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Leadership Vision For 2022 Learning and Development

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Leadership Vision for 2022

Learning and
Development
Leaders
September 2021

© 2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
People are seeing a different world.
That’s going to create the revolution to
change the way we work. A lot of this
is possible in a way we never knew.
Leslie Perlow, in The New York Times

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Leaders Responding to Business Transformation
Top Organizational Priorities Reported by HR Leaders
Percent Selecting as Top 3 Organizational Priorities in the Next 12 Months

66% 2022
Improve Operational Excellence
66% Gartner
HR
65% Priorities
Execute
p Business Transformations
54% Survey

64% 2021
Grow the Business Gartner
62%
HR
51% Priorities
p Innovate for Success Survey
47%

33%
q Optimize Costs
50%

Manage Risk and Regulatory 20%


Demands 15%
0% 35% 70%
n = 572 HR Leaders including CHROs, regional and business unit heads of HR, and functional HR leaders (2022); 874 HR leaders
(2021)
Source: 2022 Gartner HR Priorities Survey and 2021 Gartner HR Priorities Survey

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Hybrid Work Is the Driver of Transformation
Percentage of HR Leaders Expecting That Some of Their Workforce Will Be Hybrid
5% 3%
Do Not Expect Any Expect Nearly All Employees “We think that the way of working
Employees to Work Remotely to Work Fully Remotely is going to be hybrid.”
Enrique J. Lores, President &
CEO, HP

92% “COVID-19 was perhaps the worst


Expect Some Employees possible catalyst, but it forced us
to Work Remotely to make a transition that was
long overdue.”
Margaret Keane, Former CEO,
Synchrony Financial

n = 236 HR leaders
Source: Gartner Workplace Reopening Amid Vaccine Rollout Webinar Poll (16 March 2021)
Question: What percentage of your workforce do you expect will work remotely full time after the COVID-19 outbreak ends?
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Hybrid Has Widespread Business Implications
Future of Work Reinvented Resource Center

“CEOs are leaning on their CHROs to ensure their


workforces are feeling supported, because they
know the future success — and in many cases, the
survival — of their businesses depends on it.”
Arianna Huffington in Harvard Business Review

Source: Gartner
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Redesigning Work for the Hybrid World
Key Shifts Needed to Create a Human-Centric Design for the Hybrid Environment
Office-Centric Design Human-Centric Design
An on-site model for an on-site world A hybrid model for a hybrid world
“Location is the stable pillar we design work around.” “The individual is the stable pillar we design work around.”

Provide Consistent Work Experiences Provide Flexible Work Experiences


Work design principle: Equality of experiences Work design principle: Equality of opportunity

Enable Serendipitous Collaboration Enable Intentional Collaboration


Work design principle: Innovation by chance Work design principle: Innovation by design

Drive Visibility-Based Management Drive Empathy-Based Management


Work design principle: Performance by inputs Work design principle: Performance by outcome

Source: Gartner
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Key Issues

1. How should world-class L&D leaders respond to the major trends impacting
the workforce?
2. How do world-class L&D leaders elevate their own personal impact?
3. How do world-class L&D leaders improve their HR functions and teams?

To explore key issues for other HR leaders, please review the Leadership Vision
for 2022: Chief HR Officer and Leadership Vision for 2022: Recruiting.

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Key Issue No. 1

1. How should world-class L&D leaders respond to the major trends impacting
the workforce?
2. How do world-class L&D leaders elevate their own personal impact?
3. How do world-class L&D leaders improve their HR functions and teams?

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L&D Leader Priorities
Top Business-Supporting HR Initiatives
1 Critical Skills and Competency Development
2 Organization and Change Management Top Priorities
3 Current and Future Leadership Critical Skills &
Competencies
4 Diversity, Equity and Inclusion

Man
Cha ment
Wor f
re o
5 Future of Work

age
nge
Futu
6 Performance Management L&D
Leaders
7 Recruiting
Di
8 Employee Experience ve ip
& rsity n t & rsh
9 HR Technology Inc , E u rre ade
lus qu C Le
ion ity ure
10 HR Function Strategy and Management t
Fu

n = 87 Heads of L&D
Source: Gartner 2022 HR Priorities Survey (July 2021)
Q: Please select the two-six key initiatives you need to concentrate on the most in your function
to effectively support each of the priorities you ranked most critical to your organization.
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Critical Skills and Competencies

More and New Skills Needed


Average Skills Required per Job Posting
IT, Finance and Sales Roles in the U.S.

2018 Skills New Skills


24 21.8 Rising Demand for More Skills
21.2
The total number of skills required for a
17.6 18.1 single job is increasing at 6.3%
17.1
2.8 9.7 annually.
4.7 8.5
New Skills Displacing Old Skills
12
29% of the skills that were present
17.1 in an average job posting in 2018
14.7 13.4 will not be needed by 2022.
12.7 12.1

0
2018 2019 2020 2021 2022
(Early Estimate) (Projected)

n = 7,601,705 S&P 100 job postings (1 January 2018 to 9 February 2021)


Source: Gartner TalentNeuron
Note: Compound annual growth rate from 2018 to 2022
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Critical Skills and Competencies

Manage Skills Through a Dynamic Approach


Key HR Considerations Surrounding Workforce Skills

How do you better How do you How do you foster internal


HR Questions understand immediate help develop skills movement across the
skills needs? more quickly? organization as needed?

Adaptive Tactics to
Skills-Sensing Target Two-Way
Redeploy and Reskill
Networks Skills Accelerators Skills Transparency
Through Recovery
Facilitate cross- Identify and tap skills Source skills across the
organizational sensing accelerators to develop total skills market, including
of shifting skills needs. skills at the time of need. nontraditional sources.

Source: Gartner

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Critical Skills and Competencies

Virtual Learning Alone Is Not Enough


Effectiveness of Virtual Learning Versus Other Types of Learning
Impact on Skill Application, by Training Type

Compared to other forms of training, virtual


learning is the least effective when it comes
50% to applying the newly learned skill.
44%

37% Compared to virtual learning


34% alone, employees are nearly
30% 50% more likely to apply a
25% newly learned skill when they
receive both virtual learning and
coaching together.

0%
Virtual Learning Classroom Only On the Job Only Coaching Only
Only
n = 8,141 employees
Source: The 2020 Gartner L&D Disruption Survey
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Critical Skills and Competencies

Use Agile Principles to Integrate Learning


The Agile Learning Manifesto

Self- Strategy
Directed Connected

Source: Gartner
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Org Design and Change Management

Workforce Health Damage Is Widespread


Decline in Workforce Health Elements

Healthy Healthy Healthy Work Significantly


Employees + Relationships + Environment Damaged Health

55% of the
85% experienced 41% have lower 29% experienced workforce has
higher burnout trust in their teams a lower level of experienced
change receptivity significantly
damaged
40% have a worse 37% have lower 31% experienced a healtha
work-life balance trust in leadership lower level of inclusion

Current disruptions are already causing long-term and hard-to-reverse impacts.

Source: 2021 Gartner Workforce Resilience Employee Survey


a
Significant damage is defined as experiencing acute decline in at least three
elements or a moderate decline in at least nine elements of workforce health.
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Org Design and Change Management

Gartner’s Model of Workforce Resilience


Performance and Health
Higher
Workforce Resilience:
Sustaining or growing
Workforce
performance through
Resilience
disruption without damaging
the health of the workforce.
Workforce
Performance

Workforce Health Lessons for L&D leaders


Lower
Worse Workforce Better Predisruption health does not always equal
Health postdisruption health
Resilience is a (direct) team sport
“Work empathy” is actionable

Source: Gartner
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Current and Future Leadership

Hybrid Environments Are Affecting Manager-


Employee Relationship
The Urgent Need for Empathy in the Hybrid Environment

82% of employees agree that it is


important for their organization to see
them as a person, not just an
employee.

89% of HR leaders report that it is more


important to lead with empathy in a
hybrid environment.

n = 5,000 employees; 75 HR leaders


Source: 2020 Gartner EVP Employee Survey; 2021
Gartner Hybrid Work HR Leader Survey

Source: https://unsplash.com/photos/6ie6OjshvWg

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Current and Future Leadership

Equip Managers to Lead With Empathy


Anatomy of an Empathy-Driven Manager

Prioritizes people over processes Asks, doesn’t tell


Embraces growth mindset Safeguards confidentiality
Creates transparency Contextualizes employee mindset
Common
Barriers Skill Mindset Capacity
to Empathy

Empathy doesn’t Why should I be I’m already


come naturally to responsible for overloaded.
me. What do I supporting employee Where will I
do? personal needs? find the time?

Source: Gartner
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Current and Future Leadership

Connector Managers Drive Sustainable


Performance*
The Connector Manager Approach The Organization
Connection
Ensure better — not just
more — connections.

The Team
Connection
Make development
a team sport.
Connector managers improve
sustainable performance by 45%.
The Employee
Connection
(Really) get to know
your employees.

n = 4,787 employees
Source: 2020 Gartner Manager of the Future Survey
*
Sustainable performance is an employee’s ability to maintain/increase performance without compromising his/her health.
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Diversity, Equity and Inclusion

Low Diversity in the Leadership Pipeline


Underrepresented Talent in the Leadership Pipeline

C-Suite
29% Women
17% Racial Minorities
Progression of underrepresented talent
stalls in the middle. They experience
slower rates of promotion and worse
Midlevel and Senior perception of leadership potential.
Leaders
41% Women
25% Racial Minorities

Frontline Employees
56% Women
31% Racial Minorities

Source: Bureau of Labor Statistics, Current Population Survey


Note: Data is cited for management, professional and related occupations in the United States.
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Diversity, Equity and Inclusion

New Path Leads to Consequential Accountability


Individual Leaders Should Be Consequentially Accountable

Collective Accountability
Creates diffuse leader
Shift Mindsets​ + Cascade Goals​ + Track Metrics = responsibility for DEI
outcomes

Inform Decision Customize Require Progress Consequential


Making Strategies Expect and require Accountability
Use objective criteria Support customized progress on DEI Meaningfully impacts
and integrated data + strategies to enable + goals for any leader = behavior and outcomes
to drive equitable leader execution of to advance in the for individual leaders
talent decisions. DEI goals. organization.

Source: Gartner
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Future of Work

The Reinvented EVP: The Path to Higher Impact


The Human Deal Framework

Deeper Connections Radical Flexibility


Help employees Provide flexibility
strengthen their family on all aspects of
and community work, not just
connections, not when and where
just work

Shared Purpose Personal Growth


Take collective Help employees
action on purpose, grow as people, not
don’t just make just professionals
statements Holistic
Well-Being
Ensure employees
use, don’t just provide,
holistic well-being
offerings

Source: Gartner
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Future of Work

Orient Development Around People,


Not Just the Organization
Traditional Development Opportunities Personal Development Opportunities

Organization- Career
Based
Training

Work Personal
Management Learning and
Training Development
Training Passions
Hobbies

Skills-Based
Certifications

97% of organizations offer employees opportunities Only 32% of organizations offer employees
to learn skills that will be useful in their jobs. opportunities to pursue their personal interests.

n = 77 HR leaders n = 77 HR leaders
Source: Gartner 2021 EVP Benchmarking Survey Source: Gartner 2021 EVP Benchmarking Survey
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Key Issue No. 2

1. How should world-class L&D leaders respond to the major trends impacting
the workforce?
2. How do world-class L&D leaders elevate their own personal impact?
3. How do world-class L&D leaders improve their HR functions and teams?

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Perceived Strategic Value of HR Is Stagnant
Strategic Value of HR
Internal Customer Ratings of Strategic Value of HR
100

66
61 62 60 60 62 62
58

50

0
2013 2014 2015 2016 2017 2018 2019 2020
n = 244 companies
Source: Gartner HR BAT Survey
Note: Internal customers of HR assign a score from 1 to 100 based on the following question: “Overall, how valuable is your organization's HR function to your
ability to meet your strategic objectives?”
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Low Marks From Employees for L&D

Unfulfilling Learning Experience Few Learning Promoters

Only 41% of employees are satisfied with the L&D Most employees would not recommend their
experiences at their organization. organization’s training programs to other colleagues.

n = 3,544 employees
Source: 2021 State of the Learning Culture Employee Survey

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Measure and Communicate L&D’s Impact
Eight Action Steps

Challenge 1: Metrics Selection Challenge 2: Metrics Communication

1 Engage with the line on metrics selections. 5 Present data across the L&D portfolio.
Ensures L&D and the line share the same goals Allows for a composite view of L&D and its
and expectations organizational impact

2 Start with business outcomes, not L&D activity. 6 Tailor dashboards to audience.
Avoids a disconnect between L&D’s plan and what Clarifies the relevance and impact of the function
the line expects from the function by keeping the end-user in mind

3 Prioritize quality over quantity data. 7 Present data as part of an HR narrative.


Ensures the data gathered can be used to inform Helps stakeholders understand what the data
and influence business decisions means and why it matters

4 Maintain consistent metrics across functions. 8 Adapt dashboards to changing environments.


Compliments more specific program information Enables effective decision making and resource
prioritization
Source: Gartner
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Self-Assess L&D Governance Effectiveness
Six Keys of Effective L&D Governance Checklist
1. Function Oversight 4. L&D Staff Capabilities (Cont.)
□ We have separate governance councils to oversee strategic □ We embed capabilities into L&D employees’ daily workflow.
and tactical issues. □ We use relevant, on-the-job activities to develop L&D staff.
□ We have a set agenda for strategic governance meetings that 5. Metrics
focuses solely on ensuring alignment between L&D strategy
and the organizational strategy. □ We work with the line to identify metrics at the beginning of
each L&D intervention.
2. Business Engagement □ We align L&D metrics to business objectives and provide
□ We define L&D and line project responsibilities. additional context for our metrics to make them more relevant
□ We have a partnership framework that helps L&D staff identify to the line.
what they should discuss with key line partners outside of □ We tailor communication about L&D performance to highlight
individual projects. the most relevant information to different sets of stakeholders
3. Portfolio Management 6. Vendor Management
□ We use project prioritization criteria to determine whether to □ We have proactive relationships with our vendors, holding
invest in proposed L&D interventions. regular meetings to discuss both strategic and tactical issues.
□ We work with the line to continuously balance the L&D □ We have a holistic vendor scorecard that includes
portfolio. relationship metrics and includes vendor feedback.
4. L&D Staff Capabilities □ We look for opportunities to collaborate with our vendors to
meet our strategic needs.
□ We focus staff on developing their business expertise, L&D
expertise,
Source: Gartner and advisor capability.
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Key Issue No. 3

1. How should world-class L&D leaders respond to the major trends impacting
the workforce?
2. How do world-class L&D leaders elevate their own personal impact?
3. How do world-class L&D leaders improve their HR functions and teams?

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Build a Productive Learning Culture
for a Hybrid Environment
Three Components of a Productive Learning Culture

A Changing Learning Environment In a productive learning


1 2
• 94% of L&D leaders have had to culture, what and how
Learning Learning
change their L&D strategy in the employees learn is driven by
Experience Capability
past 18 months. Productive the right learning experience,
Learning capability and environment.
• 60% of L&D leaders are increasing Culture
their spend on learning technology.
• Although most L&D leaders desire
a "productive" learning culture, most An effective hybrid learning
3 environment is fair, open,
describe their current learning
culture as "check the box." Learning relevant and safe.
Environment

n = 30 learning and development leaders


Source: 2021 Gartner Learning Culture Survey
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Building a Flexible L&D Function
The Path to a More Flexible L&D Function

Challenges Traditional L&D Lagging Learning Quickly Outdated


to Improving Skills Silos Strategy Learning Content
L&D
Functional L&D staff focus on Linear L&D strategy- Comprehensive learning
Flexibility developing specialist skill setting processes make content gets outdated
sets and struggle to flex it hard to react to shifts in soon after it is deployed
to unfamiliar areas. the business. to employees.

Progressive Skills Change-Proof Targeted Iterative


Development Learning Strategy Content
Develop staff with Create a dynamic Build minimum viable
emerging skills by learning strategy to products that can be
gradually exposing support the business easily modified in the
them to new skill areas. through change. future.

Source: Gartner
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Learning Advisor Model

Source: Gartner

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Recommended Actions
Support the development of a hybrid work model by using human-centric
design to offer flexible experiences, enable intentional collaboration and drive
empathy-based management.
Manage shifting skills needs by preparing dynamic systems, strategies and
people.
Foster long-term workforce resilience by reassessing workforce support
offerings to drive workforce health, not just performance.
Accelerate progress on diversity, equity and inclusion (DEI) goals by
establishing consequential accountability for DEI in the organization’s leaders.
Respond to changing employee expectations by offering a more human-
centered employee value proposition (EVP), focused on providing for the whole
person, delivering an exceptional life experience and evoking positive
emotions.
Organize the function to achieve its goals of agility, learning effectiveness and
operational efficiency by building a more flexible L&D function that incorporates
learning advisors with business expertise.
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Recommended Gartner Research

Redesigning Work for the Hybrid World: Opportunities for Knowledge Workers
HR Research Team (G00751791)
Building a Dynamic Skills Organization L&D Research Team (G00727106)
How to Boost the Impact of Virtual Learning L&D Research Team (G00736393)
L&D Innovations Bullseye 2021 Report L&D Research Team (G00737333)
Diversifying the Leadership Bench HR Research Team (G00752619)
Sustaining Workforce Resilience Through Disruption HR Research Team
(G00753582)
Reinventing the Employee Value Proposition: The Human Deal Total Rewards
Research Team (G00741637)

For information, please contact your Gartner representative.

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