about this major issue that is so vital to our economy and American workers. I have been in management for over 30 years and I have experienced what he discusses in his article.You would think that corporate American would have learned something over the years. The employees are once again expendable. As history has shown us the," worm will turn" and the companies will begin to beat down doors to get people back as the babyboomers retire and the over seas workforces start to develop problems.
November 5, 2003 at 12:08pm by Eric LaBat
This practice - eliminating leadership development when times are tough - is beyond shortsighted. We are all aware of orgainzations that have pilfered the ranks of employees, promoted those few remainging quickly and without substantive technical training and increased the amount of pressure on the organization to succeed with little more than a nod to "meeting shareholder requirements".
As a result, not only do we have a talent pool without the necessary experiences and tools to succeed, but we now have stepped markedly away from formal leadership as a fundamental component of business strategy.
How can an organization build technical competence without clear vision? I don't mean that we need more recitations from corporate consultants extolling the virtues of mission statements and core values. I mean the real leadership tenets of successful people and companies, whatever their vision is, that becomes the primary driver of the character of the organization.
We have lost sight of what it means to lead people through problems. We now "think" or "manage" our way through problem resolution and certainly, critical thinking is a noteworthy pursuit. But ultimately, it is an empty pursuit if no one is standing in front with the "how to" and "why we should" banners.
It is when critical thinking meets purpose and resolve that American companies become great. And I doubt seriously that purpose and resolve can ever be achieved without great leadership.
That's something to train for, no matter what the economy says.
November 12, 2003 at 10:59pm by Mark Sturgell
Training and development a waste and rightfully cut if you're going to cut something? Not so quick.
First, organizations don't fail but people do. And they succeed too. Invest in people; that's where the payoff is.
Second, people are hired because of their skills and knowledge. They fail (or succeed) because of their attitudes and habits. Training focuses on skills and knowledge, but seldom is offered just at the time when new skills and knowledge are needed. No wonder ROI of training is at 15% or less.
Third, development of people pays. How's that different from training, you ask? Again, training is about skills and knowledge. Development helps people put their skills and knowledge to work. You learn new skills and knowledge. You develop new attitudes and habits. Why don't more companies invest in development of the attitudes and habits of success instead of pumping money into the latest list of "Leadership competency" clone factory? I really don't know.
Finally, do you want to make a good investment in good times and bad times? Of course, and you guessed it: Focus your budgets, time and commitment to change on Development rather than training and you will more likely produce effective leaders rather than merely victims of training. Tie in measurable individual goals and you can also get the ROI you dream about.