In a recent blog posting that discussed how the 80-20 rule might be applied in an organisation, I made some suggestions how 80% of the training budget could be spent on simple yet effective informal learning solutions. Jay Cross in a comment suggested, however, that this budget should be “spread around the managers” to spend for themselves. I responded by asking whether this meant the end of a centrally-held training budget or even the need for a L&D function?
My view on this is that it does not mean the end of the L&D function – but I do believe that it will need to change if it is to support all types of learning within the organisation.
On a number of occasions when I have talked to L&D/training managers about the importance of informal learning they have said it is outside their remit, that they have too much to do ensuring formal learning takes place, or they are not interested in it because they can't measure or manage it.
If the view persists that informal learning is not the responsibility of the L&D function, then it is possible that the CEO, once he gets his hands on the research that demonstrates that 80% of learning in an organisation is informal, is not only going to cut the training budget back to 20% - and share the remaining 80% around the organisation - but may even cut back the department itself to 20% of its size.
So, how does the L&D function need to change to avoid this?
Firstly, it needs to stop focusing all its energies on producing or commissioning formal training courses, on devising and measuring competencies for job roles, and on monitoring and managing the usage of courses, but expand its horizons and understand and appreciate how there is now a wide range of ways and opportunities for learning in the organisation - both technology-enabled and otherwise. At the end of the day, senior managers are not interested in how many people are competent at different job levels or how many courses people have taken or tests they have passed, they don’t even want to know how training problems have been resolved, all they want to know is whether business challenges have been addressed, e.g. whether productivity has improved or sales have increased - and all this ultimately is measured in the bottom line.
Secondly, the L&D function needs to take a step back from its activities and understand the big picture. It needs to take a good and objective look at how the organisation is operating and its organisational culture, but even more importantly, it needs to understand the people who work in it, and how they like to “learn” (and by that I mean acquire information, knowledge, skills, etc) in different circumstances and for different reasons, as well as how they use technology in their personal and working lives.
Thirdly, armed with this valuable information, they then need to look at the specific problems and challenges in the organisation, and, aware of the range of "learning" options open to them, design creative solutions that are appropriate and cost-effective and that successfully address the problems
If the L&D function approaches problems in this way, they will establish themselves as the experts with the experience and expertise to deal successfully with all kinds of business challenges - both strategic and tactical.
Transformation of the L&D function in this way is both feasible and relatively easy to bring about – all it takes is a new mindset and approach to Learning & Development – maybe even a new name? Something like Business Improvement might be closer to the role the transformed function would now have in the organisation, that is designing solutions to help improve both job and business perforrmance.
Finally, I need to say how WHLA can help with this transformation process, - since this, of course, is the way we work when designing solutions - and are therefore well placed to help organisations understand what is required. Our Professional Development service can help L&D professionals understand:
- what the wider world of "learning" looks like;
- how to carry out organisational and user analyses to build the big organisational picture; and
- how to use the results of the diagnostic tools to identify the right solution for a given problem.
Do please contact me at jane.hart@WHLA.co.uk if you would like to find out more

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