The AIG Effect

luxury-business-travel_jetThe AIG effect is not a term I coined, but read about in USA Today this weekend.  This article quite effectively captured the current (and foreseeable) trend in how human capital professionals (especially those charged with developing talent) are being impacted with traditional methods.

The AIG effect refers to the events of last year… when the federal government agreed to an $85 billion bailout to AIG, after which, the company’s executives traveled to a luxury California resort. The effect it has is that it is causing business travelers and organizations across the country to rethink their destinations, from Vegas to more affordable cities. You can read the whole article on the USA Today site.

It’s happening – we are living in paradigm-shifting times. The recession has had a tangible effect and it will change how we approach professional development. From January:

So the idea of sending managers and leaders off to Orlando or San Diego or some other distant city for a week-long seminar or conference is gone. Off-site learning and development will always exist in some form, but not in the manner to which we’ve been accustomed. Leaders in organizations want to see the tangible ROI – they want to see how that $7500 trip resulted in something clearly beneficial for the individual or the corporation. They also want to be able to track it and explain it. What did they learn in Orlando? How did they transfer new knowledge to the better the organization? read more

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