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Microeconomics of Human Capital: SMEs Are a Smart Supply

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Wed Jul 15 2015

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Microeconomics of Human Capital: SMEs Are a Smart Supply-knowledge sharing LARGE.jpg

My previous post examined why talent development leaders need to look at human capital as a branch of microeconomics, studying how the scarcity of workers can affect their company’s decisions about operating performance and expansion of market share. In other words, companies seeking opportunities for expansion in an age of limited skill should maximize the workers who were left after the economic downturn. 

The post closed with the advice that organizations should use their internal subject matter experts (SMEs) among their remaining workers to help train and develop existing and new employees. Of course, this task is easier said than done. 

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Indeed, Richard White, manager of Honda new model and quality planning is quoted as having said: “Experience alone does not make a good trainer. Individuals must be trained and certified to achieve standard work from their learners.” Unfortunately, White also identified some common pitfalls with SMEs who have no formal training system: 

  • forget what it was like to learn the job

  • make too many assumptions

  • gloss over details

  • have poor communication skills

  • teach from memory and not the standard

  • lack the desire to teach or train. 

Preparing Your SMEs 

To start, organizations must identify and recruit their top performers to be SMEs. Next, they need to equip these SMEs with skills necessary to effectively train and share knowledge with co-workers. 

In truth, too many SMEs randomly train. This is not good. To make sure your organization is on the right track to make the most of its SMEs consider these questions: 

  • Do your SMEs use a formal training system?

  • Do your SMEs know how to prepare, present, practice, and follow-up?

  • Do your SMEs know the best training methods to use?

  • Do your SMEs know how to facilitate on-the-job training?

  • Do your SMEs know how to train in the classroom?

  • Do your SMEs know how to handle frustrated learners? 

If you’re like most organizations, your answer to many of these questions is likely “No.” Enter an effective train-the-trainer solution that includes a detailed training plan and defined training objectives and methods. 

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A key element of train-the-trainer education is teaching your SMEs how to be learner-centric and action-oriented, which most experts agree is the most effective way to train in the classroom and on-the-job. In addition, your organization will need to come up with some sort of way to certify whether your SMEs have the capabilities in place to follow a formal training system. This will likely include a four-step training methodology: preparation, presentation, practice, and evaluation.   

Bottom line: a successful SME educator is one who follows a clear training methodology. This will not only lead to sustainable training and knowledge sharing capabilities, but it will enable your SMEs to help drive your company’s future growth.

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