How Corporates can Build in-house Learning and Development Units?
Having a learning and development (L&D) function at the heart of a business can be immensely valuable. We refer to this as a corporate learning unit (CLU), which can integrate training and development across the company, provide cross-divisional learning programs and help to ensure that all learning is aligned with the company’s strategic objectives.
While there is no single “right” way to build a CLU, if its strategic mission, scope, structure and operating processes are not aligned, it will not perform at its best. With that in mind, here are 10 points to consider when designing a corporate learning function.
1. Define the CLU’s mandate. Which aspects of learning and development will be centralized? Which will remain
decentralized, while coming under central control? Which employees fall within the unit’s remit? What sorts of training development will it offer? The details of the CLU’s scope will vary considerably between companies; what is important is that the objectives are clear, realistic and reached by negotiation rather than assertion. Once the mandate is agreed, the CLU’s actions must always be aligned with it, but you should bear in mind that the mandate will evolve as the company’s circumstances change.
2. Nominate a champion. Objectives and plans are not enough.
Unless the project is led by a person of recognized authority, the risk of falling short of your goals is high. This project
champion must have both personal credibility and strong support from top management in the corporate center.
3. Decide on a structure and establish a network. The structure could be anything from a US-style corporate university to a looser European-style federation of learning managers. Either way, you will need a coordinating body to run the show and a network of people who will be responsible for implementing the CLU’s decisions across the company.
4. Rationalize L&D offerings across the company. Reducing duplication will usually lead to immediate, substantial cost savings, and is a good way to get a quick win early on. You should also set up a global reporting system that will give the company an overview of how much it is spending on L&D and exactly where the money is going.
5. Centralize IT systems. Aim to have all L&D providers in the organization use one single learning management system to handle things such as the program portfolio, delivery logistics, participant nomination and evaluation. This system should connect to the reporting system mentioned above and the HR systems that record employees’ training and development.
6. Structure the global program portfolio. The CLU should provide a coherent, structured selection of programs, with clear criteria indicating what is centralized and what is decentralized. Typically, induction courses and programs aimed at the top echelons of management are designed and handled centrally; those for mid-level managers are designed centrally but delivered locally; and training programs that are specific to one particular business unit or region are designed and delivered there to agreed central standards.
7. Set up a network of trainers. Some companies require each decentralized unit or region to find its own speakers, coaches and so forth. Others prefer to set up a central pool of in-house certified trainers who can be deployed across the business. This has the added benefit of providing development opportunities for these managers as well.
8. Establish a vendor database and agree on outsourcing processes. Your company’s standard procurement protocols will form the foundation of this work but more specific L&D processes will also need to be agreed. Issues to consider include the company’s ability to deliver programs in-house, and the quality and relevance of external providers, including the value of having an outside perspective.
9. Equip your CLU as a center of expertise. A number of companies have started to set up CLUs in a way that allows them to provide support services for the business as a whole. For example, the CLU might be contracted to design a specific program to meet the needs of a local business unit. With the right experts on board, the CLU can effectively become a source of in-house consultants who can help diagnose organizational development problems.
10. Ensure good governance. The governing body will usually be different from the coordinating body mentioned in point three. Its job is to keep the CLU’s mandate up to date and constantly aligned with corporate strategy; to make sure that the executive responsible for running the CLU has the authority needed to do his or her job effectively; and to ensure that the CLU is properly resourced. It should, therefore, be composed of stakeholders from the business and the board as well as HR.
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