Leadership Development Assignment

Experiential Learning for Leadership

Development Approaches, Best Practices and Case Studies

© B E R S I N & A S S O C I AT E S R E S E A R C H R E P O RT | V. 1 . 0

Kim Lamoureux,

Principal Analyst

May 2010

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TABLE OF CONTENTS Introduction 4

Current State of Experiential Learning 7

Approach 1: Simulations 10

Case in Point: Sun Microsystems 13

Approach 2: Job Rotations 16

Case in Point: HP 18

Case in Point: A Global Packaging Firm 20

Approach 3: Action Learning 22

Case in Point: Cisco Systems 23

Case in Point: An Information Services Firm 26

Challenges of Experiential Learning 29

Requires Time; Must Be a Compelling Experience 29

Tracking Progress Is Difficult 29

Job Rotations and Expatriate Assignments Are a Lot to Manage 29

Requires a Lot of Coordination and Commitment at an Organizational Level 30

Managers Must Be Fully Prepared to Support the Process 30

Difficult to Formalize and Measure Results 31

A More Targeted Investment 31

Key Success Factors 32

Conclusion 33

Appendix I: Table of Figures 36

About Us 37, 38

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Introduction Our research from The Blended Learning Book1 shows that individuals retain only five percent of what they hear, 10 percent of what they read, 20 percent to 30 percent of what they see and almost 50 percent of what they learn through discussion and interaction. When we add direct experience to that mix (i.e., on-the-job experience with the real risks and dangers of making mistakes), the retention and application levels of new skills and information go up to 75 percent or more.

This makes intuitive sense; as people put new information and skills into practice, they are able to fine-tune their practices and move up the learning curve, based on their own experiences of what does and does not work. While initially learners’ practice of new skills might be weak, over time they will improve. This principle holds not only for individual employees – but also for workgroups, departments and even organizations as a whole.

Ultimately, as learning professionals, our goal should not only be to provide the building blocks from which employees can construct a learning curve, but also to catalyze a faster movement up this curve. Our research shows that this can best be accomplished through a dedicated focus to what we call “experiential learning.”2

1 For a detailed discussion of all the options for the design of blended-learning

programs, The Blended Learning Book: Best Practices, Proven Methodologies, and Lessons

Learned, Josh Bersin, Pfeiffer, October 2004. Available for purchase at www.bersin.com. 2 For more information, High-Impact Learning Practices: The Guide to Modernizing

Your Corporate Training Strategy through Social and Informal Learning, Bersin &

Associates / David Mallon, July 2009. Available to research members at www.bersin.com/

library or for purchase at www.bersin.com/hilp.

Experiential learning is

the process of making

meaning from direct

experience.

K E Y P O I N T

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Experiential learning is the process of making meaning from direct experience.3 Opportunities for experiential learning can come in a variety of forms, both structured and unstructured. For example, a project assignment that is worked on and completed during a leadership program is an example of a structured format. An unstructured opportunity could take the form of a leader volunteering to give a presentation or a manager being asked to lead a department meeting of his / her peers.

We have also found that on-the-job training is one of the best sources or methods for sustained learning by the employee and for creating a learning culture4 in general. However, this kind of intervention requires a great deal more coordination, communication and organizational support to be successful.

3 Source: http://en.wikipedia.org/wiki/Experiential_learning. 4 A “learning culture” is an organizationwide belief that the organization’s strategy,

mission and operations can continuously be improved through an ongoing process of

individual and organizational learning. It includes a set of investments, programs and

processes to study areas of weakness, explore causes and exploit opportunities to improve

and learn at all times and at all levels.

5%

10%

30%

50%

75%

90%

Retention Rate

Lecture

Reading

CD-ROM

Discussion Group

Experiential Learning

Teaching Others

Training Media or Delivery Mode

Figure 1: Value of Experiential Learning

Source: Bersin & Associates, 2009.

Experiential learning

requires organization

coordination,

communication and

support to be successful.

K E Y P O I N T

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In this research report, our goal is to first examine the current extent to which organizations engage in experiential learning. We will detail three specific approaches to experiential learning – simulations, job rotations and action learning, providing several case studies for each. Then, we will discuss some of the challenges for increasing the mix of experiential learning in your organization’s learning programs. Finally, we highlight key success factors to help you ascertain whether your experiential learning programs are successful.

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Current State of Experiential Learning While many organizations incorporate experiential learning programs into their core curricula, the overwhelming trend is to do so sparingly, with limited experiential efforts focused primarily at the senior and executive levels.

Our current research5 (see Figure 2) shows that core leadership programs for managers at all levels primarily consist of instructor-led training (ILT), which constitutes 43 percent of total learning for executives and as much as 59 percent for first-level managers. Additionally, nearly one-quarter of first- and mid-level leadership development consists of online training (e.g., virtual classroom and online self-study).

5 For more information, Leadership Development Factbook® 2009: Benchmarks and

Analysis of Leadership Development Spending, Staffing and Programs, Bersin &

Associates / Kim Lamoureux and Karen O’Leonard, October 2009. Available to research

members at www.bersin.com/library or for purchase at www.bersin.com/ldfactbook.

59% 56% 53%

43%

23% 21%

9% 10%

1% 3% 3% 1%

7% 8%

15% 22%

10% 13%

20% 24%

0%

10%

20%

30%

40%

50%

60%

70%

First-Level Mid-Level Senior-Level Executive

Instructor-Led Virtual Classroom / Online Self-Study Formal Coaching Experiential Other

Figure 2: Percent of Learning Type in Core Leadership Programs by Leader Levels

Source: Bersin & Associates, 2010.

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Conversely, senior-level leadership curricula include higher proportions of structured coaching and experiential learning (e.g., action learning, project assignments, mentoring). However, even for these executives, experiential learning only provides 24 percent of the core leadership curriculum.

Eighty-two percent of surveyed companies indicated that mentoring at the executive level has “become institutionalized and is no longer formalized”; but this number dropped precipitously for levels below executive (see Figure 3). When coupled with answers indicating that upward of 66 percent of companies do not offer formalized mentoring for senior, mid-level or first-level managers, it becomes clear that there is an absence of mentoring (either formalized or institutional) for the majority of organization leaders.

6 For more information, Leadership Development Factbook® 2009: Benchmarks

and Analysis of Leadership Development Spending, Staffing and Programs, Bersin &

Associates / Kim Lamoureux and Karen O’Leonard, October 2009.

Our conversations with

companies have shown

a shift toward more

informal methods.

Companies are using

more coaching, mentoring

and experiential activities

in their development

programs.6

A N A LY S I S

Source: Bersin & Associates, 2009.

Figure 3: Percent of Companies with Formalized Mentoring Programs

First-Level Mid-Level Senior-Level Executives

Formalized program in place less than 2 years

12% 14% 8% 8%

Formalized program in place 2 or more years

7% 10% 16% 10%

Mentoring has become institutionalized within company and is no longer formalized

6% 4% 11% 82%

No formalized mentoring program 75% 73% 66% 0%

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Formalized job-rotation programs are used even more sparingly for all levels of management. Like mentoring, executives are the most likely targeted audience for job-rotation programs, with twice as many companies indicating that a program is in place, as compared with lower levels (see Figure 4).

This research indicates that there is ample opportunity to expand experiential learning programs – not only to senior-level managers and executives already receiving some experiential content, but also to first- and mid-level leaders. While experiential learning is often reserved for senior-level leaders, companies should not reserve experiential learning based on the level of the leader but, rather, invest in this type of learning for high-performing7, high-potential8 leaders – at all levels.

7 A “high performer” is an employee who is a key contributor, demonstrates

high performance, is capable of a lateral move, may be qualified for a broader role

within the same profession; and, has reached the potential to move “upward’ in a

management capacity. 8 A “high-potential employee” is an employee who has been identified as having the

potential, ability and aspiration for successive leadership positions within the company.

Often, these employees are provided with focused development as part of a succession

plan and are referred to as “HiPos.”

Source: Bersin & Associates, 2009.

Figure 4: Percent of Companies with Formalized Job-Rotation Programs

First-Level Mid-Level Senior-Level Executives

Formalized program in place less than 2 years

4% 4% 4% 8%

Formalized program in place 2 or more years

4% 4% 4% 10%

No formalized job rotation program

91% 92% 92% 82%

Because experiential

learning can be more

costly and requires

higher degrees of

organizational support,

it should be targeted at

high-performing, high-

potential leaders.

A N A LY S I S

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Approach 1: Simulations Now that we have detailed the current lack of experiential learning programs, let us move on to discussing a few approaches which you can use to create experiential content for your employees. The first approach we will discuss is simulations – which offer the opportunity for an employee to grapple with a “real-world” challenge without the potential repercussions of making a “real-world” mistake. But, as we all know well, no matter how accurate the simulation, it is never able to truly mimic a real-world problem, such as the sales environment, a dissatisfied customer, a mismanaged budget or even the common pressures of day- to-day activities.

When we researched organizational experiences with software-based and real-world simulations, we found a very high correlation between an organization’s experience with creating accurate simulations and its ability to achieve a business impact in the marketplace.9 This was not because simulation-creation itself was a technical skill that led to higher impact – but, rather, because the organization first had to fully decompose and understand the business processes and problems it was seeking to model in order to create an accurate simulation. This understanding then gave the organization a platform from which to objectively evaluate those processes and improve them.

In our research, we have found that approximately 60 percent of all respondents have very little to no ability to simulate their own business environments. High-impact organizations, by contrast, had far more expertise – 38 percent had excellent skills in process simulations and 43 percent had excellent skills in soft-skills simulations (see section, “Case in Point: Sun Microsystems.”) Not surprisingly, when we analyzed the business impact of the 60 percent with little to no simulation ability, we found their overall impact was 39 percent lower than that of the high- impact organizations.10

Business impact can be dramatically improved by developing a deep understanding of the actual processes and experiences that drive success.

9 For more information, Collaborative Learning: Formalizing Informal Learning,

Bersin & Associates / Josh Bersin, May 2008. Available to research members at

www.bersin.com/library. 10 Ibid.

Simulations offer the

opportunity for an

employee to grapple with

a “real-world” challenge

without the potential

repercussions of making a

“real-world” mistake.

K E Y P O I N T

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Focus on trying to build a “simulation” experience in your learning programs, and the value of those programs is likely to go up by a factor of five or more. How do you do this? Building a simulation experience in your learning programs can be accomplished by investing in performance consulting11, and by taking the time to focus on the “high-impact” learning programs with deep levels of performance consulting and instructional design.

Our Training Investment Model (see Figure 5) gives one example of how training resources might be allocated within an organization. It also indicates that it is highly unlikely a given organization will have the time or money to build a simulation experience for every training program. With this in mind, it is best to focus your simulation efforts on those programs that you would place in the upper right quadrant of this Model. You will find the returns are tremendous.

11 “Performance consulting” is a needs assessment process that must be completed

to identify the root cause of the business problem. Working with the line of business,

performance consultants diagnose the business problem and assess the needs, and then

work with instructional designers to develop, launch, manage and assess the training

solution. Performance consulting does not presume that the solution is training. 12 For more information, The Training Investment Model: How to Allocate Training

Investments for Optimum Business Impact, Bersin & Associates, November 21, 2008.

Available to members at www.bersin.com/library.

The business impact

of simulations can be

dramatically improved

by developing a deep

understanding of the

actual processes and

experiences that

drive success.

A N A LY S I S

Figure 5: Training Investment Model12

Source: Bersin & Associates, 2007.

Operational Run the Business

Strategic WIN in the Market

Custom Programs

Off-the Shelf Based Programs

IT Training Desktop Skills General Management Project Management

Sales Techniques Customer Service Techniques Banking Regulations…

ERP Rollout Call Center Application Training Product Introduction

High Impact Programs

Business Critical Skills, Competencies,

and processes for your organization

40%

10% 20%

30%

Highest ROI

Projects

Figure 2: The Training Investment Model6

Source: Bersin & Associates, 2007.

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Apart from a strict focus on the quantitative ROI, our qualitative research has found that simulations can provide a high degree of intrinsic value, as well. In leadership-based simulations, for example, different management styles can be tested and a leader’s decision-making ability can be enhanced. Within a risk-free environment, leaders can practice and experiment with various decision scenarios among different functional areas of the business.

We should note that it is a best practice to follow simulations with “debriefing” sessions, during which participants then take what they have learned in the simulated environment and apply it to their real- world situations. This is often the most powerful piece of the process – and the point at which learning actually emerges and the “aha” moments occur. Further, because the application process happens simultaneously with the instruction, the entire learning process is accelerated.

To further support this concept is David A. Kolb’s13 four-stage framework of experiential learning (see Figure 6), which includes:

1. Concrete experience;

2. Reflective observation;

3. Abstract conceptualization; and,

4. Active experimentation.

This model illustrates that observation and reflection are necessary to form an understanding of the general concept or principle, which can then be tested in new or different environments. Indeed, the learning activities must be primarily based upon direct confrontation with practical, real-world problems.

13 Source: http://en.wikipedia.org/wiki/David_A._Kolb.

Simulations should

be followed with

“debriefing” sessions in

which learning actually

emerges and the “aha”

moments occur.

B E S T P R A C T I C E

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Case in Point: Sun Microsystems14

Sun Microsystems, a subsidiary of Oracle15, is a global leader in network software, systems, services and microelectronics that power everything from home appliances to advanced mobile device applications.

At Sun Microsystems, a program called “Leadership Connections” includes a custom-designed, award-winning business simulation (see Figure 7). This sophisticated program presents real-life business cases to senior-level executives, who work in teams to run a fictional company that looks very much like Sun itself.

14 For more information, Enabling Talent Mobility: Business Simulation at Sun

Microsystems Builds Organizational Leadership and Collaboration, Bersin & Associates /

Kim Lamoureux, May 2009. Available to research members at www.bersin.com/library. 15 Source: http://www.sun.com/acquisition/company.jsp.

Concrete experience

Testing in new situations

Observation & reflection

Forming abstract concepts

Figure 6: Kolb’s Experiential Learning Cycle

Source: Bersin & Associates, 2009.

“Leadership Connections”

presents real-life business

cases to senior-level

executives, who work in

teams to run a fictional

company that looks very

much like Sun itself.

K E Y P O I N T

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In several extensive planning sessions, the CEO and executive leadership team worked with Sun’s learning organization (referred to as “Sun Learning Systems”-SLS) and two consulting organizations to design a business simulation that was realistic, authentic and closely mirrored to Sun. Additionally, the simulation was fully integrated with tightly aligned skills-building sessions. The goal was not to have Sun directors experience a generic business simulation but, rather, to give them a chance to act as CEOs of a company just like Sun. This experience was designed to enable a deeper understanding of Sun CEO’s new strategic imperatives, which were incorporated into the heart of the simulation.

Similarly, all the data, concepts, financials and initiatives came from the executive team, which was able to contribute to the simulation in a very personal way. Each member of the executive team gave one-on-one interviews to the program’s developers, participated in concept presentations and tested the simulation. They also agreed to be videotaped while sharing their insights on various Sun strategies. Participants watch the interviews as the strategies are addressed in the workshop experience. The final step in assuring authenticity was a test-run at an offsite with Sun’s top 50 executives. SLS and partners incorporated the group’s feedback before SLS presented the final model to the CEO and executive leadership team (ELT)16 for approval.

Sun found that 99 percent of directors rated their understanding of Sun’s strategy as high after the simulation, with just 30 percent giving that ranking before the program began. e

16 The executive leadership team (ELT) refers to the CEO and his direct reports.

Case in Point: Sun Microsystems (cont’d)

Executive involvement in

the simulation included

one-on-one interviews,

participation in concept

presentations and testing

the simulation.

B E S T P R A C T I C E

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Figure 7: Leadership Connections Workshop

Source: Sun Microsystems, 2009.

Pre-Workshop Experience

(virtual)

Workshop Experience 96-100 Participants

Post-Workshop Experience

(virtual)

Supported by ELT and VPs

6

2424 24 24

6 6 6

4.5 day Business Simulation Teams make over 100 decisions per round while running the business

A session represents 1 year; teams run 3 sessions Teams compete for market share and growth

Plenary sessions with ELT and guest speakers Market winners present winning strategies

VPs assess each team and give feedback on leadership OW coaches assess the VPs and give feedback

Simulation Worlds

Simulation Teams

Facilitators

Coaches

Figure 7: Sun Microsystems’s Leadership Connections Program

Source: Sun Microsystems, 2009.

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Approach 2: Job Rotations Just as simulations can allow employees to use new skills in a virtual setting, job rotations and apprenticeship programs can allow employees to gain new experiences and skills in a real setting that is tailored specifically for their learning needs. These immersion programs give participants a more holistic understanding of the company, and its various operations and functions. The experience broadens their overall business acumen, as well as giving them a better view of potential career opportunities throughout the company. If the rotations are conducted in different geographic regions, participants can also gain a greater understanding of different cultures and business practices, which can be invaluable as a leader.

Research results indicate that organizations which successfully use job immersion programs are more likely to succeed at the measures of the modern high-impact learning organization.17 Our qualitative analysis of exemplary organizations uncovered that these programs are a powerful means of deepening the social networks within the organization – building lasting connections between people and functions.

Of special note, job-rotation programs that bring business leaders into the learning function are an extremely effective way to build the capacity of the learning function, raise the profile of learning in the organization as a whole and deepen the business expertise of the specialist learning staff.

When implementing a job-rotation program, it is important that you have a clear understanding of the specific development goals and which jobs are appropriate for such an approach. Examples of ideal reasons to use job rotations for employees would be to broaden their knowledge of other functions or departments, or to prepare them for career advancement. It is also important that you clearly lay out the justifications for the inclusion of employees into such programs (whether based on specific organizational positions) or a more inclusive approach based on employees meeting predefined performance standards.

17 For more information, High-Impact Learning Practices: The Guide to Modernizing

Your Corporate Training Strategy through Social and Informal Learning, Bersin &

Associates / David Mallon, July 2009. 18 “Talent mobility” refers to a dynamic internal process for moving talent from role to

role – at the leadership, professional and operational levels.

Job rotation broadens

leaders’ overall business

acumen, as well as

giving them a better

view of potential career

opportunities throughout

the company.

A N A LY S I S

Job rotation encourages

managers to share and

develop talent, and

promotes a culture of

talent mobility18.

A N A LY S I S

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It is also critical to consider the impact of job-rotation programs on employees. The prospect of a job rotation can often be intimidating. Employees will typically be more willing to participate once they understand how and why the rotation can benefit their careers. Similarly, it is important to clearly communicate whether a particular rotation is voluntary or involuntary. Without clear communication, there is the risk of a morale issue if an employee feels forced into a nebulous job change. Timing is also a critical concern on both sides to ensure that the job rotation results in a stronger organization and a more capable employee.

From a process and governance standpoint, things to consider and define when forming a job-rotation program include the following:

• Process ownership / accountability;

• The degree of executive and organizational support required;

• Roles of the key players (employee, manager, HR / training and business leader);

• Length of job-rotation period;

• Developmental objectives;

• Business objectives;

• Expected value / impact to the business;

• Associated costs (e.g., relocation, bonuses); and,

• Communication plan (informing managers and employees).

The prospect of a job

rotation can often be

intimidating. Employees

will typically be more

willing to participate once

they understand how

and why the rotation can

benefit their careers.

K E Y P O I N T

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Case in Point: HP19

Hewlett-Packard (HP) is a technology company that operates in more than 170 countries around the world.20 The executive council-sponsored “Director Rotation” program at HP focuses on building a leadership pipeline. By enabling participants to take on a new job in a different business, function or geography, the rotation program helps to ready high potentials for their next roles.

HP’s center for leadership excellence, in partnership with the people development group, manages the program. Before implementation, however, the company had to take a number of steps, as follows.

1. Defining Rotational Positions

• The team first had to find available positions appropriate for a two-year rotation.

• Each business has to generate an expected number of positions relative to its size and operation.

• Team members questioned business leaders about the positions that were currently open at the director level and, of those positions, determined which ones could be filled by someone without a lot of expertise.

2. Identifying Participants

• Then, high potentials must be identified and selected to participate in the program. Nominations are made at different levels and each nominated group goes through subsequent approval gates.

19 For more information, Global Leadership Development: Accelerating Business

Transformation at HP, Bersin & Associates / Kim Lamoureux, February 2009. Available to

research members at www.bersin.com/library. 20 Source: http://www.hp.com/hpinfo/abouthp/.

By enabling participants

to take on a new job

in a different business,

function or geography,

the director rotation

program helps to ready

high potentials for their

next roles.

K E Y P O I N T

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3. Moving into Rotational Positions

• Next, participants must be matched to the available jobs. According to the former CLO, “The people do not have to have experience or be an expert in the area for the job they are being considered.”

• Participants are given three or four preselected positions from which to choose. Then the participants go through an interview process with the hiring manager. This process helps the participant to fully comprehend the role that he / she may be taking and it provides the hiring manager with an understanding of this person’s capabilities.

4. Ensuring Success in the New Role

• Each participant has a sponsor who is an executive council member. One goal of this relationship is to make sure that, when the time comes to “rotate” the participant out of this role, he / she will have support from the executive and get placed more easily into a new position.

• Participants are assigned an external executive coach who takes them through a two-hour behavioral interview, which is then followed by the creation of a development and coaching plan.

• The hiring manager also assigns a mentor to help get the individual up to speed as quickly as possible. Although this is a job rotation, the participant is still held to top performance expectations. There is some leeway, however; the expectation is that he / she is a quick learner.

5. Managing the Program

• In its first year, there are currently 50 people in the rotation program. HP’s vice president of leadership development estimates that there will be approximately 25 people in the second year.

• Ideally, the goal is to enlist 30 people each year; however, this will be driven by the position opportunities available for rotation.

Requiring that a

participant be interviewed

for a rotational role

forces each person to

think through his / her

capabilities and provides

the hiring manager with

an opportunity to get to

know this person.

A N A LY S I S

Case in Point: HP (cont’d)

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The breadth of exposure to different businesses helps participants glean fundamental and universal business principles that build their own philosophies about business leadership. HP’s director of worldwide IPG marketing (and also a former job-rotation participant) shared,

“The whole body of management knowledge gets a lot clearer when you are

able to look at different businesses.”

In addition, the exposure to other leaders and the ability to have conversations with peers in other parts of the business provide invaluable networking experience, which helps to build relationships across functional lines between the future leaders of the organization. e

Case in Point: A Global Packaging Firm21

A global packaging firm that is expanding its operations into China and Russia has faced significant challenges in recruiting, developing and retaining managers to run operations in these emerging markets. Developing managers is not only important at the local level, but is part of the company’s overall strategy to build a strong and diverse leadership pipeline.

To develop talent in these emerging markets, the company initiated a job-rotation program in which high-potential employees and managers in key operational roles work up to 18 months at a more established facility in one of the company’s other locations around the world. The objective is to have participants learn best practices and processes first-hand from established, successful facilities.

21 For more information, Global Learning and Talent Solutions: Best Practices across

North America, Europe and Asia, Bersin & Associates / Karen O’Leonard, July 2008.

Available to research members at www.bersin.com/library.

Case in Point: HP (cont’d)

To develop talent in

emerging markets, the

global packaging firm

initiated an 18-month

job-rotation program

for managers to work at

established facilities in

other locations around

the world.

K E Y P O I N T

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Local managers and executives nominate participants for this program. Participants come from many different disciplines (e.g., engineering, production, sales and project management) and may work in more than one discipline during the rotation period before returning to their sponsoring organizations.

In addition to the hands-on experience gained by participants (and the expertise returned to the sponsoring facilities), the program is extremely attractive to job seekers. This has proven to be a great “selling point” to job candidates for this lesser- known firm. Thus, the job-rotation program has helped the company to recruit, as well as retain and develop, key talent in emerging markets. e

Case in Point: A Global Packaging Firm (cont’d)

Local managers and

executives nominate

participants for this

program.

K E Y P O I N T

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Approach 3: Action Learning A third approach to experiential learning is commonly known as action learning – a process in which groups of learners collaborate to solve actual workplace problems. In this way, organizations benefit from gaining solutions to critical challenges and participants benefit by learning from their experiences.

The collaborative element is important to action learning projects. The group exercise (a core element of action learning) helps learners work through the problem as a team, helping them to build communication and collaborative skills, as well as social connections. When groups are formed with members from different functional areas within the organization, these connections can foster future communication between those areas, resulting in a tighter, more cohesive organization.

In speaking with many companies about action-learning programs, we have found that action-learning projects require a great deal of business leader involvement. Action learning-programs are most beneficial when they are solving real business issues. Therefore, it is prudent for organizations to work with business leaders to identify timely challenges currently facing the organization. In addition, these business leaders must be involved in the action-learning projects as sponsors, and provide guidance and feedback throughout the duration of the project. Their involvement should include:

• Identifying and scoping the project;

• Coaching participants;

• Offering the time of subject matter experts (SMEs) from various parts of the business, as needed;

• Assessing and tracking progress;

• Reviewing problem solutions or recommendations; and,

• Supporting the execution of these solutions or recommendations (which may include process change or new product development).

In many cases, the action-learning team will see the project through to completion. In other cases, this team will make recommendations that are carried out by the appropriate business team responsible for the initiative. Either way, action-learning programs allow individuals

Action learning is a

process in which groups

of learners collaborate

to solve actual workplace

problems.

K E Y P O I N T

Action-learning programs

are most beneficial when

they are used to solve

real-time, critical business

issues identified by

business leaders.

B E S T P R A C T I C E

Experiential Learning for Leadership Development 23

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to experience a true leadership experience while, at the same time, executing company strategy. This type of development is truly a win-win for both individual leaders and the company.

Another real benefit of action learning is that it can be done quite cost- effectively. The program can be managed entirely by internal resources and leaders do not have to be pulled away from their jobs for any long period of time. As a matter of fact, in some instances, the leader may be participating in an action-learning project that is directly relevant to his / her current role. Even better, the programs can result in increased revenue for the company. For example, the creation of new products or services (see section, “Case in Point: Cisco Systems”) or reducing the cycle time of a new product launch (see section, “Case in Point: An Information Services Firm”) or improving market positions. The benefits of action learning can vastly surpass that of a traditional training program.

Case in Point: Cisco Systems22

Cisco Systems, Inc. is a $37 billion company headquartered in San Jose, California. With more than 65,000 employees, the company does business in 83 countries across 23 time zones.23

Through its center for collaborative leadership (referred to as “C3”) and a high degree of executive engagement, Cisco has built an extremely progressive and hands-on approach to leadership development, referred to as the “Executive Action Learning Forum” (E-ALF).

This multiphased, executive action-learning program lasts approximately 16 weeks and is organized into three phases (see Figure 8).

22 For more information, Action Learning Facilitates Business Growth: A Look

inside Cisco’s Progressive Executive Development Approach, Bersin & Associates / Kim

Lamoureux, October 2009. Available to research members at www.bersin.com/library. 23 Source: http://newsroom.cisco.com/dlls/corpinfo/corporate_overview.html.

Action-learning programs

can result in increased

revenue, including the

creation of new products

or a reduction in product

launch-cycle times.

K E Y P O I N T

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Phase I: Self-Directed Learning

In this phase, the approximately 60 participants attend several WebEx conferences, from which they gain insights into their roles as participants; they also take the Hogan Assessment24.

Phase II: Immersion

Over the next 10 to 13 weeks, learning and leadership development take place concurrently with the development of a business opportunity. The participants attend a five-day offsite,

24 For more information, http://www.hoganassessments.com/.

Copyright © 2007 Bersin & Associates. All rights reserved. Page 1

Phase 1 Self-Directed Learning

Residential Virtual

Phase 2 Immersion

Phase 3 Re-Entry

Governance BoardVirtual Virtual

• Framework introduction

• Coaching

• Introduction to business opportunity

• Live faculty interaction

• Business proposal development

• Executive exposure

• Team decision process practice

• Individual and team coaching

• Leadership Platform Development

• Feedback on participation

• Development planning

• Present updated development plan to skip-level manager

2-3 weeks @ 10% 9 weeks @ ~60% 2-3 weeks @ 10%

Figure 8: Executive Action Learning Forum Program Design Overview

Source: Cisco Systems, 2009.

Case in Point: Cisco Systems (cont’d)

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during which they attend a lecture delivered by the vice president of C3. Six teams of 10 people each are formed. The teams are assigned to their projects and then dispersed to their business units, but they continue to work virtually on developing their product or business idea. Teams gather again at the midpoint of this development period to discuss dynamics, theories of innovation in existing structures, how to align groups to execute tasks and how to tell the proposal story to the governance board. Ten to 12 weeks into the program, the participants give a final presentation to a group of senior executives, which lasts about 90 minutes – with 30 minutes spent on the actual presentation and the following hour spent discussing the project openly with the board.

Phase III: Reentry

The first step in reentry is for the team to collectively debrief the E-ALF governance committee of the experience and then, for each participant, repeat the debriefing with his / her coach individually. The second step in reentry is a “three-way” conversation between the participant, his / her senior vice president and coach to discuss the experience and key lessons learned. The participant will receive feedback from the senior vice president on his / her development strategy – and also has the opportunity to solicit guidance and support to clear the path to movement, growth roles or promotion.

The 16-week E-ALF program is designed specifically to foster leadership in an innovation-oriented culture and to transform Cisco’s business culture from entrepreneurial to collaborative. Using an approach that includes academic study, role playing, and the development of a product or business idea that the company will invest in or that will have a bottom-line impact, the E-ALF allows individuals to have a true leadership experience while, at the same time, executing company strategy.

Case in Point: Cisco Systems (cont’d)

Experiential learning

enables leaders to apply

what they have learned

and receive feedback in

real-time. It also provides

companies with the

opportunity to observe,

first-hand, the capabilities

and potential of

their leaders.

B E S T P R A C T I C E

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To date, the E-ALF has resulted in the launch of several businesses. One such business is the widely publicized SmartGrid, in which the company will make communication devices for the electricity delivery system. Cisco estimates the project is worth $20 billion over the next five years. e

Case in Point: An Information Services Firm25

A U.K.-based information services firm is continually looking to develop innovative new products and services for a competitive, global marketplace. The company believes that innovation often emerges from collaboration between its operational units, which typically work independently.

To address this need, the leadership development team established a program for high-potential senior leaders (e.g., directors, vice presidents and senior vice presidents). The program develops strategic planning and execution capabilities using action learning, combining classroom education with real-world, collaborative project work.

Phase I: Pre-Work Sessions

The program begins by engaging participants and their managers in pre-work sessions that are designed to prepare them both for the entire program cycle. Managers of participants attend a webinar session, during which they review how they should provide support before, during and after the program. Managers are given specific guidance on what they should be doing to support the learning process – a critical element in the success of the program.

25 For more information, Global Learning and Talent Solutions: Best Practices across

North America, Europe and Asia, Bersin & Associates / Karen O’Leonard, July 2008.

Case in Point: Cisco Systems (cont’d)

The high-potential senior

leaders program develops

strategic planning and

execution capabilities

using action learning,

combining classroom

education with real-

world, collaborative

project work.

K E Y P O I N T

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Phase II: Week-Long Retreat

Following the pre-work, participants attend a week-long education retreat. Attention is paid to the diversity of participants, ensuring that the group includes leaders from different business units and geographies. This mixture is critical to the program’s stated goal of breaking down organizational silos and establishing a culture of collaboration.

The week-long session is a strategic leadership program that has been customized by an outside provider specifically to fit the company’s needs. The vendor facilitates the program with some support from the company’s leadership development team, at a cost of approximately $125,000 per session. The focus is on developing the strategic thinking, planning and coaching capabilities required of senior leaders.

Each retreat also includes a three-hour session with the company’s CEO, who emphasizes the strategic importance of innovation and collaboration. The CEO also highlights the key executives who have completed the program as a motivator for current participants.

Phase III: Action-Learning Project

The cornerstone of the leadership program is Phase III, in which small teams of participants (five to seven people) from different business units and geographies are assigned to tackle real- world issues facing the company. Each team has three to four months to collaboratively work on the issue, and report the recommendations to the CEO and executive staff. These projects provide significant opportunity to improve the performance of the business – while allowing participants to collaborate, and utilize new strategic thinking and leadership skills.

Action learning provides a

collaborative environment

for building strategic

planning, execution and

innovation capabilities

among leaders.

K E Y P O I N T

Case in Point: An Information Services Firm (cont’d)

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One project, for example, resulted in an innovative solution to reduce the cycle time for a new product launch by nine months, providing a significant competitive advantage and additional revenues. These types of results often serve as proof of the effectiveness of this program. e

Action-learning projects

provide significant

opportunity to improve

the performance of

the business – while

allowing participants to

collaborate, and utilize

new strategic thinking

and leadership skills.

B E S T P R A C T I C E

Case in Point: An Information Services Firm (cont’d)

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Challenges of Experiential Learning Although experiential learning programs have the potential to offer great business impact to organizations, they also engender some unique challenges when compared to other learning and development (L&D) program types. In this section, we detail some of the most important challenges involved in creating experiential learning programs.

Requires Time; Must Be a Compelling Experience

Experiential learning, if done outside of a classroom (e.g., a simulation), is often woven into the participant’s daily activities. Whether action learning, job rotation or an expatriate assignment, experiential learning is real-time and competes with the participant’s current responsibilities. To ease this burden, it is important that companies create experiential learning solutions that are worthwhile, relevant and productive for both the leader participant, as well as the company.

Tracking Progress Is Difficult

As with any informal learning process, there is not always a definitive beginning or end. During the process, you may find learners and their managers asking, “Is it done yet?” For action learning, the project may end once a recommendation has been presented to solve the business issue. Other times, the project may continue until the solution has been fully implemented. We suggest that companies create clear objectives and establish key milestones when possible, allowing participants to track and measure their accomplishments along the way.

Job Rotations and Expatriate Assignments Are a Lot to Manage

Job rotations require a great deal of coordination from a number of different business areas. Quite often, job rotations require moving people into and out of different functional areas, business units and geographies. Expatriate assignments are often preceded with logistical details, such as living arrangements, language training and even selling

Experiential learning

is real-time and

often competes with

the leaders’ current

responsibilities. Therefore,

the experience should be

worthwhile and relevant

to the leader in terms of

his / her current role or

future career plans.

K E Y P O I N T

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a home. Although this challenge cannot be completely alleviated, companies can identify specific roles that are best-suited for job rotation. Doing so will enable better planning to occur.

Requires a Lot of Coordination and Commitment at an Organizational Level

For many companies, unstructured learning activities that are embedded into an overall learning program but completed outside of a classroom environment are a real challenge to manage. For example, identifying projects that solve real business issues and can be completed in a specific (typically short) amount of time is difficult – but not impossible.

For instance, to select a business challenge at Amway (a global direct- marketing company) that is conducive to an action-learning approach, the global talent development (GTD) team interviews senior executives to identify current challenges they are facing. Not all executives may have a challenge that is appropriate for this program. For example, the program is eight months long and ends in August. If the executive needs a solution by June, this would not work. From there, GTD creates a list and then narrows it down to just two or three challenges. The team considers which projects will lend themselves to a learning experience (i.e., is it broad enough and global enough for the participants to work on). The recommended projects are brought to the executive team which makes the final selection of the business challenge. The business owner of the challenge selected becomes the “action-learning” sponsor.26

Managers Must Be Fully Prepared to Support the Process

Another area of difficulty, on-the-job activities require the leader’s manager to be involved and to be very supportive of his / her development. The manager should provide coaching, establish performance expectations, remove barriers for development, and instill motivation and accountability for learning. However, the leader must also see the benefit for himself / herself. For example, are leaders rewarded for developing their direct reports? Companies with a strong

26 This information is based on a case study, due to be published summer 2010.

Unstructured learning

activities that are

embedded into an overall

learning program but

completed outside of a

classroom environment

are a real challenge

to manage.

K E Y P O I N T

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learning culture27 acknowledge that their best leaders are those whose direct reports are continuously being promoted and moved around within the company.

To create a culture that supports and creates an expectation for managers to develop others, senior management must be involved. Senior management must hold leaders accountable not only to develop themselves, but to develop others, as well.

Difficult to Formalize and Measure Results

Learning has always been a difficult function to measure. Add to it the informality that often accompanies experiential learning and L&D leaders want to “pull their hair out.” Key metrics and milestones must be integrated into the design process at the outset.

We asked a number of HR leaders how they calculate ROI. The director of global talent development at Amway responded,

“I ask the senior leaders, do you believe that what we are doing in terms of development is good and that

development of people will build the business? If the answer is yes, then why are you asking for financial

ROI? If the answer is no, in which case I won’t give you an ROI because no matter what I give you, you are

going to shoot it down.”

A More Targeted Investment

Unlike classroom training for which hundreds of leaders can participate throughout a year, experiential learning is often targeted at a smaller number of leaders, typically at more senior levels. The investment can be large – whether designing a custom simulation or relocating an executive; there is a need to be discerning of the investment. Targeting a specific segment of leaders, however, does not mean only senior-level leaders. Programs, such as action learning and job rotation, should be targeted at high-potential individuals at all levels of the company who are considered to be the future leaders of the company.

27 This information is based on our current research on the topic of learning culture,

the report for which is due to be published spring 2010.

Companies with a

strong learning culture

acknowledge that their

best leaders are those

whose direct reports

are continuously being

promoted and moved

around within the

company.

K E Y P O I N T

Experiential-based

programs should be

targeted at high-potential

individuals at all levels

who are considered to be

future leaders.

K E Y P O I N T

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Key Success Factors As with any programmatic change, it is important to constantly evaluate your experiential learning programs to ensure that they are achieving the desired impact. Key success factors for experiential learning programs are described as follows.

• Participants are engaged.

• Program or project must be relevant (e.g., directly tied to one's job or have a clear benefit in the future).

• Learning objectives are defined for each program.

• Organizational goals are clear.

• Senior management is supportive and committed to the program; they buy into the process and investment.

• Where possible, learning is structured and formalized.

• Key stakeholders are supportive and aware of their roles in making the program a success.

• The program is measurable and results-oriented.

• Participants’ managers are involved and prepared to conduct regular, formal development discussions.

• The company is willing to take risks with talent.

It is important to

constantly evaluate your

experiential learning

programs to ensure that

they are achieving the

desired impact.

B E S T P R A C T I C E

Experiential Learning for Leadership Development 33

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Conclusion Experiential learning is a critical element in a company’s leadership development strategy and program design. More than training, experiential learning enables leaders to apply learning and receive feedback in real-time. It provides companies with an opportunity to observe, first-hand, the capabilities and potential of their leaders. In the case of simulations, companies have the opportunity to also objectively evaluate key business processes. Figure 10 summarizes some of the benefits and challenges of experiential learning as discussed in this report.

28 “Job fit” refers to the assessment of current knowledge, skills, competencies and

other key qualifications of an individual against the requirements of a specific role,

current or future.

Figure 9: Summary of Benefits and Challenges of Experiential Learning

Benefits Challenges

• Enables networking and relationship building

• Facilitates collaboration

• Offers time to reflect, “What did I learn and

how can I apply this?”

• Results in higher learning retention

• Exposes leaders to other parts of the business

• Promotes career development

• Drives efforts to merge business cultures

• Assesses capabilities and confirms behaviors of leaders

• Gives leaders the opportunity to determine job fit28

• Time is required of participants; must be a compelling

experience

• Progress is difficult to track; participants ask,

“Is it done yet?”

• Job rotations and expatriate assignments are a lot

to manage

• Much coordination and commitment at an organizational

level is required

• Managers must be fully prepared to support the process

• An investment is oftentimes made on the part of a few

• Results are difficult to formalize and measure

Source: Bersin & Associates, 2010.

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Since experiential learning programs require a significant degree of investment, coordination and involvement from organizational leaders, they are often sparingly developed and deployed – and frequently are reserved for senior management. However, as our research shows and as we have detailed in this study, the end results more than justify the effort. Expansion of experiential learning programs is not just an option; for organizations eager to improve their performance in the marketplace, it is both an opportunity and, ultimately, a necessity.

Expansion of experiential

learning programs is

not just an option;

for organizations

eager to improve their

performance in the

marketplace, it is both

an opportunity and a

necessity.

A N A LY S I S

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Appendix I Table of Figures

Experiential Learning for Leadership Development 36

Bersin & Associates © May 2010 • Not for Distribution • Licensed Material

Appendix I: Table of Figures

Figure 1: Value of Experiential Learning 5

Figure 2: Percent of Learning Type in Core Leadership Programs by Leader Levels 7

Figure 3: Percent of Companies with Formalized Mentoring Programs 8

Figure 4: Percent of Companies with Formalized Job-Rotation Programs 9

Figure 5: Training Investment Model 11

Figure 6: Kolb’s Experiential Learning Cycle 13

Figure 7: Sun Microsystems’s Leadership Connections Program 15

Figure 8: Executive Action Learning Forum Program Design Overview 24

Figure 9: Summary of Benefits and Challenges of Experiential Learning 33

Experiential Learning for Leadership Development 37

Bersin & Associates © May 2010 • Not for Distribution • Licensed Material

About Us Bersin & Associates is the only research and advisory consulting firm focused solely on WhatWorks® research in enterprise learning and talent management. With more than 25 years of experience in enterprise learning, technology and HR business processes, Bersin & Associates provides actionable, research-based services to help learning and HR managers and executives improve operational effectiveness and business impact.

Bersin & Associates research members gain access to a comprehensive library of best practices, case studies, benchmarks and in-depth market analyses designed to help executives and practitioners make fast, effective decisions. Member benefits include: in-depth advisory services, access to proprietary webcasts and industry user groups, strategic workshops, and strategic consulting to improve operational effectiveness and business alignment. More than 3,500 organizations in a wide range of industries benefit from Bersin & Associates research and services. Bersin & Associates can be reached at http://www.bersin.com or at (510) 654-8500.

About This Research Copyright © 2010 Bersin & Associates. All rights reserved. WhatWorks® and related names such as Rapid e-Learning: WhatWorks® and The High-Impact Learning Organization® are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or re-used without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.

Experiential Learning for Leadership Development 38

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