Training and
Development at
Motorola
Setting Training Objectives
• Align/match identified training needs with
training objectives.
• Define objectives in specific, measurable
terms:
– In terms of desired employee behaviors.
– In terms of the results that are expected to follow
from such behaviors.
• Information for setting objectives should come
from the organization’s performance
management system.
• But…….
HOW TO WE GET
TRAINING
OBJECTIVES?
Business Strategy
• A plan that integrates the company’s
goals, policies, and actions
• The strategy influences how the company
uses its resources:
– physical capital (plants, technology, and
equipment)
– financial capital (assets and cash reserves)
– human capital (employees)
• Business strategy helps direct the
company’s activities toward specific goals
Business Strategy & Training
• How Does Strategy influence Training and
Development?
– Indirectly  Training can help employees
develop skills needed to perform their jobs,
which directly affects the business.
– Directly  Strategy has an impact on the
type and amount of training that occurs,
whether resources should be devoted to
training, and the type, level, and mix of skills
needed in the company.
Examples
• Will we train for current job or develop
skills for future jobs?
• How customized should training be?
– employee, team, unit, or division
• Should trainers be internal or external?
• Who should be trained?
– Restricted to certain employees or open to all?
• Should training be reactive when problem
emerge or proactive (preventative)?
• Should we invest resources in T&D or in
other HR functions (i.e., selection)?
Strategic Training and
Development Process
Motorola
Business Strategy
• A plan that integrates the company’s
goals, policies, and actions
– strategy influences how the company uses its
physical capital (plants, financial capital, and
human capital
• Business strategy helps direct the
company’s activities toward specific goals
What is Motorola’s
business strategy?
Business Strategies &
Training Implications
Concentration
Internal
Growth
External
Growth
Disinvestment
Motorola Case A
• At the end of Case A, Bob Galvin wants
to increase training and development
activities at Motorola?
– How is what he is proposing different from
what Motorola is already doing?
– What are the reasons to expand training as
he suggests?
– What are the reasons NOT to expand
training as he suggests?
Is his suggestion strategic?
Why or why not?
Motorola Expands Training
(Case B)
• All employees to be trained
(from entry level up)
• Focus: near perfect quality
• How did this training influence
corporate culture?
A Little about Six Sigma
• Six Sigma at Motorola
• Goal = quality measures six standard deviations
better than the mean!
• 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
How did Six Sigma fit
Motorola’s staffing strategy?
Motorola ROI study
• Does Training deliver a return-on-investment?
• 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
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
– Only 49/480 applicants can pass a basic math test
Should Motorola Train Basic
(Reading & Math) Skills?
• Reasons to train
Basic , General
Skills
• Reasons Not to
Train Basic,
General Skills
General vs. Specific Skills
• General skills are useful at all or most firms.
– T&D 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.
General Skills Training:
Tuition Reimbursement
October 15, 2001
BusinessWeek'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.
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
“You Paid for Them” Study Info
•
~10,000 full-time salaried employees.
•
~12,000 current and former employees 19962000 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
Participation in Tuition Reimbursement
and Voluntary Turnover 1996-2000
15%
14.1%
14%
Not Participated
(N=7410)
13%
Took Classes
(N=5303)
12%
11%
10.6%
Earned Degree,No
Promotion (N=835)
10%
9%
8.3%
Degree then
Promotion (N=392)
8%
7%
6.1%
6%
N = 12,360
5%
Those who earned a degree split
by receiving reward afterward
Voluntary Turnover 1996-2000
Promotion, Tuition-Reimbursement and
Voluntary Turnover 1996-2000
16%
14%
12%
Not Participated
(Promoted 96-00)
Took Classes
(Promoted 96-00)
Earned a Degree
(Promoted After)
10%
8%
6%
4%
2%
N = 12,360
0%
Promoted
Not Promoted
χ2 (p < .001)
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
Back to Motorola
• Should Motorola
develop general
skills among its
employees? Why
or why not?
Manufacturing Employees
• 60% of current manufacturing employees could
not do basic arithmetic
– “Ten is what percent of 100?”
• Why not?
• Yet employees had improved quality 10X
– How?
• Lesson:
• Problem:
Basic Education Problem
• Remedial elementary education added to
training requirements
– Huge revenue investment
– Morale issues
• Motorola’s Position: Remedial math & reading
are like all other skills training
• Policy
– If refused retraining  fired
– If retrained by failed  new job, reassigned
Partnering with Community Colleges
• Early Foundation for Motorola University
• Share resources
– Faculty
– Curriculum
– Equipment
– Facilities
– Students (interns)
• College gains resources and insight into realworld issues
• Motorola develops employees and recruits
new ones
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
Motorola’s More
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?
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
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
Motorola as an Investment
Motorola’s Comeback
Can Today’s Motorola Innovate?
The Motorola Aura
The Motorola Aura
The Motorola Droid
http://Motorola Droid
Motorola Cliq (T-Mobile Android Devise)
The Droid Reviews
• “Every now and then a phone comes along that
shakes up the market. The Motorola Droid is
one such device.”
– Generous, high-resolution display, a large keyboard,
16 GB of storage, and a laundry list of other features.
• Verizon hopes the Droid will be able to go
head-to-head with the Apple iPhone, and has
priced it accordingly: $200 with a two-year
contract and $100 mail-in rebate. And those
who purchase it through Best Buy don't have to
hassle with mailing in the rebate.
• Motorola Droid
Xoom
• Intro to Xoom
• “Motorola Xoom Could Launch February 17”
• “Motorola Xoom priced at $800 at a
minimum, according to Verizon leak”
• Demo of Xoom
Motorola
• Motorola on the upswing due to entry into
smartphone market
• More recent focus on innovation and addition of
many products to the marketplace
• Still, some areas for concern
– Motorola closed aligned with Google due to use of
Android operating system (Google’s battle with
Chinese government; launching own smartphone)
– Cliq has not been as well received as Droid
– What do we expect from the XOOM?
Motorola Strategy & T&D
Business
Strategy
Training &
Development
Former
Motorola
Fewer Quality,
Error-Free
Products
• Six Sigma
• Train front-line
manufacturing staff
• Min. Training hrs.
Current
Motorola
Multiple
Innovative
Products
???
Today’s Motorola
Strategic Analysis
Today’s Motorola
Strategic Analysis
• Based on your SWOT analysis, answer the
following questions:
– What challenges is Motorola facing?
– What continuing strength does Motorola possess?
– What is Motorola’s business strategy?
• Based on your answers to questions above,
make recommendations for Motorola’s
Training and Development TODAY?
– Who should be trained?
– What should be trained?
– How should this be trained?
• Report Out
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
Some References
•
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•
•
•
•
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http://www.computerworld.com/action/article.do?command=vi
ewArticleBasic&articleId=9126803&intsrc=news_ts_head
http://www.techtree.com/India/News/LG_Replaces_Motorola_
as_3rd_Largest_Handset_Maker/551-98056-893.html
http://www.techtree.com/techtree/jsp/article.jsp?article_id=979
33&cat_id=893
http://techdirt.com/articles/20090113/0753123392.shtml
http://www.motorola.com/content.jsp?globalObjectId=3082
http://www.motorola.com/content.jsp?globalObjectId=8892
http://investing.businessweek.com/research/stocks/snapshot/s
napshot.asp?symbol=MOT
http://www.businessweek.com/investor/content/jan2009/pi200
90115_717627.htm