Armstrong World Industries is a $3.4 billion manufacturer and marketer of interior furnishings with 18,000 employees worldwide. With learning and change as high priorities on the senior management "agenda," Armstrong has implemented an integrated performance management system and a comprehensive learning strategy.

One component of this learning strategy is a renewed focus on management development, with action learning as a focal point. Three programs address different stages of a manager's experience: First Time Manager (FTM); REACH (Risk, Engagement, Action and CHange), for middle managers; and BUILD (BUsiness Intelligence for Leadership and Development) for senior-level managers. They all invite leaders to work on issues impacting Armstrong growth as a way of learning by discovery.

All three programs involve participation over several phases, including an offsite event to establish teams and a period in which participants work in consulting teams on a real business issue. A critical success factor is the involvement of the CEO, George Lorch, and his management team. The top 50 managers in the organization are the source for the projects that serve as each program's centerpiece. They also act as sponsors for the cross-functional, cross-business unit teams, which present recommendations to senior management at the end of the program. The work of the teams has on occasion been the spark for major strategic initiatives, such as the launch and significant investment in an e-business strategy.

"We make certain, in individual conversations prior to the start of the program, that both the participants and their managers understand the nature and intent of the program and the action learning process," said Bob Sawicki, Manager, Learning Strategy. "Then we put them in a position of struggling with issues from a perspective that is outside their comfort zone. We see them consistently overcome their sense that they will be unable to understand the problem or add value. The confidence and networking that comes out of the program is significant."

Including world class guest speakers and trainers in the development program is key to broadening the participant's thinking. Speakers and topics are chosen for their relevance to the projects, resulting in programs that are dynamic, changing with the needs of the business as reflected in the projects. Speakers are asked to be provocative and to expand the universe of alternatives beyond what has been previously considered.

When Armstrong first started running the programs, some participants expressed concern about doing the action learning projects on top of their "real jobs," and whether the projects would be taken seriously by senior management. As a result, the company works actively to ensure a good combination of strategic importance and "doability."

Since project teams have had an impact on the business, the programs are taken very seriously. The constancy of visible top management support and the opportunity for participants to work closely with senior managers has also energized the program. Jo Tyler, Armstrong's Director of Organization and Management Development, concludes: "We have people leaving these programs telling their colleagues that they've just had one of the best development experiences of their careers. These testimonials not only tell us we're on the right track, but they provide a lot of motivation to keep refining and improving how we tie development to the business."

Note: For more information about Armstrong's management development programs, contact Bob Sawicki at <rjsawicki@armstrong.com>. Information on Armstrong World Industries can be found at <www.armstrong.com>.

From the Wharton Leadership Digest, March, 2000.