Chapter 3

The Business Case

for Learning

Rita Bailey

In This Chapter

 Understand the key business issues that

organizations face
 Learn how the learning function can become a
strategic partner in supporting organizational needs
 Learn a model to make the learning function more
strategically oriented

hy is there a need to present a business case for learning? Because a significant

W number of organizations profess that their workforces are not adequately prepared
to meet future plans. The focus on learning ebbs and flows with the changing tides of busi-
ness, but there has never been a better time for workplace learning professionals to estab-
lish a permanent seat at the table as strategic business partners. The value and proof are
demonstrated through the positive effect that learning has on every facet of a business.

Talent management is the buzz in every organization whether profit or nonprofit,

domestic or international, large or small. Chief executive officers and boards realize that
it is more critical than ever to have an integrated approach to talent management and to

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ensure that they focus on aligning their workforce with organizational goals. The learn-
ing function can play a significant role in providing people with solutions that address
critical business drivers such as retention, leadership development, operational effec-
tiveness, employee motivation, and workforce performance. Aligning employees with
the goals of the organization leads to individual commitment, improved culture, and pos-
itive financial results.

By reviewing key business issues, learning trends and indicators, and best practice exam-
ples, I will present a provocative case for leveraging the learning function in your organ-
ization. I will also provide a framework for you to evaluate your current plan or develop
a strategic learning plan.

Training Versus Learning

The cover story in the December 2003 issue of T+D magazine concerned the future of
the profession formerly known as training (Galagan, 2003). When asked how the profes-
sion should be identified, 32.4 percent of the respondents included the word training in
their answers, whereas workplace learning and performance was the largest single answer
at 31.9 percent. Since that time, ASTD has been very deliberate in driving the industry
toward learning for performance. There really is no debate, because training and learn-
ing go hand in hand.

Whether you consider yourself a trainer or workplace learning professional, the focus
should be on the intended outcome and result of the training. For the purpose of mak-
ing a case for learning, it is important to define how the two concepts coexist. Although
many people use the words interchangeably, there are fundamental differences. Training
(something an organization provides for employees) focuses on the event, whereas learn-
ing puts the emphasis on the learner to apply the new information. Training is about
what I, the trainer, am providing for you; whereas learning (something an individual
accomplishes with possible assistance from the organization) is more self-directed and
about how I, the learning professional, can collaborate to help you get what you need to
be successful. Training events are rooted in instruction and drill and are focused on spe-
cific skills that are not always transferable to other job responsibilities. Training is essen-
tial for performing critical skills and processes.

Creating a learning environment and preparing people to adopt and apply knowledge
and new behaviors require much more than instruction or drill. It is an ongoing commit-
ment for people to develop deeper understanding and thoughts that drive the right
action for different situations beyond specific events. It’s important to increase the value

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quotient for applying learning as an outcome, versus training events that may or may not
motivate, engage, or change participant behaviors, thoughts, or skills. By shifting this
perception, the chances of being at the top of the cut list can be considerably reduced,
because the learning function is no longer viewed as just a series of training events.

Table 3-1 illustrates the difference between training in a skill and focusing on intended
business outcomes.

Table 3-1. Differences Between Training and Learning

Training Learning

Classrooms, labs, lectures, demonstrations, Discussions, simulations, role plays,

seminars, conferences, shadowing, job aids, experimentation, mentoring, coaching, case
presentations, etc. studies, games, interactivity, support, etc.

Management techniques Leadership

Technical operation Strategic planning

Sales techniques Successful selling

Six Sigma (quality) tools Six Sigma (process improvement)

Order processing Customer service

Project management tools Effective project management

Performance appraisal Performance management

Product features and functions Technical troubleshooting

Report writing Communications

Not Training as Usual

I once visited with a CEO who desired to change the culture of his organization. He sug-
gested that everyone in the organization needed customer service training to address the
decline in customer satisfaction scores. He wanted a blended learning approach where all
300 employees would attend a four-hour class with an online module as a follow-up. This
had been the model for the previous five years and seemed to have satisfactory results. I
asked several questions to determine the real business issue before recommending addi-
tional solutions:

■ What business are you in?

■ What differentiates you from the competition?

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■ Why are people resisting change?

■ Are they saying, why should I or how can I?
■ Is the issue that they don’t know how to or they don’t want to?
■ Does the work environment support different ways of learning?
■ How tightly are your culture and business results linked?

After a few more questions like these, he finally agreed that training was not the only
answer. This was a perfect opportunity for the training department to elevate its value by
not just taking the order to deliver customer service training, but recommending and
developing a strategic solution to address the business need. By involving senior leaders
and customers in interactive discussions with employees, everyone in the organization was
involved in contributing ways to increase customer satisfaction that went beyond training
classes. Whether you are a trainer, organization development or learning professional,
consultant, or coach, the effect on the bottom line depends on what happens as a result
of your recommendations or actions. Too often, trainers and workplace learning profes-
sionals are relegated to the role of order taker versus strategic partner. This will change
only when we learning professionals start to think like the CEO and position the learning
function as a catalyst for change. Executives realize that to stay ahead of the competition
and consistently grow the business they must have a high-performing, engaged workforce.

The Value Proposition

Identifying business needs and problems and coming up with appropriate solutions are
the way to deliver valuable results. Value is defined by the receiver, not the giver, so estab-
lishing collaborative relationships and partnerships inside and outside the organization is
paramount for successful outcomes.

Until the organization embraces the notion of learning as a strategic advantage, the
requests will still focus on “doing training.” The response should be yes, thus opening the
door to turn training requests into opportunities to add value and to change the percep-
tion of the training function.

Following are examples of how traditional training events were leveraged to create addi-
tional value and benefits:

■ Level 1 initiative: Turn a training request into an opportunity to create value and
have an effect.
■ Level 2 initiative: Identify opportunities to partner with clients on strategic
initiatives.

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■ Level 3 initiative: Recommend new opportunities to add value or affect clients

or executives.
■ Level 4 initiative: Use long-term tracking to evaluate sustainability.

In today’s dynamic environment, organizations must find innovative ways to leverage

talent and connect people to the business. Providing development opportunities for
employees can be a competitive advantage. It’s no coincidence that we’re seeing a move-
ment toward training that speaks to the whole person. Many companies are offering
courses that focus on personal and family issues such as “how to talk to your teenager” or
“how to be a great single parent” or “finding your creativity.” Although some executives
consider this insignificant and fluffy, savvy organizations know that better human beings
make better employees. Many organizations treat their people like human doings instead
of human beings. Organizations on the Fortune 100 list of best companies to work for and
other lists that highlight great places to work consistently invest in developing the whole
person. SAS offers a work-life center with programs that address the issues its people are
most concerned about, from raising children and taking care of aging parents to financial
planning for the future. By getting the help they need, employees are less burdened and
can be more effective on the job. As a result, voluntary turnover is about 3 percent. The
Container Store, a national retail chain, has purposefully created a people-centric culture
that stands out from other retailers. New full-time employees receive 235 hours of train-
ing, compared with the industry average of seven hours.

The learning philosophy at Southwest Airlines is to support the company customer

service mission by providing all employees equal opportunity for growth and develop-
ment and ensuring that they are treated with the same respect and care that they
are expected to show the customer. This philosophy provides a lot of latitude for the
trainers and learning professionals to design, develop, and deliver the most effective
learning initiatives. In addition to the standard technical training and leadership
development offerings, the University for People at Southwest also provides career
development sessions and optional career coaching, leadership briefings for directors
and vice presidents, an annual Message to the Field road show, and countless partner-
ship initiatives with various departments.

In the long run, the best companies win with highly talented, highly committed employ-
ees. General Mills recruits people with great potential and provides the tools and expe-
riences to bring that potential to life. Commitment to perform is based on working for
terrific leadership, getting meaningful development, and having empowering jobs where
you can make a difference. At General Mills, the CEO is committed to supporting learn-
ing as an enabler for the business strategy.

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At Tyco Fire and Securities the focus is on business results, not course content per se.
Learning is integrated into the fabric of work. Content must be tied to current and future
job requirements. The organization provides a road map of courses that, given level,
tenure, and function, clearly defines what skills are required for an employee to succeed.

North Shore–Long Island Jewish Health System (LIJ) is a 17-hospital network with some
35,000 employees to educate annually. To meet the challenge of educating and synthesiz-
ing such a large and diverse medical system, the organization created a comprehensive
learning strategy to help the health system culture emerge, transfer knowledge and best
practices, and implement learning initiatives that support North Shore–LIJ’s strategic
business goals and objectives. The Center for Learning and Innovation (CLI) was
launched in January 2002 using a “leader as teacher” model that places senior executives
at the helm of classroom instruction. Their job is to encourage mutual learning between
the front line and executive leadership. Outcome measures are developed in alignment
with learning initiatives. Learning initiatives include separate tracks for different levels of
management: middle management, senior management, senior executives, and executive
education for nurse and physician leadership. There are enrichment classes like stress and
time management, leadership concepts, and team building, which are available to all
employees to enhance personal and professional development. In addition, every Monday
morning, Michael J. Dowling, president and CEO of North Shore–LIJ, hosts a foundations
course for all new employees.

Keep in mind that not all training has an immediate effect on the bottom line, so consid-
ering strategic and tactical initiatives in the plan is important. Although compliance and
regulatory training do not have the same appeal as other offerings, they are an important
part of the integrated strategy. If not implemented, there can be a negative financial
effect on the organization. It is the role of the learning function to determine the priori-
ties linked to the business goals and decide what to focus on and why.

How ready for change is the average person in your organization? How would people
define the organization (a learning organization or learning community)? Can you
change direction quickly to stay competitive? Do people see changes that could benefit
the organization, but they aren’t speaking up? What signals alert you to the need for
change? What have you missed in past years that should have been a signal for change?
How do organizations like Southwest Airlines, Four Seasons Hotels, Nordstrom, SAS,
TDIndustries, Timberland, W.L. Gore, and Goldman Sachs maintain long-term success
and stability and continue to invest in people development during the tough times? The
organizations that achieve the best results in building forward-thinking, adaptable prac-
tices that transcend the “stagnant quo” have little to do with implementing various
change models. They maintain the leading position because they have been successful

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in intricately connecting people to their business. The learning function is perfectly posi-
tioned to affect the bottom line by building trusting relations, providing relevant learn-
ing solutions, challenging and changing inefficient and ineffective processes and systems,
and developing inspiring leaders to reshape the workplace of the future.

A Model for Developing a Strategic Learning Plan

If you ever had a BHAG (Big Hairy Audacious Goal) but just didn’t know how to get
there, the following model will serve as a map to develop an extraordinary strategic learn-
ing plan that links people to the business (see Figure 3-1). It divides the thinking process
into four continuous phases that are linked sequentially to provide a unique route to
improved performance.

Awareness
Awareness involves creating a compelling picture that everyone can see.

The fundamental outcome of awareness is focus. Where do you want to be? How relevant
is the learning function? Why should the organization not outsource the entire function?
What needs to change if you are going to gain trust and respect at the executive level?
How are employees involved in providing input and feedback? What do you offer or do
better than anyone else, and how is this communicated throughout the organization?

Figure 3-1. The 4-A Model

AWARENESS ACTION

ALIGNMENT ACTION

ACCOUNTABILITY ACTION

ADAPTATION ACTION

Source: Cawood and Bailey (2006). Used with permission.

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Once you’ve identified the business need and determined opportunities to create value
and positively affect the bottom line, it is important to communicate throughout the
organization the purpose and role that the learning function has in solving a problem or
contributing to the overall strategy. Even though the titles vary by organization (training,
performance improvement, human capital management, and organizational effective-
ness), the typical expectation of this role is that people will have the skills to do their jobs,
leaders are developed to carry the organization forward, and overall productivity and per-
formance continue to improve. In addition to these fundamental needs, the goal is to
expand the expectations to include involvement in broader business objectives like
improving core business processes, assisting with entering new markets faster, improving
cycle time for product introduction, increasing customer satisfaction, and helping to
reshape the culture.

Every learning strategy should answer the “what” and “how” questions at an intellectual
and emotional level, so that employees will be more likely to take an active role in the
learning experience. Needs first, solutions second!

Six traits of a highly effective learning organization include

■ Learning aligned to business goals

■ Measures that indicate the overall business effect of the learning function
■ Learning outside the walls of the organization
■ Focus on competencies that support most critical organizational needs
■ Blended delivery approaches
■ Mature design and delivery of leadership development.

Alignment
You have alignment when all the dots are connecting (people, processes, systems, and so
forth).

Is everything and everyone focused on the business results? Balancing priorities, elimi-
nating contradictions, removing constraints, and designing systems that support the
learning goals can be a powerful contribution to the organization and can eliminate many
internal and external customer frustrations. The learning function can play a significant
role in eliminating silos. Many of the best practices inside organizations are not shared
and, therefore, cause duplication of efforts, unnecessary outsourcing, conflicting mes-
sages, and lost revenue. Knowledge sharing and access to content are key factors in
establishing a foundation for participatory learning. When people have information,
resources, and support, it increases their capability to perform at peak levels.

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Accountability
Are the right behaviors being reinforced? Is there accountability in your organization?

Having a shared purpose for learning is what motivates people to actively participate and
contribute because they want to, not because they have to. Whether for individual devel-
opment, team building, or leadership advancement, learning is everyone’s business.
Creating a culture that promotes, acknowledges, and rewards learning results in commit-
ted engagement and high performance rather than compliant apathy.

Adaptation
Are ongoing adjustments made to keep the learning strategy on course?

The way we communicate is changing, technology is constantly changing at warp speed,

learners are changing, and our role as learning professionals is changing. Learning is
about change, but it doesn’t have to be painful. When done well, people change for the
better. Relationships change. Organizations change. It’s about making appropriate small
adjustments as the business evolves and monitoring results. It’s deciding what to start,
stop, and continue doing. The learning function can assume the scout role in monitoring
competitive, trend, and benchmark data that help keep your organization out in front of
the competition. What is your organization doing to enable employees to create the ideal
customer experience? How does learning help to influence innovative thinking?

Summary
Aligning the workforce with organizational goals leads to individual commitment, an
improved organizational culture, and positive financial results. One way to do this is to
create a learning environment and prepare people to adopt and apply knowledge and new
behaviors, which requires more than the traditional, order-taker approach to training.
One way to elevate the learning function beyond this traditional approach is to apply the
4-A model, which combines awareness, alignment, accountability, and adaptation to
create a compelling picture of what the learning organization could achieve; connect the
dots among people, processes, and systems; reinforce the right behaviors; and make
adjustments to keep the learning strategy on course.

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About the Author

Rita Bailey, CEO of QVF Partners, consults with organizations that want to develop
people-centric cultures. Bailey served for 25 years at Southwest Airlines in several lead-
ership positions, including head of Southwest Airlines University for People. She now
travels the world, speaking and consulting on topics such as organizational culture, lead-
ership, service, innovation, and branding. She is the coauthor of Destination Profit:
Creating People-Profit Opportunities in Your Organization and has been a featured
guest on radio talk shows across the United States. Bailey serves on several advisory
boards and committees and was the 2005 chair of the ASTD Board of Directors. When
asked what business she’s in, the answer is simply, “The People Business.”

References
Cawood, Scott, and Rita Bailey. 2006. Destination profit: Creating people-profit opportunities in
your organization. Mountain View, CA: Davies Black.
Galagan, Pat. 2003. The future of the profession formerly known as training. T+D 57(12): 27-38.

For Further Reading

Bingham, Tony, and Tony Jeary. 2007. Presenting learning. Alexandria, VA: ASTD Press.
Elkeles, Tamar, and Jack Phillips. 2007. The chief learning officer: Driving value within a changing
organization through learning and development. Burlington, MA: Butterworth-Heinemann.
Sloman, Martyn. 2007. The changing world of the trainer. Burlington, MA: Butterworth-
Heinemann.

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Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.