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revious chapters addressed the importance of comprehensive needs assessment and environmental scanning for talent develop- ment. Comprehensive needs assessment is the process of identifying present strengths (proficiencies) and present weaknesses (deficien- cies) of learner categories. Environmental scanning for talent devel- opment is the process of predicting future threats (deficiencies) and opportunities (proficiencies). These two things must be done before organizational strategy is selected for the development of talent—the subject of this chapter.Choosing Organizational Strategy for the Development of Talent: Definition and Importance
Definition.Strategic choice for developing talent resembles strategic choice in strategic business planning. It is the decision to select a long-term strategy for building the organization’s future talent needs.
In strategic business planning,Grand Strategy usually refers to the comprehensive, holistic strategy (the means) used to pursue the ends (strategic objectives) in the future. Grand Strategy traditionally denotes direction for an entire corporation. It guides lower-level strategies of autonomous business units within a corporation and such functions as operations/production, marketing, finance,
CHAPTER 5
and human resources/personnel. Further, it addresses this question: Given pres- ent internal strengths/weaknesses and likely future-term threats/opportunities, what strategy is likely to give the organization the greatest competitive advantages?
Key to an effective strategic choice is the process by which strategy is formulated (Kim and Mauborgne 2002).
The strategic development of talent integrates long-term, intermediate-term, and short-term learning plans designed to cultivate needed talent. It helps meet needs created by strategic business plans and HR plans.Organizational strategy for the development of talent means having a comprehensive, general instruc- tional plan—otherwise called a curriculum—that supports achievement of strategic business plans and HR plans.“Choosing SDT strategy” means decid- ing on an organizational strategy for the development of talent—a long-term direc- tion for learning activities offered by the organization. A strategic choice for talent development is thus a unified learning plan that integrates such WLP functions as organization development, non-employee development, employee development, employee education, and employee training.
The Importance of Choosing Organizational Strategy for the Development of Talent.Organizational strategy for the development of talent positions talent development efforts so that they support Strategic Business Plans,work unit plans, individual career plans, and effective job performance.It prioritizes talent develop- ment activities, concentrating initiatives where they are most likely to be useful to the organization in achieving sustained competitive advantage. It encourages long-term, strategic thinking among learners so they can take charge of their own development initiatives. And it exerts pressure on top managers to consider link- ages between long-term strategic business plans and shorter-term HR decisions.
There are other reasons for choosing a strategy for the development of talent.
First, it helps unify top managers in their thinking about talent development.
Second, it encourages proactive HR practitioners to align their efforts to the real- ization of strategic business plans. Third, it encourages WLP to think strategi- cally, which may be increasingly important in their career success. Fourth, successful organizations in all industries deal strategically with their human resources. Fifth, an organizational strategy for the development of talent guides the management of the WLP department. Sixth, organizational strategy for the
development of talent furnishes information to top managers about employee skills they should use in strategic business planning. Seventh and finally, organi- zational strategy for the development of talent helps implement changes in strate- gic business plans, HR plans, and marketing efforts.
Suggestions for Choosing Organizational Strategy for the Development of Talent
Numerous articles have appeared over the years about strategic planning for human resource development and related topics concerning how to develop the organiza- tion’s talent.At this point, it is worth reviewing the advice of a few of these authors.
Advice.According to published articles on this subject over the years, WLP practitioners—by themselves or in concert with line managers—can take advan- tage of a wealth of accumulated information and advice about how they should pursue strategic planning. Here are some helpful suggestions:
❙ Create a vision of what the WLP department or talent development effort should be at some point in the future (Hulett and Renjilian 1983; Pattan 1986; Ward 1982).
❙ Prepare a purpose statement that clarifies the role of talent development in contributing to achievement of the organization’s objectives and mis- sion (Hulett and Renjilian 1983; Pattan 1986; Ward 1982).
❙ Establish annual planning objectives for talent development, and link these objectives to the business mission (Pattan, 1986).
❙ Create a database about environmental changes inside and outside the organization (Harvey 1983; Pattan 1986; Ward 1982).
❙ Work to develop a holistic talent development plan (Linkow 1985;
Mirabile, Caldwell, and O’Reilly 1986).
❙ Make sure talent development plans support strategic business plans (Harvey 1983; Linkow 1985).
❙ Convince top managers that any change in business strategy implies a change in the future skill or competency needs of people in the organiza- tion (Desatnick 1984; Linkow 1985).
❙ Develop plans for talent development, even when no corporate strategic business plans exist or when the formal plans that do exist are ignored (Linkow 1985; Tregoe and Zimmerman 1984; Ward 1982).
❙ Establish checkpoints and periodic updates to assess whether organiza- tional strategy for the development of talent still matches environmental conditions (Harvey 1983; Ward 1982).
Relatively little has been written about the process of choosing organizational strategy for the development of talent.
Critique.Many articles on strategic planning for HRD or the strategic devel- opment of talent focus only on planning for the HRD or WLP department, and not on the role of all talent development activities in the organization. Talent development planning is sometimes treated as the functional responsibility of WLP managers, rather than treated as a shared, joint responsibility of all pros- pective learners. While the reason for this focus is clear, (most articles on HRD or WLP planning are written solely for an audience of HRD or WLP specialist) the unfortunate implication is that WLP managers should just develop plans to manage their departments, rather than coordinate organizational adaptation to environmental change through learning.
A second tendency suggested in the literature is failing to place the talent development strategy in the broader context of HR planning. If the aim is to mar- shal human talent in the future, however, developing people is not the only way to achieve that objective. Indeed, WLP practitioners should know about initiatives in process improvement and HR areas. After all, talent development planning is affected by other ways to source talent or to get the work done. Examples of those alternatives include outsourcing the work, insourcing (moving the work) from one department to another, and redesigning the work process. In each case, demands for talent are not changed, but are instead shifted from one place to another.
Choosing Organizational Strategy for the Development of Talent: The Process
The process of selecting organizational strategy for the development of talent resembles problem-finding in several key respects. Practitioners find problems,
formulate them, identify appropriate ways to look at them, consider possible solu- tions, and choose one appropriate solution.
Step 1: Find the problems. The starting point for choice of strategy is to determine if a gap does exist (or will exist) between what isand what should be. It is the point when future problems or opportunities for improvement are recog- nized. After considering various alternative strategies or solutions, strategists decide on one they feel will help close present or future performance gaps.
In strategic business planning, a strategic choice is made after comparing an organization’s present internal status and its expected future external environ- ment. Strategic choice thus begins by doing a comprehensive review of factors affecting organizational success. There is no one widely accepted method for conducting such a review because factors affecting organizational success vary widely, depending on the organization’s competitive position in the industry, howinformationis obtained and used, and what strategists desire in the future.
WOTS-UP analysis—sometimes called SWOT analysis—is one way to con- duct this review.WOTS-UP is an acronym created from the first letters of four words– weaknesses, opportunities, threats, and strengths. As used in strategic business planning, a weakness is whatever works against an organization in its present competitive efforts. A strengthis a present advantage that an organization enjoys over its competitors. A threatis an expected future environmental change that will result in conditions disadvantageous to the organization. An opportunity is an expected future environmental change that will produce possibilities for gaining a competitive advantage. See Exhibit 5––1 for selected Web-site resources to support SWOT analysis. Also see Exhibit 5––2 for a diagram that can help you conceptualize relationships between analysis of strengths, weaknesses, threats, and opportunities and how an understanding of those relationships can help in the selection of organizational strategy for the development of talent.
The same idea can be applied to developing the talent of the organization’s people and cultivating the organization’s intellectual capital. Indeed, we have already discussed strengths and weaknesses as results of comprehensive needs assessment (Chapter 3), and threats and opportunities as results of environmen- tal scanning for talent development (Chapter 4). In a formal Talent Development Effort,weakness is any past or present discrepancy between condition (what is)
EExxhhiibbiitt 55––11:: Selected Web-site Resources to Support SWOT Analysis
Link Brief Description
1. http://www.mplans.com/ot/features.cfm Software to support SWOT analysis
?id=155&ac=overture,swotanalysis
2. http://www.mindtools.com/swot.html An article to support individual SWOT analysis for career planning
3. http://www.akstrategic.com/swot.html A graphic with a brief description of SWOT analysis 4. http://www.smartt.co.za/swot/ An interactive tool to construct a SWOT analysis
EExxhhiibbiitt 55––22:: Relationships to Consider in Choosing Organizational Strategy for the Development of Talent
and criteria (what should be) that stems from lack of knowledge, skill, or compe- tency. It is apresent learning need. A strengthis any past or present talent, profi- ciency, or competency. It is a state in which condition (what is) is better than criteria (what should be). An opportunityis a talent, competency, knowledge, or skill expected to make the conditions better than the criteria. A threat is the opposite of an opportunity: It is any expected deficiency, stemming from lack of knowledge, skill, or competency, between what will probablybe and what should be in the future. A threat is thus an expected future learning need resulting from changes in the environment or organization.
Of course, it is also possible to use an alternative approach. Webb and Gile sug- gest reversing the value chain to discover what customers want as a foundation for strategic choice. It is also possible to go to the talented people in the organization to discover what they believe should be done to develop talent more effectively.
In choosing organizational strategy for the development of talent, look at and analyze four areas: (1) external groupssuch as consumers, suppliers, distrib- utors, and the general public; (2) internal work groups or departments;
(3)individuals aspiring to new positions; and (4) job requirements by job cate- gory. You are likely to find instructional needs in each areas. The four markets can be separately analyzed or combined in one overall analysis of needs for the pur- pose of choosing a unified organizational strategy for the development of talent.
The WLP department is one vehicle for meeting these needs; line departments and external vendors are other vehicles for meeting these needs.
The strategy of the talent development effort depends on its purpose. It is thus important to consider strengths, weaknesses, threats, and opportunities rel- ative to purpose. Consider these questions: (1) What is the purpose of the talent development effort? What should it be? (2) What is the purpose of the WLP department relative to the talent development effort? What should it be? (3) What are the responsibilities of line managers and departments in the talent develop- ment effort? What should they be?
Step 2: Formulate problems. The second step in choosing strategy is to for- mulate problems. At this point, it is important to refine, synthesize, and prioritize problems identified in step 1 and filter them through the purpose of the talent development effort. For each present or future learning need, WLP practitioners
and their stakeholders such as top managers and operating managers in the organ- ization should consider:
1. What is this need exactly? How precisely can it be described?
2. Why is it important now? How important is it likely to become?
3. What are the effects of this problem now? What are the expected effects of the problem likely to be over time?
4. What will probably happen if noaction is taken to meet the need? What will probably happen by way of unintended side effects if action is taken at present or in the future?
5. How important is this need in meeting organizational objectives,individual career objectives,and job requirements?
These questions can then be applied to the raw information obtained in the pre- vious step. The answers to these questions can then be compared to the purpose of the talent development effort to determine whether or not they demand action.
Step 3: Identify a way to look at the problems.Once problem areas have been prioritized, WLP practitioners and line managers are ready to look at the problem. They should:
❙ Determine cause. What created the problem in the first place What trends, events, or other future happenings might create new problems?
❙ Find a way to consider a solution. What approaches can be used in problem-solving?
Determining the cause of a problem is rarely easy, because there can be more than one cause. Does a weakness result solely from a lack of knowledge or a skill? Do threats stemming from these causes seem likely? How much do problems that seem to stem from other sources, such as outdated equipment, contribute to lack of knowledge or skill?
Causeis the reason that things have gone wrong or are expected to go wrong in the future. Here are a few examples of “cause”:
1. Lack of communication 2. Negligence
3. Poor standards of performance (that is, standards that are obsolete, impractical, or unclear)
4. Lack of performance standards
5. Decisions to deviate from organizational policies or procedures 6. Lack of resources
7. Dishonesty
8. Departures from common sense or accepted methods of practice 9. Sabotage
10. Lack of motivation 11. Lack of supervision 12. Resistance to change
13. Breakdowns in equipment or automated systems 14. Lack of planning
15. Temporary changes in workflow
Finding a way to consider solutions is a link between problem-finding and solu- tion-finding. From what standpoint do practitioners want to think about solu- tions? There are many. For instance, practitioners can distinguish between
❙ Repetitive and nonrepetitive needs. Every time employees enter the organ- ization or change jobs, they have some instructional needs stemming from change. These are repetitive needs, though the content of instruction will differ, depending on changes in needs over time. Nonrepetitive needs are one-shot occurrences, resulting from the first-time introduction of change. For example, introducing an automated system to employees who have used a manual system creates a nonrepetitive learning need.
❙ Long-term and short-term needs. Some weaknesses take a long time to cor- rect; some do not. Likewise, some threats require more time to prepare for than others.
❙ Critical and not-so-critical needs. It might be more important to the organi- zation’s strategists to focus on a handful of key instructional needs than on all needs. What do they perceive as critical now and in the future? Why?
❙ Creative versus noncreative needs. Will old ways of handling problems work well, or will it be more appropriate to create new solutions? Are
creative solutions easily recognized through analytical methods like flow- charting a procedure? Or will finding a solution require more innovative methods?
❙ Instructional versus noninstructional improvement efforts. Performance of individuals, groups, and organizations can be improved in many ways not just by instruction or training.
❙ Traditional instructional methods. Are other methods likely to be cheaper, more effective, or faster? Consider alternatives to formal instruc- tion, such as: (1) job redesign, (2) job aids, (3) feedback interventions, (4) work group redesign, and/or (5) reward system redesign.
Another way to think about framing problems is to do a WOTS-UP analysis.
Recall that WOTS-UP analysis, also called SWOT analysis, can be used to sum- marize strengths, weaknesses, threats, and opportunities of the organization, work groups, departments, individuals, job categories, or external groups. WOTS-UP analysis can also be linked to distinctive long-term strategies for the talent devel- opment effort, depending on which factors summarized on the WOTS-UP grid are strongest (see Exhibit 5––3).
This basic approach has been used to guide strategic choice in strategic business planning. For example, an organization enjoying substantial internal strengths and numerous environmental opportunities (Cell 1) is in a very favorable situation. The most appropriate strategy is growth. An organization possessing substantial strengths but facing numerous environmental threats (Cell 2) is well- advised to pursue diversification, branching out into new and more profitable businesses rather than trying to grow in the present one. An organization in Cell 3 faces critical internal weaknesses and numerous environmental opportunities.
The most appropriate strategy is a turnaround, a redirection of resources from within. Finally, an organization in Cell 4 contends with both internal weaknesses and major environmental threats. Strategists are well-advised to retrench, cutting back on resources and activities while regrouping forces.
In using WOTS-UP analysis as a problem-framing method, strategists address a central question that they must consider in strategic choice: What is the key goal of the strategy?In other words, do strategists intend to build on strengths,
EExxhhiibbiitt 55––33:: A WOTS-UP Analysis Profile
SSoouurrccee:: Pearce, J., and Robinson, R. (1985). Strategic Management: Strategy Formulation and Implementation.
2nd ed. Homewood, Illinois: Richard D. Irwin, p. 259.
or try to overcome weaknesses? This WOTS-UP approach can yield very useful information for strategic choice.
The same idea, with slight modifications, can be applied to the problem of strategic choice for the talent development effort. A grid like that shown in Exhibit 5––3 can be prepared to represent:
❙ Each internal work group or department: Does the group meet the pres- ent and future needs of the organization? How well is the group present- ly performing, and how well should it perform in the future?