Dow, Hewlett-Packard put e-learning to work to save time and money

HR Magazine, Feb, 2004 by Stephenie Overman

While the American Society for Training & Development's (ASTD) 2003 State of the Industry Report, issued in December, indicates increased use of technology to train employees, many companies don't know how to make the best use of e-learning programs.

Two companies that have learned how to blend e-learning with classroom experience to save money and increase workforce effectiveness are the Dow Chemical Co. and Hewlett-Packard. Both organizations are members of ASTD's Benchmarking Forum, a global consortium that offers members opportunities to benchmark learning and performance improvement processes, practices and outcomes.

E-learning helped Hewlett-Packard cut costs after its merger with Compaq in 2002. And Dow, after firing dozens of workers and disciplining more than 500 others for sending offensive e-mails, used e-learning programs to make sure that each of its 40,000 employees received six hours of training on workplace responsibility.

Learning Globally

Dow moved from a fragmented, geographically organized structure in the mid-1990s to a "global, integrated, empowering, competency-based HR system," according to Steve Constantin, global director of HR development and workforce planning.

The company's guiding principles are that "training and knowledge should be available to every employee," Constantin said, and that all information must be integrated. "All the pieces of career development and performance evaluation are based on one set of competencies."

To adhere to those principles, Dow developed an Internet-based HR system and an e-learning platform, known as "Learn@dow.now," that delivers online training around the globe.

"Learn@dow.now" was an instant attraction. "A lot of people said, 'Wow, we'll put [training programs] there.' But you can't just take a bunch of PowerPoint slides and put it there," Constantin said. Learning requires a blend of classroom and online experiences.

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E-learning programs range from 20-minute just-in-time tutorials to highly technical safety training to "softer subjects," he said. Dow keeps a record of employees who received required training for compliance issues and passed any necessary tests.

Saving Time and Money

"When we look at any IT solutions, the company makes us go through a rigorous process--is it going to add value?" Constantin said. He sees "Learn@dow.now" as a wise investment that allows employees to learn at their own pace, anywhere in the world.

"We're making the company money in improved performance and we're saving money" in classroom and travel costs, he said.

Daisy Ng, Hewlett-Packard's vice president of workforce development, also is devoted to making the workforce more productive while keeping costs down.

To be able to offer "a total customer experience to an internal learner at low cost," Ng said, "I have to use technology." That means a portal--"Learn@HP"--that acts as a single gateway for employees in nearly 60 countries.

Hewlett-Packard continually reduces the amount of time employees spend in the classroom. "Last year 25 percent of learning was using e-learning; now it's 38 to 40 percent. We are leading the way" in training, Ng said.

And in saving money. When Hewlett-Packard's merger with Compaq Computer Corp. was completed in May 2002, e-learning training was used to help define the new corporate structure. "It speeded up the merger, and we saved the company $50 million," she said.

A recent arrangement with Microsoft means retraining 3,000 workers, according to Ng. "If we do not use e-learning, it will take us three months to re-skill those individuals. By using e-learning and virtual classrooms, we have been able to improve the certification rate and do it in eight weeks. We save $10 million."

Putting the Right People In the Right Places

E-learning helps in creating a resource plan and successfully deploying workers because managers can spell out what capabilities they need and employees can do their own skills assessment and look at what jobs and career paths are available, said Jim Malanson, director of global development at Hewlett-Packard Services. "For the business, the strength is the developed workforce. We can assure ourselves that we can reach out and get people developed to drive a business. It enables us to retain the investment we've made in our people."

STEPHENIE OVERMAN IS A FREELANCE WRITER BASED IN CHATHAM, N.J.