The MTP Business Learning Blog

This blog is produced by MTP for senior professionals highlighting relevant and interesting books and articles on business, finance and strategy, and the opportunity to comment on them. It also contains news of MTP and its clients and, from time to time, extracts from MTP publications.

Monday 19 August 2013

Assessing the impact of Baby Boomers' retirement

‘Accelerated Skills Development’ by Sam Ponzo (Dupont), Training Journal, August 2013

I chose this article for review because, unusually in this particular journal, it is written by someone in an Learning & Development role in a major company, rather than the usual consultants selling their wares.  I have always had a sneaking admiration for Dupont because of the association with the famous ‘Dupont Hierarchy’ of financial ratios which we have shown to countless non-financial managers over the years. (But I was rather taken aback one day when a manager from Dupont told me that he had never heard of ‘their’ hierarchy!).


Sam Ponzo is ‘Practice Leader, Learning and Development’, an impressive title which makes up for the name, which sounds more like a fictional character in a movie about business fraud!  His main focus is employee rather than management skills but the principles apply across the board; it is also important for MTP to remember that many of our clients and contacts have development responsibilities that extend to all levels. 

The article is easy to read, thought provoking and certainly does have implications across the board.  It takes a macro approach to Learning & Development thinking.  The author’s basic thrust is that the phenomenon of Baby Boomers has significant implications for strategy and practice.  The Boomers - helpfully defined as those born between 1946 and 1964 - apparently represent nearly half the workforce in Europe and will leave a massive skills gap when they retire.  Though it could be argued that retirements might be delayed, the reality is that many have retired already; the average retirement age for both men and women is still below 60.

Thus the Learning & Development challenge is to replace the skills that will be lost as 50% of the workforce leave their jobs over the next fifteen years or so.  The author asserts that 70% of training takes place on the job - though disappointingly does not quote any source to back this up – and uses this point to argue that those who are to retire will have to spend a large part of their time transferring skills and knowledge to their successors.  And he suggests that the economic stringency of the last few years has caused companies to delay their plans to invest in solving the problem.

The position is worsened by the fact that companies are ill prepared to cope with the skills shortage because it has never happened before on this scale.  There are further challenges because modern workforces tend to be more dispersed and methods more complex than in the past.  Processes are no longer simple and repetitive; today’s workers require decision making as well as operating skills and these are much more difficult to transfer to others.

It was at this point that I began to wonder when the author was going to move on to the realities of Dupont and the solutions they are putting in place.  I have read too many articles on Learning & Development that define problems without suggesting solutions.  The author does indeed move on though the descriptions of their actions on the final page leave the reader wanting to know more.

The main elements of the solution have implications for management development and reflect much of MTP’s approach to learning.  Dupont have developed learning solutions that blend classroom study with lots of practical on-the-job training, turning their experiences into best practices.  There are tailored solutions for each industry and there is a blended learning approach to design which appeals to a range of learning styles.  Dupont takes into account the fact that  younger people - defined as ‘Milennials’ born between 1980 and 2000 and who will mostly replace the Baby Boomers - prefer different approaches to learning, with electronic equipment more prominent than the classroom. 

I was beginning to feel that all this was still rather theoretical when the author came across with an example of the benefits.  Dupont claim to be able to simulate the experiences of an electrician working in a chemical plant so well that a ten year apprenticeship can be condensed into four or five months using the blended learning approach.  The secret is in not separating the classroom input from the practical experience but instead integrating the two elements.

The other secret of success is to bring all trainees up to a similar level before the mainstream learning commences, particularly important where common skills are required from a range of backgrounds and countries of origin.  Thus there are separate pre-course educational options and strict application of entry criteria.

This is an interesting article that makes you want to know more about the practical application, a good indication of its quality.  It should give Learning & Development specialists in all areas pause for thought.


See the article in full here

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