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BEST PRACTICES,
®
LLC
Success stories with demonstrated impact on the bottom line
Copyright © Best Practices®, LLC
1
Best Practices, LLC Benchmarking Research
Best Practices for Developing
World-Class Engineering Talent
BEST PRACTICES,
®
LLC
Success stories with demonstrated impact on the bottom line
Copyright © Best Practices®, LLC
2
Study Overview
Table of Contents
Study Overview, Key Findings & Trends
Benchmark Class Demographics
Programs
Technical Training for Engineers
Experience-Based Training Programs
Continuing Education Programs
Innovative Training & Development Approaches
Program Investment, Relative Importance & Effective
Measurement
Best Practices
BEST PRACTICES,
®
LLC
Success stories with demonstrated impact on the bottom line
Copyright © Best Practices®, LLC
3
Study Overview, Key Findings
& Trends
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
4
Universe of Learning: Benchmark Participants
US
UK
Engineering talent development leaders from 28 different companies participated in this
benchmarking study.
Full Benchmark Class
Benchmark Participants: AT&T, BAE Systems, Caterpillar, CenterPoint Energy, Dannon, GE Healthcare, General Motors,
GSK, Hewlett Packard, Hypertherm, IM Flash Technologies, Intel, L3 Communications, LifeScan, Lockheed Martin, Northrop
Grumman, Pacific Gas & Electric, PPG, Qualcomm, Rockwell Collins, Southern California Edison, Shell, ST Microelectronics,
Texas Instruments, Varian, Westinghouse, Xerox, Yahoo. (Note: Interviewed companies indicated by bold, red font.)
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
5
Key Topic Areas
Research Objective & Study Methodology
Study Overview & Objective
Best Practices, LLC conducted this benchmarking study to explore the best practices and innovative
methods that would help companies advance their technical training and development programs for
engineers.
Strategic importance, engineer
eligibility, participation & relative
effectiveness of:
Technical Training
Experience-Based Training
Continuing Education/
Reimbursement
Benchmarks for annual cost and
hours of training provided per
engineer in the workforce
Key sources of training materials
Pros & cons of standardizing curricula
Most effective metrics for measuring
program success
Innovative, best-in-class processes,
tools & technologies that increase
training program effectiveness
Business Challenge: Technology companies
today are under increasing pressure to maintain
and enhance their critical engineering talent while
working with tighter training and development
resources on a global scale.
Through this study, Best Practices, LLC identified
innovative, cost-effective and world-class practices,
processes and tools that a company can adopt to
ensure that the workforce continues to meet it’s
growth objectives within the current market.
Methodology: Best Practices, LLC developed an
online survey and deployed it to 28 technology-
rich companies to develop benchmarks. In addition,
our research analysts conducted five deep-dive
interviews to capture executive insights from four
companies demonstrating innovative practices that
could help companies improve their overall training
effectiveness.
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
6
Key Findings #1: Investment Levels
The following key findings emerged from this benchmarking research.
Recent Training Budget Trends: Budgets for training and developing engineers
increased at 57% of participating companies over the past two years. During the
same time period, nearly one-third of participants saw budget reductions.
Future Training Budget: Companies are optimistic when projecting budgets for
the next two years, with 57% expecting increased funding for training and
developing engineers and only 14% anticipating budget shrinkage.
Dollars per Engineer in the Workforce: On average, companies spent $2,156
per engineer in the workforce on technical training and development in 2010. One-
quarter of the companies spent at least $3,149.
Training Hours per Engineer in the Workforce: The median number of hours of
training and development the benchmarked companies provided per engineer in
the workforce last year was 35.
BEST PRACTICES,
®
LLC
Success stories with demonstrated impact on the bottom line
Copyright © Best Practices®, LLC
7
Benchmark Class Demographics
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
8
Industry Representation in Study Is Broad
(N=28)
Other Includes:
• Chemicals
• Internet
Q. What is your company’s primary industry?
Benchmark partners represent 10 different industries. Participating companies a have strong
presence of engineers in their work force.
Aerospace
18%
Telecom
4%
Other
7%
Manufacturing
18%
Healthcare/
Pharma
14%
Computers/
Electronics
11%
Energy
14%
Utilities
14%
BEST PRACTICES,
®
LLC
Success stories with demonstrated impact on the bottom line
Copyright © Best Practices®, LLC
9
Technical Training for Engineers
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
10
One-on-One is Most Effective Training Delivery Channel
Q. Please rate the overall effectiveness of each of the following technical training delivery channels.
(N=27)
100%
100%
91%
85%
81%
39%
Total Effective
Half the participants are
not using this channel.
Users find the channel
effective.
All of the benchmark partners rate one-on-one technical coaching and live classroom instruction
either “highly effective” or “effective.” Simulations are the third most highly rated delivery channel
for technical training.
Highly Effective Effective
4%
32%
56%
89%
33%
81%
85%
56%
44%
11%
Mobile applications (podcasts,
social media, etc.)
Self-directed computer-based
modules (CBT)
Virtual (electronic) classroom
instruction
Simulations
Live classroom instruction
One-on-one technical
coaching or mentoring
% Responses
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
11
Case Example:
Let Mentees Drive the Mentoring Process
Many mentoring programs are minimally successful, at best, in growing engineering talent. A key
factor is the burden on the mentors, who typically must undergo training and take responsibility for
the relationship. One company has created a successful mentoring program through putting the
burden on the primary beneficiaries—the mentees.
“The traditional programs are often
not sustainable. There is too much
burden on the mentors.”
-- Interviewed Director
“This program gives the mentor the role of
providing the mentee with a different
perspective. The mentor shows them the
bright horizon. It has been successful for four
years for all career levels. When participants
share their success stories the passion of the
mentors really comes through.”
-- Interviewed Director
Traditional Model
Require mentors to attend lengthy
training classes
Assign mentors to read books on mentoring
Offer limited guidance on program execution
Put the full engagement burden on mentors
Make mentors responsible for driving content
Offer little or no support structure
Provide little or no management feedback
New “Two-Folder” Model*
Limit training to one 4-hour orientation session
for each group
Provide both mentors and mentees with program
content folders designed to help them interact
Give mentees responsibility for developing the
relationship and keeping it going
Set up solid support mechanism with monthly
HR contact
Collect participants’ success stories and share
with potential future program participants
* Process based in part on Beverly Kaye
program
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
12
Experience-Based Opportunities Are Widely Varied
Q. Please indicate which of the following experience-based development opportunities your company
provides for its engineers? (choose all that apply)
(N = 28)
Cross functional, special project assignments and rotational programs stand out as the most
commonly offered opportunities for engineers across all companies.
% Responses
12%
16%
32%
52%
80%
88%
64%
56%
68%
92%
Cross-functional/
cross-discipline experiences
Special Projects with SMEs
Rotational Development Opportunities
Explore Specialty
Multiple Business Location Assignments
International Exchanges
Choice of Individual Assignments
Job Exchange With Partner Company
Job Exchange With Universities
Job Exchange With Government Agency
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
13
Associations, Universities Provide Certification Programs
Not Offered
Industry Association
University or School
Independent of Company
University or School
Partnership
In-house Program
Q. Which of the following are providers of continuing education programs at your company?
(choose all that apply) (Certification)
Most companies form partnerships with industry associations and universities to deliver
certification programs.
%Responses
72%
68%
20%
12%
8%
(N=25)
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
14
Partnerships & Joint Programs Are Highly-Rated Approaches
(N=25)
Total Effective
72%
68%
68%
56%
50%
40%
34%
13%
Q. Please rate the overall effectiveness of each of the following approaches for training and developing your
engineering workforce to meet your company’s future technical and leadership needs. (choose all that apply)
Across the full benchmark class, the three top-rated innovative approaches for training and
developing engineers all involve working with universities.
Highly Effective Effective
% Responses
4%
17%
24%
8%
16%
16%
20%
9%
16%
42%
52%
52%
17%
40%
Virtual Mentoring via social media
IP Exchanges with Partner Companies in
emerging countries
Opportunity to try out new jobs
Cross border Mentoring
Training Partnerships with Universities
Using Employee Self- Assessment Data in
Long-Term Planning
28% 40%
Partnering with Universities to Influence
Curriculum Development
Joint Programs/Exchanges
with Universities
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
15
Best Practices for Alignment and Structure
Align Training
Programs with
the Business
Leaders &
Corporate
Objectives
Create training programs that are directly related to key business drivers.
Ensure training content of external courses is aligned to internal standards.
Link programs to Business Objectives.
Incorporate Engineering skill set requirements that align with Customer requirements.
Win a seat at the business table.
Maintain a strong knowledge of the company's engineering goals and projects.
Leadership support is vital.
Participating companies shared 58 best practices for designing, organizing, delivering or managing
engineering training and development programs. Two key areas for benchmark partners are tightly
aligning training with senior business leaders and corporate objectives. Structuring programs effectively
is another important best practice.
Structure
Training is centrally located and easy to find.
Set up communication networks among similar functions.
We have a concept of a school of engineering to manage all curriculum and development paths
for engineers. Engineering manages the school of engineering in partnership with HR.
Provide regional delivery.
Focus training on customer/employee for career development and immediate need.
Provide in-house cross functional training programs.
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
16
Best Practices, LLC is a research and consulting firm that
conducts work based on the simple yet profound principle that
organizations can chart a course to superior economic
performance by studying the best business practices, operating
tactics and winning strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
919-403-0251
bestpractices@best-in-class.com
www3.best-in-class.com
About Best Practices, LLC
BEST PRACTICES,
®
LLC
Copyright © Best Practices®, LLC
17
Best Practices, LLC
Copyright and Distribution Rights
Best Practices, LLC publishes and distributes research via a variety of methods including
PDF files, printed reports, CD-ROMS, client conferences and webinars.
As such, we value our intellectual property and seek to ensure that its use and
distribution meet our corporate compliance standards and acceptable use copyright laws.
Thus, research participants are granted the following:
•You may print up to 4 hard copies of this research.
•You can view this research as often as you like on one computer for up to 2 years.
•You may redistribute portions of this research under Best Practices, LLC copyright
usage terms
If you have any questions, please contact Best Practices, LLC’s publishing leaders
(information below).
Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
919-403-0251
bestpractices@best-in-class.com
www.best-in-class.com

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Best Practices for Developing World-Class Engineering Talent

  • 1. BEST PRACTICES, ® LLC Success stories with demonstrated impact on the bottom line Copyright © Best Practices®, LLC 1 Best Practices, LLC Benchmarking Research Best Practices for Developing World-Class Engineering Talent
  • 2. BEST PRACTICES, ® LLC Success stories with demonstrated impact on the bottom line Copyright © Best Practices®, LLC 2 Study Overview Table of Contents Study Overview, Key Findings & Trends Benchmark Class Demographics Programs Technical Training for Engineers Experience-Based Training Programs Continuing Education Programs Innovative Training & Development Approaches Program Investment, Relative Importance & Effective Measurement Best Practices
  • 3. BEST PRACTICES, ® LLC Success stories with demonstrated impact on the bottom line Copyright © Best Practices®, LLC 3 Study Overview, Key Findings & Trends
  • 4. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 4 Universe of Learning: Benchmark Participants US UK Engineering talent development leaders from 28 different companies participated in this benchmarking study. Full Benchmark Class Benchmark Participants: AT&T, BAE Systems, Caterpillar, CenterPoint Energy, Dannon, GE Healthcare, General Motors, GSK, Hewlett Packard, Hypertherm, IM Flash Technologies, Intel, L3 Communications, LifeScan, Lockheed Martin, Northrop Grumman, Pacific Gas & Electric, PPG, Qualcomm, Rockwell Collins, Southern California Edison, Shell, ST Microelectronics, Texas Instruments, Varian, Westinghouse, Xerox, Yahoo. (Note: Interviewed companies indicated by bold, red font.)
  • 5. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 5 Key Topic Areas Research Objective & Study Methodology Study Overview & Objective Best Practices, LLC conducted this benchmarking study to explore the best practices and innovative methods that would help companies advance their technical training and development programs for engineers. Strategic importance, engineer eligibility, participation & relative effectiveness of: Technical Training Experience-Based Training Continuing Education/ Reimbursement Benchmarks for annual cost and hours of training provided per engineer in the workforce Key sources of training materials Pros & cons of standardizing curricula Most effective metrics for measuring program success Innovative, best-in-class processes, tools & technologies that increase training program effectiveness Business Challenge: Technology companies today are under increasing pressure to maintain and enhance their critical engineering talent while working with tighter training and development resources on a global scale. Through this study, Best Practices, LLC identified innovative, cost-effective and world-class practices, processes and tools that a company can adopt to ensure that the workforce continues to meet it’s growth objectives within the current market. Methodology: Best Practices, LLC developed an online survey and deployed it to 28 technology- rich companies to develop benchmarks. In addition, our research analysts conducted five deep-dive interviews to capture executive insights from four companies demonstrating innovative practices that could help companies improve their overall training effectiveness.
  • 6. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 6 Key Findings #1: Investment Levels The following key findings emerged from this benchmarking research. Recent Training Budget Trends: Budgets for training and developing engineers increased at 57% of participating companies over the past two years. During the same time period, nearly one-third of participants saw budget reductions. Future Training Budget: Companies are optimistic when projecting budgets for the next two years, with 57% expecting increased funding for training and developing engineers and only 14% anticipating budget shrinkage. Dollars per Engineer in the Workforce: On average, companies spent $2,156 per engineer in the workforce on technical training and development in 2010. One- quarter of the companies spent at least $3,149. Training Hours per Engineer in the Workforce: The median number of hours of training and development the benchmarked companies provided per engineer in the workforce last year was 35.
  • 7. BEST PRACTICES, ® LLC Success stories with demonstrated impact on the bottom line Copyright © Best Practices®, LLC 7 Benchmark Class Demographics
  • 8. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 8 Industry Representation in Study Is Broad (N=28) Other Includes: • Chemicals • Internet Q. What is your company’s primary industry? Benchmark partners represent 10 different industries. Participating companies a have strong presence of engineers in their work force. Aerospace 18% Telecom 4% Other 7% Manufacturing 18% Healthcare/ Pharma 14% Computers/ Electronics 11% Energy 14% Utilities 14%
  • 9. BEST PRACTICES, ® LLC Success stories with demonstrated impact on the bottom line Copyright © Best Practices®, LLC 9 Technical Training for Engineers
  • 10. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 10 One-on-One is Most Effective Training Delivery Channel Q. Please rate the overall effectiveness of each of the following technical training delivery channels. (N=27) 100% 100% 91% 85% 81% 39% Total Effective Half the participants are not using this channel. Users find the channel effective. All of the benchmark partners rate one-on-one technical coaching and live classroom instruction either “highly effective” or “effective.” Simulations are the third most highly rated delivery channel for technical training. Highly Effective Effective 4% 32% 56% 89% 33% 81% 85% 56% 44% 11% Mobile applications (podcasts, social media, etc.) Self-directed computer-based modules (CBT) Virtual (electronic) classroom instruction Simulations Live classroom instruction One-on-one technical coaching or mentoring % Responses
  • 11. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 11 Case Example: Let Mentees Drive the Mentoring Process Many mentoring programs are minimally successful, at best, in growing engineering talent. A key factor is the burden on the mentors, who typically must undergo training and take responsibility for the relationship. One company has created a successful mentoring program through putting the burden on the primary beneficiaries—the mentees. “The traditional programs are often not sustainable. There is too much burden on the mentors.” -- Interviewed Director “This program gives the mentor the role of providing the mentee with a different perspective. The mentor shows them the bright horizon. It has been successful for four years for all career levels. When participants share their success stories the passion of the mentors really comes through.” -- Interviewed Director Traditional Model Require mentors to attend lengthy training classes Assign mentors to read books on mentoring Offer limited guidance on program execution Put the full engagement burden on mentors Make mentors responsible for driving content Offer little or no support structure Provide little or no management feedback New “Two-Folder” Model* Limit training to one 4-hour orientation session for each group Provide both mentors and mentees with program content folders designed to help them interact Give mentees responsibility for developing the relationship and keeping it going Set up solid support mechanism with monthly HR contact Collect participants’ success stories and share with potential future program participants * Process based in part on Beverly Kaye program
  • 12. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 12 Experience-Based Opportunities Are Widely Varied Q. Please indicate which of the following experience-based development opportunities your company provides for its engineers? (choose all that apply) (N = 28) Cross functional, special project assignments and rotational programs stand out as the most commonly offered opportunities for engineers across all companies. % Responses 12% 16% 32% 52% 80% 88% 64% 56% 68% 92% Cross-functional/ cross-discipline experiences Special Projects with SMEs Rotational Development Opportunities Explore Specialty Multiple Business Location Assignments International Exchanges Choice of Individual Assignments Job Exchange With Partner Company Job Exchange With Universities Job Exchange With Government Agency
  • 13. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 13 Associations, Universities Provide Certification Programs Not Offered Industry Association University or School Independent of Company University or School Partnership In-house Program Q. Which of the following are providers of continuing education programs at your company? (choose all that apply) (Certification) Most companies form partnerships with industry associations and universities to deliver certification programs. %Responses 72% 68% 20% 12% 8% (N=25)
  • 14. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 14 Partnerships & Joint Programs Are Highly-Rated Approaches (N=25) Total Effective 72% 68% 68% 56% 50% 40% 34% 13% Q. Please rate the overall effectiveness of each of the following approaches for training and developing your engineering workforce to meet your company’s future technical and leadership needs. (choose all that apply) Across the full benchmark class, the three top-rated innovative approaches for training and developing engineers all involve working with universities. Highly Effective Effective % Responses 4% 17% 24% 8% 16% 16% 20% 9% 16% 42% 52% 52% 17% 40% Virtual Mentoring via social media IP Exchanges with Partner Companies in emerging countries Opportunity to try out new jobs Cross border Mentoring Training Partnerships with Universities Using Employee Self- Assessment Data in Long-Term Planning 28% 40% Partnering with Universities to Influence Curriculum Development Joint Programs/Exchanges with Universities
  • 15. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 15 Best Practices for Alignment and Structure Align Training Programs with the Business Leaders & Corporate Objectives Create training programs that are directly related to key business drivers. Ensure training content of external courses is aligned to internal standards. Link programs to Business Objectives. Incorporate Engineering skill set requirements that align with Customer requirements. Win a seat at the business table. Maintain a strong knowledge of the company's engineering goals and projects. Leadership support is vital. Participating companies shared 58 best practices for designing, organizing, delivering or managing engineering training and development programs. Two key areas for benchmark partners are tightly aligning training with senior business leaders and corporate objectives. Structuring programs effectively is another important best practice. Structure Training is centrally located and easy to find. Set up communication networks among similar functions. We have a concept of a school of engineering to manage all curriculum and development paths for engineers. Engineering manages the school of engineering in partnership with HR. Provide regional delivery. Focus training on customer/employee for career development and immediate need. Provide in-house cross functional training programs.
  • 16. BEST PRACTICES, ® LLC Copyright © Best Practices®, LLC 16 Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. Best Practices, LLC 6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517 919-403-0251 bestpractices@best-in-class.com www3.best-in-class.com About Best Practices, LLC
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