Chief Learning Officer - February 2008 - (Page 33)

environment Perhaps the most interesting part of the question, “When and why is it right for me to consider outsourcing my organization’s learning function?” is that the answer has changed so dramatically in such a short time. Some may remember a recurring character named Mr. Subliminal on the U.S. late-night comedy program “Saturday Night Live.” This individual would intersperse rapid comments under his breath to indicate what he was really thinking and what his true intentions were. (Imagine someone delivering a speech about the importance of a healthy diet while softly muttering phrases such as “chocolate cake” and “candy bars.”) A decade or so ago, an executive who was asked to explain a decision to outsource a function such as IT or learning would probably have replied, “This deal is all about creating better business value,” while under his breath he would have been saying, “Cost savings … 40 percent cost savings.” Today, for a number of reasons, the subliminal message of cost reduction through outsourcing is no longer swaying many minds. The initial cost reduction (now more accepted to be in the 20 percent range) is an interesting conversation. Once those savings are achieved, however, then what? Executives are now after bigger game: delivering on a changing business model or a major new strategic goal that requires a transformed and scalable learning function, and developing and delivering augmented general talent management capabilities to achieve an urgent and vital business objective. For organizations looking to achieve high performance through learning outsourcing, it now really is about driving business value. sets needed in the workforce put a great deal of stress on the traditional, in-sourced learning function. The telecommunications industry, too, is looking to transform itself as certain markets and types of services become saturated and commoditized. Staying competitive involves a reinvention program so sweeping that enterprise learning becomes a key to overall success. That kind of challenge was how the Telstra Learning Academy, created from an outsourcing arrangement, was born. In November 2005, Telstra — Australia’s leading telecommunications and information services company — announced a transformational strategy to extend and strengthen the company’s position in the Australian broadband and wireless markets. Telstra’s strategic agenda was focused both on increasing revenue (by providing new integrated services targeted to business and consumer segments) and on increasing operating efficiencies (by simplifying processes and systems, and by reducing duplication and complexity of existing networks). The strategy was challenging to Telstra’s workforce on several levels. It would result in the building of a new nationwide thirdgeneration mobile network and a 60 percent reduction in the number of network platforms being operated. The transformation also included the deployment of new business and operations support systems and a 75 percent reduction in the number of these systems. According to Telstra Services Group Managing Director Michael Rocca, “We made the decision to leverage an outsourcing solution so our field staff could develop skills in these new technologies more rapidly, to deliver better service to our customers. We wanted our staff to be able to do the best job for our customers all the time.” The learning outsourcing arrangement resulted in the creation of the Telstra Learning Academy. With an initial funding of AU$200 million (US$154 million at that time) over a five-year period, the academy is providing Telstra’s staff with the skills Support for Broader Business Goals The type of request CEOs are increasingly making to learning executives is now likely to be something like, “Help us become a different kind of business,” or “Help us dominate, or continue to dominate, our market.” Companies in the financial services industry, for example, are looking to learning outsourcing to help them evolve a different business model, one that goes beyond transactional banking. They are trying to break down their traditional product silos and develop greater cooperation among different business units to provide integrated offers, which in turn leads to long-term customer relationships that exceed mere transaction support. The new behaviors and mind- 33 February 2008 I www.clomedia.com I Chief Learning Officer http://www.clomedia.com

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Chief Learning Officer - February 2008 Editor's Letter Table of Contents Business Impact Trends Best Practices Effectiveness Guest Editorial Learning Solutions Home Depot: Building Better Associates CLO Profile Environment Realizing the Vision of “One Philips” Tactics Sun Microsystems’ Next-Generation Worker Video Game Recruiting Tool Productivity The Regence Group: Blended Measurement Human Capital NASA: A Case Study in Technical Leadership Development Case Study Business Intelligence Advertisers' Index Editorial Resources In Conclusion

Chief Learning Officer - February 2008

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