Companies must adapt or change their business strategies to take into account the new realities of intense global and domestic competition

In this economic crisis, corporate training budgets are being tightened. A research by Josh Bersin, CEO and president of Bersin & Associates, shows that in the second half of 2008, corporate training departments had cut their spending on L&D by 12 to 18 per cent. The number will certainly grow as the crisis continues. There is a need for performance-driven and talent-driven learning so that the senior management could be educated about the short- and long-term impacts.

The L&D budget typically represents a small fraction of a company’s total revenue. Indiscriminate budget cuts can have a major impact on development plans and programmes, and yet it barely makes a dent in the company’s bottom line. For example, if an organisation eliminates or dramatically reduces leadership development training, it will see a reduction in productivity and effectiveness of its leaders.

The signs of outstanding leadership appear primarily among the followers. Are the followers reaching their potential? Are they learning? Serving? Do they achieve the required results? Do they change with grace? Manage conflict? asks Max De Pree.

According to a research by Accrediting Alliance for Training and Development (AATD), nearly 20 per cent of all training occurs from informal information sharing and nearly 70 per cent comes from on-the -job training. So instead of building expensive programmes, it is better to start spending more time creating informal learning networks, coaching programmes and performance support systems. Click here to read more...

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