The ‘knowledge economy’ has become integral to businesses in developed countries.
While knowledge has always played an
important part in economic activity, from agricultural economies to industrial economies, the degree of knowledge incorporation has increased to such an extent that it has become the basis of competitive advantage.
While knowledge is not merely the gathering of information, there is no universally agreed-upon definition of what knowledge actually is.
Where there is agreement is that knowledgeable employees are an asset to organisations and that knowledge is a driver of innovation.
The learning organisation
A common business trend that emphasises the development of knowledge is the ‘learning organisation’, meaning both an organisation that learns and one that encourages learning in its employees. Peter Senge, author of The Fifth Discipline and other publications, popularised the notion of the ‘learning organisation’. He defined it as: “…organizations where people con- tinually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.”
The formalised approach
Becton Dickinson (BD), a global medical technology company, is an example of the more common formalised approach to training and development (T&D). Menzi Biyela, HR Manager for southern Africa, says that T&D is a high priority at BD and is used to ensure that competency and skill gaps are reduced so that organisational objectives can be achieved. In place is the BD University (BDU), an in-house corporate learning institution that covers around 70% of BD’s training.
There are four portfolios — leadership, business skills, career assessment/development and operational effectiveness. Under each portfolio there are three to 11 different courses ranging in duration from half a day to one-year part time. Courses range from ‘Advanced leadership development’ and ‘Six Sigma orientation’ to ‘Developing your career in our changing world’.
BDU has been operational for over 11 years and collaborates with various universities in the US and UK. Biyela says that this ensures BDU is up to date with trends and that there is a high quality of training delivery. BDU Africa is currently in the pipe- line as BD has operations across the continent. The most common training methodology is a mix of classroom work and experiential learning through practical experience. “For example, our graduate programme takes top university students through product training in Europe and then they work hands-on with the product by being assigned to someone in that field,” says Biyela.
BD also uses web-based training where applicable but Biyela says that this is more for compliance training. Decisions on training occur during a regional talent planning session which takes place at least once a year. “It’s important to have a succession planning system in place and during talent planning sessions we identify potential and any necessary training,” says Biyela.
Line managers and employees hold regular discussions around career development where they create personal development plans which include necessary training. There is also on-the-job training and a coaching programme for top talent and senior management. “The focus is more on performance coaching for junior-level employees,” says Biyela.
Each employee has a performance charter which outlines expectations and is agreed upon yearly. A monthly discussion evaluates performance against the charter with individual coaching to assist with improvements. Employees are also given stretch assignments as part of their performance charters and are rewarded accordingly on successful completion.
Employee bursaries are avail- able for further study with the only requirement being that it will benefit the individual and the organisation. Job rotations allow employees with career aspirations outside of their work area to spend time, up to six months, in another department or area.
At BD, T&D success is measured on the ability to fill a position with an internal candidate, especially when it comes to critical positions. It’s also measured on the T&D value proposition offered to employees. “If careers have been well mapped, there will be a low attrition rate so we also use this as a measure of success,” explains Biyela. The BD T&D budget is between 5-8% of the company’s turnover and, according to Biyela, the various T&D programmes are driven by customer and strategic needs.
An alternative approach
The Platinum Group, a Cape Town- based branding, retail and design house operating the Jenni Button, Hilton Weiner, Urban Degree, Aca Joe and Vertigo brands, has a completely different T&D approach. After a rapid acquisition period, Platinum began a weekly passion session in 1998 where invited guests from various disciplines, ranging from arts to athletics, shared their life story and passion.
“The highlight of the year was a surprise to us all,” says CEO Marcel Joubert. “A small unassuming 60-something man came in wearing crumpled jeans and set the room on fire. He was a drama teacher at a Waldorf school who later told us he believed in ‘drawing out’ rather than ‘putting in’.” It was from this insight that Platinum broadened its philosophy of creating a culture of learning and passion rather than a focus on specific skills and development.
Joubert contextualises this with a quote from Plato: ‘The mind is not a vessel to be filled but a fire to be lit.’ He explains that if someone is passionate and keen to learn they will drive their own growth and development. Embedded in the organisation are the principles of freedom, autonomy and self regulation where, as Joubert puts it, “people are assumed to be powerful beings”.
For Joubert, this comes from witnessing the power of individuals in open markets as the future of retail. In 1986, Joubert assisted in creating Greenpoint Market which grew from six to 200 stalls in six weeks. He says: “While each stall was uncontrolled and the small stall-holders were viewed by large established retailers as unprofessional, through ‘the freedom to try’ principle those same market stallholders generated sales turnover multiples higher than the large major retailers.”
However, it’s about getting the balance right as too much freedom results in anarchy while too much structure creates rigidity. Platinum currently works with the following simple guidelines: ‘respect the brand, respect the customer and respect the team’. So how does this philosophy engender T&D?
Joubert differentiates between two approaches to leadership and the resultant learning (drawn from past-CEO of General Motors Alfred Sloan’s memoir): “The ‘Constitutionalist’ approach is where leadership is based on a set of rules — a ‘command and control’ scenario. Learning is through long manuals and workshops. The ‘Character of the Prince’ approach is based on leadership through judgment and character, and learning occurs multi- directionally through community-type collaboration.”
Platinum has been on a journey that emphasises the latter approach. Joubert says it starts with hiring high-calibre people who take individual responsibility for growth and development, plus a good cultural fit with the organisation. Platinum’s orientation process offers some light into this dramatically different T&D approach.
New recruits start designing their ideal life using mood boards. Then long-term goals are considered and the steps needed to achieve them. “The focus is on attaining a ‘space of bliss’. This means doing what you are passion- ate about, what you are good at and what is lucrative.
All three should be present for success,” says Joubert. Of note is that the senior executive teams are key facilitators. In a complete turnabout, instead of aligning T&D (or any- thing else for that matter) with business strategy, Platinum adapts the business strategy to fit the individuals and organisation.
“Each year we plan what we want to achieve personally, from running the Two Oceans to having time for school holidays, and then map the business ribbons around that. It’s about creating a balanced life of which business is but one interwoven part,” says Joubert.
A major emphasis is placed on wellness and self-responsibility. The company brings in people to assist with anything from nutrition and exercise to family and living conditions. They also subsidise further individual sessions, as well as equipment. Learning occurs in face-to-face discussions.
The different business partners — Joubert does not call them franchisees — get together weekly for learning and general discussion with no limit as to what is discussed. There is also a weekly open discussion roundtable with key players from around the country. The daily store meetings include analysis of performance, opportunities and development.
Joubert views the process as an autonomous system that highlights self-responsibility, peer-driven acknowledgement and learning. “We have a ‘high commitment’ culture and believe in empowerment, engagement and face-to-face dialogue. We see everyone as agents of change that bring in new ideas and learning — almost like a real-world Facebook community,” says Joubert.
“The emphasis is on acquiring knowledge rapidly and having an openness to do so. I call it ‘just-in-time learning’. However, while we create this culture of learning, we do still conduct skills training.”
Platinum is open to the team going on standardised training but there is little appetite for this. When the management team offered employees courses from a well-known graduate school of business there was little interest. In fact, the school subsequently asked Platinum to facilitate a course.
But does actual learning occur and is it measurable? Employee feedback is very positive but Joubert looks to the bottom line for results when measuring productivity as the outcome of T&D.
“When the first wave of the economic downturn occurred in 2008, our results that season were 56% up on the previous year. The 2009 sea- son results were up 40% again. Over a five-year period, without opening a single new store, we have tripled our turnover. You don’t achieve those results unless you are getting something right,” says Joubert.
This article originally appeared in the Mail & Guardian newspaper as a sponsored feature