February 2007

Trend Watch

For years this magazine has stepped lightly over most HR topics in favor of subjects deemed closer to the heart of readers’ work: training, development, talent management, and other efforts to increase people’s ability to work smarter.

But in our interview for this issue with Mike Mussallem, CEO of Edwards Lifesciences, we encountered one more instance of a trend we see brewing: companies are outsourcing many of their administrative HR functions such as payroll and benefits administration, but keeping the work that makes a difference to strategy—talent management, employee engagement, and training and development, for example. And in Mussallem’s case, he specifically sought out an HR executive who would focus on growing talent. As he put it, “I want someone with a development mindset as the head of HR.”

I wouldn’t take one CEO’s preference as evidence of a trend if it were not for several recent studies of HR outsourcing among lots of big companies. They all say pretty much the same thing—the focus of HR departments is shifting toward work that supports strategies and builds leadership, and the rest is being outsourced. For the hard facts, see the Intelligence article on page 10. And for more on Mike Mussallem’s philosophy of putting top talent in critical jobs, see pages 30 and 38.

These facts about shifting priorities also support another trend we have our eyes on: the steady upward creep of responsibility for employee development. Companies such as The Gap and Wal-Mart have created executive-level positions for managing talent. They see a skills gap coming as older workers retire and the numbers of capable younger workers dwindle, and they understand that growing talent drives performance. Their response has been to move the work of finding, attracting, developing, and motivating employees to the level of strategy.

These are welcome developments for training professionals who have looked longingly at the seats of power in organizations and failed to attain them. Could this signal the end of a reason to grouse about not having a seat at the table?

Pat Galagan
Executive Editor, ASTD
pgalagan@astd.org

FEATURES

DESIGNING LEARNING
The Need for Speed
By Michael Laff
Training can be delivered much faster, thanks to numerous technological innovations, but whether it is more effective is another question.
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MEASURING AND EVALUATING
Leveling the Levels
By Alison Rossett
Instead of lamenting about learning and its influence on practice and outcomes, let’s examine how changes in learning grant an opportunity to rethink the ways we plan and measure.
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IMPROVING HUMAN PERFORMANCE
Is Performance Management as Simple as ABC?
By Alice Gresham Walker
The traditional one-size-fits-all performance management thinking is obsolete in today’s business environment.
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COACHING
Don't Cross the Line
By Nancy G. Schreiber
The guidelines for defining the coaching relationship often are ambiguous.
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DESIGNING LEARNING
The Long and Short of Learning
By Peter Orton, David Beymer, and Daniel Russell
IBM study uncovers link between line length and retention.
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Executive Summaries

DEPARTMENTS

INTELLIGENCE
HR Outsourcing Accelerates
HR departments shift focus toward strategic initiatives such as talent management.
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RE:SEARCH
Leaders Often Shun Advice from Staff
Study finds that bosses seldom ask for advice from their employees.
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TRENDS
Education for Life and Work
Career and technical education can partner with businesses to prepare the next generation of workers.
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FUNDAMENTALS
Leading Virtual Teams
While technology is the lifeline of the virtual team, building the relationship provides the most challenges.
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DEVELOPMENT
The Power of Great Questions
New ideas come from great questions.
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IN EVERY ISSUE

WHAT THINGS COST
Renting or Buying?
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THE LONG VIEW
T+D profiles Peter Block, consultant and partner of Designed Learning in Cincinnati, Ohio.
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BOOKS
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