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Strategic Training and Development

The Strategy and Strategic Management
 Strategy is a high level long-term plan to achieve
goal(s).
 Strategic is an approach to identify long-term aims
and interests.
 Strategic Management is an art and science to
formulate, implement, and evaluate cross-
functional decisions of an organization to achieve its
objectives.

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Key Terms in Strategic Management
• Competitive advantage: A state that puts a company in a
favorable business position.
• Strategists: A skilled person engaged in preparation of action or
policy.
• Vision and mission statements: Declarations of an
organization’s present & future objectives
• External: opportunities and threats
• Internal: strengths and weaknesses
• Long-term objectives: Goals that take a long time to achieve are
called long-term goals.
• Strategy: A plan of action designed to achieve an overall aim.
• Policies: A rule/principle of action approved by the supreme body of
organization.

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The Strategic Management Process

The Three-Step of Strategic Management Process

1 Strategy Formulation

2 Strategy Implementation

3 Strategy Evaluation

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Strategy Formulation
 Strategy formulation is the process by
which an organization chooses the most
appropriate courses-of-action to achieve its
defined goals.
 This process is essential to an organization's
success because;
 It provides a framework for those actions
which will lead to the anticipated results.

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Strategy Formulation

Vision & Mission

External Opportunities & Threats

Internal Strengths & Weaknesses

Long-Term Objectives

Alternative Strategies

Strategy Selection
Strategy Implementation
 Implementation of strategy is a process to
put the plans and strategies into action to
reach desired goals.

 The strategic plan is a written document

that contains the steps and processes which
will lead towards organizational goals.

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Strategy Implementation

Annual Objectives

Observing Business Policies

Motivation

Effective Resource Allocation

Strategy Evaluation
 Strategy Evaluation throws light on the
efficiency and effectiveness of the
comprehensive-plans (strategies) in achieving
the desired results.
 Evaluation is a process to assess the
appropriateness of current strategy.
 Strategic Evaluation is the final phase of
strategic management which includes feedback
and progress reports to ensure that the plan
is on track.

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Strategy Evaluation

Fixing benchmark of performance

Measurement of Performance

Analyzing Variance

Taking Corrective Actions

 Strategists

Gather Information

Analyze Information

Organize Information

Strategies are created to achieve the organization’s

mission and Vision.
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The Strategic Training & Development Process

Steps in Strategic T & D Process

1 Business Strategy

2 Strategic T & D Initiatives

3 Training & Development Activities

4 Metrics that show value of Training

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The Strategic Training & Development Process

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Step 1: Identify the Company’s Business
Strategy
 Three steps to identify the company’s business
strategy.
 Company’s mission, vision, values, and goals.
 Mission – The company’s reason for existing.
1. Customers served
2. Why the Company Exits
3. What the company does
4. Values received by the customers

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Identify the Company’s Business Strategy
 Vision – The vision is the picture of the future
that the company want to achieve.
1. Long Term Objectives
2. Future Strategic Initiatives
3. Expected increase in product line and services
 Values – Values are what the company stands
for.
1. Value from Customers

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Identify the Company’s Business Strategy
SWOT ANALYSIS

Take
Takeadvantage
advantageof
of
External
ExternalOpportunities
Opportunities
Strategy Formulation

Avoid/minimize
Avoid/minimizeimpact
impactof
of
External
ExternalThreats
Threats

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External Opportunities and Threats
Analysis of Trends
 Economic
 Social
 Cultural
 Demographic
 Political,
 Law & Order
 Technological
 Competitors

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Internal Strengths and Weaknesses
• Assessing the Internal Environment

Financial Ratios

Performance Measures
Internal Factors

Industry Averages

Survey Data

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Step 2: Identify Training and Development
Initiatives That Support The Strategy
• Strategic training and development initiatives
are learning related actions that a company
should take to help it achieve its business
strategy.
• The training initiatives depends on company’s
industry, goals, resources, and capabilities.
• It is based on the;
• Business environment
Road Map to T & D
• Company’s goals and resources activities
• Insight of potential T & D options.
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Strategic Training & Development Initiatives
and their Implications

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Questions to ask to Develop Strategic Training
and Development Initiatives

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Step 3: Training and Development Activities
Linked to Strategic Training & Development
Initiatives
 Once the company chooses its training and
development initiatives related to its business
strategy, it then identifies specific training and
development activities that will enable these initiatives
to be achieved.
 These activities include;
1. Use of New Technology in training.
2. Increasing access to training programs for certain
group of employees.
3. Reducing development time
4. Developing new and expanded course offerings
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Training can help in Designing “Strategy”

Business Strategy Training

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Step 4: Identify and Collect Metrics to Show
Training Success
• Metrics are used to identify;
 Trainees satisfaction with the training program
 Whether the trainees knowledge, skill, ability, or
attitudes changed as a result of program
participation.
 Whether the program resulted in business-related
outcomes for the company.
• Balanced Scorecard
 A means of performance measurement that provides
managers with a chance to look at the overall
company performance or the performance of
departments or functions.
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Identify and Collect Metrics to Show
Training Success (Cont.)
• Balanced Scorecard
 A means of performance measurement that provides
managers with a chance to look at the overall company
performance or the performance of departments or
functions.
 It consider four perspectives: customer, internal,
innovation and learning, and financial.

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 Organizational Characteristics that
Influence Training
• Roles of Employees and Managers
 Manage individual performance
 Develop Employees
 Plan and allocate Resources
 Coordinate interdependent groups
 Manage group performance
 Monitor the Business Environment
 Represent one’s work Unit

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The Roles and Duties of Managers in Companies
That Use High-Performance Work Practices

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 Organizational Characteristics that
Influence Training
• Top Management Support
 Top Managers in the company plays a key role in
determining the importance of training and learning in
the company.
 Responsible for;
1. A clear direction for learning (vision)
2. Encouragement, resources, and commitment for
strategic learning
3. Active role in governing learning and reviewing goals.
4. Developing new learning programs
5. Teaching programs and providing resources online.
6. Serving a role model for learning

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 Organizational Characteristics that
Influence Training
• Other Human Resource Management (HRM)
Practices
 The management activities related to investments,
staffing performance management, training, and
compensation and benefits.
1. Staffing Strategy
 The company’s decision regarding where to find
employees, how to select them, and the desired mix of
employees skills and statuses.
2. Human Resource Planning
 Identification, analysis, forecasting and planning of
changes needed in the human resource area to help
the company meet changing business conditions.
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 Training Needs in Different Strategies
• Concentration Strategy
 A concentration strategy focuses on increasing market
share, reducing costs, or creating and maintaining a
market niche for products and services.
 E.g: Southwest Airlines – Low fair, serves no meal.
1. Internal Growth Strategy
 Internal Growth focuses on new market and product
development, innovation, and joint ventures.
2. External Growth Strategy
 An external growth strategy emphasizes acquiring
vendors and suppliers or buying businesses that allow
the company to expand into new markets.
3. Disinvestment Strategy
 Emphasizes liquidation and divestiture of Businesses .
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Implications of Business Strategy for Training

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