Training Programs as instrument of Knowledge Transfer in banking offices . A Model tested in BCH ( 1991 - 1998 )

More than a decade after the deregulation of the banking service industries, consumers are accustomed to service providers competing on price. Bank services are intangible, ephemeral, experiential and information-based. In this context, Continuous Improvement (CI) has emerged as a key concept regarding how companies should both approach organizational effectiveness, both quality and efficiency. Continuous learning is essential for Continuous Improvement, and this can only be achieved if there is a willingness to learn and encouragement by the organisation for people to learn. Before people and companies can improve, they first must learn (Garvin, 1998). For learning to be more than a local affair, knowledge must spread quickly and efficiently through the organization. Education and training programs are powerful tools for transferring knowledge. But for maximum effectiveness, they must be linked explicitly to implementation. Critical issues in this arena are tools for assessing an organization’s level of learning to ensure that gains have in fact been made. In this respect, we test a model of formal learning in a banking firm. Banking industry is a conservative one where the changes it face are incremental. Training programs, such as marketing programs and technology programs are examined in the BCH (Banco Central Hispano) in 1998. 1 Now, BSCH due to its merger with Banco de Santander. Training Programs as instrument of Knowledge Transfer in banking offices. A Model tested in BCH (1991-1998) Irene Martín-Rubio 2 Outline of the paper The main objective of this research is configurate the role of Training Programs in the Knowledge Society. Organizations always have need training and education programs, the cuestion,in the 90 ́s, is the high speed of changes and the need to gain positive results very quickly. In this paper, we observe which kind of changes have faced the commercial banking industry in last decade and how can the traditional methods of adaptation and learning, i.e., training, help to reach the complex challenges of productiviy and quality that are required. I first review the commercial bangking environment during the 90 ́s and the increasingly importance of continuous learning in this context. The paper continues with the definition of Organizational Learning and the characteristics of Knowledge Management. In this context, I justify the training programs as instruments that promotes organizational learning in banking. Due to the conservative features of the commercial banking industry, the organizational learning sintesizes in Knowledge Transfer. Next, I present the data and methodology I use to test the training programs I examined in BCH at three points of time at the end of 1998. BCH is an spanish banking organization that always have rely on Training, it was in the 30 ́s when started with a transparent and well-known policy of Training. Finally, I conclude with a summary of key issues , conclussions, discussion and lessons learned.