Executive Development: America's Aging Workforce and RHR International's "Developing Action Learning Projects"

By Samantha Howland, Managing Director, Executive Development, DSI

During 2006, nearly 2.9 million American Baby Boomers turned 60 years old. This means that last year alone, some 8,000 Boomers per day inched closer to retirement. By 2024, approximately 76 million more members of the generation born between 1946 and 1964 (or 25% of the projected total U.S. population) will join the post-60 age group, in a demographic avalanche that promises to create myriad challenges for American society and the U.S. economy. ¹

This unprecedented population shift has already begun to grab the attention of executives in American corporations. According to DSI's strategic partner, RHR International, most representatives of the country's 500 largest companies already anticipate losing 50% of their senior executives over the coming 5 to 6 years. And they declare that they know they must invest in their younger workforce to sustain their corporations and to realize current and future objectives. ²

Exponential increases in spending on training and education programs provide evidence that corporate executives have taken steps to overcome the looming departure of core knowledge and skills. Led by the healthcare, technology, and financial services sectors, American corporations spent some $20 billion on tuition assistance programs in 2005 alone. Moreover, as Bersin & Associates' 2006 Industry Report reveals, total spending on education (including staff salaries) climbed to nearly $55 billion last year, with the largest percentage of that total devoted to executive development and management training. ³

Although top decision makers realize the importance of making the investment in management training programs, the realities of global market competition increase the criticality of integrating executive education and learning time with tangible results, including the execution of crucial corporate objectives. Further, less than 10% of management skill development occurs in the classroom.⁴ "Action Learning Projects"-those guided developmental exercises that incorporate new skills and knowledge into a defined project to enhance and expand core critical thinking and strategic capabilities-can serve as important vehicles to achieve maximum returns on educational investments. Action learning projects expose current and potential executives to new competencies and experiences they can put to work immediately in both the developmental and business component of the exercise. By promoting cross-divisional cooperation and the exchange of ideas, action learning projects also help companies to bridge potentially costly generational divides.

Could your organization profit from developing action learning projects? We think so. If you are considering action learning initiatives for your organization, the following excerpts from RHR International's recently published article provide important guidelines to consider.

Developing Action Learning Projects
From RHR International

As global business patterns continue to evolve and companies expand into new markets and product lines, many organizations find themselves facing the need to educate their management teams in areas where they have little or no experience. The use of Action Learning Projects-- a developmental exercise in which a group of persons, under guidance, work together on a topic which is outside their functional expertise in order to achieve an objective based on a current unresolved need of the company--may present the best solution.

Fostering behavioral growth in areas such as team effectiveness, cross discipline empathy and individual development, Action Learning Projects do more than just answer the needs of the moment.

Typically, companies initiate Action Learning Projects when:

1. Events require an executive education experiences that can put immediately into practice the skills and behaviors taught in the program.

2. A number of people share a specific, individual development need.

3. A critical need for recommendations on an emerging strategic issue is not being dealt with anywhere in the organization.

Successful Action Learning Projects follow six steps, involving:

Selection of Participants: project participants should emerge from the company's high potential executives who would most benefit from the developmental aspects of the assignment. One of the skills often developed by such projects is the ability to be creative and resourceful when facing a new challenge.

 

Naming a Project Sponsor: Each project team should have a sponsor, a senior executive who can provide guidance on the content of the project as well as the politics of getting the work done and gaining acceptance by the company's other senior officers. The sponsor should have: a stake in the project's success; time to help project members and to attend project kick-off and final presentations; authorization to manage portions of the project members' time; and access to resources the team will need.

 

Describing a Successful Outcome: The project sponsor should also be able to describe successful project outcomes without giving specific solutions (i.e., the project should not already have a pre-determined "right answer"). For example, a team challenged with providing guidance on a proposed acquisition might agree that the purchase should take place, advise against the transaction, or suggest a licensing arrangement for a few years in order to gather additional data on the candidate before making a decision. A strong argument for unrestrained Action Learning Projects is the possibility that the solutions will be "outside the box."

 

Describing Specific Skills and Behaviors Required for Success: The project sponsor should also be able to describe the specific skills and behaviors team members will have to apply (that is, one or more competencies the group or individuals need to develop). For example, one might expect that people doing business in China will be able to demonstrate an understanding of how product introductions in China differ from the same process in the domestic market.

 

Determining Length and Intensity of the Project: In general, participants should work on the project for an equivalent of 2-6 full-time weeks. The issue should not be so simple it can be solved in a few hours, nor should it be so complex that it will take more than 50 hours per person for the group to recommend a course of action.

 

Providing Feedback: All projects require feedback from an executive committee, to provide positive reinforcement for behaviors learned and to encourage continued use on the job. Participants need to know both the positive and negative reactions to their efforts, so that they can address recommendations.

Beyond these six steps, Action Learning Projects also require:

A Development/Performance Balance: In a project with a developmental emphasis (work on a topic in which participants have no expertise), learning is the most vital outcome. If performance is key, learning how well the team works together might matter more, but all Action Learning Projects must have an element of development, to "stretch" participants in ways that pay long-term dividends.

 

Support for the Project Team: This means the need for both internal, administrative support including work-load reassignment and provisions to support the optimal project group size (of 4 to 6 members), as well as external support. The latter includes experts (such as business school faculty and consultants), MBA students or lower-level "High Potentials" who can help with data gathering and report writing, and an expert team facilitator who can help the group to avoid bogging down in dysfunctional behavior, provide feedback to assist with development, and link the project to other developmental programs (e.g., succession planning or talent management).

The Benefits of Linking Strategic Needs with Action Learning

Through Action Learning Projects, high-potential executives gain exposure to new skills and experiences which can immediately benefit the company. Solutions produced by such team members may face less resistance to implementation since they were designed by insiders who know the company's people and business. Involving senior management as project monitors and mentors can promote an exchange of ideas and familiarity with the next generation of leadership.

While other methods may address the challenges arising from new business opportunities or current operational difficulties, the additional developmental, organizational and cost benefits provided by Action Learning Projects make them a practical alternative.