April 2008

Organizational Development

Training through a recession

A potential recession that could be as severe as the economic downturn of 2001 is currently looming over Corporate America and heavily influencing the choices and actions of virtually every organization—regardless of industry. Fueled by several factors, including the sub-prime crisis and weakening dollar, this period of financial instability has forced many companies to take steps to reduce costs and adjust strategies in order to sustain themselves.

This reality presents its own set of unique challenges to heads of learning. In many cases, training budgets are one of the first areas where companies seek to slash costs. The silver lining in this dark cloud is that many organizations remain committed to training as an important component of sustainable growth. However, heads of learning may still be compelled to accomplish more with less as training staffs are reduced.

“The silver lining in this dark cloud is that many organizations remain committed to training as an important component of sustainable growth.”

Even without the pressures of an economic downturn, companies still must deal with sustainability issues in a chaotic hyper-competitive global landscape. As such, there has already been a growing demand for training in the areas outlined below, however the brewing recession will only serve to sharpen their focus.

Strategic Thinking

The increasing need for talent development in the areas of management and leadership to replace retiring baby-boomers is driving an interest in strategic thinking skills and competencies. Employees who are able to think strategically possess the abilities they need to preserve the core philosophies of a business, while stimulating progress. Whether experiencing boom or bust times, these are mission-critical skills that the workforce of every company must develop and sustain as new generations of leaders emerge.

Critical Thinking

Leaders must be trained to confront and evaluate the realities facing their business, formulate effective solutions, and consider the ramifications of their decisions. Business publications are replete with articles of faulty choices made by normally savvy executives who failed to fully consider the consequences of their actions. This points to a lack of effective critical thinking and questioning skills required of all levels of management.

Change Management

An economic downturn only increases the intensity and pace of change confronting all organizations. As such, successfully coping with these changes during periods of extreme turmoil demands employees who are able to manage new and unexpected challenges.

Innovation

Innovation is taking on increased importance as companies strive to stimulate and sustain growth. Organizations that embrace a culture of innovation and drive these principles down through all levels of their business not only improve existing products but also productivity and profitability levels.

Sales Performance

Enhancing sales staff proficiency allows an organization to more effectively establish product value and maintain a competitive advantage. Since economic conditions dictate selling strategies and techniques the benefits of a sales force that can be brought up to speed quickly is undeniable.

Customer Centric

Many organizations are strategic rather than customer focused. Yet research demonstrates companies that adopt a customer-centric focus outperform their competitors. Quite simply, organizations that strive to improve their customers’ lives experience reciprocal growth and profitability.

Timothy F. Bednarz, Ph.D.