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© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 1
The Convergence
of Strategy and
Corporate Learning
Roland Deiser
Founder & Chairman, European Corporate Learning Forum (ECLF)
Senior Fellow, Center for the Digital Future, USC Annenberg
rd@rolanddeiser.com
Fall 2010 CLO Symposium
September 27-29, 2010
Laguna Niguel, California/USA
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 2
Rethinking the
Paradigm of Learning
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 3
Massive Change and Disruption
Knowledge Based Competition
Global Horizontal Networks
New Role of the Periphery
New Strategic
Importance of
Learning
Learning is Gaining Strategic Importance – for the
Sustainability of Societies and Corporations
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 4
Redifining the Paradigm of Learning
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 5
A 5-Level Model of
Corporate Learning Interventions...
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 6
A Comprehensive Learning Architecture Needs to
Tap into a Variety of Tools and Interventions
Some Examples…
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 7
Redefining the Paradigm of Learning has an Impact
on the Identity and Scope of the Learning Function
Functional
Responsibility
Organizational
Challenge
Strategic
Challenge
Learning and
Development
Department
All relevant
stakeholders of the
organization
Customers
Suppliers
Alliances
Competitors
Regulators
Human
Resource
Function
Enterprise
Enlarged
Value
Chain
1 + 2
3 + 4
5
Low
Medium
High
Impact on
Business System
Perception of
„Learning“
Key Players Within
Learning Architecture
Reference
System
Stage
external organizational barriers
internal organizational barriers
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 8
Under the New Paradigm, Learning Becomes
Embedded as a Leadership Practice
Happens primarily in hierarchical
expert-student relationship
Happens primarily in horizontal
peer-to-peer relationship
Transfers existing knowledge, trains
prescribed behavior
Puts existing perspectives
and behavior into question
Focus on qualification for future
application
 requires learning transfer
Focus on ongoing innovation,
change and transformation
 transfer is not an issue
Happens remote from practice Is embedded in practice
Restricted Paradigm Comprehensive Paradigm
Learning as People Development
Learning as Strategic and
Organizational Process
Focus primarily on cognitive
competences
includes social, political,
and ethical competences
Learning as Educational Practice Learning as Leadership Practice
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 9
The Strategy Challenge
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 10
A New View of Strategy is Emerging
Emerging ViewTraditional View
Strategy as
extrapolating the past
Strategy as
an analytical exercise
Strategy as
top management activity
Strategy as positioning in an
existing Industry Space
Strategy as
fit with resources
Strategy as
creating the future
Strategy as an analytical and
organizational exercise
Strategy as comprehensive
organizational process
Strategy as
creating new industry space
Strategy as
stretch and leverage
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 11
From Strategic Planning to Strategic Management
  Numbers
  Pieces of Paper
  Committees and Reports
  Once a Year Exercise
  Planning Department/Staff
  Secret Process Known Only to
CEO and Top Management
Strategic Management Is Not
  Qualitative Rationale for Focus and
Action Taking Throughout the
Organization
  Organizational Foundation plus
Behavior = Results
  Informal, "Natural", Dynamic
Process
  Continuous Action/Learning/Change
Process
  Led and Enacted by Senior and
Middle Management
Strategic Management Is
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 12
Ambidexterity Revisited:
Linking Strategy, Innovation, and Learning
Agenda for a Strategic Learning Architecture
Win the Present Create the Future
Agenda for
Performance
Improvement
Agenda for Sustaining/
Renewing Strategic
Leadership
Agenda for Industry and
Company Transformation
•  What game are we
playing today?
•  What are the
Key Success Factors?
•  How do we compare against
our toughest competitors on
key industry drivers?
•  What is our position
in key segments?
•  How well are we utilizing our
assets and capabilities?
How can we leverage
our product, technology,
and people capabilities
to re-define value
creation for key
customer/market
segments?
•  What game will we play in the
future?
•  How can we accelerate
industry and company
transformation in ways that
benefit us?
•  What is the appropriate
business model for that?
•  What related capabilities will
the company require?
+ +
Understand Potential
Discontinuities
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 13
  What is the company‘s point of view about its future?
  What is its business model for creating and capturing value?
  What unique capabilities support the business model?
  What new capabilities will have to be acquired and how will they be
embedded?
  What capabilities can be developed internally, what requires
partnering, what acquisitions?
  How can the company stay alert to inflection points that will re-define
value in its business?
  What is the company‘s migration path? Actions that will help it win in
the present while creating the future?
  What type of leadership culture needs to be developed to make the
necessary change happen?
Strategic Agenda of a Typical Corporation
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 14
A Learning Architecture Needs to Impact the Domains
That Are Critical for Ongoing Strategic Innovation
Relationship to the
External World
M&A, Corporate venturing,
open innovation, customer
centricity
Organizational Design
foster cross boundary processes,
knowledge brokerage; create
heavy teams
Organizational Culture
Allow and design for difference
and diversity, commit to
managing ambidexterity
People
Develop Leadership
competencies - managing
creative talent, risk taking,
entrepreneurship
Strategy and
Business Rationale
Understand and critically
reflect business models
Arenas for
Corporate
Learning
Interventions
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 15
Learning and the Strategy Process:
A Simple Framework
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 16
3 Distinctive Elements of the Strategy Process
Strategy
Generation
Strategy
Formulation
Strategy
Execution
The strategy process is not a sequence of clearly separated steps
(traditional planning paradigm),
It is rather an iterative and circular process that leads to organizational
learning and the development of strategic competence
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 17
Strategy Generation
 Is about understanding environmental forces and
organizational capabilities
 Can be intuitive or analytical
 Happens throughout the entire organization
 Can be planned/ organized through mechanisms and
processes, or it happens coincidental, “anarchical”
 “Designed Irritation” is an important source for seeing
differently
 Seeing differently is an important source for creating
novel strategies that redefine existing business models
Dominant Logic: “Ask” - “Listen”
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 18
Strategy Formulation
 Is about dealing with risks and opportunities
 Sets directions that also include exclusion of alternative
opportunities
 Makes choices explicit
 Usually a very political process, including multiple stakeholders
 Has impact on allocation of resources
 Is only partly rational
 Is rooted in existing mindsets and cognitive frameworks
 Is a function of power dynamics
Dominant Logic: “Decide” - “Choose”
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 19
Strategy Execution
 Requires political strategy and tactics
 Micro politics are important
 Cascading Training efforts may be required to build new
capabilities and/or establish new routines
 Interventions for conscious unlearning may be required
 Project Management is key (establishing processes,
milestone planning, prioritizing of actions, controlling etc)
 Execution is source of learning in terms of experiences
that loop back to Generation
 Challenge to cope with variety of situations
Dominant Logic: “Tell” - “Know”
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 20
The Three Elements Of The Strategy Process Follow
Fundamentally Different Rationales
All levels within relevant
network cluster
Center, top level
Periphery + all levels,
also external
constituencies
Organizational
level involved
Convincing, explainingReasoning, arguing
Investigating,
understandingDialogue
Culture
Organizational inertia,
Power issues (vertical)
Different assumptions,
perceptions; Power
issues (horizontal)
Ignorance towards the
unknownConflicts
Cascading Workshops,
Townhall Meetings,
Organizational
alignment
Top Executive Forum
Workshops
Learning Expeditions,
Customer visitsActivities
Create learning designs
for “telling”
Enable constructive
discourse
Create learning designs
for “listening”
Role of
Learning
Employees, Customers,
Strategic Partners
Senior Executives,
Board of Directors
Customers,
Competitors,
Employees
Stakeholders
Complying, accepting
Experimenting,
exploiting
Fighting, struggling,
reasoning,
competing
Inquiry, curiosity, open to
new perspectives,
learning, exploring
(Socio)
Dynamics
Generation Formulation Execution
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 21
How Do Your Current Activities and Projects Fit With
These Conceptual Frameworks?
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 22
More Details in My New Book That Also Features
Ten Case Studies From Global Corporations
Featuring cases from
•  ABB

•  BASF

•  US
Army

•  EADS

•  UniCredit

•  PricewaterhouseCoopers

•  Novar=s
•  Siemens

•  EnBW

•  Deutsche
Post
DHL

© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 23
Please Do not Hesitate to Being in Touch
More material at www.rolanddeiser.com
Contact me at rd@rolanddeiser.com
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 24
Not Used
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 25
What is learning anyway?
Knowledge Transfer is only a
very small part of the equation
The Cartesian paradigm:
Mechanistic, restricted to the cognitive, one way street
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 26
negotiating meaning to create a
shared understanding of the world
The Essence of Learning
The participative paradigm:
Dynamic, social, tapping into the mutual expertise of learners
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 27
Well Designed, a Corporate Learning Architecture
Impacts the Culture, Structure, and Strategy of the Firm
  Help identify key strategic Issues
  Facilitate strategic decision making
  Help implement strategic initiatives
  Help build the right capabilities
  Work across organizational boundaries
  Help improve managerial systems and
mechanisms
  Build flexibility and responsiveness into
the organization
  Help create shared vision
  Help create leadership culture
  Integrate and socialize members
  Encourage discourse and collaboration
  Help create openness, trust
Capability Portfolio
Business Model
Strategy
Structure Culture
© 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 28
Key Questions for a Strategic Learning Architecture
  What institutional structures and systems exist within the
firm and between its relevant external partners as a
managed framework for developing and nurturing
strategic competence (learning architecture)?
  What is the specific business model driving this
framework? How is it linked to the operational core of
the firm? How does it work as a competence and
business developing "engine"?
  What are organizational cornerstones of the framework?
  Which practices does the framework contain, and how are
they interrelated?
  Which players are actively and intentionally included
within the framework? How are they managed?

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The Convergence of Strategy and Learning

  • 1. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 1 The Convergence of Strategy and Corporate Learning Roland Deiser Founder & Chairman, European Corporate Learning Forum (ECLF) Senior Fellow, Center for the Digital Future, USC Annenberg rd@rolanddeiser.com Fall 2010 CLO Symposium September 27-29, 2010 Laguna Niguel, California/USA
  • 2. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 2 Rethinking the Paradigm of Learning
  • 3. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 3 Massive Change and Disruption Knowledge Based Competition Global Horizontal Networks New Role of the Periphery New Strategic Importance of Learning Learning is Gaining Strategic Importance – for the Sustainability of Societies and Corporations
  • 4. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 4 Redifining the Paradigm of Learning
  • 5. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 5 A 5-Level Model of Corporate Learning Interventions...
  • 6. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 6 A Comprehensive Learning Architecture Needs to Tap into a Variety of Tools and Interventions Some Examples…
  • 7. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 7 Redefining the Paradigm of Learning has an Impact on the Identity and Scope of the Learning Function Functional Responsibility Organizational Challenge Strategic Challenge Learning and Development Department All relevant stakeholders of the organization Customers Suppliers Alliances Competitors Regulators Human Resource Function Enterprise Enlarged Value Chain 1 + 2 3 + 4 5 Low Medium High Impact on Business System Perception of „Learning“ Key Players Within Learning Architecture Reference System Stage external organizational barriers internal organizational barriers
  • 8. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 8 Under the New Paradigm, Learning Becomes Embedded as a Leadership Practice Happens primarily in hierarchical expert-student relationship Happens primarily in horizontal peer-to-peer relationship Transfers existing knowledge, trains prescribed behavior Puts existing perspectives and behavior into question Focus on qualification for future application  requires learning transfer Focus on ongoing innovation, change and transformation  transfer is not an issue Happens remote from practice Is embedded in practice Restricted Paradigm Comprehensive Paradigm Learning as People Development Learning as Strategic and Organizational Process Focus primarily on cognitive competences includes social, political, and ethical competences Learning as Educational Practice Learning as Leadership Practice
  • 9. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 9 The Strategy Challenge
  • 10. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 10 A New View of Strategy is Emerging Emerging ViewTraditional View Strategy as extrapolating the past Strategy as an analytical exercise Strategy as top management activity Strategy as positioning in an existing Industry Space Strategy as fit with resources Strategy as creating the future Strategy as an analytical and organizational exercise Strategy as comprehensive organizational process Strategy as creating new industry space Strategy as stretch and leverage
  • 11. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 11 From Strategic Planning to Strategic Management   Numbers   Pieces of Paper   Committees and Reports   Once a Year Exercise   Planning Department/Staff   Secret Process Known Only to CEO and Top Management Strategic Management Is Not   Qualitative Rationale for Focus and Action Taking Throughout the Organization   Organizational Foundation plus Behavior = Results   Informal, "Natural", Dynamic Process   Continuous Action/Learning/Change Process   Led and Enacted by Senior and Middle Management Strategic Management Is
  • 12. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 12 Ambidexterity Revisited: Linking Strategy, Innovation, and Learning Agenda for a Strategic Learning Architecture Win the Present Create the Future Agenda for Performance Improvement Agenda for Sustaining/ Renewing Strategic Leadership Agenda for Industry and Company Transformation •  What game are we playing today? •  What are the Key Success Factors? •  How do we compare against our toughest competitors on key industry drivers? •  What is our position in key segments? •  How well are we utilizing our assets and capabilities? How can we leverage our product, technology, and people capabilities to re-define value creation for key customer/market segments? •  What game will we play in the future? •  How can we accelerate industry and company transformation in ways that benefit us? •  What is the appropriate business model for that? •  What related capabilities will the company require? + + Understand Potential Discontinuities
  • 13. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 13   What is the company‘s point of view about its future?   What is its business model for creating and capturing value?   What unique capabilities support the business model?   What new capabilities will have to be acquired and how will they be embedded?   What capabilities can be developed internally, what requires partnering, what acquisitions?   How can the company stay alert to inflection points that will re-define value in its business?   What is the company‘s migration path? Actions that will help it win in the present while creating the future?   What type of leadership culture needs to be developed to make the necessary change happen? Strategic Agenda of a Typical Corporation
  • 14. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 14 A Learning Architecture Needs to Impact the Domains That Are Critical for Ongoing Strategic Innovation Relationship to the External World M&A, Corporate venturing, open innovation, customer centricity Organizational Design foster cross boundary processes, knowledge brokerage; create heavy teams Organizational Culture Allow and design for difference and diversity, commit to managing ambidexterity People Develop Leadership competencies - managing creative talent, risk taking, entrepreneurship Strategy and Business Rationale Understand and critically reflect business models Arenas for Corporate Learning Interventions
  • 15. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 15 Learning and the Strategy Process: A Simple Framework
  • 16. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 16 3 Distinctive Elements of the Strategy Process Strategy Generation Strategy Formulation Strategy Execution The strategy process is not a sequence of clearly separated steps (traditional planning paradigm), It is rather an iterative and circular process that leads to organizational learning and the development of strategic competence
  • 17. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 17 Strategy Generation  Is about understanding environmental forces and organizational capabilities  Can be intuitive or analytical  Happens throughout the entire organization  Can be planned/ organized through mechanisms and processes, or it happens coincidental, “anarchical”  “Designed Irritation” is an important source for seeing differently  Seeing differently is an important source for creating novel strategies that redefine existing business models Dominant Logic: “Ask” - “Listen”
  • 18. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 18 Strategy Formulation  Is about dealing with risks and opportunities  Sets directions that also include exclusion of alternative opportunities  Makes choices explicit  Usually a very political process, including multiple stakeholders  Has impact on allocation of resources  Is only partly rational  Is rooted in existing mindsets and cognitive frameworks  Is a function of power dynamics Dominant Logic: “Decide” - “Choose”
  • 19. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 19 Strategy Execution  Requires political strategy and tactics  Micro politics are important  Cascading Training efforts may be required to build new capabilities and/or establish new routines  Interventions for conscious unlearning may be required  Project Management is key (establishing processes, milestone planning, prioritizing of actions, controlling etc)  Execution is source of learning in terms of experiences that loop back to Generation  Challenge to cope with variety of situations Dominant Logic: “Tell” - “Know”
  • 20. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 20 The Three Elements Of The Strategy Process Follow Fundamentally Different Rationales All levels within relevant network cluster Center, top level Periphery + all levels, also external constituencies Organizational level involved Convincing, explainingReasoning, arguing Investigating, understandingDialogue Culture Organizational inertia, Power issues (vertical) Different assumptions, perceptions; Power issues (horizontal) Ignorance towards the unknownConflicts Cascading Workshops, Townhall Meetings, Organizational alignment Top Executive Forum Workshops Learning Expeditions, Customer visitsActivities Create learning designs for “telling” Enable constructive discourse Create learning designs for “listening” Role of Learning Employees, Customers, Strategic Partners Senior Executives, Board of Directors Customers, Competitors, Employees Stakeholders Complying, accepting Experimenting, exploiting Fighting, struggling, reasoning, competing Inquiry, curiosity, open to new perspectives, learning, exploring (Socio) Dynamics Generation Formulation Execution
  • 21. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 21 How Do Your Current Activities and Projects Fit With These Conceptual Frameworks?
  • 22. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 22 More Details in My New Book That Also Features Ten Case Studies From Global Corporations Featuring cases from •  ABB
 •  BASF
 •  US
Army
 •  EADS
 •  UniCredit
 •  PricewaterhouseCoopers
 •  Novar=s •  Siemens
 •  EnBW
 •  Deutsche
Post
DHL

  • 23. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 23 Please Do not Hesitate to Being in Touch More material at www.rolanddeiser.com Contact me at rd@rolanddeiser.com
  • 24. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 24 Not Used
  • 25. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 25 What is learning anyway? Knowledge Transfer is only a very small part of the equation The Cartesian paradigm: Mechanistic, restricted to the cognitive, one way street
  • 26. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 26 negotiating meaning to create a shared understanding of the world The Essence of Learning The participative paradigm: Dynamic, social, tapping into the mutual expertise of learners
  • 27. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 27 Well Designed, a Corporate Learning Architecture Impacts the Culture, Structure, and Strategy of the Firm   Help identify key strategic Issues   Facilitate strategic decision making   Help implement strategic initiatives   Help build the right capabilities   Work across organizational boundaries   Help improve managerial systems and mechanisms   Build flexibility and responsiveness into the organization   Help create shared vision   Help create leadership culture   Integrate and socialize members   Encourage discourse and collaboration   Help create openness, trust Capability Portfolio Business Model Strategy Structure Culture
  • 28. © 2006-2010 Roland Deiser CLO Symposium – Sep 27-29, 2010 Page 28 Key Questions for a Strategic Learning Architecture   What institutional structures and systems exist within the firm and between its relevant external partners as a managed framework for developing and nurturing strategic competence (learning architecture)?   What is the specific business model driving this framework? How is it linked to the operational core of the firm? How does it work as a competence and business developing "engine"?   What are organizational cornerstones of the framework?   Which practices does the framework contain, and how are they interrelated?   Which players are actively and intentionally included within the framework? How are they managed?