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Learning Organization Governance for Top Performers
1. Designing the Organization Structure
& Governance Model
April 30, 2009
Gwen Callas-Miller
Textron
Sue Todd
Corpu
2. The CorpU Member Network
A private network serving learning and talent executives since 1997
3. Human Capital Challenges
Strengthen Become
Achieve L&D Drive Business
Leadership Employer of
Excellence Impact
Bench Choice
• •
Align learning •
Speed throughput • Support top line
Attract the best
with key business of leadership growth
talent in the
priorities pipeline industry
• Reduce cost
• •
Organize L&D to Improve HiPo • Achieve top
support •
identification & Increase profit per
quartile retention
continuous development employee
of key people
business change
• •
Meet changing • Accelerate
Improve overall
• Execute learning generational success of
employee
program design needs mergers &
engagement &
and delivery acquisitions
loyalty
•
efficiently Engage leaders
•
as teachers • Support global
Become a great
• Measure the growth
place to work
•
impact of learning Ensure manager-
•
led development Improve
performance
• Develop strong management
succession plans
4. Three Basic Models
Centralized Decentralized Federated
• Strong • Business units • Central core team
coordination own and operate develops
through central independent L&D enterprise
core team teams programs, sets
and enforces
• Reports to single standards,
• BU L&D teams
manages
learning executive sometimes form
enterprise systems
Council to share
• Accountability for best practices; little
• BUs responsible
enterprise-wide to no enforcement
budget, resources, for local learning
L&D talent and and delivery for
• Challenged to
external enterprise
address enterprise
partnerships programs
change initiatives
4
7. Centralized Decentralized Federated
Strong control over all Empowers BU L&D Balances freedom with
STRENGTHS
aspects of L&D, and teams who are in a control among the
central integration good position to central team and
points to HR processes understand the needs of separate BU L&D
the customer organizations
Decision-making Allows freedom and Fosters a strategic
concentrated in the ownership among longer-term approach
hands of a single group training groups through agreements
between operating units
Provides a single voice Provides quick Addresses redundancy
to ensure consistent response to immediate issues without
diminishing BU’s ability
messages across the needs of line managers
enterprise to focus on local needs
Eliminates redundancy Programs are perceived Creates opportunity to
as being more relevant appreciate diverse
to the needs of the approaches, and
workforce standardize the best
ones
Easier to develop brand
and strengthen
reputation of a single
identity
10. Centralized Decentralized Federated
Eliminates diversity Fosters fragmentation Consensus decision-
WEAKNESSES
across programs that and duplication of effort making can delay
can provide insights on action
the “Voice of the
Customer”
Programs and services Difficult to create Some L&D teams may
may not adequately common skills and opt out of agreed
serve the unique needs approaches across the programs
of the business units organization
Can lead to weaker Often not strategic due Tough to redistribute
relationships with to focus on daily budgets to address
business unit managers challenges changing enterprise
objectives
Programs may have a Potential to put local
“corporate” flavor priorities above
corporate objectives
Central team can be
viewed as being
reactive
11. Centralized Decentralized Federated
Strong control over all Empowers BU L&D Balances freedom with
STRENGTHS
aspects of L&D, and teams who are in a control among the
central integration good position to central team and
points to HR processes understand the needs of separate BU L&D
the customer organizations
Decision-making Allows freedom and Fosters a strategic
concentrated in the ownership among longer-term approach
hands of a single group training groups through agreements
between operating units
Provides a single voice Provides quick Addresses redundancy
to ensure consistent response to immediate issues without
diminishing BU’s ability
messages across the needs of line managers
enterprise to focus on local needs
Eliminates redundancy Programs are perceived Creates opportunity to
as being more relevant appreciate diverse
to the needs of the approaches, and
workforce standardize the best
ones
Easier to develop brand
and strengthen
reputation of a single
identity
13. Centralized Decentralized Federated
Eliminates diversity Fosters fragmentation Consensus decision-
WEAKNESSES
across programs that and duplication of effort making can delay
can provide insights on action
the “Voice of the
Customer”
Programs and services Difficult to create Some L&D teams may
may not adequately common skills and opt out of agreed
serve the unique needs approaches across the programs
of the business units organization
Can lead to weaker Often not strategic due Tough to redistribute
relationships with to focus on daily budgets to address
business unit managers challenges changing enterprise
objectives
Programs may have a Potential to put local
“corporate” flavor priorities above
corporate objectives
Central team can be
viewed as being
reactive
14. Centralized Decentralized Federated
Strong control over all Empowers BU L&D Balances freedom with
STRENGTHS
aspects of L&D, and teams who are in a control among the
central integration good position to central team and
points to HR processes understand the needs of separate BU L&D
the customer organizations
Decision-making Allows freedom and Fosters a strategic
concentrated in the ownership among longer-term approach
hands of a single group training groups through agreements
between operating units
Provides a single voice Provides quick Addresses redundancy
to ensure consistent response to immediate issues without
diminishing BU’s ability
messages across the needs of line managers
enterprise to focus on local needs
Eliminates redundancy Programs are perceived Creates opportunity to
as being more relevant appreciate diverse
to the needs of the approaches, and
workforce standardize the best
ones
Easier to develop brand
and strengthen
reputation of a single
identity
16. Centralized Decentralized Federated
Eliminates diversity Fosters fragmentation Consensus decision-
WEAKNESSES
across programs that and duplication of effort making can delay
can provide insights on action
the “Voice of the
Customer”
Programs and services Difficult to create Some L&D teams may
may not adequately common skills and opt out of agreed
serve the unique needs approaches across the programs
of the business units organization
Can lead to weaker Often not strategic due Tough to redistribute
relationships with to focus on daily budgets to address
business unit managers challenges changing enterprise
objectives
Programs may have a Potential to put local
“corporate” flavor priorities above
corporate objectives
Central team can be
viewed as being
reactive
17. Tug and Pull of Centralization Vs. Decentralization
Centralizing Knowledge
Centralization Decentralization
Decentralizing Activity
Improvement of
Knowledge
Centralizing
Improvement of Activity
Activity
17 Source: Trompenaars, Fons. “21 Leaders of the 21st Century”. 2001
18. L&D as Business Partner:
A Model for Governance and
Execution within a Large
Organization
April 30, 2009
Gwen Callas-Miller
Exec. Dir., Global Leadership
Development
Company Confidential Company Confidential 18
19. Quick Facts About Textron
• Headquartered In Providence, RI
• Approximately 38,000 Employees in 29
Countries
• Manufacturing Operations in 20 Countries
• 2009 Fortune 500 Ranking: 173
• NYSE: TXT
19
20. Leading Branded Businesses
Textron
Cessna Industrial
Bell Finance
Systems
20%
40% 5%
20% 15%
Bell Helicopter Textron Systems
Cessna Aircraft Textron Financial
E-Z-GO
Greenlee
Jacobsen
Kautex
2008 Textron Inc. Revenue: $14.25 Billion
20
Note: Percentages reflect portion of 2008 Revenues
21. Transforming Textron –
Our Ongoing Journey to Premier
VISION:
To be the premier multi-industry company, recognized for our network of
powerful brands, world-class enterprise processes and talented people
NETWORKED ENTERPRISE
A Simpler, More Focused Portfolio of
Leading, Branded Businesses in Attractive
Industries
Enterprise Portfolio
Management Management
What
How We Manage What
We Own We Own
21
22. Results of Transformation
Pre-2001 Today
• Decentralized, • Networked organization
holding company
• Common processes
• Businesses insulated
• Horizontal councils for
• Redundant activities, functions
spend • Enterprise-wide values,
• Limited sharing of development
talent • Federated learning model
• Decentralized
learning model
22
23. Talent Development as Key
Element of Transformation
Pre-2001 Today
• Enterprise COE for talent:
• Continuum of development
resources across businesses - • Learning (Textron Univ.)
“Haves” and “Have Nots” • Performance Management
• Top level succession focus • Vertical /Horizontal Succession
•
• Two executive development Career Development
learning programs • Engagement
• Change Management
• Businesses responsible for unique
needs
• Tight collaboration with BUs through
governance structure
23
24. Textron University’s Role in Transformation
• Level the playing field for high quality,
consistent and cost effective learning
• Focus on enterprise learning strategy linked
to business and needed across the company
– leadership, functional excellence and
business skills
• Viewed by CEO, Leadership team as an
enabler to developing talent and providing a
mechanism to bring leaders together to
drive desired culture
24
25. Governance Structure & Flows
Transformation
Leadership Team
External
Textron Councils
Benchmark
Textron University Functional
Sources
Advisory Group Requirements
HR Leadership
Council
Performance
Textron University Solutions Managers
Lead Executive Leadership & Functional
Requirements
Talent Development
Advisory Group
BU L&D Textron Univ
Support Team
Design & Execution
Textron University Team
25
26. Role of L&D Advisory Group
• Serves as “voice of the customer” on annual
strategic learning plan
• Functions as extended TU team by
participating in program design, supplier
assessment, executing communications and
getting local consensus on priorities
• Collaborative partnership – for the most part
• Members value:
– Opportunity to shape learning beyond their BU
boundaries, and
– Share best practices across businesses
26
27. Textron University Advisory Group
Textron’s Transformation Leadership Team
(Management Committee & all Business Unit CEOs)
TUAG Chair
Chief HR Officer,
& Management Comm.
EVP Government,
EVP Operations VP HR
Industrial Segment
International &
Bell Helicopter Cessna
President
Management Comm.
EVP, Chief Counsel
Dep. Managing Dir. Asst. Controller
EVP Strategy, Textron Financial
Global Tech Center Textron
Textron Company
India
Exec. Dir.
Global Leadership
Development, Textron
*
Senior Team of Top BU and Function Executives 27
28. Role of the Governing Board
• Ensures strategic objectives are aligned with
enterprise objectives
• Serves as a decision making body, accountable
to make choices on priorities and investment
• Evaluates ongoing performance and value of
Textron University to the enterprise
• Members serve as champions – demonstrate
executive commitment to learning as a strategic
enabler
28
29. 5 Key Dimensions of Governance
1.
Accountability
•Making a commitment to deliver measurable business results
2.
Operational Effectiveness
•Driving out costs and pursuing optimal efficiency
3.
Program and Service Quality
•Establishing and enforcing quality standards
4.
Effective Controls
•Accounting for and controlling expenses across the enterprise
5.
Adherence to Enterprise Priorities
•Maintaining site of corporate objectives in relation to local needs
30. Marks of Good Learning Governance
Clear view of how
Executives engaged and
business strategies are
able to describe work-
enabled by key learning
force capability plan
programs
Formal planning and
communications Business objectives
processes to keep BU measured to evaluate
leaders informed about learning investments
strategies
Costs decreasing on
operational processes
31. Governance Mechanisms
Decisions, Policies, Processes
Financial
People Portfolio
Program Funding Model
Service Usage Fees Programs
Roles & Responsibilities
Infrastructure Funding LearningServices
Shared Services
Facilities and Technologies
Process Owners
Program Oversight Strategic Planning Process
DRIVEN BY
Rationalization Process Enforce Standards
Programs Operations
EXECUTIVES
Shared Artifacts Enforce Policies
Learning Platform Talent Processes
Data Admin Controls Performance Processes
Requirements Definitions
Data Standards
Exception Policy Work Force Utilization
Reporting Policy Integration
Technology
Information
34. Governance for Federated Structure
Executive Committee
Group Leader
Learning Core Team Principal Advisor
Curriculum Curriculum Curriculum Curriculum Curriculum
Curriculum Curriculum
Designer Designer Designer Designer Designer
Designer Designer
Name
Name Name Name Name Name Name Name
Name Name Name Name Name Name
Asset Marketing Community HSE Exploration Project Continuous
Mining Diamonds Finance Shipping Procurmnt HR Leadership
Mgmt Relations Mangmnt Improvmnt
Training Curriculum Sponsors
Advisory Advisory Advisory Advisory Advisory Advisory Advisory Advisory Advisory
Advisory Advisory Advisory Advisory Advisory
Board Board Board Board Board Board Board Board Board
Board Board Board Board Board
Regional Capabilities
Performance Training Delivery
LMS Administration Solution Sourcing Vendor Management Localization
Consulting Logistics
Business Unit Training
34
Operational Site Specific Training HSE Certification
35. L&D as Business Partner:
A Model for Governance and
Execution within a Large
Organization
April 30, 2009
Gwen Callas-Miller
Exec. Dir., Global Leadership
Development
Company Confidential Company Confidential 35
37. Upcoming Webinars
Learning Brand in Action:
Driving Innovation in Enterprise
University of Farmers
Learning with Web 2.0 and Social
Networking
May 20, 2009 June 9, 2009
11:00 a.m. – 12:00 p.m. EDT 2:00 p.m. –3:00 p.m. EDT