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Designing the Organization Structure & Governance Model

April 30, 2009
Gwen Callas-Miller Textron Sue Todd Corpu

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Human Capital Challenges

Achieve L&D Excellence
• Align learning with key business priorities Organize L&D to support continuous business change •

Strengthen Leadership Bench
Speed throughput of leadership pipeline Improve HiPo identification & development Meet changing generational needs Engage leaders as teachers Ensure managerled development Develop strong succession plans •

Become Employer of Choice
Attract the best talent in the industry • •

Drive Business Impact
Support top line growth Reduce cost Increase profit per employee Accelerate success of mergers & acquisitions Support global growth Improve performance management

Achieve top quartile retention of key people
Improve overall employee engagement & loyalty Become a great place to work

• •

Execute learning program design and delivery efficiently
Measure the impact of learning

• • •

• •

resources.Three Basic Models Centralized • Strong coordination through central core team • Reports to single learning executive • Accountability for enterprise-wide budget. L&D talent and external partnerships Decentralized • Business units own and operate independent L&D teams • BU L&D teams sometimes form Council to share best practices. manages enterprise systems • BUs responsible for local learning and delivery for enterprise programs 4 . little to no enforcement • Challenged to address enterprise change initiatives Federated • Central core team develops enterprise programs. sets and enforces standards.

Varied Organizing Models .

Characteristics of L&D Organizing Decisions .

and central integration points to HR processes Decentralized Empowers BU L&D teams who are in a good position to understand the needs of the customer Allows freedom and ownership among training groups Federated Balances freedom with control among the central team and separate BU L&D organizations Fosters a strategic longer-term approach through agreements between operating units Decision-making concentrated in the hands of a single group Provides a single voice to ensure consistent messages across the enterprise Eliminates redundancy Provides quick response to immediate needs of line managers Addresses redundancy issues without diminishing BU’s ability to focus on local needs Creates opportunity to appreciate diverse approaches.Centralized STRENGTHS Strong control over all aspects of L&D. and standardize the best ones Programs are perceived as being more relevant to the needs of the workforce Easier to develop brand and strengthen reputation of a single identity .

Early Centralized Model .

Strengthening Connections to the Business .

Centralized WEAKNESSES Eliminates diversity across programs that can provide insights on the “Voice of the Customer” Programs and services may not adequately serve the unique needs of the business units Decentralized Fosters fragmentation and duplication of effort Federated Consensus decisionmaking can delay action Difficult to create common skills and approaches across the organization Some L&D teams may opt out of agreed programs Can lead to weaker relationships with business unit managers Often not strategic due to focus on daily challenges Tough to redistribute budgets to address changing enterprise objectives Programs may have a “corporate” flavor Potential to put local priorities above corporate objectives Central team can be viewed as being reactive .

and central integration points to HR processes Decentralized Empowers BU L&D teams who are in a good position to understand the needs of the customer Allows freedom and ownership among training groups Federated Balances freedom with control among the central team and separate BU L&D organizations Fosters a strategic longer-term approach through agreements between operating units Decision-making concentrated in the hands of a single group Provides a single voice to ensure consistent messages across the enterprise Eliminates redundancy Provides quick response to immediate needs of line managers Addresses redundancy issues without diminishing BU’s ability to focus on local needs Creates opportunity to appreciate diverse approaches. and standardize the best ones Programs are perceived as being more relevant to the needs of the workforce Easier to develop brand and strengthen reputation of a single identity .Centralized STRENGTHS Strong control over all aspects of L&D.

Decentralized Structure .

Centralized WEAKNESSES Eliminates diversity across programs that can provide insights on the “Voice of the Customer” Programs and services may not adequately serve the unique needs of the business units Decentralized Fosters fragmentation and duplication of effort Federated Consensus decisionmaking can delay action Difficult to create common skills and approaches across the organization Some L&D teams may opt out of agreed programs Can lead to weaker relationships with business unit managers Often not strategic due to focus on daily challenges Tough to redistribute budgets to address changing enterprise objectives Programs may have a “corporate” flavor Potential to put local priorities above corporate objectives Central team can be viewed as being reactive .

Centralized STRENGTHS Strong control over all aspects of L&D. and standardize the best ones Programs are perceived as being more relevant to the needs of the workforce Easier to develop brand and strengthen reputation of a single identity . and central integration points to HR processes Decentralized Empowers BU L&D teams who are in a good position to understand the needs of the customer Allows freedom and ownership among training groups Federated Balances freedom with control among the central team and separate BU L&D organizations Fosters a strategic longer-term approach through agreements between operating units Decision-making concentrated in the hands of a single group Provides a single voice to ensure consistent messages across the enterprise Eliminates redundancy Provides quick response to immediate needs of line managers Addresses redundancy issues without diminishing BU’s ability to focus on local needs Creates opportunity to appreciate diverse approaches.

Federated Structure .

Centralized WEAKNESSES Eliminates diversity across programs that can provide insights on the “Voice of the Customer” Programs and services may not adequately serve the unique needs of the business units Decentralized Fosters fragmentation and duplication of effort Federated Consensus decisionmaking can delay action Difficult to create common skills and approaches across the organization Some L&D teams may opt out of agreed programs Can lead to weaker relationships with business unit managers Often not strategic due to focus on daily challenges Tough to redistribute budgets to address changing enterprise objectives Programs may have a “corporate” flavor Potential to put local priorities above corporate objectives Central team can be viewed as being reactive .

2001 Centralizing 17 . “21 Leaders of the 21st Century”. Decentralization Centralizing Knowledge Centralization Decentralization Decentralizing Activity Improvement of Knowledge Activity Improvement of Activity Source: Trompenaars. Fons.Tug and Pull of Centralization Vs.

2009 Gwen Callas-Miller Exec. Dir. Global Leadership Development Company Confidential Company Confidential 18 .L&D as Business Partner: A Model for Governance and Execution within a Large Organization April 30..

RI • Approximately 38.Quick Facts About Textron • Headquartered In Providence.000 Employees in 29 Countries • Manufacturing Operations in 20 Countries • 2009 Fortune 500 Ranking: 173 • NYSE: TXT 19 .

Leading Branded Businesses Cessna 40% Bell 20% Textron Systems 15% Industrial 20% Finance 5% Cessna Aircraft Bell Helicopter Textron Systems E-Z-GO Greenlee Textron Financial Jacobsen Kautex 2008 Textron Inc. Revenue: $14.25 Billion Note: Percentages reflect portion of 2008 Revenues 20 .

recognized for our network of powerful brands. Branded Businesses in Attractive Industries Enterprise Management How We Manage What We Own Portfolio Management What We Own 21 . world-class enterprise processes and talented people NETWORKED ENTERPRISE A Simpler. More Focused Portfolio of Leading.Transforming Textron – Our Ongoing Journey to Premier VISION: To be the premier multi-industry company.

holding company • Businesses insulated • Redundant activities. spend • Limited sharing of talent • Decentralized learning model 22 Today • Networked organization • Common processes • Horizontal councils for functions • Enterprise-wide values.Results of Transformation Pre-2001 • Decentralized. development • Federated learning model .

) Performance Management Vertical /Horizontal Succession • • • Career Development Engagement Change Management • Businesses responsible for unique needs • Tight collaboration with BUs through governance structure 23 .Talent Development as Key Element of Transformation Pre-2001 • Continuum of development resources across businesses “Haves” and “Have Nots” • Top level succession focus • Two executive development learning programs • • • Today • Enterprise COE for talent: Learning (Textron Univ.

functional excellence and business skills • Viewed by CEO. consistent and cost effective learning • Focus on enterprise learning strategy linked to business and needed across the company – leadership.Textron University’s Role in Transformation • Level the playing field for high quality. Leadership team as an enabler to developing talent and providing a mechanism to bring leaders together to drive desired culture 24 .

Governance Structure & Flows Transformation Leadership Team External Benchmark Sources Textron University Advisory Group Textron Councils Functional Requirements HR Leadership Council Textron University Lead Executive Talent Development Advisory Group BU L&D Performance Solutions Managers Leadership & Functional Requirements Textron Univ Support Team Design & Execution Textron University Team 25 .

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 .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.

Dir. Chief Counsel Textron Financial Company * Senior Team of Top BU and Function Executives 27 . Global Leadership Development. International & Management Comm. EVP Government. Textron Exec. Controller Textron EVP. Textron Asst. Managing Dir. Global Tech Center India Industrial Segment President EVP Operations Bell Helicopter VP HR Cessna EVP Strategy. & Management Comm.Textron University Advisory Group Textron’s Transformation Leadership Team (Management Committee & all Business Unit CEOs) TUAG Chair Chief HR Officer. Dep.

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 .

Operational Effectiveness • Driving out costs and pursuing optimal efficiency 3. Accountability • Making a commitment to deliver measurable business results 2. 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 . Program and Service Quality • Establishing and enforcing quality standards 4.5 Key Dimensions of Governance 1.

Marks of Good Learning Governance Clear view of how business strategies are enabled by key learning programs Executives engaged and able to describe workforce capability plan Formal planning and communications processes to keep BU leaders informed about strategies Business objectives measured to evaluate learning investments Costs decreasing on operational processes .

Processes Financial People Roles & Responsibilities Shared Services Process Owners Program Funding Model Service Usage Fees Infrastructure Funding Portfolio Programs LearningServices Facilities and Technologies Program Oversight Strategic Planning Process Programs Rationalization Process Shared Artifacts DRIVEN BY EXECUTIVES Enforce Standards Enforce Policies Operations Learning Platform Requirements Definitions Exception Policy Data Admin Controls Data Standards Reporting Policy Talent Processes Performance Processes Work Force Utilization Technology Integration Information . Policies.Governance Mechanisms Decisions.

Centralized Model With Governance .

Governance for Decentralized Model Managing Partner (Elected to 2-year term) 33 .

Governance for Federated Structure Executive Committee Learning Core Team Group Leader Principal Advisor Curriculum Designer Curriculum Designer Curriculum Designer Curriculum Designer Curriculum Designer Curriculum Designer Curriculum Designer Name Name Name Name Asset Mgmt Name Name Name Name Name Name Name Name Name Name Mining Diamonds Finance Shipping Procurmnt HR Leadership Marketing Community Relations HSE Exploration Project Mangmnt Continuous Improvmnt Training Curriculum Sponsors Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Advisory Board Regional Capabilities Performance Consulting LMS Administration Solution Sourcing Vendor Management Training Delivery Logistics Localization Business Unit Training 34 Operational Site Specific Training HSE Certification .

Dir.. 2009 Gwen Callas-Miller Exec.L&D as Business Partner: A Model for Governance and Execution within a Large Organization April 30. Global Leadership Development Company Confidential Company Confidential 35 .

Q&A 36 .

m. 2009 11:00 a.0 and Social Networking Learning Brand in Action: University of Farmers May 20. EDT June 9.m.m. 2009 2:00 p. – 3:00 p. – 12:00 p.Upcoming Webinars Driving Innovation in Enterprise Learning with Web 2. EDT .m.