Strategic Training and Motorola

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Strategic Training and Motorola
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Business Strategy

• A plan that integrates the companys goals,
  policies, and actions
• The strategy influences how the company uses
• physical capital (plants, technology, and
  equipment)
• financial capital (assets and cash reserves)
• human capital (employees)
• Business strategy helps direct the companys
  activities to reach specific goals

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Strategy Impact on Training

• Training of current or future job skills?
• Level of training customization?
• employee, team, unit, or division
• Training inclusiveness?
• Restricted to certain employees or open to all?
• Reactive or proactive training?
• Resources for TD or other HR functions?
• http//www.youtube.com/watch?vVAix5Ho4fwk

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Strategic Training and Development Process
Business Strategy
Strategic TD initiatives
TD Activities
Metrics showing value of training
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Motorola
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Motorola Case A

• What accounts for Motorolas past success? How
  has it maintained its competitiveness?
• What are the potential benefits and risks to
  expanding training opportunities?
• Two teams debate this issue negotiate a
  solution
• Team 1 expand training
• Team 2 dont expand training
• Does Motorola has an obligation to train
  employees?

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Motorola Executive Institute

• What kind of Training and Development did
  Motorola Executive Institute offer?
• In what ways was Motorola Executive Institute a
  misfit with the Motorola culture?
• Why do you think this TD was not effective?
• What lessons were learned?

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The Welcome Heresies of Quality

• Take a few minutes to review the Welcome Heresies
  of Quality
• What is Bob Galvins point?
• Is this point consistent with what was found at
  Motorola?

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Motorola and Strategy

• Use the following model to identify how
  Motorolas business strategy is linked with its
  TD

Business Strategy
Strategic TD initiatives
TD Activities
Metrics showing value of training

• What is Motorolas Business Strategy?
• What are Motorolas Strategic TD initiatives?
• What are Motorolas TD Activities?
• What do Motorolas metrics suggest?

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Obstacles to Motorola University

• What obstacles existed to successful
  implementation of Motorola University?

• What did Motorola learn from these obstacles?

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ROI study - Employee Training

• Huge between-plant differences!
• Three Types of Plants
• Taught curriculum of both quality tools and
  process skills senior managers reinforce
  training ? 33 per 1 ROI
• Taught either quality tools or process skills
  manager reinforcement ? broke even
• Plants that taught curriculum but did not
  reinforce through management ? negative ROI
• Lesson Training must be reinforced from the top
  for transfer to occur

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Cross-Functional Training

• Management buy-in identified as critical ? Now
  train the senior managers first, before employees
  to facilitate transfer
• Training content
• Unity of Purpose Quality is achieved by
  cross-functional collaboration (marketing,
  product design, manufacturing)
• The BIG problem Basic Skills of manufacturing
  employees

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Should Motorola Train General Skills?

• Reasons to train Basic , General Skills

• Reasons Not to Train Basic, General Skills

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General vs. Specific Skills

• General skills are useful at all or most firms.
• TD which develops skills useful at other firms.
• Increases the likelihood that employees will be
  bid away or poached for higher salaries.
• Specific skills are useful for only certain jobs
  at certain firms.
• Increases job performance but does not prepare
  employees for future jobs.

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General Skills TrainingTuition Reimbursement

• October 15, 2001BusinessWeek's 2001 survey say
  their employers should have more clearly defined
  how an EMBA degree would affect their career
  paths. No surprise, then, that recent EMBA grads
  report that anywhere from 40 to 70 of their
  classmates changed jobs during or after the
  program.

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Reasons to Provide General Skills Training

• Attract Quality Employees
• Employer of Choice
• Who values skills training?
• Improve Employee Skills
• Stay on the cutting-edge
• Enhance employee ability to contribute
• Retain Skilled Employees
• Employability or learning contract

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You Paid for Them Study Info

• 10,000 full-time salaried employees.
• 12,000 current and former employees 1996-2000
  were analyzed using HRIS records.
• 1,000 survey responses.
• U.S. employees only.
• Tuition-reimbursement 1996-2000
• 38 salaried employees participated
• 9 salaried employees earned a degree

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Participation in Tuition Reimbursement and
Voluntary Turnover 1996-2000
N 12,360
Those who earned a degree split by receiving
reward afterward
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Promotion, Tuition-Reimbursement and Voluntary
Turnover 1996-2000
N 12,360 ?2 (p lt .001)
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Findings

• Those receiving current tuition-reimbursement
  more likely to stay
• After earning a degree
• Promoted ? Likely to stay
• Not promoted ? Likely to leave
• If well managed, tuition-reimbursement can
• Attract high-quality employees
• Strengthen employee capabilities
• Reduce turnover
• But only if you USE employee skills

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Back to Motorola

• Should Motorola develop general skills among its
  employees? Why or why not?

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Manufacturing Employees

• 60 of manufacturing employees could not do basic
  arithmetic
• Ten is what percent of 100?
• Why not? The workforce cant read
• Yet employees had improved quality 10X
• Supervisors served as translators into verbal
  English, or Spanish or Polish
• Lesson Basic education necessary for employees
  to work independently
• New standards 7th grade math and reading
• Problem 50 dont meet standards

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Basic Education Problem

• Remedial elementary education added to training
  requirements but problems
• Huge revenue investment required
• Morale (embarrassment)
• Approach Remedial math reading are like all
  other skills training
• Policy
• If refused retraining ? fired
• If retrained by failed ? new job, reassigned

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Partnering with Community Colleges

• Early Foundation for Motorola University
• Share resources
• Faculty
• Curriculum
• Equipment
• Facilities
• Students (interns)
• College gains resources and insight into
  real-world issues
• Motorola develops employees and recruits new ones

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Question

• As Motorola begins to partner with community
  colleges, they begin to create which model of TD?

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Motorola University is born

• 1989 Emerged from MTEC
• University positively received by Colleges
• Motorola U must be relevant
• To the corporation
• To the job
• To the individual

• 1993 Motorola University expands to China
• Works with 21 higher education institutions in
  China
• Involved in Chinese EMBA market

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A Little about Six Sigma

• http//www.youtube.com/watch?vUGAwluWIEo0
• Goal quality measures that are six standard
  deviations better than the mean!
• Began in manufacturing, spread through
  organization
• Six Sigma Model
• Define Opportunity for Performance Improvement
• Measure Performance Identity what and how
• Analyze Opportunity Root Causes of Problem
• Improve Performance Choose implement solution
• Control Performance Implement performance
  monitoring system

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Six Sigma Training

• Green Belt 5 days of training
• Serve on Black Belt teams or lead teams that do
  not require a black belt
• Learn structured problem solving, intermediate
  level quality tools, how to generate bottom-line
  results
• Black Belt 4 weeks of training
• Lead project teams
• More detailed training includes statistical tools
  and techniques

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Motorolas Recent History

• October 26, 2007 Chicago Daily Herald
• CEO Ed Zander is optimistic change is coming
• Motorola has had no hits with cell phones for 3
  years since the Razr
• November 30, 2007
• Ed Zander steps down, former COO Greg Brown
  appointed new CEO
• Brown deemed a rising star by Fortune (2006), can
  he revive Motorola? Will he spin off the handset
  division?

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Motorola Today

• August, 2008, Sanjay Jha appointed as co-CEO with
  Greg Brown
• Former COO at Qualcom appointed to take over
  handheld business until it is spun out into its
  own company in Q3 2009
• Challenge to overcome engineer-driven culture
  and change to a more market-driven culture
• Possible move of division to west coast

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Motorola Today
July 10, 2008 Motorola's Market Share Mess The
company's lack of compelling new phones continues
to depress market share, which threatens plans to
spin off the handset division
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Motorola as an Investment
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The Latest

• Approximately 300 laid off in 2008 and 4000 more
  layoffs anticipated in 2009
• Distribution center in India closed
• Jan 21 09 LG replaces Motorola as 3rd in
  market share in handheld market
• Jan 26 09 many laid off were developers for
  windows platform for mobile devices, but Motorola
  says they will continue to support Windows
  software.

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Can Todays Motorola Innovate?

• The Motorola Aura
• http//www.youtube.com/watch?vcORPkDe35Y8

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What Happened to Bob Galvin?

• 1990 - Retired from Motorola board
• 1991 Awarded National Medal of Technology
• 1991 - Elected to Business Hall of Fame
• 2004 Founds Galvin Electricity Initiative
• Goal to build perfect electric system that will
  never black out
• 2005 Awarded Vannevar Bush Award for Visionary
  Leadership from National Science Board
• Now lives with wife Mary in Barrington, IL
• Four children, 13 grandchildren

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Some References

• http//www.computerworld.com/action/article.do?com
  mandviewArticleBasicarticleId9126803intsrcnew
  s_ts_head
• http//www.techtree.com/India/News/LG_Replaces_Mot
  orola_as_3rd_Largest_Handset_Maker/551-98056-893.h
  tml
• http//www.techtree.com/techtree/jsp/article.jsp?a
  rticle_id97933cat_id893
• http//techdirt.com/articles/20090113/0753123392.s
  html
• http//www.motorola.com/content.jsp?globalObjectId
  3082
• http//www.motorola.com/content.jsp?globalObjectId
  8892
• http//investing.businessweek.com/research/stocks/
  snapshot/snapshot.asp?symbolMOT
• http//www.businessweek.com/investor/content/jan20
  09/pi20090115_717627.htm