MASS CUSTOMIZING THE TRAINING INDUSTRY - MASS CUSTOMIZATION MAY BE THE MOST EFFECTIVE AND EFFICIENT WAY TO ADDRESS THE NEEDS OF YOUR CUSTOMERS.
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Mass Customizing the Training Industry Mass customization may be the most effective and efficient way to address the needs of your customers. 50 | T+D | june 2007 Photo by Corbis
By Stephen L. Cohen and B. Joseph Pine II Whether you lead an internal education function or an external training supplier, you must address the learning needs of your customers in a focused manner. This typically requires choosing between two options: existing programs, which range from generic off-the-shelf offerings to public seminars and standardized university-led courses, and brand-new, custom-made learn- ing experiences. But there is a third option that may be the most effective and efficient way to go to market: mass customizing training programs. Mass customization surfaced more than a decade ago with the pub- lication of several books and articles that extolled the virtues of treating all customers differently, and is now becoming endemic in industries as diverse as personal computers, shoes, apparel, eyewear, and information. Mass customization is not about market segmentation; it is about truly understanding the specific needs of each and every customer and then bringing together the right combination of training modules to provide the customers the solution that they really want and need. Connecting on an individual customer level is no easy task in the world of training because the two customer sets—the buying organization and the learners—have different and sometimes conflicting needs. So how can we create learning programs that fit the individual needs of learners and simultaneously address the client organization’s challenges? Is it possible to cost-effectively produce totally customized programs for one-to-one learning? Yes. june 2007 | T+D | 51
Mass customization On-demand operations. Mass cus- principles tomizing requires the development of Mass production came about from a repeatable platform that produces Henry Ford’s Model T production line. the product when needed. Given the Ford’s mantra was that a customer wide range of both organizational and could have any color car he wanted—as employee learning needs, the capacity long as it was black. Eventually, of to operate in an on-demand environ- course, options were added, but they ment is crucial. were mere variety, not true custom- ization, because they were not in Dispatching. It is no longer enough response to individual needs. True to schedule ready-made classes customization was simply too costly. and have learners organize their Such levels of variety already exist in schedules according to the train- the training industry, but it remains a far ing. Rather, we must be ready on a cry from true customization. If the goal moment’s notice to provide training of the industry is to provide true one-to- how, where, and when it is needed. one learning experiences at a reasonable The educational industry has been cost, then we have to understand and too much like a city bus, forcing cus- embrace the principles of mass custom- tomers to come to us for something ization, and then apply them to all types that doesn’t quite get them where of learning experiences. they want to go. Instead, we need to First, it is important to understand become more like taxis—dispatched that the underlying motivation behind on demand to take customers exactly mass customization is scalability. It fa- where they need to go. cilitates high-volume, efficient produc- tion, and delivery of unique customer- No finished goods inventory. driven solutions. This scalability can be Eliminating the carrying costs of achieved by applying the following pri- inventory—as well as the risk that mary principles of mass customization no customer wants the finished to the training industry. product—can drastically lower costs in many industries. Even in training, Speed. Getting to market as quickly printing all materials—handouts, as possible is critical for the training cases, and forms—on demand lowers supplier to remain both competitive costs because it reduces the amount and current. While fully customized of material that will be unused and programs have to be built almost from discarded. scratch, mass customization enables the supplier to produce programs Digitization. Anything you can digitize quickly, which in turn increases you can customize. We need to digitize the supplier’s ability to alter both the management and operations the programs so that of training programs. This requires a they match the clients’ design tool that enables trainers to changing needs. match learner needs with training capability, bring that capability online, Information. Given that and execute it. the rate of information expansion and distribution Modularization. The most fundamen- is increasing exponentially, tal principle of low-cost, high-volume we must find ways to quickly customization is modularity, which extract the most timely and rel- enables the supplier to do only and evant information for training topics. exactly what each customer needs. It is important for the supplier to gain Modularity requires a linkage system information from purchasers and end that integrates training programs in- learners about their knowledge needs stantaneously and seamlessly—almost so that the training can be further like how LEGO building blocks snap customized to meet those needs. together. People in the training field 52 | T+D | june 2007 Photo by Fotolia
have praised the concept of chunking the contours of a person’s face or the Modularity learning into easily digestible bites for many years. Now we must fully ap- bed that allows users to adjust the firmness of the mattress on each of requires ply the principle of modularity across two halves, from soft to very firm. a linkage programs, sessions, templates, learn- ing points, and examples. This means Cosmetic. In this approach, the system that an even deeper level of customization functionality of the training solution integrates where all “chunks” can be seamlessly altered and integrated beyond their changes in response to individual customers. For example, as a Hertz training original structure. Gold member you bypass the stan- programs Putting all of these principles togeth- er readily enables training companies dard counter and proceed directly to the bus where you tell the driver seamlessly— to meet the needs of both purchasers your name. The driver informs the almost like and learners, which will lower the cost of delivery and thus increase the train- operation teams that you have ar- rived so that when you reach the car how LEGO ing companies’ profit margins. lot you see your name in lights on an building Mass customization types electronic billboard that directs you to the proper stall, where again your blocks snap While the basic principles of mass name verifies you have the right car, together. customization apply to all offerings, with the agreement attached to its there are many different ways in which mirror. It’s the same car everyone they can be implemented. The types else in your product class gets, but of customization can be classified into the delivery of the car is customized the following four categories. for you. Cosmetic customization equates to personalization. In train- Collaborative. In this type of custom- ing, this is often done by changing ization, the provider customizes the binder covers, logos, or graphical training solution with a design tool user interfaces, while keeping the that helps customers identify what actual program content and materials their individual needs are. Dell pro- the same. vides one of the best known exam- ples of collaborative customization. Transparent. The program’s Customers work with Dell to identify functionality is customized to the what components they want config- customer’s specific needs while the ured into their personal computer, format remains seemingly standard. which the company then develops For example, the Ritz-Carlton hotel exclusively for them. chain uses a sophisticated database In the training field, this form of management system to alter its mass customization typically takes guests’ experiences by documenting shape through the creation of company- and then retrieving specific guest specific role plays and case studies preferences when they return— inside of an existing program—all of without specifically asking the which require input from the organiza- guests for their preferences. Hotel tion’s representatives. employees are taught to make note of individual preferences and to Adaptive. Online learning enter them into a guest preference programs are good examples of system. In training, an example of adaptive customization because transparent customization would they are designed to adjust involve an instructor independently according to the alternative paths adjusting the course based on what the individual learners take and he knows about the client or the the varying progress they make, learners without calling attention to without changing the programs’ the customization. The client and infrastructure or platform. Think of end learners think they are getting the razor with a flexible system of a standard course, but in fact it’s springs that automatically adjusts to customized for their needs. june 2007 | T+D | 53
Even training Why do all this? Regardless of the method chosen, individual student. Even experiences can be commoditized, however. experiences mass customization principles will In fact, in many learning environ- can be help trainers scale programs to meet customers’ needs more fully, in ments, the entire point is to commod- itize the experience. Think of highly commoditized. shorter timeframes, for less cost, and stressful, intricate, and high-pressure with higher quality. When the train- environments such as the cockpit of ing matches the customer’s needs, it a military jet, the emergency room of becomes a truly magical, motivational, a hospital, or the control room of a and memorable learning experience. nuclear power plant. In each case, em- But this is not the end goal. The ployees are trained over and over again chart below shows how the how to perform critical tasks until economy has changed they become second nature—in other over the millennia words, commoditized. with each succes- When training is executed properly, sive economic shift, employees and the organization reach moving from com- a transformation point where both modities to goods parties benefit from the time and cost to services and to invested. In the end analysis, isn’t that experiences. Note how what all corporate educational experi- customizing a product ences should be about? Ultimately, the automatically turns it into ideas that trainers impart—the dime- a service, and customizing a a-dozen commodities of the educa- service automatically turns it into tional business—are not important. an experience, thereby forestalling the Neither are books, articles, hand- inevitable forces of commoditization outs, nor are preparation, delivery, or that come to any offering, and any analysis activities. Even the experience industry, over time. Mass customizing doesn’t really matter. The bottom line training services, therefore, creates the is, Were the individuals in this course, right learning experience within each and the organization to which they be- long, transformed? Did they improve their workplace performance through the acquisition of new knowledge, skills, and tools? The Progression of Economic Value Mass customization is a way to bring more efficiency and effectiveness to training, thus adding value to every organization that embraces learning as Customization a means to achieving improved busi- transformations ness results. However, it is a continu- Guide ous process that ultimately requires Customization a transformation in the way training experiences suppliers change their own operations stage to effect the transformations custom- Customization ers desire to see within each of their services Commoditization employees.t+d Deliver Goods Commoditization make Stephen L. Cohen is vice president of the Service University for the Carlson compa- Commodities nies; steve.cohen@carlson.com. B. Joseph Commoditization Pine II is co-founder of Strategic Horizons; Photo by iStockphoto bjp2@aol.com. 54 | T+D | june 2007 Photo by Fotolia
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