A personal message - it's time for change!

We are in the worst financial crisis in living memory. Employers that are able to sustain high levels of people engagement and performance despite having to make difficult decisions are more likely to survive and emerge stronger than before.

My experiences of living through several recessions have convinced me that three characteristics typify survivors. A high trust culture, which inspires go-the-extra-mile responses from an engaged workforce. Allegiance to core values, as principle takes precedence over profit. And a passion for learning, an excitement for innovation, an enthusiasm for change!

And on that last point, let me pose you a question: why is it that, in any economic turndown, for most UK employers the first budget to be cut is the development budget? (in this recession, 67% of employers did that in the first year)

Having been involved in people-development businesses for many years I have had a long time to think about that!  In my judgement, the key issue is that developing people is generally perceived in UK Boardrooms as an 'overhead' and not a 'wealth creator', as 'nice to do', not 'need to do'. This attitude means that, when things are going well it's an expense line that can be tolerated, but when things start going not so well, it can be cut with supposed impunity. A faster way to reduce employee engagement would be hard to find.

How do we fix this absurd delusion?  First, we need a stronger lead from the Chartered Institute for Personnel and Development. The CIPD, following the takeover of the Institute of Training & Development by the Institute of Personnel Management in 1993, has been driven by the HR faction. It has portrayed learning and development as an adjunct of HR and an L&D career as somehow second-class. Where there is no vision the people perish.

Next, we need heads of organisational L&D functions to radically improve their approach. To ensure proper business alignment and service quality. To provably deliver positive ROI to senior management and change its perceptions - you don't 'cut' what you perceive adds value in a time of recession, you invest more.

Third, as a society we must address the short-termism that is so endemic in the UK. Uniquely in the Western world, the majority of UK businesses are financed by bank overdraft, technically repayable 'on demand'. This short-term mentality does not encourage investment in the skills development needs of tomorrow, the attitude being "just train people to do what we need today". For publicly quoted companies, often primarily driven by today's share price, this short-termism can be even more pronounced. It is a potent inhibitor of investment in developing people.

Admittedly these are ambitious changes, but nothing is as certain as change! Hastening these changes is a key focus for us at The Training Foundation, as you will see from this website. For example, and amazingly to me, more than 20,000 individuals have achieved qualifications with us since 1998. Our Surveys tell us that they have certainly changed, and have radically improved the ROI their employers get from their investments in training.

If you are already working with us in some way I thank you, we very much value the relationship and your support. If not as yet, then do come and talk to us: I can promise you that it would not be time wasted.

Sincerely 

Nick Mitchell