WHY IT'S TIME TO BRING LEARNING TO THE C-SUITE - Intao

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WHY IT’S TIME TO BRING
LEARNING TO THE C-SUITE
By Andrew Dyer, Susanne Dyrchs, Allison Bailey, Hans-Paul Bürkner, and J. Puckett

                 C   ompanies face a Herculean chal-
                     lenge in today’s fast-evolving work
                 environment. Such is the pace of change
                                                                 second, reinvent the organization of learn-
                                                                 ing within their business.

                 that businesses are disappearing more
                 quickly than ever before. If they are to        Three Forces Changing
                 survive, never mind thrive, company             Corporate Learning
                 leaders must learn to adapt. And here, the      Every CEO is now focused on responding
                 operative word is learn.                        to the enormous challenges posed by the
                                                                 global COVID-19 pandemic. However, the
                 Much has been said about companies’ ca-         companies that have the most forward-­
                 pacity to adapt. Much less has been said        thinking approach to learning appear to
                 about companies’ capacity to learn. And         be more resilient than their peers in the
                 yet, in our estimation, a company’s capaci-     face of this greatest of unforeseen events.
                 ty to learn determines its capacity to adapt    Clearly they have understood the three
                 and, ultimately, its chances of surviving far   forces that are shaking the foundations of
                 into the future. If your company isn’t learn-   the corporate learning environment. As
                 ing, it isn’t growing—and it’s probably on a    soon as the worst of the crisis is over, ev-
                 losing path.                                    ery CEO must do the same.

                 Of course, most companies have a learning       Let’s look at each of these forces in turn.
                 and development function within their           (See Exhibit 1.)
                 ­Human Resources department. Corporate
                  learning has a long, albeit checkered, his­    The Changing Basis of
                  tory. But as we show in this report, some      Competition—The Rate of Learning
                  new forces require company leaders to take     Companies used to compete on the basis of
                  two urgent actions: first, rethink the pur-    their positional advantage—the price and
                  pose of learning within their business; and    quality of their goods and services; their
Exhibit 1 | Toward a New Raison d’Être and a New Practice of Corporate Learning

  Three learning change drivers                                                                     From the old L&D paradigm…
                                                                                                    • Companies competing on scale, quality, or
                                                                                                      network
                                                                                                    • Learning centered outside the workflow
                                                                                                    • Classroom focused and static e-learning based
                                                                                                    • Static L&D anchored in legacy
  Changing state                 Changing nature                 Changing paradigm
  of competition                 of work                         of learning
  Competing on the rate          In a time of COVID-19 and       Habituating and nudging
  of learning; changing          digitization, companies are     based on defined skill and          …to the rise of learning ecosystems
  landscape of learners,         turning bionic; adaptive        capability taxonomies,
  including machines and         content curation and            and ongoing, real-time                  Make learning a C-suite priority
                                                                                                     1
  communities                    delivery; tech and tools, AI,   analyses of learning needs
                                 VR, AV, IoT, and increased                                              Move toward business-led learning with
                                                                                                     2
                                 interaction between                                                     strong L&D support
                                 humans and machine
                                                                                                     3   Embed learning in the workflow
  The learning offering           Skill half-life decreases and   Personalized, bite-size,                Harness the power of data-driven and
                                                                                                     4
  becomes a key magnet           the cost of buying talent       blended, immersive, and                 science-based learning
  for top talent acquisition     increases, so skills need to    on-the-go upskilling and            5   Create a corporate “learnscape”
                                 be developed in-house           reskilling

   Source: BCG analysis.

                               ability to influence suppliers, consumers,                     The Changing Nature of Work—
                               and others in their network; and their abil­                   The Rise of the Bionic Company
                               ity to recruit and retain the most talented                    Even before the onset of the global
                               people. At the turn of the century, however,                   pandemic, the world of work was rapidly
                               the world became more dynamic, and com-                        changing, as companies adapted to the
                               panies started to compete on the basis of                      growing prevalence of digital technology
                               their adaptive advantage—their ability to                      in daily life. At BCG, we have been talking
                               work in agile ways, innovate quickly, and                      for some time about what we refer to as
                               adopt new approaches in response to                            the rise of the bionic company: the innova­
                               changing marketing conditions. Now, al-                        tive fusion of human and machine in the
                               though these remain important, another                         workplace.
                               basis of competition has risen above them
                               all in the digital age: learning advantage.                    But since the emergence of COVID-19,
                               The winners of tomorrow will be those                          which forced governments around the
                               that can accelerate their rate of learning.                    world to impose stringent lockdown mea-
                                                                                              sures, more than 300 million employees
                               Modern technologies such as IoT sensors,                       have been obliged to work remotely, away
                               digital platforms, and AI are quickening the                   from their offices. This, we believe, has cat-
                               rate at which companies generate, gather,                      apulted companies three to five years into
                               and process information. In effect, these                      the digital future.
                               technologies bypass the slow, unwieldy
                               managerial hierarchies that have tradition-                    It is a future that won’t stand still. Our re-
                               ally dominated corporate decision making.                      search suggests that companies will need
                               As a result, companies are starting to oper-                   to upskill or reskill approximately 60% of
                               ate at superhuman speed, learning about                        their workforce over the next two to five
                               the market and reacting to it in seconds.                      years. But given the pace of change, they
                                                                                              will need to go further in order to ensure a
                               But there has to be a human corollary to                       continuous flow of innovation, creativity,
                               this digital transformation. If a company is                   and skills from their employees. The aver-
                               going to use advanced technology to accel-                     age half-life of a skill is now just five years.
                               erate the rate of learning, the individuals                    Consequently, we calculate that 1 billion
                               and teams that make up the company must                        jobs will need to be reconfigured over the
                               accelerate their rate of learning, too.                        next ten years. It’s a daunting task.

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                                                             2
The Changing Paradigm of                        are organized outside the day-to-day flow
                    Training—The New Science of                     of work and lack any analytical backbone
                    Learning                                        for assessing who is learning what and for
                    Over the past few years, behavioral econo-      which strategic reason. If this was ever the
                    mists, neuroscientists, and cognitive psy-      right way to conduct corporate learning, it
                    chologists have achieved major break-           is certainly wrong now.
                    throughs in their understanding of how
                    people learn. They have found that people       Going forward, CEOs should take back
                    learn best when the training is personal-       overall responsibility for corporate learning
                    ized, packaged in bite-size formats, incorpo-   and give it a new raison d’être—namely, to
                    rated into the daily work routine, and sup-     improve the business’s performance in a
                    ported with timely nudges and reminders.        way that enlarges its overall contribution
                    This new science of learning has not yet        to society. There can be no other rationale.
                    fully entered the workplace—but when it         Upskilling and reskilling employees are
                    does so, it promises to revolutionize the       parts of the task of improving a company’s
                    way companies perform.                          performance, of course. But the task is
                                                                    much greater than that—and it has signifi-
                    Companies must change not only how they         cant implications for the organization of
                    deliver learning within the workplace, but      learning within a business.
                    also what they deliver. Traditionally, corpo-
                    rate learning has been the Cinderella of        When company leaders reconsider the
                    the broader education system—unglamor-          ration­ale for corporate learning, they will
                    ous, underappreciated, and tasked with          reach an inescapable conclusion: the prac-
                    topping up the know-how and other skills        tical organization of corporate learning
                    acquired in school and university. How          must be completely reinvented. This is a
                    many people would willingly single out a        major task. It cannot be undertaken lightly.
                    corporate learning course as the education-     But some companies have already begun
                    al experience that made the greatest differ-    to reinvent their corporate learning organi-
                    ence to their career—rather than the class      zation, and they have done so by taking
                    of an inspirational professor or the sage ad-   five crucial steps.
                    vice of a mentor or the startling revelations
                    of a game-changing book? Not many.              Step 1: Develop a New Strategy
                                                                    and Make Learning a C-Suite
                    But the ambition of corporate learning in       Priority
                    the future must be to provide that critical,    The first step for CEOs to take is to develop
                    career-defining learning experience.            a new company-wide strategy that recog-
                                                                    nizes learning as the internal engine of or-
                                                                    ganizational change and optimal perfor-
                    The New Raison d’Être and                       mance. In this sense, learning is about
                    Practice of Corporate Learning                  improving not only the skills of individuals
                    Given the new competitive environment,          and teams but also the modus operandi of
                    the rise of the bionic company, and the         the company. It is fundamental to the suc-
                    emergence of a transformative science of        cess of the entire business.
                    learning, company leaders must rethink
                    the purpose and reinvent the practice of        To reflect the new significance of learning
                    learning within their business.                 within the company, CEOs should make
                                                                    learning a C-suite priority. One way to do
                    In most companies, the purpose of learning      this would be to switch responsibility for
                    is simply to upskill employees. As a result,    this critical activity from the HR function
                    CEOs have mistakenly delegated the com-         to a dedicated L&D function headed by a
                    pany’s vital learning agenda to their L&D       chief learning officer who sits on the exec-
                    function—which all too often focuses nar-       utive board. (See Exhibit 2.) Giving the
                    rowly on creating and delivering content        CLO a seat at the table would send a clear
                    through in-person or online courses that        message that the company regards learning

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                           3
Exhibit 2 | The New Role of the Chief Learning Officer
                                        Shift in role                                   Enlarged scope
                       Oversee L&D, which moves from                                    Work with business and tech
                         Level 3 or 4 in HR to become                                   to allocate learnable tasks to
                                     part of the C-suite                                machines and humans, devise
                                                                                        learning journeys, and embed
                                                                                        them in the workflow

                            Expanded operations                                         More accountable
                            Run the corporate learning                                  business outcomes and
                             system, incorporating the                                  measured impact
                                        new tech stack                                  Give learners new skills and, in
                                                                                        exchange, gain engagement
                                                                                        and productivity

                       Source: BCG analysis.

                    as a strategically important function. Much    CLO role the status it needs in order to
                    the same was done three decades ago,           make a difference. Other Fortune 500 com-
                    when forward-thinking CEOs switched re-        panies that take the role seriously include
                    sponsibility for their company’s data from     Citi, Merck, Facebook, and Google—­
                    the IT department to a dedicated chief         although Facebook uses the title global
                    data officer with a seat on the board. This    head of L&D, and Google has a vice presi-
                    was a smart response to the fact that the      dent of people development.
                    vast wealth of data being created by the
                    new information technologies was fast be-      Step 2: Build a New Learning and
                    coming critical to business success.           Development Function
                                                                   The CEO and the whole executive team
                    But this step is not just about moving         must take overall responsibility for making
                    chairs around in the boardroom. The new        learning a strategic imperative for the
                    CLO—or whoever takes on this role in the       company. The task is simply too important
                    boardroom—should receive an expanded           to be delegated to one or two executives,
                    mandate, with responsibility for building a    no matter how senior. For practical rea-
                    new learning and development function,         sons, they will need to partner with the
                    embedding relevant learning in the             company’s centers of excellence for people
                    workflow, harnessing the power of data-        and organizational management—namely,
                    driven and science-based learning, and         the HR function and, above all, the L&D
                    creating what we call a corporate              function—if they are to deliver the neces-
                    learnscape.                                    sary change. Unfortunately, most L&D
                                                                   functions are not fit for this purpose.
                    It is an enormous challenge. This is why we
                    believe that the ideal candidate to oversee    Our research suggests that four out of five
                    a company’s L&D activities is someone          CEOs are asking the following questions:
                    with the vision, energy, creativity, and de-
                    termination to be able to ascend to the top    ••   Why are we not capable of
                    of the company—a potential CEO.                     systematically upskilling and reskilling
                                                                        our employees?
                    In 1990, Jack Welch created the world’s
                    first CLO position, appointing Steve Kerr      ••   Why can’t we learn and adapt to the
                    to the role at General Electric. Kerr later         changing business environment as fast
                    moved to Goldman Sachs, where he ful-               as our competitors?
                    filled the same role. But since then, sur-
                    prisingly few companies have accorded the      ••   How can we future-proof our talent?

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                                  4
Part of the answer lies in the current state    come with a new price tag: corporate learn-
                    of the L&D function. In many companies,         ing will likely require a higher budget. In
                    L&D is alarmingly outdated, held back by a      our experience, companies underinvest in
                    legacy mindset that impedes progress and        L&D. So how much should CEOs set aside
                    puts the future of the whole business at        for learning? The answer will vary from
                    risk. Company leaders must undertake a          company to company and from sector to
                    radical overhaul of their L&D function, in-     sector—but as a rule of thumb, CEOs who
                    troducing new, more flexible organization-      want to prioritize learning should aim to
                    al models and roles that reflect the new        double the amount they currently spend
                    skills required by the function and allocat-    on L&D activities. The CEO’s task is not
                    ing an expanded budget for its use.             simply to increase the size of the budget,
                                                                    however; it is also to increase the efficiency
                    We see five main types of roles in the fu-      of budgeted spending. Right now, too much
                    ture L&D organization:                          gets wasted on activities that fail to achieve
                                                                    positive learning outcomes and boost over-
                    ••   Learning architects will translate         all company performance. Indeed, in our
                         business needs into end-to-end learning    estimation, efficiency can—and must—be
                         solutions that mix immersive classroom,    tripled.
                         online, and on-the-job approaches.
                                                                    Companies that have created a strong
                    ••   Content curators will source a wide        learning and development capability in-
                         variety of new skills-based material       clude Audi, Lendlease, and Salesforce.
                         from all kinds of providers in the         Salesforce, a cloud-based software compa-
                         learning ecosystem.                        ny, has developed a learning platform
                                                                    called Trailhead that provides ways to
                    ••   Learning technologists will design and     learn in-demand skills, earn résumé-worthy
                         implement the right technology stack       credentials, and connect to the company’s
                         with the right mix of tools—from           ecosystem of learners. The “trails” are, as
                         traditional learning management            the company explains, “guided learning
                         systems (LMSs) to modern learning          paths through modules and projects.” Put
                         experience platforms (LXPs)—and            another way, they are an individual’s “per-
                         fit-for-purpose learning apps.             sonal game plan for exploring new skills.”
                                                                    Salesforce also has a Trailhead Academy,
                    ••   Digital designers will apply their         which offers in-person and virtual learning
                         expertise in user experience (UX) and      experiences. Some companies, such as Au-
                         user interface (UI) design as well as in   todesk, use the Trailhead platform to drive
                         digital product development.               learning across their own organization.

                    ••   Data scientists will help the company      Step 3: Embed Relevant Learning
                         unleash the power of the data collected    in the Everyday Workflow
                         through online learning platforms by       The new science of learning calls for a new
                         marrying them with performance             way of delivering corporate skills-based
                         management data and then measuring         learning. For the past century, much peda-
                         the true effectiveness of learning         gogic thinking has been based on the work
                         programs.                                  of Hermann Ebbinghaus, a brilliant
                                                                    nineteenth-­century German psychologist
                    With these new people—from diverse              who pioneered the experimental study of
                    walks of life—on board, the L&D function        memory and developed the forgetting curve,
                    will start to look very different. And like     which revealed how rapidly people forget
                    the rest of the company, it will have to act    what they learn for the first time. The for-
                    differently, too, abandoning old ways of        getting curve was useful to companies in
                    working and embracing more agile, itera-        an era when learning and development
                    tive, customer-centric, and cross-functional    chiefly involved imparting knowledge—
                    approaches. Inevitably, this change will        and knowing what. Now, however, compa-

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                            5
nies need to focus not just on knowing                              fact. Nevertheless, we now routinely rec-
                                   what but on knowing how because in to-                              ommend them to our clients, and the re-
                                   day’s fast-paced world—where the what                               sults are encouraging. This is because they
                                   changes all the time—the application of                             provide an answer to the question of how
                                   knowledge has become especially critical.                           companies can use new skills and new
                                   This is why we recommend that companies                             knowledge to develop new behaviors.
                                   forget the forgetting curve and focus in-
                                   stead on the learning curve, which demon-                           Relevance is the starting point. If the new
                                   strates how a series of timely interventions                        skills and know-how are to stick, they must
                                   can dramatically improve the way employ-                            be relevant to the individual or team as
                                   ees remember essential business skills.                             well as to the whole company. Given appro-
                                                                                                       priate autonomy, individuals and teams are
                                   Only about 10% of corporate learning hap-                           in the best position to determine what is
                                   pens in formal in-person or online courses.                         relevant to them. Of course, companies will
                                   Why? Because most people fail to recall                             want to match personal learning preferenc-
                                   more than 75% of the information they                               es with the company’s analyzed skills gaps.
                                   learned the week before unless they have                            But if companies can trust employees to
                                   reason to use it in the workplace. For this                         choose what they want to learn (by identi-
                                   reason, companies must find a way to em-                            fying what is relevant to them), rather than
                                   bed relevant learning in their employees’                           telling them what to do, this is the first step
                                   everyday workflow.                                                  toward success. It satisfies what behavioral
                                                                                                       economists call intrinsic motivation.
                                   We recommend the “5Rs” approach. (See
                                   Exhibit 3.) Although these five timely inter-                       Content is not the sole determinant of rele-
                                   ventions underpin the learning curve, they                          vance, however. In addition, relevant job-
                                   do not yet constitute scientifically proven                         related learning must be delivered to the

 Exhibit 3 | Overcoming the Forgetting Curve with the 5Rs

                                                                                             Recognition and rewards | 1 month later:
                                                                                             badges, feedback, and followup

                                                                              Review | 2 weeks later: video call/meeting with
                                                                              peer, classmate, tech, or supervisor

                                                                   Rhythms and routines | Within a week:
                                                                   apply at work/in project + feedback

                                                    Repetition and reflection | 24 hours later:
                                                    virtual gamification, nudging, and virtual coach

                                            Relevance | Identifying the individual’s learning
                                            needs and delivering the right content

       100%                                                                                  100%
  Remembered

                                                                                        Remembered

                 Forgetting                                                                                                                  Learning
               10 minutes     24 hours   1 week      1 month                                         10 minutes   24 hours     1 week     1 month

                            From remembering knowledge…                                                       …to learning skills-based behaviors

    Sources: Ebbinghaus’s forgetting curve; BCG analysis.

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                                                                6
learner at the right time, in the right for-      ment. One way to help amplify the success
                    mat, and precisely when and where the             of this process is to develop what we call
                    learner needs it. As a result, besides being      learning journeys. Most companies deliver
                    personalized, it must also be bite-size,          corporate learning as a curriculum for a
                    blended, immersive, and on the go.                particular group (for example, shop floor
                                                                      workers or factory managers) or for a par-
                    So, beyond satisfying the criteria for rele-      ticular task (for example, onboarding). But
                    vance, companies’ learning programs must          organizing corporate learning as a series of
                    incorporate what behavioral economists            learning journeys allows companies to pro-
                    call extrinsic motivation. This is where the      vide personalized learning that, at the same
                    other four Rs come in:                            time, boosts the business’s performance.

                    ••   Repetition and reflection involve            These learning journeys are typically ex-
                         nudging and encouraging employees—           pressed as questions. One classic learning
                         for example, via a company learning          journey for an employee involves asking,
                         app, a gamification tool, or a virtual       “How can I increase my value?” For CEOs,
                         coach—as a way to reinforce their            that same journey can be framed in a dif-
                         learning within 24 hours of their            ferent way: “How can I maximize the
                         previous learning experience. Repeti-        poten­tial of my employees?” One early
                         tion via reminders is an important           adopter of this approach was BHP, the
                         aspect of such reinforcement, but so is      Anglo-­Australian mining and metals com-
                         reflection on the learning that each         pany, which has designed and implement-
                         individual has already achieved.             ed individual learning journeys for more
                                                                      than 6,000 managers, integrating learning
                    ••   Rhythm and routines of the business          into the workflow with on-the-job nudging
                         offer opportunities not only to incorpo-     and virtual coaching.
                         rate the new learning into everyday
                         patterns at work but also to deliver         Step 4: Harness the Power of Data-
                         feedback and further embed learning in       Driven and Science-Based Learning
                         the course of the workflow within a          The new model of corporate learning that
                         week of initial learning.                    we advocate will depend on highly digitized
                                                                      AI- and machine-learning-based technology
                    ••   Review entails assessment of the             platforms. They will make possible the new,
                         individual’s learning progress with          relevant, personalized approaches to corpo-
                         peers, classmates, colleagues, or a          rate learning. They will ensure that compa-
                         supervisor within two weeks of the           nies can readily incorporate individual and
                         learning experience, in order to help        team learning experiences into the rhythms
                         identify potential gaps, necessary           and routines of the everyday workflow.
                         additional learning cycles (termed           They will permit the curation of content
                         micro-learning cycles), and other learning   that is aligned with corporate skills assess-
                         needs.                                       ments and personal learning preferences.

                    ••   Recognition and rewards for achiev-          Already, companies are spoiled for choices
                         ing long-term learning involve having        when it comes to these new learning plat-
                         company leaders publicly acknowledge         forms. Knowledge engines such as Valley
                         successes, including awarding badges         autonomously synthesize micro-courses by
                         and certificates to individuals for their    tracking knowledge inside and outside the
                         learning achievements after a month of       enterprise as it changes, helping to predict
                         new learning.                                learners’ behavior in order to keep training
                                                                      relevant, interesting, and fresh. Digital
                    Relevant, personalized, easily digestible         coaching companies such as Humu nudge
                    content linked to current work and re­            employees to make their new skills habitu-
                    inforced by virtual coaching, nudges, and         al. AI-powered e-learning and gamification
                    gamification will drive employees’ engage-        providers such as Cognii and Coursera of-

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                             7
fer a broad range of personalized content        ny. It began these efforts after senior exec-
                    with real-time feedback and analytics            utives received feedback from employees
                    about learning success. Machine-learning-­       that the company was failing to deliver
                    based knowledge cloud providers such as          timely learning solutions: by the time it
                    Edcast aggregate and personalize internal        developed, polished, and perfected new
                    and external learning content. Virtual re­       training programs for delivery, the learn-
                    ality workplace training specialists such as     ing needs in the business had changed. To
                    Mursion and VR Training design and or-           tackle the problem, Sky decided to pro-
                    chestrate interactions between learners          duce learning solutions in real time, reduc-
                    and avatar-based characters.                     ing their delivery time from 12 months to
                                                                     two weeks and increasing fivefold the
                    Besides changing the way companies deliv-        number of managers who received learn-
                    er corporate learning, these digital technol-    ing support. These efforts fundamentally
                    ogies help companies determine the mix of        changed not only the delivery process
                    hard and soft skills—such as negotiating,        change but also the process for tracking
                    problem solving, and critical thinking—          and measuring the learning solutions,
                    that employees need to succeed and to sup-       which is now connected to individual em-
                    port the business. Although giving employ-       ployee outcomes and overall business out-
                    ees greater autonomy over their learning         comes rather than solely to self-reported
                    (and their choices) reflects, in part, the be-   perceptions of effectiveness.
                    lief that this will help companies become
                    agile, self-tuning learning organizations,       Step 5: Create a Corporate
                    company leaders will not want to leave ev-       Learnscape
                    erything to individual choice. And this is       In a world where companies compete on
                    where the new technology comes in. It al-        their rate of learning and where their ca-
                    lows companies to conduct individual em-         pacity to learn collectively is a driving
                    ployee diagnostics and granular skill as-        force of innovation and growth, it is neces-
                    sessments to determine when individual           sary to create what we call an integrated
                    employees or teams are ready for the next        corporate learnscape. Such a learnscape
                    career step or assignment, what kind of          puts learning at the heart of the compa-
                    content they like, and what impact their         ny’s mission, with individual learning for
                    learning journeys will have on their job         employees, collaborative learning for
                    performance. It also enables companies to        teams and business units, collective learn-
                    determine the impact of individual or team       ing for the organization as a whole, and
                    learning on overall business outcomes,           community learning for the company and
                    thereby closing the loop between the in-         its wider network of stakeholders—­
                    vestment needed and the impact achieved.         including alumni, suppliers, customers,
                                                                     universities, and other content and learn-
                    Kroger, an American retail corporation, is       ing platform providers. (See Exhibit 4.)
                    using digital technology to create a smart
                    learning organization. It is partnering with     A mature corporate learnscape can be a
                    Catalyte, a data science specialist that pro-    magnet for talented individuals, who are
                    vides AI-powered solutions to assess and         always looking for opportunities to grow.
                    identify candidates for upskilling programs.     At the same time, it can help companies
                    In this way, it maximizes the return on in-      build a competitive workforce without
                    vestment and, at the same time, develops a       ­having to go out and hire ready-made but
                    database of information on high perform-          expensive talent. Properly managed, a cor-
                    ers (who merit certifications, rewards, and       porate learnscape allows individual em-
                    promotions) and low performers (who re-           ployees, teams, and business units to take
                    quire customized development programs).           responsibility for their own learning. By
                                                                      giving them autonomy, companies offer
                    Another company experimenting with                employees the opportunity to access the
                    new approaches to corporate learning is           full benefits of a wide range of learning op-
                    Sky, a British telecommunications compa-          tions inside and outside the organization.

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                             8
Exhibit 4 | Emerging Corporate Learning Ecosystems Take Advantage of the Growing Landscape of
 Learners Beyond the Individual Company Level

                                                       Exosystem                       Macrosystem                                      Biosphere
                          Microsystem

       Single cell

            1                           2                    3                                 4                                 5

         The Individual              The Team               The Company                       The Learning                      Learning Collective
         Human or machine            Mixed teams of         Organizational level              Community                           Nonrelated or loosely
                                     bionic workers                                           Cross-organizational level        related entities, norms,
         Shifting traditional L&D   Multilateral learning   The company as a learner          External learning partnerships           and institutions
         focus away from the        in communities of       in itself, creating a learning    and networks with defined             Laws, policies, interests,
         individual human           practice, cross-        organization with collective      boundaries for constant               ethics, and culture that
                                    functional tribes;      intelligence and holistic         upskilling and thought exchange   impact and inspire learning
                                    informal (social)       L&D data analytics                                                            and development
                                    networks and
                                    systems

    Micro                                                                                                                                       Macro

   Source: BCG analysis.

                              Handing so much control over to individual                       Foster a Corporate Learning
                              employees, teams, and business units may                         Ecosystem
                              seem like a bold step, and it may be anath-                      There is no question that CEOs are facing
                              ema to executives schooled in hierarchical,                      the toughest of times. For some, the very
                              top-down management. But evidence from                           survival of their company is in doubt. But
                              the digital world indicates that companies                       however hard it may seem, leaders must
                              built on autonomous learning principles                          focus on plotting their path to a profitable
                              learn faster and perform better. Even as                         and purposeful future—and in our view
                              they empower the individual, they encour-                        that means putting learning at the heart of
                              age the exchange of ideas, insights, and                         their enterprise.
                              know-how across the organization. In short,
                              an integrated learnscape is a powerful                           They can accomplish this by adopting a
                              force for corporate success.                                     two-pronged approach. First, they need to
                                                                                               recognize the fundamental and critical
                              Several companies have already begun to                          goal of learning in the company—which is
                              recognize the value of creating a corporate                      to gain competitive advantage and improve
                              learnscape. Google has encouraged an                             the performance of the business. Second,
                              employee-­to-employee network called                             they need to reinvent the practical
                              g2g (Googler-to-Googler) that fosters a                          organization of learning within the
                              corporate-­wide autonomous learning cul-                         company, in five ways:
                              ture. Vostalpine, one of Europe’s largest
                              steel companies, places employees in inno-                       ••    Develop a business strategy that aligns
                              vation hubs to learn, exchange ideas with                              with the real purpose of learning.
                              experts from outside the company, and
                              bring inspiration and innovation back to                         ••    Build a radically reshaped L&D
                              the business. Other companies that are                                 function.
                              develop­ing similar integrated learnscapes
                              include Audi, Microsoft, Uber, and BBVA,                         ••    Embed relevant skills-based training in
                              the oldest private bank in Argentina.                                  the workflow.

Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                                                                       9
••   Harness the power of tech-enabled                 of a vast learning community—inside and
                         learning platforms.                               outside the company.

                    ••   Create an integrated learnscape.                  This is a critical development. Indeed, the
                                                                           extent to which companies possess such an
                    By reinventing the learning organization in            ecosystem will determine the extent to
                    this way, companies can foster their own               which they will prosper in the future. As
                    corporate learning ecosystem. Around the               we will show in a forthcoming article, it is
                    world, newly emerging business ecosystems              possible to assess the maturity of a com­
                    take the form of loose networks of compa-              pany’s learning ecosystem and hence its
                    nies that come together with suppliers, dis-           readiness to adapt to meet new challenges
                    tributors, government agencies, and other              and opportunities. Few companies have
                    participants to deliver products and ser-              yet turned their learning ecosystem into a
                    vices to customers in a frictionless way.              competitive advantage. But we are con-
                    This model works for learning, too. In our             vinced that those that do will be tomor-
                    highly digitized and hyperconnected world,             row’s winners.
                    company leaders are recognizing the value

                    About the Authors
                    Andrew Dyer is a managing director and senior partner in the Sydney office of Boston Consulting Group
                    and a fellow at BCG’s Henderson Institute. He has previously been the global leader of the People & Orga-
                    nization practice. You may contact him by email at dyer.andrew@bcg.com.

                    Susanne Dyrchs is an associate director on talent and leadership in the firm’s Toronto office, an ambas-
                    sador at BCG’s Henderson Institute, and a core member of the People & Organization practice. You may
                    contact her by email at dyrchs.susanne@bcg.com.

                    Allison Bailey is a managing director and senior partner in BCG’s Boston office and global leader of the
                    People & Organization practice. She was formerly the North American leader of the Education, Employ-
                    ment, and Welfare practice. You may contact her by email at bailey.allison@bcg.com.

                    Hans-Paul Bürkner is the firm’s chairman. You may contact him by email at buerkner.hans-paul@bcg.com.

                    J. Puckett is a managing director and senior partner in BCG’s Dallas office. He leads BCG’s Center for Cli-
                    ent Learning and Enablement and previously led the firm’s Education, Employment and Welfare practice.
                    You may contact him by email at puckett.j@bcg.com.

                    Boston Consulting Group partners with leaders in business and society to tackle their most important
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                    © Boston Consulting Group 2020. All rights reserved. 7/20

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Boston Consulting Group | Why It’s Time to Bring Learning to the C-Suite                                                         10
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