I presented this at the Global Learning Summit 2013 in Singapore on the 6th of March 2013. The session was received well by the 25-30 learning leaders and CLOs who attended.

1. Immersive learning
3D Virtual learning Mobile learning
Online trainings Instructor led training

2. Is L&D an Expense or an Investment in today’s
climate?
The business challenge in all times
• It takes an outsider 4 years to reach
the same level of performance
• It takes an insider 7 years to reach the
same salary levels
The expense is higher on an outsider,
while the investment is longer on an
insider… yet…

3. Today’s Climate
• Going up • Customer expectations
i. Speed of change • Economic climate - fiscal austerity
ii. Business ambitions measures of developed countries
are first retrenchment of spending,
iii. Individual aspirations and then revenue collection. The
iv. Technology & Innovation same is true of organizations.
v. Business complexity • Industry climate – competitive
• Workforce climate – impatient, has
money to spend
• Going down
• Corporate climate – ambitious
i. Time to learn
• Social climate – networked
ii. Ability to manage complexity

4. The Gap that Nobody Knows
“Execution”, the book that hit the world in 2002, began with the discovery of the
Gap that Nobody knows! The gap between what the CEO wants and what the
organization achieves.
“The gap nobody knows is the gap between what a company’s
leaders want to achieve, and the ability of their organization to
achieve it.”
- Larry Bossidy, Ram Charan
Strategy Ability Performance

5. How Competencies Contribute to Business
Business Results Operations Strategy
- Research &
- Solutioning
- Work Products Innovation
• Revenue Val Proposition
-Services DOMAIN
Sales & Mktg EXECUTION
CONTENT
• Expenses
- Running Costs - Processes
• Costs - Work Methods
- Fixed Costs - Recruitment
- Competencies
Results - Trg & Dev, PMS
Execution of
Delivery Strategic
Tactical
Outcomes Plans
Plans

6. Core Processes Must Integrate for Execution
Customer
Strategy Operations
Competencies Processes
Skills
People

7. Understanding Expense vis-à-vis Investment
# Expense Investment
1 Relatively small Relatively large
2 Close to the point of benefit Earlier than the point of benefit
3 Predictable benefits/returns Unpredictable benefits/returns
4 Relatively small time period Larger time period
Expense Time
( )
Benefit
Investment
Benefit
( X R )
Performance Result
It is clear that anything that is spent on people’s future improved performance
will have to be an investment in this moment. But it can be considered differently.

8. So What’s the Problem in Making an Investment in
People?
Is it that we do not have the confidence that people will perform to
their capacity…
Or
Is it that we do not have the confidence that we will be able to get
them to perform to their capacity…

9. The Difference Between Managing & Leading
• When you see it as an expense, you can only manage the cost
of the benefit, not its value. You work towards results, not
necessarily benefits.
• When you see it as an investment, you work towards a return
from the investment, leading to greater performance. You
work towards benefits, not only results.
Manage Costs Results (Expense)
Lead (Investments) Results Benefits
Time

10. Is L&D an Expense or an Investment?
For Managers it may be an Expense
For Leaders it is an Investment

11. How to protect investments in L&D
How can we be more certain of the returns from investments in L&D?
Consider the factors that link L&D Investments to Performance, and how much
we know of them:
Returns
Value Proposition
Performance
Rigor/Commitment
Implementation
Understanding of Process
Skills
Motivation
Competencies

12. Thank you!
Mukul Saxena
mukul.saxena@sifycorp.com
Sr.Vice President
Sify Technologies Ltd.
Chennai-Delhi (India)