Learning Outsourcing Solves Critical Talent Challenges and Delivers Strategic Flexibility

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IN THIS CASE STUDY
Telstra,alarge,multinationaltelecommunicationscompany
neededtoreinventitsbusinessandtransformitsstafifitwasto
surviveintodayscompetitiveenvironment.
Aferself-examination,Telstraconcludedthatitsoperations
trainingfunctionrequiredasmuchtransformationitselfasdid
thechangesitwouldbeaskedtoenablewithinthecompany.
Telstrachosetoseekexternalassistanceintheformofanend-
to-endtransformationallearningservicesoutsourcingprovider.
Tecompanyspartner,Accenture,launchedthenewoperations
trainingfunctionatTelstratheTelstraLearningAcademy
onlysixmonthsafersigningthecontract.
TeTelstraLearningAcademyiswellonitswaytobeinga
high-impactlearningorganization.
Tiscasestudyexamineshowoneglobalenterprise,Telstra,
decideditneededtoundergoawholesaletransformationin
ordertomeetitscustomersneedsandtothriveasabusiness.To
supportthistransformation,theorganizationneededtoreinventits
workforce,aswellanditscurrentlearningfunctionswerealsoin
BERSIN & ASSOCIATES DECEmBER 2008 NOT FOR DISTRIBUTION LICENSED mATERIAL
BERSIN & ASSOCIATES
FOCUS:
Learning Outsourcing 5olves
Critical Ialent Challenges and
Delivers 5trategic Flexibility
TelstraTransformsItsLearningFunctionandItsBusiness
inRecordTime
David Mallon,Principal Analyst | December2008
PLANNING
& STRATEGY
CONTENT
DEVELOPmENT
LEARNlNG
PROGRAN5
LEARNING
TECHNOLOGY
ANALYTICS &
mEASUREmENT
TALENT
mANAGEmENT
LEADERSHIP
DEVELOPmENT
2
OUTSOURCING LEARNING AT TELSTRA
badneedofrepair.Telstradidnothavethetimenordidthecompany
feelasthoughitwaswellequippedtoupgradeitsownlearningfunction
tosupportitsbusinesstransformation.So,itchosetofndanend-to-
endoutsourcingprovidertohelp.
TABLE OF CONTENTS
Company Overview 6
Business Environment: Need for Transformation 9
Telstras People: A Need for Talent Transformation 12
Learning Environment: Telstras Learning Function
before Outsourcing 13
Telstra: The Decision to Outsource 17
Learning Outsourcing 18
Selecting an Outsourcing Provider 22
Deciding to Outsource 23
The Outsourcing Process at Telstra 25
Choosing a Partner 25
Building a Relationship 26
The Telstra Learning Academy 27
The Structure of the TLA 27
Launching the TLA 29
The TLAs Operations 31
Integration with Talent management 33
Key Programs 33
Project Green 34
Network and Wireless Engineers Training 34
Assess-First Health and Safety Program 34
Computing Fundamentals and Jumpering on the Network 35
Credit and Fraud Management Skills 35
4
Service Delivery 35
Communication Technicians of the Future (CToF) Program 36
Service Advantage Onboarding 37
Example Curriculum: ADSL 39
New Training Innovations 40
Business Impact 41
Change Management: Critical to Success 43
Challenges 44
Subject-Matter Experts 44
Time Requirements for Business Leaders 45
Changes in Organization Structure 45
Transforming the Business Leaves Little Time for Training 46
Specialized Learner Needs 46
Looking Ahead 46
Priorities for Year Three 47
Service Delivery 48
Service Advantage 48
Delivery Management 49
Network Engineering 49
Network Services 49
Network Enterprise Services 49
Wireless 49
Procurement 50
5
Increasing Blended Learning 50
Best Practices 51
Executive Support 51
Business Alignment 51
Governance 52
Centralized Funding 54
Lessons Learned 55
Change management 55
Working with Subject-matter Experts 55
Organizational Understanding 56
Logistical Challenges 56
Conclusion 56
Appendix I: Table of Figures 59
About Us 60
About This Research 60
6
TelstraisaFORTUNE 500telecommunicationsandinformation
servicescompanybasedinMelbourne,Australia.ItisAustraliasleading
providerofphoneanddataservices,providingfxed-line,mobileand
Internetaccessservicesforbusinessesandhomesacrossthecountry.
1
Telstraalsohasa50percentstakeinFOXTEL,oneofAustraliaslargest
pay-televisionserviceproviders.Telstraownsoneofthemostadvanced
globalIPbackbonesandthelargestbandwidthcapacityintheAsia-
Pacifcregion.TelstraInternationalhasstrategicnetworkassetsand
partnershipsthroughouttheAsia-Pacifcregion,theAmericas
andEurope.
TecompanythatisTelstrabeganin1901,whentheAustralian
PostmasterGeneralsdepartmentwasestablishedbythe
CommonwealthGovernmenttomanagealldomestictelephone,
telegraphandpostalservices.Sincethen,Telstrahasevolvedfroma
publicentitytoaprivatecorporation,changingitsnameseveraltimes.
TelstrabecametheAustralianpubliclimited-liabilitycompanythatitis
todayinNovember1991.
1
Telstra provides customers with 9.4 million fxed-line and 9.3 million mobile
services throughout Australia. Source: http://www.telstra.com.
2
Source: http://www.telstra.com.
Company Overview
Figure 1: Telstra at a Glance
2
Headquartered in Melbourne, Australia
Approximately 46,000 employees
FY2008 Revenue: AUS dollars 24.7 billion
FY2008 Proft (after-tax): AUS dollars 3.7 billion
Major Markets: Fixed-line and mobile telecommunications, Internet
access, data and information services, and pay television
Has majority stakes in CSL New World, Hong Kongs leading mobile
operator and SouFun, a leading real-estate and home-furnishings
website in China
Source: Telstra, 2008.
7
Asanorganization,Telstraconsistsof13businessunits
5
,whichare
detailedinFigure3.
3
4
Short messaging service.
Source: http://en.wikipedia.org/wiki/Short_message_service.
5
Figure 2: Telstras Data Services
3
Has more than 11,000 telephone exchanges.
Installs approximately 12,000 services every day.
Handled 5.7 billion local calls in 2007.
Handled 6.9 billion national long-distance minutes 2007.
Handled 3.4 billion fxed to mobile minutes 2007.
Handled 7 billion SMS
4
messages 2007.
Figure 3: Telstras Business Units
Business Unit Function
Telstra Consumer
marketing and
Channels
Responsible for serving metropolitan customers with a full range of products and
services, including fxed lines, mobiles, Internet access and pay TV services.
Telstra Business
Responsible for serving Australias small to medium enterprises with fxed line, mobile
and broadband, as well as data and Internet solutions tailored for business.
Telstra Enterprise and
Government
The leading provider of network-based solutions and services to enterprises and
governments in Australia and New Zealand.
Telstra Country Wide
Provides telecommunications and information technology services to customers in outer
metropolitan, regional, rural and remote parts of Australia.
Telstra media
Responsible for providing broadband and narrowband Internet services for consumers
and small and medium business customers, as well as value-added services and content
services for broadband and Telstra 3G Mobile.
Finance and
Administration
Responsible for corporate policy and support functions, including fnance, risk
management, assurance, shared services for processing functions, treasury, investor
relations and other corporate services.
8
Figure 3: Telstras Business Units (cont)
Business Unit Function
Human Resources
Responsible for all human resources matters, including organizational design,
implementation of people and culture initiatives, leadership development, talent
management, health, safety and the environment, professional development, and
all employment and remuneration policies.
Legal Services
Provides operational and strategic legal support and advice across the company,
with lawyers from legal services serving clients in all strategic and corporate centre
business units.
Public Policy and
Communications
Manages corporate communications and public affairs across Telstra, including media
relations, employee communications, corporate social responsibility (including the
Telstra Foundation), corporate content on the Telstra website.
Sensis Pty Ltd
Is a wholly owned subsidiary and Australias leading information resource. Sensis is
responsible for advertising and information services, including White Pages
, Yellow
Pages
, TradingPost
, Whereis
and Citysearch
.
Strategic marketing
Responsible for the overall marketing, brand, promotions and advertising direction of
Telstra, as well as implementing market-based management across the company by
putting the customer at the center of everything Telstra does.
Telstra Operations
Telstra operations has responsibility for all functions that are associated with the
operations of Telstra. Telstra operations provides shared infrastructure, services
and systems to the rest of the organization for any function that supports the
customer experience.
Telstra Wholesale
Provides a wide range of wholesale products and services to the Australian domestic
market and globally, including fxed, wireless, data and Internet, transmission and IP,
interconnection, access to the Telstras network facilities, and retail / rebill products.
TefocusofthisreportisonTelstraoperations,whichisthecompanys
largestbusinessunit.Itwascreatedbymergingtheworkforcesthat
deliverinfrastructure,servicesandsystemssupportingthecustomer
experience.2Accounting3 for almosthalfofTelstras entire workforce,
thisgroupincludesnetworkandwirelessengineers,productmanagers,
9
Business Environment: Need for
Transformation
oneofthelargestfeldworkforcesinAustralia,billingandcredit
consultants,andsupportstaf.
Inaddition,thecross-companyprogramofce(partoftheofceof
theCOO)identifesandprioritizesopportunitiesforstreamlining,
implementingandcoordinatingallaspectsofthecompanysoperations
inordertodeliverthebestpossiblecustomerservice.Tisgroupisthe
mechanismtodrivechangethroughoutTelstra,andtoensuredecisions
oftheCEOandseniorteamareexecuted.
AnewCEOandseniorleadershipteamtookcontrolofTelstrain2005.
Shortlythereafer,theyinitiatedaformalreviewofTelstrasoverall
businessstrategyandoperations,whichrevealedverysignifcant
businesschallenges.Telstrasoriginalbusinesstraditionalfxed-line
phoneservices(PSTN)
6
wasindecline.Newsourcesofbusiness
(suchasmobile)weregrowingmuchmoreslowlythandesired.Te
companywasnotinnovating;fewnewproductswereontheway.To
makemattersworse,Telstrascostswererising.Itsinfrastructurewasold
andantiquated,anditwasbecomingincreasinglyexpensivetooperate.
Terewastoomuchcomplexityinexistingsupportsystems(suchasIT
orbilling)leadingtoinefciencyandexpensivemistakes.Likemany
conglomeratesinthetelecommunicationsorutilitiesindustries,Telstras
century-longevolutionledtoanorganizationthatwastooslowmoving,
withtoomanymovingpartswhichwereoutofsyncwitheachother.
AspartofBersin&AssociatesHigh-Impact Learning Organization
research
7
,weaskedleadersintrainingandHRtodescribetheirtop
6
Packet-switched telephone network.
7
For more information, The High-Impact Learning Organization: WhatWorks

in the Management, Governance and Operations of Modern Corporate Training,
Bersin & Associates / Josh Bersin, may 2008. Available to research members at
www.bersin.com/library or for purchase at www.bersin.com/highimpact.
10
businesschallenges.TeresultsaresummarizedinFigure4.(Telstras
business challenges are in line with our fndings.)
Tebottom-lineefectofTelstrasstrategicproblemswasapooroverall
experienceforitscustomers.Telstraanalyzedcustomeropinionas
partthestrategicreviewinsummary,itscustomerswerenothappy.
Telstraneededtochangeifitexpectedtocompeteagainsttheincreasing
numberofyounger,fastertelecommunicationscompanies,bothinthe
homemarketofAustraliaandglobally.
[It is] critical that we reposition the Telstra brand
to refect our focus on customer needs; to express our
commitment to create value for all our customers and
market segments, no matter where they live.
Chief Executive Ofcer, Telstra
Figure 4: Top Business Challenges Faced by High-Impact Learning Organizations
Source: Bersin & Associates, 2008.
14% Global expansion
20% Expansion into new markets
8% Mergers or acquisitions
9% New top management team
1%
Obsolescence of products
or services
24%
Financial pressure to cut costs
29%
Launching many new products
and services
33%
Competitive threats
50%
Rapid business growth
or change
11
Tothatend,Telstraannouncedafve-yearplantoradicallytransform
thebusiness.Telstraenvisionedaworldinwhichthecustomers
experiencewouldbeseamlessacrossallcommunicationsdevicesand
platformsonetouch,oneclickoronecommandandinreal-time.
Telstrasgoalwastobethecompanytomakethatvisionarealityfor
customersinAustralia.
Tomakethatvisionarealitywouldrequireradicaltransformation.
Telstrasbusinessenvironmentwouldnotallowaslow,incremental
approachtomeetingthischallenge.Tecompanyneededto
simultaneouslyreinventitsfxedandwirelessnetworks,itsinformation
technologysupportsystems,andmostimportantlyitscustomer
experience.Telstraneededtobeabletofex,innovate,increaserevenues
andcutcosts.Itneedednewproductsthatwouldbringthefullbenefts
ofhigh-speedbroadbandinformationservicestoitscustomers.In
addition,thecompanyneededtosimplifyitsprocessesandsystems,
bringingallofTelstrasbusinessesunderonecommonsetofsystems
andservices.TebottomlineTelstraneededtoaccomplishallofthese
changesinjustfveyearstime.
Figure 5: Telstra's Transformation
12
Telstras People: A Need for Talent
Transformation
Also,therewereTelstrasemployees.
Telstrasstrategicreviewalsoincludedananalysisofitsstaf.Wereits
employeesreadytomeetthecomingchallenges?Didtheyhavethe
skillsthatwouldberequiredtooperatethetransformedbusiness?
Unfortunately,theresultsoftheanalysisindicatedtheanswerwasno.
TerestructuringofTelstrasbusinessunits,alongwiththe
consolidationofprocessesandsystems,wouldmeanmergingfar-
ranginganddiverseworkforces.Telearningneedsandbestmethods
formeetingthoseneedswouldalsovarywidely.Testrategicreview
revealedaworkforcethatwashighlytalentedandexperienced,and
readytodoitsparttomakeTelstrasuccessfultheywerenot,however,
preparedwiththenext-generationskillstheywouldneedinthenew
Telstra.Teemployeesneedednewskillstobestdeployandleveragethe
newtechnologiestobeimplementedbythecompany.Ultimately,they
needednewskillstobestmeettheincreasinglycomplexcustomer
needs.
Tosucceedatitshighlyambitiousplan,Telstrarealizeditneededtoalso
reinventitsstaf,aswell.Telstracommittedtoinvestingapproximately
$140million(AUSdollars200million)intoemployeedevelopment
overthenextfveyearstoprovidethecriticalknowledgeandskills
needed.Havingtherighttalentandskillsbecameacentralcomponent
inTelstrasexecutionstrategy.
To provide value-added services that are the worlds best
and to harness the new technologies were introducing,
Telstra needs to develop the best feld technicians, the
best network engineers, and the best wireless and product
management workforce in the world.
Chief Operations Ofcer, Telstra
13
Beforethearrivalofthenewleadershipteamandthestartofthe
strategictransformation,Telstraoperationstrainingwasprovided
byadepartment,calledthelearningservicesgroupwhichwas
comprisedofapproximately40employees,includingbothdevelopers
andinstructors.Overthelastfewyears,Telstraasawholewasplacing
decreasingvalueandattentiononstafdevelopment.Traininghad
becomeadiscretionaryexpense;thetrainingbudgetseemedtoshrink
everyyear.Telearningservicesgrouphadbecomeincreasingly
focusedonlyonmandatorycompliancetrainingandonreactively
addressingskillsgaps.Oferingscoveredbareminimumprograms(such
ashealthandsafetyinthefeld)andafewcoretechnologies(suchas
asymmetricdigitalsubscriberlineADSL
8
).
8
A data communications technology that enables faster data transmission
over copper telephone lines than a conventional voiceband modem can provide.
Source: http://en.wikipedia.org/wiki/ADSL.
Learning Environment: Telstras Learning
Function before Outsourcing
New direction, new challenges
Telstra faced a series of business challenges that shaped the
required learning solution
Business Challenge Required capability
Geographic
Diversity
Cost
Management
Competitive
Market
New
Technologies
A legacy of
business silos
Understand &
create skills
needed to transform
Provide consistent training to all staff across
Australia, no matter their location
Monitor, manage and report on costs and
benets associated with learning
Support rapid delivery of the skills required to
enable sales / service campaigns
Rapid delivery of the skills required
to enable new technologies
Help learners to understand
business independencies
Learning linkage with strategic planning
and decision making
Figure 6: Telstra's Training Challenges
14
Operationally,thelearningservicesgroupwaspredisposedtoclassroom
delivery,andgenerallylackedtheskillsandexpertisetosupport
e-learningandotheremerginglearningtechnologies.Tegroup
frequentlytriedtomeetlearningneedsbybuyingof-the-shelfcontent
frommanydiferentvendors,withoutanycoherentvendorstrategyand
withlittlethoughtforensuringalignmentofcontenttobusinessneeds.
Forcomparisonpurposes,Figure7containsthetoptrainingchallenges
asfacedbytrainingandHRmanagerstoday.
9
9

Bersin & Associates / Josh Bersin, may 2008.
15
Figure 7: Top Challenges Faced by L&D Managers Today
31%
Gaining additional resources
to meet workload
34%
Integrating with talent
management strategies
28%
Integration with Talent
Management initiatives
28%
Implementing a
measurement program
25%
Increasing speed of program
development
17% Creating competency models
23%
Implementing LMS or other
infrastructure
Globalizing our programs
and operations
43%
Reducing cost of training
function
43%
Developing a business plan
for learning
44%
Increasing the effectiveness
of our programs
51%
Improving alignment
with business
25%
16
Beforethetrainingorganizationwouldbecapableofdoingitspartin
thecompanysoveralltransformation,itneededtochangeitselfand
addressseveralofitsowncriticaloperationalchallenges,asfollows.
Inability to ScaleTesheerscaleandscopeofwhatTelstrawas
attemptingaspartofitsstrategicplanwouldrequirethetraining
organizationtobeabletodevelopanddeliverlearningfasterthanever.
Cultural IssuesTereinventedTelstrawouldmeanamarked
increaseincross-businessunitoperationsandinteractions.Te
trainingfunctionwouldbetaskedwithbridgingculturegapsacross
businessunitsandbreakingdownsilos,sothatemployeescould
bettergrasphowtoworktogether.
Geographical DiversityTelstraisaglobalcompanywithglobal
trainingneeds.Tetrainingorganizationwouldneedtohave
thecapacitytodeliverlearningcontenttostudentsatmultiple
locationsandatdiferenttimes.Italsoneededtoemployinnovative
techniquestoimprovedistance-learningresults.
New TechnologyMuchofTelstrastransformationwouldinvolve
wholesalechangesintechnology,meaningthatTelstrasstafwould
needtrainingonalmosteveryproduct,toolandsystemusedintheir
jobseveryday.
Cost Management Telstrasbusinessplanwouldrequirethe
companytoaccountforeverydollarspent,includingtraining.
Previously,Telstraslearningorganizationwasnotequippedto
managelearningasabusiness.
Competitive MarketTelstrasnewbusinessmodelispredicated
onfexibility.Tecompanyneedstobeabletoreacttothemarket
withnewproductsandprocesses.Tetrainingorganization,
therefore,mustbeabletopredictandprovideanynewknowledge
andskillsthatwillbenecessarytomeetchangingbusinessneeds.
Scarce Time for TrainingTelstrasworkforcewouldrequire
efcient,modularandblended-learningsolutionstobestmeetthe
on-demandlearningneeds.
Poor FacilitiesTelstrascurrenttrainingfacilitiesweresimplynot
insufcientconditiontomeetthecomingchallenges.
17
Business ImpactFundamentally,trainingatTelstrawasnot
alignedtobusinessneeds.Inaddition,thetrainingfunctionhad
limitedabilitytomeasureitsefortsorshowthebeneftsofitswork.
Goingforward,thisfunctionwouldneedtoinstalltheprocesses
necessarytocreatedeepalignmentwithbusinessneedsandtoshow
businessimpact.
TeoverridingquestionforTelstraanditslearningfunctionbecame
coulditsolvetheseoperationalchallengesonitsownorwoulditrequire
externalassistance?
Telstracarefullyexaminedthecapacityofitscurrenttrainingfunction
andtherequiredoutcomesoftheprogramsitwouldneedtodeliver.
Trainingwouldneedto:
Provideconsistentaccesstolearningandvalue-addedknowledge
acrossAustralia;
LinkinstrategicallywithTelstrastransformationobjectivesandbea
platformforenablingsuccessatthoseobjectives;
Becapableofdeployingnewcontentquicklyoverdistance;
Promotecross-companyengagementandidentity,andhelp
disparategroupstounderstandtheircommonpurpose;and,
Oferongoing,systemicsupportforprocessimprovementand
innovation.(Telstra could not aford training to be focused only on
single programs or solutions.)
Aferhardself-examination,Telstraconcludedthatitsoperations
trainingfunctionwasnot(initscurrentform)readytosupportthe
companystransformation.TetrainingfunctionatTelstrarequired
asmuchchangingitselfasdidthechangesitwouldbeaskedtoenable
withinthecompany.
Telstra: Te Decision to Outsource
18
Learning Outsourcing
Telstrachosetoseekexternalassistanceintheformofalearning
servicesoutsourcingprovider.Tecompanyconsideredthefollowing
modelsforsupport.
Option 1Outsourceonlycontentdevelopmentpurchasingall
contentfromvendors.
Option 2 Outsourcetrainingdelivery,whileretainingcurriculum
planningandcoursedevelopmentin-house.
Option 3End-to-endoutsourcingoftheentiretrainingfunction.
Telstradecidedthedepthofitschangeneeds,thechallengespresented
bythestrategicplanandthespeedrequiredtoimplementthesechanges
allpointedtoatransformationaloutsourcing
10
model.Capability
gapsexistedacrossthelearningfunctionandallpartswereinneedof
upgrade.Tepaceoftransformationmeantthosegapsneededtobe
closedrapidly,sothatthelearningfunctioncouldscaleupquicklytobe
abletodeliveralargervolumeoftraininginabroaderrangeofformats.
Telstrabelievedthatchoosinganend-to-endoutsourcingmodelofered
thebestchancetoachieveworld-classresultsintheafordedtime.
BeforediscussingTelstrasoutsourcingprocess,wewillprovideabrief
overviewoflearningsolutionoutsourcing.
10
For more information, please see the following reports: (1) Training
Outsourcing: WhatWorks
The Economics of Outsourcing Training Technology

and Operations, Bersin & Associates, August 2004; (2) Learning Solution
Providers: Selecting and Benchmarking an Outsourced Learning Solution, Bersin
& Associates / Josh Bersin, may 5, 2008; and, (3) The High-Impact Learning
Organization: WhatWorks
in the Management, Governance and Operations of

Modern Corporate Training, Bersin & Associates / Josh Bersin, may 2008. All three
reports are available to research members at www.bersin.com/library.
19
OurHigh-Impact Learning Organization
11
researchshowsthat
organizationsoutsourcetrainingfunctionsforoneofthefollowing
threereasons:
1. Lackofinternalskillsandexpertise;
2. Demandforrapidturnaroundorhighvolumes;or,
3. Needtoreducecosts.
High-impactlearningorganizationsregularlyoutsourcemanyelements
oftheirlearningstrategicprograms,e-learningcontentdevelopment,
competency-basedlearningprogramsandmanyelementsofleadership
development.Tesuccessofsuchoutsourcingstrategiesisdriven
largelybyfndingasupplierthathas:
Deeplevelsofexpertiseintheprogramareaorfunctionalarea
ofneed;
Acostandpricingmodelconsistentwiththeorganizationsdesired
spendinglevel(you do get what you pay for in
learning outsourcing);
Anengagementmodelthatftstheorganizationsneeds(e.g., do you
want a supplier to do a needs analysis and performance consulting, or
just program design?);
Terightlevelofscaletomeettheorganizationsneeds(e.g., should
the supplier have global capabilities, or be national in scope or
regional?);and,
Aculturalftwiththeorganization(e.g., is your organization a fast-
moving, technology-savvy company, a more conservative organization
with more conservative employees, a hard-charging competitive
organization or a highly collaborative organization?).
Choosingtouseanexternalprovidertosupportsomeorallofa
companyslearningfunctionsisverycommon.Today,itisverydifcult
fortrainingorganizationstomeetallneedsinternally.In2007,for
11

20
example,ourresearchindicatesthat$16.3billionwasspentonoutsourced
learningsolutions,nearlyone-thirdofalltrainingspending
12
.
Withinthisspending,approximatelyone-thirdgoestocontent
development,one-thirdtotrainingdelivery(contentdeliveryor
predevelopedcontent),15percenttotrainingadministrationandother
administrativeservices,andtheremaindergoestoconsultingand
technology.Technologybudgetsmakeupabout11percentofcorporate
trainingspendingandmoreofthisisbeingoutsourcedtosofwareas
aservice
13
(SaaS)vendors.
Hundreds,perhapsthousands,ofproviderssupplyoutsourcedlearning
servicestoHR,andlearninganddevelopment(L&D)departments
worldwide.Teseprovidersrangefromsmall,boutiqueprovidersthat
specializeincertainindustriesorsolutionareastoextremelylarge
professionalservicescompaniesthatprovideallmannerofbusiness
servicessupporttolarge,globalconglomerates.
Learningoutsourcingproviderstypicallyofersolutionsin:
Performanceconsulting;
Instructionaldesign;
Programdevelopment;
Learningprogramdelivery;
Learningadministration;and,
Usersupport.
12
For more information, The Corporate Learning Factbook
2008: Statistics,
Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin &
Associates / Karen OLeonard, January 2008. Available to research members at
www.bersin.com/library or for purchase at www.bersin.com/factbook.
13
Software as a Service (or SaaS) refers to the business of selling software over
the Internet as a web service. In this business model, the software vendor charges
an annual rental fee and can predict recurring revenues far more reliably than
with the licensed software model. As SaaS becomes proven and the delivery
strategies more refned, most analysts agree that more and more enterprise
software will be sold in this way.
21
Whenlookingatsolutionproviders,wedofndthatmostcompanies
tendtofocusononeofthefollowingfourkeysolutionareas.
Contentdevelopment;
Programadministrationanddelivery;
Systemsimplementation,hostingandadministration;or,
Managementservices.
Someofthelargerprovidersarealsomovingheavilyintothe
implementationoftalentmanagementstrategies,suchassuccession
managementandperformancemanagement.Inparticular,many
leadershipdevelopmentcompaniesprovidesuchservices.
14
For more information, Learning Solution Providers: Selecting and
Benchmarking an Outsourced Learning Solution, Bersin & Associates / Josh Bersin,
may 5, 2008. Available to research members at www.bersin.com/library.
LMS Offering, LMS Hosting and Support
Advanced Learning Systems (Portals, Learning On-Demand)
Learning Content Management, Development Tools
End to End Outsourcing of Learning Functions
Content Library (IT, Leadership Development, Industry, Functional)
Strategic Advisory Services
Content
Development
Performance
Consulting
Needs
Analysis
Assessment
Content
Delivery
Learning
Administration
Vendor
and Tuition
Services
Measurement
and
Evaluation (e-learning,
blended,
simulations,
mobile)
(local, global,
expert-driven,
language,
print materials,
job aids)
(registration,
class optimization,
support,
reporting)
(Surveys,
feedback,
program
evaluation)
(Vendor and
tuition management,
solution
optimization)
Figure 8: Learning Outsourcing Models
14
22
Selecting an Outsourcing Provider
Selectingaprovidercanbeadifcultproposition.Temostimportant
frststepistocarefullyconsiderthebusinessneedsthataredriving
theselection
15
.Typically,wefndthatthebusinessdriverscausing
companiestoseekanoutsourcingproviderfallintothesecategories:
Businessoutcome-driven;
Volume-driven;
Cost-driven;
Technology-driven;and,
Transformational.
15
For more information, please see the following reports: (1) Training
Outsourcing: WhatWorks
The Economics of Outsourcing Training Technology

and Operations, Bersin & Associates, August 2004; (2) Learning Solution
Providers: Selecting and Benchmarking an Outsourced Learning Solution, Bersin
& Associates / Josh Bersin, may 5, 2008; and (3) The High-Impact Learning
Organization: WhatWorks
in the Management, Governance and Operations of

Modern Corporate Training, Bersin & Associates / Josh Bersin, may 2008.
Figure 9: Five Types of Outsourcing Projects
Risk
Low Risk Medium Risk High Risk
Value
High
Value
3. Business Outcome Driven
Focus: Address business
need; improve effectiveness;
infuse innovation
5. Transformational
Focus: Signifcant
business shift or business
transformation
Medium
Value
2. Volume Content Driven
Focus: Flex of capacity and
capability with predictable
but higher costs
4. Technology Driven
Focus: Automate,
standardize, eliminate non-
value-added work
Low
Value
1. Content Driven
Focus: Capacity, speed or
capability
23
AsFigure9shows,ineachoutsourcingdecisiontherearetwofactors
thepotentialbusinessbeneftversusthepotentialbusinessrisk.Inthe
lefcolumn(types1and2),theoutsourcingofcontentisbothlow
riskandlowtomediumvalue.Dependingontheareaoffocus,the
outsourcingofalearningprogramisusuallyeasyandhighlyuseful.
Ifyouselectanoutsourcingvendorwithdeeplevelsofexpertiseinan
area,thecompanywillusuallyprovideexcellentvalue.
Inthemiddlecolumn,youseeprojectsandprogramsthatdrivehigher
levelsofvalueandhigherlevelsofrisk.Technologyoutsourcingalways
carriessomerisk.(Technology vendors are continuously trying to keep up
with new trends and technologies; most are smaller companies and most
struggle to support each customers needs.)
Tereisacriticalthirdtypeofproject,thebusinessoutcome-driven
project(3),whichisnoteworthy.Teseareprogramsorprojectsthat
focusonspecifcbusinesschallengestheoutsourcingofastrategic
trainingprogramforanewproductrollout,thedevelopmentofa
strategicnewleadershipdevelopmentprogramortheoutsourcingofa
strategicelement(e.g.,simulation)ofabusiness-criticalprogram.
Finally,therearetransformationalprojects(Telstra most readily
falls into this category)inwhichanorganizationmayoutsourcean
entirefunctiontoaprovider.Withtheseprojects,thereisapotential
fortremendousreturn,butalsoapotentialforrisk.Telstrasstrategic
businessstrategyanditsbusinessenvironmentareforcingittoseek
atotaltransformationofitsoperationalL&Dfunctiontoimproveits
efectivenessandtoensureitisreadytosupportthefuturegrowthof
thecompany.
Deciding to Outsource
High-impactlearningorganizationslookatoutsourcingasastrategic
weapon.Ineachandeveryoutsourcingsituation,youhaveabuild
versusbuydecisionshouldwedothisprojectourselvesorshouldwe
hireanexpertfromtheoutside?
24
Inourresearch
16
,wefoundthatthereareessentiallysixpotential
businessdriverstoconsider.Ifyoucarefullyprioritizethesedrivers
beforeyoustarttolookforaprovider,youwillfndthatproviderstend
tolineupbasedonthesebusinessdrivers.
Mostorganizations(43percent)outsourcecontentbecausetheydonot
havedeeplevelsofskillsinthisareainessence,companiesarebuying
contentorcontentdevelopmentexpertise.Tesecondmajorbusiness
reason(28percent)foroutsourcingiscapacityanorganizationmay
havetheskills,butnotthescaletobuildordeployaprogramtomeetits
demands.Teotherreasonsinclude:
Speed(theprovidercandeliverasolutionfaster);
Cost-savings(theorganizationcansavemoneybyusingthisvendor);
16

Figure 10: Key Outsourcing Business Drivers
4% Quality
6% Priorities
6%
Cost Savings
13% Speed
28%
Capacity
43% Skills and Expertise
% citing reason
Primary business driver
Top reasons for outsourcing:
Vendor has special skills and expertise
Expand capacity of the organization
For most companies, saving money is not a driver
25
Priorities(theorganizationcoulddoit,buttimeisbetterspenton
other,higher-priorityprojects);and,
Quality(theorganizationneedsaveryhigh-valuesolutionthat
demandsalevelofqualitythecompanycannotprovide).
Asthisdatashows
17
,outsourcingtosavemoneyisnotnearly
asprevalentasimagined.Infact,thevastmajorityofoutsourcing
relationshipsarebuiltaroundtheskillsandexpertiseoftheoutsourcing
provider.Ourresearchfoundthatorganizationstrulydogetwhatthey
payforwhencompaniesoutsourcetosavemoney,theydoinfact
lowercosts,buttheytypicallyreceivefarlowerserviceand
contentquality.
Choosing a Partner
Asalargeglobalenterprise,Telstrawasexperiencedwithworkingwith
theworldsbestprofessionalservicesproviders.Itsrelativesizeasa
companymeansthatitsprovidersassigntheirprimetalenttowork
withTelstra.
Telstrafocuseditsselectionprocessoncompaniesthatwere
worldleadersinthelearningfeld.Tesecompanieshadtohave
demonstratedexperienceworkingwithcompaniesofTelstrassizeand
geography,andtheexpertiseandscaletoquicklyprovidethelearning
supportTelstrarequired.
Othercriticalqualifcationsincluded:
Arecordofsuccessworkingwithglobal
telecommunicationscompanies;
17

Te Outsourcing Process at Telstra
26
Scaleandmanagementexpertisetomatchthechallengespresented
byTelstrasorganizationaltransformation;and,
AbilitytoprovideTelstrawithaccesstoongoingbest-practice
learningandhigh-performingorganizationresearch.
Aferashortbutextremelyintenseselectionprocess,Telstrachose
Accentureasitsstrategicpartner,agreeingtoafve-yeararrangement.
Aspartthispartnership,thesolutionprovidersuppliesTelstrawith:
Learningplansalignedtobusinessrequirements;
Curriculumplanning;
Contentdevelopment;
Classroomandonlinecoursedelivery;
Supportoperations;
Technologyservices;and,
Governancestructures.
Building a Relationship
Giventhetransformationmodel,buildingapartnershipbetween
Telstraanditsoutsourcingproviderwasthecrucialfrststep.Assoon
asthecontractwassignedinFebruary2006,thetwocompaniesstarted
cultivatingadeepworkingrelationship.Aninitialkick-ofworkshop
washeld(includingallkeystakeholders)thatcoveredtheprocesses,
rolesandexpectationsforworkingtogether.Teythensetouttodesign
andimplementanewlearningfunctionfortheTelstraoperations
businessunit,andtooperatelearningwithinTelstraasabusiness.Te
resultoftheirefortsistheTelstraLearningAcademy(TLA).TeTLA
teamheldpresentationsforseniorleadershipandregularmeetingswith
keyseniormanagers(whichhavecontinuedeversince).
27
TeTelstraLearningAcademyisapartnershipapproachtothe
planning,design,development,deliveryandsupportoftraining.
OperatingasapartoftheTelstraoperationsgroup,theTLAismanaged
byasmallcoreTelstrateam,andiscomprisedofadedicatedteamof
peoplefrombothTelstraanditsoutsourcingprovider.Troughthe
currentarrangement,theoutsourcingproviderhassuppliedanumber
ofcriticalprocessesthatallowTLAstaftoworkdirectlywithbusiness
leadstocreateanddeployjob-specifclearningsolutions.TeTLAisas
intimatelyintertwinedwithTelstraasanorganizationaswouldbeany
centralized,shared-servicesL&Dfunctioninanyotherlargeorganization.
TegoalsoftheTLAareto:
SupportTelstrasstrategicpriorities;
LooktothefutureperformanceneedsofTelstraoperations
workforce,whilebuildingtheskillsrequiredtoday;
EmpowerallTelstraoperationsemployees(nomatterhowremote
theirlocations)throughamixoflearningmedia;
Deliverlearningthathelpsbuildaplatformfororganizational
change;and,
PrepareTelstraforgrowthbymakingthepeoplethebasisofthe
companyscompetitivediferentiation.
TroughtheTLA,Telstraisprovidedwithfourkeybeneftsbusiness
outcome-focusedlearning,fexibility,scalabilityandbest-practice
trainingdelivery.
Te Structure of the TLA
TeTLAisstructuredlikeatrainingbusinesswithdiferent
departmentsandfunctions,eachdiferentpurposes,includinga
contentdevelopmentteamandacoursedeliveryteam.Itisaccountable
toTelstraformeetingbusinessobjectivesrelatedtobusinessimpact,
learningoutcomesandbudget.
Te Telstra Learning Academy
28
TeTLAhasthefollowingfourserviceunits.
Business InterlockTebusinessinterlockdivisionmanages
alignmentbetweendesiredTelstrabusinessoutcomesandTLA
learningprograms.
Learning Design and DevelopmentTeTLAcontent
developmentteamutilizestheproductioncapacityandlearning
expertiseofitsoutsourcingprovidersglobalcontentdevelopment
network.Actualcontentdevelopmentandinstructionaldesignare
performedbytheteaminAustralia,aswellasbytheoutsourcing
providersglobalcontentdevelopmentnetwork.
Learning DeliveryTecoursedeliveryteamschedulesand
conductsliveclassroomandvirtualinstructor-led(vILT)sessions.
Tisteamiscomprisedofagroupoffull-timemasterinstructors
andinstructors(whoselectandtrainalargepoolofspecialist
instructors,inkeysubject-matterareas,whothendeliverclassroom
sessions).Teyalsomanagethefacilitiesandvenueinfrastructure
dedicatedtoTelstra.
Source: Accenture, Copyright
2008. All Rights Reserved.

Figure 11: Telstra Learning Academy Services
29
According to our
research, the number
one issue plaguing
L&D managers is the
need to better align
with the business,
followed by the need
to improve effective-
ness and effciency,
and then build an in-
tegrated business plan
for learning.
18
ANALY5l 5
Learning AdministrationTeTLAalsoutilizesitsoutsourcing
providerssupportandhelp-deskcallcenterinfrastructureto
provideadministrativesupportfortheentirelearningoperation.
Tisgroupalsohandlescoursecatalogs,registrations,andthe
trackingofattendanceanddeliveryreporting.
Launching the TLA
TeprocessforestablishingtheTLAwasessentiallysimilarto
settingupanewcompany.Teoutsourcingproviderbeganlaying
theoperationalgroundworkbyworkingwithTelstratocreatethe
businessinterlockdivision(whichisaproprietaryprocesscreated
byAccenture).Itiscomprisedofastructuredsetofprocessesand
relationshipsthatensurelearninginitiativesaredirectlylinkedto
Telstrasstrategicbusinesspriorities.
Tebusinessinterlockdivisionmanagestheday-to-dayinteraction
betweeneachbusinessgroupandtheTLA.Tisteamdevelopsend-
to-endlearningplansforeachbusinessunit,basedonitsstrategic
directionandtheseplansareupdatedeveryquarter.Tisdisciplined
quarterlyplanningprocessenablesthisoutsourcingrelationshipto
runlearninglikeabusiness.Businessinterlockalsobringsexternal
perspectivesfromthetelecommunicationsandlearningfelds.Tisarea
workswithdevelopmentleadsandTelstrasubject-matterexperts(SMEs)
todefnecourseaudiences,requiredcontentanddeliveryformats.
AccentureworkedwithTelstratodesignandimplementgovernance
structures
19
fortheTLA(see section, Best Practices), includingthe
establishmentoflearningcouncilsandanexecutivecommittee.Tese
groupsstartedimmediatelytoidentifymission-criticalworkforcesfor
theTLAtoaddressfrstandtoprioritizetrainingneeds.
18

19

30
WorkbeganoncrafingtheoverallgovernancedocumentfortheTLA
theannuallearningplan
20
,thefrstofwhichwasdeliveredbythe
outsourcingproviderinJune2006.Tisplanoutlinesthetrainingto
bedevelopedanddeliveredfortheyearandensuresthattraining
efortsremaininalignmentwithTelstraslargerbusinessinitiativesand
transformationprograms.Telstraworkswithitsoutsourcingproviderto
createanewlearningplanforeachyear.
Telstraanditsoutsourcingproviderbeganasix-monthtransition
periodfromthepreviouslearningservicesgrouptotheTelstra
LearningAcademy.Teystartedworkimmediatelyonlearning
programstargetedtobuildthenext-generationtechnologyskills,along
withacertifcationprocess.Teyplottedacourseformigratingtoa
blended-learningapproach,planningfortheincrementalinclusionof
additionallearningtechnologies(suchasvirtualinstructor-ledtraining,
podcasting,andotherinformalandsociallearningmethods).
Telstrabeneftedfromitsoutsourcingprovidersexistinginfrastructure,
includingcontentdevelopmentservices,globaldeliverynetwork,
learningsystemsandadministrationservices.Contentdevelopment
andinstructionaldesignareperformedaroundtheworld,includingin
Australia,IndiaandtheU.S.
Withtheircombinedefortspayingofveryquickly,Telstraand
AccentureformallylaunchedtheTLAinAugust2006,onemonthahead
ofscheduleandlessthansixmonthsafersigningtheinitialcontract.
20

21

Our research shows
that governance is
directly connected to
the business plan for
learning. High-impact
learning organizations
have a detailed,
annual plan and their
governance processes
are built around this
planning process.
21
ANALY5l 5
31
Te TLAs Operations
Intermsoflearningprocesses(suchasthoseforcontentdesign
anddevelopment),theTLAhasbeenbuiltutilizingtheoutsourcing
providersextensiveexperiencewithworld-classtrainingorganizations.
AsshowninFigure12,thecontentdevelopmentlifecycle
22
issimilarto
thatofmanyotherlearningorganizations.Alldevelopmentisengaged
throughthebusinessinterlockgrouptoensurealignment.Tisgroup
alsocoordinatesinitialinteractionsbetweenthecontentdevelopment
teamandTelstraSMEs.
Aspartoftheanalysisanddesignphases,theTLAchosethemost
appropriatedeliverymethod(seeFigure13).
22
For more information, The Learning Content Maturity Model: Developing
a Framework for Integrated Training and Knowledge Management, Bersin &
Associates / Chris Howard, January 2007. Available to research members at
www.bersin.com/library.
Source: Accenture, Copyright
2008. All Rights Reserved.

Figure 12: Content Development Lifecycle
Design
Development /
Production
Acceptance Analysis Deploy
Pilot ready course
material
Pilot execution
Final course material
Instructional Design
Map
Content deployment
Support
communication
Telstra Learning
Brief
Business Interlock
Primary
Instructional
Designers
Media specialist
SME (Primary /
Secondary)
Secondary
Master Instructor
Primary L&D Lead
Stakeholders
Business Interlock
Primary
Business Interlock
SME (Primary /
Secondary)
Primary L&D Lead
Secondary
Instructional
Designers
Master Instructor
Stakeholders
Primary
Instructional
Designers
Media specialist
SME (Primary /
Secondary)
Secondary
Master Instructor
Business Interlock
Primary L&D Lead
Stakeholders
Primary
Support Operations
Instructional
Designers
Secondary
Business Interlock
SME (Primary /
Secondary)
Primary L&D Lead
Stakeholders
Primary
Instructional
Designers
Media specialist
Subject Matter
Experts
(Primary/Secondary)
Master Instructor
/Instructor
Target audience
representatives
Business Interlock
Secondary
Primary L&D Lead
Stakeholders
D
e
l
i
v
e
r
y

(
i
f

a
p
p
l
i
c
a
b
l
e
)
D
e
l
i
v
e
r
a
b
l
e
s
R
o
l
e
s

Content Development Centre

32
TeTLAhasthebeneftofbeingabletopullfrombothTelstraand
Accentureforsourcesofcontent.
Source: Telstra 2008.
Figure 13: Delivery Method Selection
The TLA uses a 5 Step Process to determine which delivery method is most appropriate
3
4
Determine how much of a Blended solution is required
5
Select Delivery Method
2
Determine if the Learning outcomes require awareness, application,
or mastery
1
Evaluate Impact, Speed, and Efciency Requirements
Consider additional factors (audience size, course life expectancy, etc)
Source: Telstra 2008.
Figure 14: Content Sources
There are a number of sources of content available to the Telstra Learning Academy.
The Academy will identify the content that best meets the learning requirements identied through the learning needs analysis.
Curriculum Series
New Material
No additional development required before
being delivered
Development effort required to
customise to learning needs
Development effort required to update
to meet learning needs
Develop new material to meet
learning needs
Minimal or no development effort required.
Intended to be used to ll specic need.
How content will be used This approach maximizes
Telstras content sourcing
dollars and SME time
Other Sources, e.g.
Accenture 3rd Party
Sourced
Repurposed
Accenture IP
Material
Repurposed Telstra
IP Material
Courses Inherited
from Telstra
Learning Groups
33
TeTLAinheritedalargelibraryofexistingtrainingcontentfrom
Telstrasearlierlearningservicesgroup.Duringthetransitionprocessto
theTLA,allofthiscontentwasreviewedforitscontinuedusability.Of
the130-pluslegacycourses,only40wererelevanttoTelstrasimmediate
andfuturelearningneeds.Inthetwoyearssincethelaunch,theTLA
hasdeveloped300-pluscourses.
Allsourcecontentandsupportmaterialforinstructor-ledtraining
(ILT)isheldontheoutsourcingproviderscontentmanagementsystem,
asisonlinecontentindevelopment.Finishedcoursesaredeployedto
TelstrasLearn.AchieveLMSforconsumption.
Integration with Talent Management
23
WithinTelstrasoperationsbusinessunit,teammanagersandleaders
usetheTLAcurriculumintheperformancemanagement
24
process
todevelopannualdevelopmentplans.Morethan90percentofTelstra
employeeshavedevelopmentplans.
TeTLAisalsoapartnerinHRsculturechangeprogram,OurWay.
TeTLAtrainingbringsTelstrasculturalprioritiestolifeinwaysthat
aremeaningfulandaccessible(e.g.,demonstratingvaluesinstudent
activities,tyingvaluestobehaviors,instillinganewcustomerfocus).
TeTLAisalsoresponsiblefornew-hireorientationandonboarding
programsforthecustomerservicecontactcenterandcreditoperationsstaf.
Key Programs
Inthissection,wedescribesomeexamplecoursesandprograms
implementedbytheTelstraLearningAcademy.Inaddition,weinclude
Figures15and16,whichdocumenttheprogrammilestonesbyprojectyear.
23
For more information, High-Impact Talent Management: Trends, Best Practices
and Industry Solutions, Bersin & Associates / Josh Bersin, may 2007. Available to
research members at www.bersin.com/library or for purchase at
www.bersin.com/hitm.
24
For more information, High-Impact Performance Management:
Comprehensive Industry Study: Market Analysis, Trends, Best Practices, and
Vendor Profles, Bersin & Associates / Josh Bersin, June 2006. Available to research
members at www.bersin.com/library or for purchase at www.bersin.com/perfmgt.
34
Project Green
TefrstmajorprogramsupportedbytheTLAwasProjectGreenan
efortbyTelstratorestructureitsfeldworkdispatchbusiness.Aspart
ofthisproject,theTLAdeveloped57hoursofcoursesunderatight
timelinetosupporttheredesignedjobsandfunctions,anddelivered
morethan12,000hoursoftrainingacrossAustraliaoveratwo-month
period.ProjectGreenresultedinanincreaseinworkforceproductivity
bymorethan15percent.
Network and Wireless Engineers Training
AcorecomponentofTelstrastechnologicalandproducttransformation
isitstransitiontonext-generationnetworksandtechnologies.Making
thistransitionrequiredthattheengineerswhowouldbuildandoperate
thesenetworksquicklygainnewknowledgeandskills.Anotherearly
winfortheTLAwasindeployingongoingtrainingandperformance
supportfortheseengineers,includingsuchtopicsasTCP/IP,
multilabelpacketswitching,networktestingandprojectmanagement.
AccordingtothedirectoroftheTLA,thistrainingprogramhas
becomeacompetitiveadvantageforTelstra.Teinformationand
communicationstechnologyindustry(ICT)inAustraliaissufering
fromaskillsshortage.Withoutthistraining,Telstrawouldnotbe
successfulatmovingtothesenewnetworks.
Assess-First Health and Safety Program
AnotherearlywinfortheTLAwasanewwaytodeliverrequiredhealth
andsafetytrainingforcommunicationstechnicians(CTs).Priortothis
newprogram,allCTsweretrainedonhealthandsafetycompetencies
everythreeyears,regardlessofneed.TeTLAinstitutedasimple
conceptwithtremendousresults.ItassessesallCTsfortheirknowledge
oftherequiredconceptsfrstandthoseCTswhopassdonothaveto
completethetraining.EachtechnicianwhopassessavesTelstra2.5days
ofworktime.Costsforthistrainingwerereducedfrom90percentof
thelearningbudgettolessthanfvepercent,allowingfundingtobe
redirectedtootherstrategicandtransformationallearninginitiatives.
35
Despitespendinglessmoneyonthistraining,Telstramaintainedits
excellentsafetyrecord.
Computing Fundamentals and Jumpering on the Network
Initssecondmonthofexistence,theTLAdeployedtheComputing
Fundamentalscoursefortheservicedeliverydepartments
communicationstechnicians.Tepurposeofthiscourseistodevelopa
consistentsetofITskillsinthefeldandtopreparetechniciansfornew
ITsystems.
Atthesametime,theTLAreleasedthecourse,Jumperingonthe
Network.Telstrahaddatashowingthattoomuchofitsjumpering
workwasofpoorquality,requiringcostlyrepairs.TeTLAcreated
acoursedesignedtoimprovejumperingquality.ATLAstudypilot
reporteda60percentreductioninnetworkjumperingfaultratesfor
workthatwasdonebytechnicianswhocompletedthetraining.Tis
resultedinanestimatedAUSdollars1.2millionincost-savingsdueto
theimprovedqualityofwork.
Credit and Fraud Management Skills
InSeptember2007,theTLAlaunchedanentirecurriculumcovering
thecreditandfraudmanagementskillsneededbyTelstrascredit
andbillingconsultants.Tebusinessinterlockteamcreatedacourse
frameworkandcurriculumthattargettrainingtoclosekeyskillsgaps.
Todate,almostallofTelstras400creditandbillingconsultantshave
beentrainedinarangeofcommunicationandcustomermanagement
subjects.Tenextphaseofthisprogram(soontobedelivered)is
anonboardingprocessfornewcreditconsultants.Tisonboarding
programshouldincreasethespeedatwhichstudentsreachcertifcation
inkeycompetencies.
Service Delivery
TemainfocusoftheTLAsefortssinceitsinceptionhasbeenthe
feldCTs.Tesetechniciansrepresentasignifcantportionofits
operationsstaf.TeyareextremelyimportanttoTelstrassuccess,
36
becausetheyareofenthefaceofthecompanytoitscustomers.Tey
workwithcustomersdirectlyeveryday,repairingandmaintaining
communicationsservices,ofenincustomershomesandbusinesses.
TeTLAsroleistoprovidetheseCTswiththeskillstheyneedto
providebetter,moreresponsiveservice.TeTLAisprovidingCTswith
traininginareas,suchas:
Transmissionnetworks;
Homeandbusinessbroadbandinstallationsandmaintenance;and,
Workingwithnewfbertechnologiesandequipment.
Giventheimportanceofensuringagreatcustomerexperience,the
TLAisalsofocusingonsof-skillstraining,includingcustomerservice,
negotiationandcopingwithchange.
Communication Technicians of the Future
(CToF) Program
PartofTelstrastransformationplanistohavethemosttechnologically
advanced,best-equippedworkforceofCTsanywhereintheworld.
TelstrahascreatedasuiteofnewsofwaretoolsdesignedtoassistCTs
intheirworkandhasdeployedthesetoolsonmorethan5,000laptops
usedbyCTsinthefeld.TeTLAsupportedthisprogrambyproviding
programanalysisservices,contentdevelopmentanddelivery,and
planningandscheduling.
Tebusinessinterlockteamdesignedthetrainingcontentforthe
program,includingsomeon-demandlearning
25
contentcalled,
applicationsimulation,intheformofeightstandalonelearning
nuggets.Teseapplicationsimulationsarenowdeployedtothe
techniciansfeldessentialswebportalandareavailableatthepointof
needforthemostcommonsystemprocesses.
TeCToFtraininginvolvestwo-dayfeldmobilecomputingsofware,
includinghands-onscenariosandsimulatedpracticesessions.Bythe
25
For more information, Integrating Learning into the Enterprise: A Look at the
IBM Enterprise Learning Portal, Bersin & Associates / Chris Howard, January 2008.
Available to research members at www.bersin.com/library.
37
publishdateofthisreport,theTLAexpectstohavetrainedallCTs.
Fieldworkforceproductivityhasrisenbymorethan20percentsince
theCToFprogrambegan.
Service Advantage Onboarding
Telstrasserviceadvantage(SA)lineofbusinessinitiatedarestructuring
programdesignedtoconsolidatethegroupfromabout2,550stafand
agencyrepresentatives,performing83functionsat17sitestoateam
of2,300staf,fulflling48functionsatfoursitesinSydney,Melbourne,
PerthandTownsville.
Tosupportthisinitiative,theTLAdevelopedathree-weektransition
programfortheexistingworkforce.Teprogramcontained30new
learningsolutions,includingweb-basedcourses,instructorsessionsand
job-aids.Programcontentincludesproduct,systems,healthandsafety,
troubleshooting,andcustomerservicetraining.Teoriginalproject
wascompletedinJanuary2008atwhichpoint,theprogramwas
convertedintoanew-hireprogramforfutureadditionstotheservice
advantagegroup.
38
Figure 15: TLA Year 1
May 2006
...To June 06:
Delivered 2006-2007
Annual Learning Plan.
July 2006
...To Aug. 06:
Reworked Telstra
learning budget /
priorities.
Established
Business Interlock
Division.
Started TLA as
Business.
...To Dec. 06:
Supported Project
Green.
Aug. 2006
Launched TLA
First Rest of
Operations (ROO)
learning council
meeting.
Sept. 2006
Deploy Assess-
First Health and
Safety Program.
Oct. 2006
Deployed Computer
Fundamentals
course.
.
Dec. 2006
Deployed Jumpering
on the Network
course.
Started integrating
Telstra Compliance
and Our Way
messages into all
content.
March 2007
Launched services
for ROO lines of
business.
Deployed ROO
Course: Principles
of Investment
Approval.
...To Present:
Launched training
support for build /
operation of Next
Generation networks.
April 2007
Deployed web-based
health and safety
courses.
May 2007
...To June 07:
TLA state-of-
the-art training
centers open
in Sydney and
Melbourne.
Figure 16: TLA Year 2
July 2007
...To Present:
Launched training
for CT of the Future.
Sept. 2007
...To Present:
Launched Credit and
Fraud Management
Skills Training
Nov. 2007
...To March 08:
Launched new Service
Advantage Onboarding.
Jan. 2008
Deployed rst Video
nugget demonstrating
bre optic connector cleaning.
Feb. 2008
Launched Mobile Carriers
Forum EME Regulatory Compliance
System (MERCS) campaign.
Deployed IP Delivery for
Project Managers course.
Launched phase 1 of Credit
Consultant Induction Program.
Supported launch of Telstra Plus.
March 2008
...To Present:
Deployed IT Transformation
Release 1 training.
39
Example Curriculum: ADSL
Inthissection,wedetailanexamplecurriculumcreatedbytheTLA,
entitled,PreparingCTstoSupportADSLInstallations.
TelstrasADSLbroadbandnetworkcovers92percentoftheAustralian
populationanditsADSL2+servicesareenabledinmorethan1,400
exchanges,allowingcustomerstoaccessspeedsupto20Mbps.
TeTLAsoverallprogramobjectivesforthiscurriculumareto:
SupportADSLservices;
Strengthentechnicalexpertise;
Reduceresponsetimes;
Buildinfrastructurestrength;
Improvethequalityofinstallations;and,
Reduceinstallationcosts.
Figure 17: AD5L Curriculum
Element Course
1
ADSL Fundamentals
(two-hour online course information on ADSL technologies).
2
ADSL Assurance to Network Boundary Point
(one-day instructor course skills staff to work on ADSL network faults and test from the
exchange to the network boundary).
3
BigPond ADSL Activation and Assurance
(Action-based three-day course skills technicians to activate and assure the Big Pond
ADSL product).
4
ADSL Advanced
(1.5-day instructor-led course skills technicians to work on diffcult ADSL
troubleshooting jobs, and business-grade Internet Protocol broadband installations
and repairs).
40
Temajority(85percent)oftechnicianswillbecompetentinADSL
installationoverthenextthreeyears.TeTLAhasput1,961people
throughADSLtrainingsinceApril2007.Troughdeliveryofthis
curriculum,theTLAhasdirectlysupportedTelstrasincreasingmarket
share,aswellasthecompanysdriveforfewerADSLheldorders.ADSL
heldordershavedeclinedmorethan90percentsincepeakingin2005
andTelstrasmarketshareforBigPondconsumerbroadbandbusiness
hasincreasedfrom43percentinDecember2005to48percent.
New Training Innovations
Anaddedbeneftofworkingwithalarge,transformationaloutsourcing
partner(suchasAccenture)isaccesstonewtrainingproductsand
innovationspioneeredelsewhereintheprovidersbusiness.Inthelast
year,theoutsourcingproviderbroughtthefollowingfvenewtraining
innovationstotheTLA.
Electronic BriefngsShort,high-impactelectronicdocuments
thatutilizeaudiorecordings,graphics,quizzesandsimpleFlash
animation;idealforbuildingawarenessandknowledgefornew
tools,conceptsorcorporateinitiativesacrossgeographically
dispersedgroups.
Video NuggetsFivetosevenminutevideosthatdemonstrate
manualhigh-techtasks.
Audio NuggetsFifeen-minuteorlessrecordings,containing
interviewsorrole-plays;designedtoenhanceawarenessand
reinforcepriorlearning.
Instructor-Led 2.5AnewformatforILTforstudentswhoneed
hands-onknowledgeofcontent;comprisedof50percentlecture
and50percentactivities.
41
Level 4 / 5 Business Measurement
26, 27
Ameasurementprogram
thatprovidesstatisticallyvalid,experimentalversuscontrolgroup
results;specifcallyisolatesandmeasurestheimpactthattraining
hasonkeybusinessmetrics.
28
TefrsttwoyearsoftheTLAhaveshownverypositiveresults.Sofar,
theTLAhastrainedmorethan21,500operationspersonnelthrough
anetworkofmorethan70trainingcentersacrossAustralia.TeTLA
hasconducted7,800instructor-ledtrainingdaysforTelstrasoperations
businessunit(whichaccountsforaround50percentofTelstrasentire
workforceandcontainsoneofthelargestfeldworkforcesinAustralia).
AccenturehasworkedwithTelstratodevelopanddeliver350new
trainingcoursesalignedtobusinesspriorities.
TefundamentalfocusoftheTLAsefortshasbeentoimprovethe
customerexperience.Telstrasgoalistomakethecustomerexperience
acompetitivediferentiatorinthemarketplace.Teknowledgethatits
peoplebringtocustomerinteractions,thehighqualityofworkthat
theyperformandthespeedatwhichtheyperformservicesshouldbeso
muchbetterthanTelstrascompetitorstoensurenewcustomerschoose
Telstraforthesereasons.
Telstrasnext-generationproductsanditsdesiredcustomerexperience
canonlybemadepossiblethroughtheexpertiseandefortsofits
workforce.TeexistenceoftheTLAisproofthatTelstrarecognizesthis
fact,andhasfundamentallychangeditsperspectiveonlearning
26
Donald Kirkpatricks four-level measurement model has been widely published
in many articles and its terminology is well-known to most training professionals.
The original model was published in Training and Development Handbook, R. L.
Craig, mcGraw-Hill, 1976.
27
For more information, The Training Measurement Book: Best Practices, Proven
Methodologies, and Practical Approaches, Josh Bersin / Pfeiffer, 2008.
28
Accenture has worked with Telstra to deploy two such studies in 2007 to
2008: the Network Jumpering Study and the Service Advantage Induction
Curriculum impact study.
Business Impact
In two years, the TLA
delivered more than
7,800 instructor days
of training to more
than 21,500 students.
It deployed 350
new courses across
seven Telstra lines of
business.
KEY POl NI
42
andpersonneldevelopment.Inthepast,Telstraonlyspentmoney
ontrainingtosatisfyregulatoryrequirementsandtoapplystop-
gapfxestoimmediateproblems;therewasnolong-termfocuson
skillsdevelopmentforemployees.Now,withtheTLA,Telstrasentire
philosophyoflearningisdiferent.Learningisnotaneventitisan
ongoingprocess.Itsemployeesareastrategicresourcethatmustbe
cultivatedtogrowthetalentneededtotakethecompanytothenext
level.TeTLAishelpingtofosteranewgenerationofskilledTelstra
workerstobringnewservicestomarketfasterthanthecompetition,
whiledeliveringsuperiorcustomerservice.Figure18illustratesTelstras
focusonnext-generationskills.
Proofthatthischangeindevelopmentalphilosophyhasstartedtopay
dividendswithemployeescanbeseenintheresultsofTelstraslatest
employeeengagementsurvey.Teresultsindicateasignifcantshif
inemployeesattitudestowardstraining.Sixtypercentofrespondents
inTelstraoperationsagreetherearesufcientopportunitiesforjob-
specifclearninganddevelopment,an11percentincreasefrom2007
anda15percentincreasefrombeforetheadventoftheTLA.Not
onlyaretheTLAandTelstrameeting(andexceeding)business
Figure 18: Next Generation Skills
Next Generation skills priming Telstra for growth
Knowledgeable people, high
quality work, faster service
Skills to expand & maintain
new networks + evolve
network speeds
Skills to bring new services to
market, faster than the
competition
Expertise to plan, build,
manage and integrate NGNs
Superior
customer
interaction
Network speeds
& coverage
New content &
integrated
services
Next
Generation
Networks
One-click
usability
Market
leading
value
Skills are key to
growing our
market
differentiation
+
+
+
+
+
=
43
objectives,butTelstraspeopleappreciateandenjoythelearning
solutionscreatedforthem.
Bettertrainingofstafandafocusoncustomerexperienceisstarting
toshowresultswithcustomeropinions,aswell.Telstrasmostrecent
customervalueanalysisstudyofbusinesscustomersshowsthatthis
marketprefersthevaluethatTelstraprovides,ascomparedwithits
competitorsandthatthegapiswidening.Customersindicaterising
satisfactionwithfaultrepair.Tothequestion.wastheworkworthwhat
waspaid,Telstrasscoresnowexceedthoseofitscompetitorsforthe
frsttime.
Telstra(withthehelpoftheTLA)isseeingitslargerorganizational
transformationsucceed,aswell.In10months,Telstradeployeda3G
mobilenetworkandanaccompanyingIPinfrastructureoveraphysical
areaequivalenttothecontinentalU.S.Tesenetworkswillprovide
excitingbeneftstoAustraliancustomersandarethelinchpinofTelstras
futurebusiness.
Ultimately,theinvestmentthatTelstrahasmadeinitspeople(as
evidencedbytheTLA)isrefectedinthecompanysfnancialresults.
TeTLAanditsworkhavehelpedtoachievea20percentincrease
infeldworkforceproductivitysinceNovember2005.Telstrahas
demonstratedstrongtop-linerevenuegrowthandacceleratingbottom-
lineearningssincethebeginningofthistransformationproject.Te
marketplaceinAustraliaandworldwidearetakingnoticeofthissuccess.
TosuccessfullyestablishtheTLAandintegrateitintoTelstrasbusiness
requiredasubstantialchangemanagementinitiative.Tedecision
toinvestintransformingthecompanyanditspeoplewasverywell
receivedbyemployeesandcustomers.However,withtransformation
comesradicalchange.Ontheground,therewassomeemployee
resistanceoncetheoutsourcingproviderbeganactuallearning
serviceoperations.
Change Management: Critical to Success
44
Manypeopleresponsibleforworkforcedevelopmentatthecompany
werenotusedtoworkingwithanexternalprovidertomanageand
designlearning.Terewasadiferencebetweentheoutsourcing
providersapproachandthewayTelstratraditionallydidthings.
TelstraandAccentureaddressedemployeeconcerns,andlaid
afoundationforthefuturesuccessoftherelationshipthrough
communicationsandthenmorecommunications.Teoutsourcing
providerunderstoodtheculturalenvironmentwellandwaspreparedto
adaptaccordingly.
Communicationswasitsownseparateprojectpathaspartofthe
initialtransitiontotheTLA.OneoftheTLAsfrstdeliverableswas
acommunicationsplanonethathadbeencontinuouslyupdated
overtime.Manydiferentcommunicationschannelshavebeenused,
includingfrequentteammeetingbriefs,videos,seniorteammeetings,
road-trippresentationsandpublishedcollateral.TeTLAlaunchedan
intranetsitewithcourseguides,announcementsandhowtoengage
trainingresources.Ithasregularlypublishedintranetarticlesprofling
keyprogrammilestones,accomplishmentsandcommentsfrom
actuallearners.
Challenges
TeTLAhashadmanychange-relatedchallengestoovercome.
Subject-Matter Experts
TelstradidnoticesometensionoverthetimedemandsplacedonSMEs.
Initially,somepeoplefeltthattheoutsourcingprovidershouldprovide
allsubject-matterexpertiseforthecoursedesign.Tecompanyandits
outsourcingproviderworkedtogethertohelpeveryoneseethatTelstra
SMEinvolvementwouldensurethatlearningisrelevanttoworkingat
Telstra,ensuringcriticalalignment.Peoplehavecometoappreciatethe
valueofhavingSMEscloselyinvolvedincontentdevelopment.
BecausetheseSMEsarefromthebusinessandare,therefore,heavily
involvedinthetransformationofTelstrasnetworks,processes,products
andservices,negotiatingsufcientaccesstoSMEs(likeanyscarce
45
resource)isanongoingchallenge.Oneinitiativethathashelpedis
theSMErecognitionprogram,bywhichSMEsarenominatedtobe
formallyrecognizedandrewardedbytheirlinemanagement.TeTLA
continuestoworkonaprogramtomakeworkingwithSMEs
moreefcient.
Time Requirements for Business Leaders
Tedemandsonbusiness-unitleaders(withregardtoproviding
directionforlearningeforts)ismuchmoresubstantialthaninTelstras
previoushistory,whenlearningcoordinatorspurchasedvendor
trainingoftheshelf.Somepeopleresistedtheincreasedworkloadand
commitmentrequired.Telstrawasabletomovepastthisresistance
throughconcertedcommunicationbetweentheTLAanditsbusiness
contacts.Oncecoursesbegantobedeliveredandeveryonesawthe
positiveresults,anyremainingresistancefaded.
Te key to the efectiveness of the Learning Councils
(and other demands associated with the TLA) has been
getting the various parts of the business together around
the tableboth to provide proactive direction and to deal
with issues when they come up.
General Manager, Future Workforce Capability
and Development, Service Delivery, Telstra
Networks and Services
Changes in Organization Structure
Changestobusinessstructuresassociatedwiththetransformation
haveimpactedTelstrasgovernanceandclientgroups.Tesechanges
havealteredthestakeholdersandprocessesinvolvedinlearning
servicesprovision,requiringadjustmentstogovernancestructuresand
membership.Telstrahasmanagedtopreventanybusinessaudience
frombeingoverlookedintheprocess.
46
Transforming the Business Leaves Little Time for Training
Transformationworkloadsforsomegroupshavebeenparticularly
demanding.Tismeansdemandfortraininginsomebusinessgroups
hasbeenlessthanpredicted.Insomecases,thisshort-termviewhas
resultedinreducedemployeeengagementandretention,ascompared
withgroupsthatconductedmoretraining.
Specialized Learner Needs
TeTLAhasconductedextensiveanalysesofitslearning
populationsandtheirneeds.Asubstantialsegmentoflearnershave
specialized,technicalandpost-graduatequalifcations.TeTLA
isverypracticedatdesigningtechnical-/vocational-levelcourses.
However,theseotherengineeringandtechnologistaudiencesrequire
moresophisticatedcoursewaretomeettheirneeds,interestsand
expectations.TeTLAhasfounditchallengingtocatertothelearning
needsofhighlyeducatedaudiences.Itis,however,fndingsuccessin
capturinganddistributingmorespecializedknowledgeusingmore
informalandon-demandsolutions.
Asofthepublicationofthisreport,Telstraisinthethirdyearofits
transformation.TeTLAisalsoenteringitsthirdyear.Telstraand
itsoutsourcingproviderhavesuccessfullyworkedtogethertoplan
forthe2008to2009fscalyear.Teannuallearningplanwillfocus
onrampingupnewprojectsthatwillkeepthelearningenvironment
relevant,cohesiveandforward-looking.Figure19describessomeof
theongoinglearningchallengesfacedbytheTLA.
Looking Ahead
47
Priorities for Year Tree
TelstraandtheTLAhavesetthefollowingprioritiesforthe
remainderof2008andinto2009.
29
Telstra has identifed multigenerational workforce issues as challenges
to address. many organizations are struggling with these issues. For more
information, The High-Impact Learning Organization: WhatWorks
in the
Management, Governance and Operations of Modern Corporate Training, Bersin
& Associates / Josh Bersin, may 2008.
Figure 19: Learning Challenges
29
Learning for Aging
Workforce
Key Learning Challenges: Point of View
Contractors expected to
bring base skills to
complete commodity
services.
Contractors must be
certied to work on
Telstra next generation
network.
Telstra IP protected by
not training the
industryon
differentiated customer
offerings.
Contractors must be
trained to a level of skill
and professionalism that
will provide a good
customer experience.
Training the next
Generation of
Telstra's
Workforce
Learning for
Regional and
Remote Audiences
Maximizing the
Use of Technology
in Learning
Training of
Contractor
workforces
Offer system emulation
techniques to allow
practice in a
controlled/safe non-
production environment.
Have awareness of
audiences that may not be
comfortable with PC use.
Dene PC skills which
are absolutely relevant to
the audience and then
develop training in small
modules to enable
pinpoint learning.
Deliver more technology
rich training to audiences
over time pilot on
technology savvy
groups rst.
Introduce vILT to TLA
audience to provide the
classroom environment to
a dispersed audience.
Always consider
delivering the training at
the workplace (including
Virtual learning), and
where possible, train the
workforce on their tools in
the context of their jobs.
Use Performance Support
Tools as well as training,
in order to provide Just in
Time support/learning
rather than Just in Case
training. This will depend
on the audience
readiness/maturity.
Provide shorter/modular
training to maximize
learner engagement.
Build role-based content
wherever possible.
Provide learning in a
gaming type
environment.
Exploit the emerging Pod-
casting trends as
appropriate.
Give them context and
big picture of their role,
including reasons
for rules.
Give them immediate and
specic feedback.
Develop training
curriculum for ongoing
skills development of the
older workforce.
Develop training
curriculum for
new joiners.
Advise on and support
any apprentice programs
for new eld personnel.
Ensure we capture
knowledge in order to
minimize knowledge
loss. The workforce
must have access to
archived knowledge &
expertise through
technology.
POINT OF VIEW
48
Service Delivery
TLAandservicedeliverywilldeployaseriesofcapstone
assessmentswhichwillthoroughlytestastudentsability
toperformspecifcworkprocessesbeforehe/shepassesthe
course.TisistheTLAsfrstforayintoprovidinginternalTelstra
certifcationwithspecifchands-onprocesses.
Service Advantage
TeTLAwillreleaseitsperformancesimulator,apowerful
technology-enabledlearningsimulation
30
toolthatteachesstafto
troubleshootcustomerissues,whilealsoprovidingabest-practice
customerexperience(seeFigure20).
30

Figure 20: Performance Simulation
Telstra Learning Academy Performance Simulation
Select a customer to begin your call. You must complete all four calls to complete the course.
Select a topic to learn more about about how to be a successful consultant.
BBW Helpdesk: Putting the Customer First
Conversation 1:
Jo Patel
Conversation 2:
Louise Davis
Conversation 3:
Bob Smith
Conversation 4:
Tim Emerson
Successful Call
Management
Four Customer
Types
Expert Stories
Customer
First
Customer
Support
Customer
Needs
Customer
Solutions
Customer
Acceptance
Customer
Loyalty
Six Steps to Customer Satisfaction
49
Delivery Management
Telstrahasmovedfromamanagethecontractortoamanagethe
contractphilosophyinworkingwithstrategicproviders.TeTLA
willbuildkeyworkforceskillstoenablethenewexternalpartner
performance(EPP)grouptomanagethesecontractorrelationships.
TeTLAwilltrainthisgroupinareas,suchascommunicationsskills,
reporting,dataanalysis,clientrelationships,stakeholdermanagement
andfnancialmanagement.
Network Engineering
TeTLAwillhelpdevelopthisworkforcesunderstandingofvarious
newtechnologies,focusingonhowtheseadvanceswillbetransforming
thenetwork.
Network Services
TeTLAwilldeploycoursesoninformationtechnologyinfrastructure
library(ITIL)conceptsandtechniquesformanagingITinfrastructure,
developmentandoperations.TeTLAwillhelpcreatealibraryof
standardsthatcanbeappliedwhenstafmembersareworkingon
networkincidents.TCP/IPtroubleshootingcourseswillteachstudents
toidentifyincidentsandrestoreservicesacrossTelstrasIPnetwork
environment.Networkchangemanagementcourseswillre-enforce
process,roles,stagesandprinciplesrelatingtothenetworkchange
managementprocesswithTelstraoperations.
Network Enterprise Services
TisgroupisanewlycreatedlineofbusinesswithinTelstra.TeTLA
willsupportthisnewunitbyprovidingIPandprojectmanagement
coursestohelpbuildcapabilityandstandardworkprocesses.
Wireless
TeTLAhascreatednewcorecurriculaforthewirelessteamtohelp
ittransitionintorunningitsnewnetwork.Asof-skillscoursewillbe
50
oferedtohelpengineerscommunicatetechnologytonon-technical
stafandprovidementoringprograms.
Procurement
TeTLAwillsupporttheprocurementgroupandwillbebuildinga
new-hireonboardingprogramtomeetitsneeds.
Increasing Blended Learning
NowthattheTLAhasanestablishedinfrastructureandproven
operationalcapacity,itcanbegintoprovidemoreblended-learning
solutions
31
.Atthispoint,60percentoftheTLAcoursecatalogueis
web-basedorvirtualinstructor-led.Lastyear,morethan75percent
ofallTLAcontentconsumedbyTelstraoperationswasdoneina
classroom.Te2008to2009annuallearningplanwillenableTelstras
learningconsumptiontocontinueitsshiftowardsabetterblendof
learning.Morethanhalfofthecoursestobedevelopedwillbee-learning.
Telstraexpectstoachievethesebeneftsthroughthisevolution:
More Economical LearningCheaperdeliveryandmore
efcientmethods;
Targeted LearningEmployeeswilllearnontheirownterms;and,
Leveraging TelstraElectroniclearningtakesadvantageofTelstras
newnetworks.
31
For more information, Blended Learning Program Management: WhatWorks
-
Issues, Solutions, and Platforms for the Management of Blended Learning
Programs, Bersin & Associates / Josh Bersin, January 2006. Available to research
members at www.bersin.com/library.
51
Executive Support
Integratinglearningintobusinesstransformation(asTelstrahas
accomplishedwiththeTLA)isoneofthestagesthatBersin&
Associateshasidentifedasnecessarytobuildahigh-impactlearning
organization.
32
Toachievethatintegrationrequiresconsistent,visible
supportfromthetop.Aclearmandatefromseniorleadershipbrings
appropriateresourcesandsendsaverystrongculturalmessageto
valuelearningandlookforeveryopportunitytoengageinit.Because
leadershipobviouslyrecognizesthattrainingisanimportantenabler
ofTelstrastransformationstrategy,stafateverylevelseesthevalueof
learning.TequalityandrelevancyofthetrainingcreatedbytheTLA
alsohelpstoincreasetheorganizationsappetiteforlearning.
Business Alignment
Alignment
33
dealswiththeissueofhowtoensurethateveryoneis
workingontherightthings.Inessence,alignmentisverycomplexit
dealswiththeissueofresourceallocation.Alignmentiscriticaltosuccess.
Solutions,suchasgovernance,planning,measurementandintegration
withperformancemanagement,areallpartofalignment.
TesolutiondesignedforTelstrabyitsoutsourcingproviderfeatures
agovernancemodelthatensureseverylearningsolutionalignswith
andsupportsitstransformationobjectives.TeTLAssuccessisdirectly
tiedtothecompanysstrategicalignment.Telstrasgovernancestructure
helpstoensurethatthecompanyknowswhereitisheadedandhasthe
top-levelsupporttoprovidestafwiththerighttrainingattherighttime.
32

33

Best Practices
52
Governance
Goodgovernance
34
isanimportantfactorinthesuccessofany
L&Dfunction.However,whenthatfunctionisbeingoperatedbyan
outsourcingpartner,governancebecomesevenmorecritical.Te
partnershipbetweenTelstraandAccenturecreatedagovernancemodel
designedtolinkeverytrainingoferingtothecompanysstrategic
businessobjectives(seeFigure21).
TeTLAsexecutivecommitteeincludestheCOOandtheheadof
Telstrastransformationprogramofce.Tecommitteemeetsmonthly
withtheTLAprojectleadersandisthemajordecision-makingforum
settingitsstrategicdirection.Twolearningcouncilswithsenior
representativesfromallconstituentbusinessunitsalsomeetmonthlyto
34

in the Management, Organization, and Governance of Corporate Training, Bersin
& Associates, June 2005. Available to research members at www.bersin.com/library
or for purchase at www.bersin.com/highimpact.
Figure 21: Telstra's Governance Model
53
approveannualandquarterlyplans,andmonitorkeyoperationaland
fnancialmetrics.ForTelstra,acriticalchallengewasensuringthatall
stakeholdersinsidetheorganizationunderstandhowthemodelworks
intermsoftheoutsourcingprovidersparticipationinit.
Telstrasthree-tierprocessforgovernanceissimilartowhatwehave
foundwithhigh-impactlearningorganizations.
Ourresearchshowsthat59percentoforganizationshavesometype
ofsteeringcommitteetohelpgoverntheirL&Dorganizations.
35
We
believeoneofthereasonsforthisincreaseisthemassiveinvestmentin
technologytheL&Dgroupnowcontrolsamajorenterprisesystem
andmillionsofdollarsofongoinginvestmentsinprograms.
35

Figure 22: High-Impact Organization Governance Model
Executive alignment
Funding approval
Progress reporting
Includes VP of HR and other
business executives
Strategy development
Budget development and monitoring
Program prioritization and allocation
Operational and business impact measurement
Includes business representation
Could involve communities of practice
Decisions on learning infrastructure and on
ongoing management of programs
Standards and quality control
Identication and selection of preferred vendors
Communities of practice / best-practice forums

Internal to learning function(s)
Steering
Committee
Training Operations
Learning Council
Strategic
Programmatic
Operational
CoP CoP CoP
* CoP - Community of Practice (e.g., instructional design committee, learning measurement committee)
54
Withinthoseorganizationswithsteeringcommittees:
Eighty-twopercenthavesomerepresentationfromIT(clearly
important for any type of learning technology or LMS strategy);
Sixty-sevenpercenthaverepresentationfromline-of-business
managers;and,
Sixty-sixpercenthavesomerepresentationfromHR.(Tose steering
committees that do not include these outside parties are probably not
really doing much steering.)
Teexistenceofsteeringcommitteesisclearlyahigh-impactbest
practice.Whilethereisnotabigdiferenceintheprevalenceofsteering
committeesamonghigh-impactandotherorganizations,thecorrelation
withourhigh-impactmeasuresisveryhigh.
Steeringcommitteesprovidemanybeneftsincreasedvisibility,
communicationsformajorprograms,moreefectivealignmentand
morerapidfundingofcriticalneeds.Tereisalsoastrongcorrelation
betweentheuseofasteeringcommitteeandthelikelihoodthatan
organizationhasanestablishedmeasurementprogram.(Te steering
committee ofen mandates this.)
Asafnalpoint,thesteeringcommitteemustmeetregularlytoensure
itisprovidingvaluethroughcontinuousalignment.Justtheprocessof
invitingandsolicitingbusinessleaderstojointhesteeringcommitteeisa
verypositivesteptowardbuildingahigh-impactlearningorganization.
Centralized Funding
AnotherkeysuccessfactorhasbeenTelstrasstrategytomanagethe
signifcantinvestmentintheworkforcewithinthetransformation
programofce,ratherthandistributingfnancialresponsibilitytothe
individualbusinessunits.Tismeansthat,witheachyearsannual
learningplan,budgetscanbealignedtothecompanysoverallbusiness
prioritiesandallocatedtobusiness-unitprograms.Whenbusinessplans
andprioritieschangethroughouttheyear,thegovernanceprocesses
describedaboveareabletorapidlyreallocatebudgetstorealign.Tis
ensuresthatTelstracontinuestogetastrongreturnoninvestment
acrosstheentireoperationsbusinessunit.
55
Asidefromthebestpracticesfortransformationaloutsourcing
previouslydescribed,thereareseveralfurtherkeylessonsthatcanbe
learnedfromthiscasestudy.
Change Management
Withthebeneftofhindsight,Telstrabelievesthat,althoughtherollout
oftheTLAwasverysuccessful,itwouldhavebeensmootherifeven
moreattentionhadbeenpaidduringthetransitionperiodtodefne,
communicateandimplementthechangemanagementplan.Telstra
learnedthatitisimportantnottounderestimatetheplanning,work
andlengthofthetransitionperiodrequiredtointroduceanewlearning
model.Includeplentyoftimeandresourcestosetclearexpectationsof
howthenewmodelworksandthecommitmentrequiredtosuccessfully
operateit.
Working with Subject-Matter Experts
WorkingwithSMEscanbechallengingforanylearningorganization.
Tohelpensurethatinteractionswithsubject-matterexpertsareas
productiveaspossible,theTLAplansonboardingmeetingsforSMEs
aprogramforintroducingSMEstoworkwiththeTLA.Further,the
TLAensuresSMEtimecommitmentsandexpectationsareclearly
communicatedupfrontandagreedwithbytheSMEsdirectmanager.
Tekeyisachievingalignmentonlearningandperformanceoutcomes,
instructionalfeel,SMEavailabilityandpost-coursedeployment
businesssupportrequirements,withallpartiesinvolvedin
developingcourses.
TeTLAhasimplementedanSMEcollaborationprogram.Tis
programincludestrainingforcontentdevelopmentcenterstafon
thetelecommunicationsbusiness,thecreationofanonlinecoursefor
SMEs,asatisfactionsurveytoidentifyareaswherethecompanycan
improvecollaborationwithsubject-matterexperts,anSMErecognition
Lessons Learned
56
program,weeklyhealthchecks,processandstandardsenhancements,
andqualityassurancereviewsofcoursematerials.
Organizational Understanding
Toencouragedeepercooperationandunderstanding,newoutsourcing
provideremployeesinvolvedintheTLAnowtakepartina
comprehensivenew-hireprogramthattrainsthemonbothAccenture
andTelstraprocessesandprocedures.Staffromtheoutsourcing
providergoonbusinessride-onsmeaningtheyspendtime
observingTelstraoperationsstafmembersdoingtheirjobstobetter
understandTelstrasoperatingenvironment.
Logistical Challenges
TegeographicallydispersednatureofTelstrasworkforcehasproven
tobeachallengefortheTLAfromthestart.TeTLAcurrentlytrains
atmorethan250locations(includingclassroomvenues,telephone
exchangesandfelddepots)aroundAustralia.(Tis number is actually
down from more than 300 locations originally.)Tomakethebestof
thiscomplexsituation,theTLAhasdevelopedastandardoperating
environmentspecifcationthatwillgoverntheenvironmentand
resourcesdeployedateachlocation.Forexample,allclassrooms
willcontainaprojector,Internetaccess,certainfurniture,etal.
TisspecifcationwillallowtheTLAtoprovideconsistentlearning
environmentsforallstaflocatedacrossAustralia.
TedecisiontoestablisharelationshipwithAccentureandtocreate
theTelstraLearningAcademyhavehadtremendouspositiveimpact
onTelstrasbusiness,asmanyoftheprogramexamplescoveredinthis
reportillustrate.IfTelstrahaddecidedtorenovateitsownlearning
functioninternally,thecompanymayhavebeenabletocreateasimilar
organizationandmayhavegeneratedsimilarresults.However,thecost
Conclusion
57
toestablishanequivalentinfrastructure,hireanequivalentteamof
experiencedandknowledgeablestaf,andaccomplishitallinthesame
rapidwindowoftimewouldhavebeenprohibitiveevenforacompany
ofthesizeandwiththeresourcesofTelstra.Sixmonthsafercontract
signature,theTLAwaslaunchedinAugust2006.Onlybyengagingthe
helpofanoutsourcedsolutionprovidercouldsuchextensivechange
happensoquickly.
Telstrahashighexpectationsforthebusinessbeneftsthatwillaccrue
overtime.TelstraleadershipbelievesthattheTLAwillcontinuetohave
adirectimpactonbusinessperformance,specifcallythrough:
Improvedcustomersatisfaction;
Improvedproductivityoftheworkforceandqualityofwork;
Improvedemployeeengagementandjobsatisfaction;and,
Costreductions.
Figure 23: Telstra's Transformation Strategy
58
Te success of the Learning Academy will be measured
by the ability to impact hard business metrics.
Chief Operations Ofcer, Telstra
TelstrabelievesthattheTLArepresentsastrategicinvestmentin
itspeopleanditsbusiness.TesuccessoftheTLA,sofar,hasbeen
anextraordinaryaccomplishmentforTelstraandispositioningthe
companytomeetitstransformationalbusinessobjectives.
TeheadoftheTLAbelievesthattheresultsofthistransformationto
dateprovethefollowingseveralkeyprinciplesofhigh-impactlearning.
Workplacelearningisatoolfordrivinginterconnectedness
betweenworkgroups.
Targetedworkplaceeducationiscrucialtohelpingemployeesgrow
andcompaniessucceedinchangingenvironments.
Aninvestmentinskillsincreasesthevalueeachemployeebrings
tothecustomerexperiencewhichcantrulyformthebasisof
competitivediferentiation.
Achievingthestrategiclinkbetweenlearningandbusiness(or
customer)needsisparamount.
Successbeginswithastrongorganizationandgovernancemodel,
onethatprovidesfor:
Attentiontodisciplineintrainingdevelopmentanddelivery;
Teblendofdeliverystyles;
Scalability;and,
Accesstogloballearningexpertise.
Tesearetheattributesthataworld-classpartnercanbring.Aboveall,
theTLAssuccesscanbeattributedtoitsstrategicalignment.
59
Appendix I: Table of Figures
Figure 1:TelstraataGlance 6
Figure 2:TelstrasDataServices 7
Figure 3: TelstrasBusinessUnits 7,8
Figure 4:TopBusinessChallengesFacedbyHigh-ImpactLearningOrganizations 10
Figure 5: TelstrasTransformation 11
Figure 6:TelstrasTrainingChallenges 13
Figure 7:TopChallengesFacedbyL&DManagersToday 15
Figure 8:LearningOutsourcingModels 21
Figure 9:FiveTypesofOutsourcingProjects 22
Figure 10:KeyOutsourcingBusinessDrivers 24
Figure 11:TelstraLearningAcademyServices 28
Figure 12:ContentDevelopmentLifecycle 31
Figure 13:DeliveryMethodSelection 32
Figure 14:ContentSources 32
Figure 15:TLAYear1 38
Figure 16:TLAYear2 38
Figure 17: ADSLCurriculum 39
Figure 18:NextGenerationSkills 42
Figure 19:LearningChallenges 47
Figure 20:PerformanceSimulation 48
Figure 21:TelstrasGovernanceModel 52
Figure 22:High-ImpactOrganizationGovernanceModel 53
Figure 23:TelstrasTransformationStrategy 57
60
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Learning Outsourcing Solves Critical Talent Challenges and Delivers Strategic Flexibility

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