An online monthly research publication by the Ivey Business School 

Volume 13, Number 7: Summer Supplement
July 2007

The Importance of IT Skills

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Click here to listen to the Q&A.

Technology is an essential part of how we conduct business today. But with increasingly busy schedules, improving IT skills and technical training often aren’t high on employees’ priority list. Recent research shows that companies must partner with employees to improve their technology skills. And for both the employee and the organization, this investment is well worth the time.

Ashleigh Murphy sat down with Deborah Compeau, a Professor of Management Information Systems at the Richard Ivey School of Business, to discuss the ways in which companies can help employees make the best use of their IT skills. Ashleigh began by asking why it’s so important that companies support their employees in making the most of their IT skills…

A. It’s important for a couple of reasons. Technology is an essential part of how we get our work done in organizations today. There is evidence to suggest that we don’t make enough use of our technologies and therefore aren’t getting enough benefit in terms of our performance. A couple of examples: estimates of software usage, for example, suggest that users typically use less than 20 per cent of the functionality available to them in software. Often that’s given as a sign that software is badly developed –it has too many features and functions. But it’s also true that many of the features that we don’t use are there to enhance our productivity, to make life easier, and if we actually took the time to learn to use them, we’d be able to do more. There is also some evidence coming out of a US research firm that suggests that every hour of needed training that is conducted saves five hours of organizational time: four hours of experimentation, a half hour of training, and a half hour of rework. So the investment in effective training is actually worth it in terms of payoff to the organization.

Q. Is there one best way to train employees – for example, should all companies be jumping into online training?

A. Definitely not. People have very different sorts of preferences in terms of how they learn. So really what organizations need to do, is they need to offer a menu of ways for people to learn. Some people learn best from a class room. They like the structure and pacing being provided from someone else, they like the fact that it gives them a strong foundation to go forward with for additional training, and they like the social aspect of being in a class with other people. Other people are very turned off by that environment. They don’t want to go at the pace that somebody else sets, they don’t want to be around other people when they learn, and so they would prefer to do things privately. Online training has some advantages because it can be done at any time, at any place, [and] it can be done at the pace the individual likes. But it’s not the only way. It’s certainly part of a total picture of training.

Q. What is the biggest barrier that companies face with regards to training?

A. I think I’d say that the biggest barrier that I’ve seen is really one of time. A lot of that comes back to the value that is given to IT skills. We hear so many things in the media about technology being just a tool, about how easy to use it is, and all of that starts to suggest that there’s really nothing to it. That there’s nothing that needs to be taken time with, in terms of building skills, and that creates a real sense that it’s just something you should know how to do. And if you don’t know how to do it, well that’s your problem. What that leads to, is it leads to people who sort of limp along with inadequate skills; enough to get by with but not enough to take advantage of what they’re doing. And the big barrier there is time. Because if I’m sitting in my office and I’m faced with choice of, “do I spend time working on the things that are part of my quarterly objectives that are going to determine my performance evaluation or my bonus or do I work on training for something that is supposed to be really easy to use, and I might need someday?” – I’m going to go for the short term every time. And as a result, what people find is organizations often have significant financial budgets for training, but people can’t find the time to get away to go on the training and get it when they need it. And that’s what creates a real problem in terms of that barrier for time. It’s that competition between performance – doing the job immediately – and learning to be able to do the job in the future.

Q. How does the speed of technological change affect training?

A. The big problem that I think most people find around the pace of technological change is that it’s a treadmill. You spend everyday running to keep up. Most personal computing software is on about 18 month upgrade cycles. So just by the time you get comfortable using it, by the time your support organization gets all the bugs worked out and figures out how to support it, you’re on the treadmill and off on the next piece of software. For corporate level software, things like enterprise systems, you’re still looking at three to five year windows of upgrade cycles. And these are upgrades that are going to take a couple of years to complete. So you’re always running, and you’re always trying to keep up. Every time technology changes users find that what they’re able to do in any given day actually drops. In our research we called it the upgrade dip: great, a new piece of software comes out and now all of the capability I have is gone. And so my actual capability drops and it takes me awhile to build that back up again. Many of the people we talked to in our study talked about this notion of this upgrade dip in one way or another and the problems that it creates for them.

Q. What is the difference in the value placed on novice vs. higher level training in companies?

A. Most companies tend to associate training with something that they need to do when they introduce new technology. And that’s a really good thing. There was a day when introducing new technology, people…the first time they ran into trouble in their project their idea was to cut the training budget – because we don’t need to spend the money there. Now I think organizations have recognized that they really do need to spend that training upfront. But what we’ve seen in our research is that companies have a tendency to think training is something you do when new software comes in. But that ignores the fact that people come into new roles, or come into the organization anew, beyond when that’s been done and so that’s often not there. So there’s a timing issue. There’s also a focus on that introductory level training: “oh, that’s new to you.” And not enough focus on saying, “alright, what skills do you really need to do your job” and providing the training at that level – which might be intermediate or advanced level training for some people.

Q. How well does self-learning work? And how popular is self-learning with firms?

A. Self-learning is an interesting thing. There are really two ways to look at that. Most firms assume that users self-manage their learning around technology. In other words, we’re not going to think about it, it’s your responsibility, you do it. Formal self-managed learning programs are less common, but they’re certainly out there. They’re kind of effective in that they put some value on this kind of training, they say there is something you need to learn, they put some formal process in place to help people know when to identify their needs, how to fulfill them, and it puts some structure around it. It’s something that can be on the performance evaluation. The difficulty is, in the organizations that what we’ve seen do this, it can easily become a bureaucratic process. A process that really just leads people to formulate goals around learning that really are not goals about learning, but are goals about an activity. So my goal is: I’m going to take a training course. And I probably won’t offer to do that, maybe until I’ve done it already, or certainly if I’m planning to do it next week. And so what we saw with the organization that we dealt with in our most recent study was that users would never promise on a goal that they didn’t know they could accomplish. They would formulate their goals around something very mundane, like taking a training course. And that they weren’t really pushing themselves to really think about what they needed to do in order to do their jobs well and how they would carry that out, and what would be required to develop that. And so self learning can be very effective but it’s actually much more difficult to manage than I think we anticipated when we went into our research.

Q. Is there one most important thing that a company can do to help develop IT skills?

A. I think for me, the most important is valuing IT skills. And this goes back to what I said earlier about organizations assuming that it’s just a tool, that it’s just something people pick up. Because that translates into the time available for learning; the resources available to support learning as people are going forward; the recognition that this is something that people should be doing, training is not a vacation, it is actually part of doing your job; and recognizes the performance benefits that come from the learning.

Q. So are there any other things that companies can do help develop IT skills?

A. I think the second thing, beyond just valuing the skills, is recognizing that one of the places where this really starts to fall apart for users is in assessing what they need. And I think companies have a role to play on a coupe of dimensions. The first one is in identifying what skills really are required for different jobs. But the second one is actually on helping users to asses their own capabilities. In a number of research projects that I’ve been involved in over the last couple of years, we’ve found that in fact people are very bad at assessing what they are capable of doing with respect to technology. Most people significantly overestimate their capabilities, relative to what they can actually do when given a task. There are also a small number of people who underestimate, systematically underestimate, their capabilities. So what we’ve found is that getting people to decide for themselves what their skills are and whether that fits what they need, is actually a pretty dangerous practice. And so I think that would be another area where I think organization could invest to reap some real benefits.

That was Deborah Compeau, professor of Management Information Systems at the Richard Ivey School of Business.
 

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