Emily Stover DeRocco Speech

American Society for Training and Development "BEST" Awards Ceremony
10/29/03

Thank you, Tony. It is a pleasure for me to be here this evening, in this beautiful setting, to honor and congratulate the winners of the first-ever BEST awards.

It is quite fitting that we are gathered this evening in the John F. Kennedy Center. Our former president, like our current one, had a strong belief in the value of lifelong learning. He once said, "Our progress as a nation can be no swifter than our progress in education. The human mind is our fundamental resource." The organizations honored this evening have recognized the value of this resource, and by building talent…enterprise-wide…they have advanced a learning culture. In so doing, they are making an enormous contribution to the progress of our nation, and the world.

Human capital - defined as the talents, skills and capabilities of the men and women who make up the workforce - has always played an important role in our nation's economic strength, but never more so than today. The investments that companies like those honored tonight are making in enhancing and expanding their human capital will pay dividends far into the future.

That's because, as the people in this room well know, the demand for knowledge workers is growing at an astonishing pace. The Employment Policy Institute reported that almost all of the net new jobs created in the economy between 1992 and 2002 required at least some post-secondary training. Workers in traditionally blue-collar industries now need specialized training to work with advanced robotics and computerized production lines. Even employees who have advanced degrees need to keep learning and upgrading their skills to keep pace with the competition and open up new opportunities.

As the demand for workers with specialized skills and training grows, the question is whether we can keep up. We talk much about the "skills gap," a situation in which the demand by employers for skilled workers outpaces the supply. Already we have seen reports that companies are having difficulty filling jobs with workers who have the skills they require.

The growing need for knowledge workers comes at a time when the labor pool as a whole is shrinking. The impending retirement of the baby boomers means that nearly 7 million people who currently hold key managerial, professional and technical jobs may retire over the next ten years.

In a knowledge-based economy like ours, a top priority for all of us must be to ensure that we have the skilled workforce we need to spur economic growth and productivity. Every investment you make in improving the skills and advancing the learning of your workforce will translate into a competitive advantage in our increasingly global economy.

As you well know, it's not enough to simply find and attract employees who have the skills you need - although that certainly is important. In an environment where the bar is always being raised, you have to continually retrain current workers in skills for businesses processes that are rapidly changing and evolving. These crucial investments will not only increase the value of your human capital; they may even spur greater investments in physical capital, as better educated workers need better tools to work with. Together, these investments lead to higher productivity, job creation, and economic growth.

It's clear then, that the formation of human capital plays a critical role in the success of any organization. Most, if not all organizations of certain sizes have some kind of learning and development function. But clearly, as evidenced by tonight's awardees, some do it better than others.

What sets the excellent apart from the average?

First is an organization-wide recognition of the value of the human capital and potential that exists within the existing workforce, and a willingness to unlock that potential and put it to work for the benefit of the entire organization.

Second is an ability to manage resources - which are often limited - in a way that supports core business needs and opens up opportunities for strategic innovation. In managing resources, the wise businesses are connecting with the $15 billion public workforce system to make that resource a part of their human capital solutions.

Third is the insight and vision to not just develop skills, but to deploy them effectively so they contribute to an improvement in the bottom line.

Fourth is a culture that supports learning and flexibility across the board, from top to bottom. Employees are encouraged to go beyond doing their own individual jobs well to focus on improving the capabilities of the organization as a whole.

Fifth is a group of learning and training professionals who see themselves not as service providers, but as strategic partners in advancing innovation, productivity, profitability, and growth. They see their job as not just to train workers for the jobs that need to be done today; but also to develop the skills that will lead the organization into the future.

These are the five keys to excellence, which set you apart from your peers. I hope that the recognition you have received today will spur other organizations to follow your example and learn the lessons you can teach us all.

Thank you.