american companies spend enormous amounts of money on employee training and education—$160 billion in the united states and close to $356 billion globally in 2015 alone—but they are not getting a good return on their investment. they found it impossible to apply what they had learned about teamwork and collaboration, because of a number of managerial and organizational barriers: a lack of strategic clarity, the previous gm’s top-down style, a politically charged environment, and cross-functional conflict. education with the objective of individual growth is worthy in its own right, of course, and people are eager to acquire knowledge and skills that will help them advance in their careers. from all these streams of research we’ve learned that education and training gain the most traction within highly visible organizational change and development efforts championed by senior leaders. by that logic, people must be selected for and developed with the “right” knowledge, skills, and attitudes in order to improve the institution’s effectiveness and performance.
indeed, improving cross-unit integration would itself be a capability-development experience for the senior team and key managers that would lead to a better understanding of skills gaps that training and education might address. a consultant in hr can take advantage of real-time successes and failures to help managers reflect on the consequences of their actions and see alternatives. project team members said that they had learned a lot about how to work together and had come to appreciate the complexity of business problems and decision making in different functions. individual units must consider their needs and capabilities in the context of their own strategy and goals. asda began by creating a few model stores that demonstrated the leadership and organizational capabilities needed to build a more employee- and customer-centric culture. in about a decade the company improved its market capitalization tenfold, thanks largely to its disciplined, unit-by-unit approach to change and development.
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