
More than ever,
H.R. is likely to encompass training at large
corporations. Michelle Lotti of GE’s Consumer
Finance Division answers our questions.
BY JERRY ROCHE
Over the last 30 years, the corporate human
relations (H.R.) function has evolved from managing
personnel and employee information to managing
essential procedures (such as payroll) and key
strategic elements (such as top management
development). In the meantime, e-learning has become
more than simply “courses on the Web.” It’s become a
platform to support and integrate learning into the
overall human capital development and management
cycle.
It would seem almost intuitive, then, that the
training department would be an integral part of the
HR department. But, in many companies, that has not
been the case.
Michelle Lotti is director of training for the
Americas Consumer Finance Division of GE Money. She
re-invented the company’s whole training function —
and now she is part of the H.R. department,
outsourcing tactical training elements and keeping
strategy and business-driven elements in-house.
Lotti allowed
Elearning!
magazine a few minutes out of her busy schedule to
answer some questions about how her company has
integrated the HR and training functions.
HOW HAS THE TRAINING AND H.R. RELATIONSHIP CHANGED
WITHIN YOUR BUSINESS UNIT?
The training function has always reported into H.R.
When we existed as one of its units, we were a
separate but fairly large division, with 170 people
servicing 10,000 to 15,000 employees. As we evolved
back, we went through a series of outsourcing
strategies where we looked at the feasibility of
variable versus fixed-cost models and then adjusted
our internal staff for that purpose. We became an
organization with strategic learning leaders in
place, but with many tactical responsibilities
outsourced, like design, development and delivery.
That enabled us to reduce our staff significantly
and achieve efficiencies.
However, what we decided was that it really made
sense to further integrate H.R. and learning. In
past years, the alignment of HR and training wasn’t
as strong. Training was a separate island, and
training and H.R. were two entities battling for
business attention. When we looked at opportunities
to merge talent management with talent development,
we found some efficiencies in blending those
resources. So training as its own entity dispersed,
and we became more aligned with the H.R. executives
within the business.
HOW DID THE H.R. EXECUTIVES TAKE THAT?
They took that very well, because it rounded out
their teams. There was a gap in terms of H.R.’s
generalist functions and its strategic functions.
Giving learning a direct line to HR enabled a better
partnership. Today, I have a huge non-exempt staff
in operations and collections — the bulk of our
business unit — that I support from a call center
perspective. It’s enabled me to partner with my H.R.
leaders for those operations and collections
functions, and we get a lot further together. It’s
not so much who can posture in front of business
leaders any-more. We look [to executives] more like
we’re connecting the dots between talent management
and development.
HOW IMPORTANT IS E-LEARNING IN THE OVERALL TRAINING
PICTURE?
Our non-exempt training is much more heavily
structured around e-learning. Those programs are
mature and they’ve been through several evolutions
because there’s a lot of turnover. About 40 percent
of those programs are e-learning-based.
When you get up to the leadership and senior types
of programs, we find e-learning is not quite so
beneficial. There are some high-end simulations on
the sales side, but most of our e-learning would be
categorized on the awareness process and technical
skills levels.
HOW HAS THE H.R. DEPARTMENT ACCEPTED YOUR INCREASED
INVOLVEMENT?
They accept it as a good blending of skills, because
you’ve got people who really understand succession
planning and so forth, and then you’ve got people
who are focused on determining the gaps in
performance and driving the right solutions from a
learning and development perspective.
Does it come with its challenges? Of course, because
learning people tend to have a lot of special
expertise whereas the H.R. staff tends to possess
very general people-type skills.
You also have to be very careful in insuring that
the language you use doesn’t come across as too
theoretical. We all tend to get into that
‘training-speak’ quagmire at times. I’m guilty too.
I’ll start talking about our passions around
learning strategy and ‘Here’s how you get there,’
while business leaders’ concerns are different. They
care about how the development fits with the people
they’re managing.
WHAT ABOUT FINANCIALLY? DO YOU STILL CONTROL THE
SAME AMOUNT OF MONEY AND RESOURCES?
Yes. I manage the function of training, so that
piece hasn’t changed. How the money gets spent on
initiatives has changed a little, because you don’t
roll up into one training entity.
When you’re aligned directly to H.R., you’re
positioning initiatives as more strategic. When we
were a training entity, we had a little bit more
control of the initiatives and how the dots
connected and the synergy — but at the same time, we
didn’t have a lot of buy-in from business leaders.
ARE ANY OTHER CHANGES EVIDENT AT THE LEARNING/
TRAINING LEVEL?
Partnering on the front end is getting stronger.
The H.R. generalist is the pulse of the site, which
I never thought about before. The H.R. manager is
the site’s sounding board, so he or she has a lot of
peoples’ ears. For the longest time, I was a
die-hard ‘training-should-be-its-own-department’
proponent. But once you understand the arms within
the site, it becomes very clear that H.R. is an
advocate for your work.
This change in philosophy doesn’t necessarily impact
the end-user too much, because the H.R. entity
really doesn’t get involved with that as much as it
does with the partnership with the business leaders.
HAS THIS ARRANGEMENT MADE THINGS EASIER FOR YOU?
COULD YOU SEE A SCENARIO WHERE THIS KIND OF
ARRANGEMENT COULD BE A HINDRANCE?
It has definitely made some things easier. I don’t
have to work uphill so hard to convince business
leaders, because H.R. is a very wellrespected entity
within the organization.
Overall, has it made my work easier? No. I don’t
think that changes.
In certain scenarios, it could be provide roadblocks
if you didn’t have that buy-in from your H.R.
partners and if you’re unable to align the visions.
It takes a lot of effort to sit down and align what
you want to do from a staffing and recruiting
perspective and where you want to be from a talent
management perspective — as with any business
partner.
As a training organization, as we evolve more into
talent development, we have more of an opportunity
to blend traditional instructional/systems/design (ISD)
methodology into corporate strategy. You can now
take some of the skills needed for training people —
needs analysis, instructional design — and breed
them into talent development strategies that really
benefit where you want to target individuals in your
population or function. A strategic learning person
can take those skills and make them work, while an
H.R. person leverages that unique skill that you
have to help them figure out where learning fits
into development strategies.
To me, a lot of the problem is trying to adapt your
language into making it work within the H.R.
framework.
OVERALL, HOW WOULD YOU DESCRIBE THE EXPERIENCE?
I’ve had to learn a lot of things — everything from
succession planning to the Oracle system.
I had to take a step back in terms of the
traditional way that I managed my work and my
organization. It wasn’t just business as usual,
because there is a lot of aligning of strategy and
language, and you do have to listen to the strategy
of H.R. and where the focus is, whether it’s
engagement or development of people. It’s not
different than being with a business leader.
The whole experience definitely has been very
positive. You get a seat at the table more readily —
but to make the seat credible, you need to
understand the language of H.R. and align your work
to it.