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How to Build a Business Case for Online Employee Training - Webinar 05.07.14

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When presenting a proposed training program to senior leadership, don’t make the mistake of getting caught only discussing the ROI. Executives expect something much different in a true business case. …

When presenting a proposed training program to senior leadership, don’t make the mistake of getting caught only discussing the ROI. Executives expect something much different in a true business case. You can certainly add complexity – if needed – in this webinar we'll cover the basic 5 elements to include in your business case for employee training:

Scenario analysis – most likely outcomes, best case and worst case.
Link each expected benefit of the solution to an expected operational effect.
Identify the KPI (key performance indicator) for each benefit.
State the risk of not taking the proposed action.
Align proposal with organization’s strategic goals.

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  • 1. 6,000+ Courses. 25 Topic Areas. Unlimited Access. Improve your employees' performance with the largest and fastest-growing library of on-demand training videos and eLearning courses today!
  • 2. The most common objection from Senior Executives about learning initiatives is… a. Training and development does not impact the bottom line. b. The cost of training is more than the benefit. c. Things are fine the way they are. d. Something else.
  • 3. What You’ll Learn: The five core elements of a business case: • Scenario Analysis • Cause/Effect Analysis • Linking learning operational benefits • Key performance indicators • Risk of the status quo • Demonstrating Alignment with Organizational Goals Anticipating and overcoming the most common objections from your senior executives
  • 4. BIZLIBRARY.COM Organizations with a strong learning culture significantly outperform their peers… Innovation 46% More likely to be first to market Productivity 37% Greater employee productivity Time to Market 34% Better response to customer needs Quality 26% Greater ability to deliver “quality products” Skills for the future 58% More prepared to meet future demand Profitability 17% More likely to be market share leaders
  • 5. BIZLIBRARY.COM 1 2 3 SCENARIO ANALYSIS 4 5 CAUSE/EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORGANIZATIONAL GOALS 5 KEY ELEMENTS OF A BUSINESS CASE
  • 6. In your organization, what are your biggest challenges with change… a. Timing – “this just isn’t a good time” b. Budget c. Lack of senior leadership support d. Lack of employee buy- in or participation e. Something else
  • 7. Risk of the Status Quo • What could happen to the company's bottom line? • Could the company lose customers? Or market share? • Could some future costs be avoided if the investment is made today? SCENARIO ANALYSIS CAUSE/ EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORG’S GOALS
  • 8. It takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that. The Red Queen Through the Looking Glass by Lewis Carroll
  • 9. Scenario Analysis • Most likely results • Best case scenario • Worst case scenario SCENARIO ANALYSIS CAUSE/ EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORG’S GOALS
  • 10. Cause - Effect Analysis • Your training program improves the employee’s ability to do the job. • That improvement has a positive impact on the business. • That impact results in a financial benefit to the company. SCENARIO ANALYSIS CAUSE/ EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORG’S GOALS
  • 11. BIZLIBRARY.COM EMPLOYEE BENEFITS COMPANY BENEFITS FINANCIAL BENEFITS Study at your own pace; employees have the ability to stop and start courses. Same training available to all employees, no matter location. Reduced costs for travel and training facilities. Convenience: Anytime, Anywhere Access. Courses and online resources are available to employees, 24x7. • Anytime, Anywhere reporting. • Built in testing and evaluation capabilities allow managers to easily run reports • More customized learning plans to ensure that they have mastered difficult concepts. Reduced time away from the job, no missed productivity. Employees can create and manage their own Learning Plans Better control over all aspects of the training experience through one standard, centralized access point (registering, approval, tracking, reporting). • Hosted services eliminates the need for installation into a company network. • Eliminates the cost for internal IT support. Simplified certification process Increase alignment between employee goals and corporate objectives. Employees are able to view a personal dashboard of courses assigned to them, view a record of their transcript of courses Improved visibility into learning and performance data.
  • 12. Business Impact • Learning to support organizational agility • Identify focus areas • Technology or new approaches to drive better agility • Increase clarity
  • 13. Cost Justified VS ROI • Quality • Effectiveness • Job impact • Business results
  • 14. BIZLIBRARY.COM REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS Goal: Reduce turn around time on bug fixes from an average of 21 days to 10 days. Value: The expected value to be gained is measured by using the average revenue lost for each day the service is down for customers due to sloppy or unclear written explanations of bugs to the programmers. $50/day $1,155,000 In six months The average bug eats revenue while customers are not accessing our service at a rate of $50 per day. In the last 6 months, 1,100 customers experienced bugs each taking an average of 21 days to fix. 80% of the bugs required a return of the written report to the rep for clarification. The average bug.
  • 15. BIZLIBRARY.COM Training Costs: Human Resources: $90,000 Reps: $300,000 Total: $390,000 Impact: Written reports of bugs were shortened and clarified so less than 10% were returned for rewrites in 6 months after program. Average bug fix reduced from 21 days to 12 days. Total bugs affected 1,210. Value Added From Improved Performance: 500 reps X $600 days each for access to online writing courses including time to take and complete 5 courses each and successfully complete writing evaluations to prove increased skills. 2 HR reps needed to administer program and build writing evaluations. TOTAL VALUE GAINED: $544,500 on a $390,000 program. Other Factors: Better general communication and cooperation between the programmers and customer facing employees. We also learned that our customer service employees did not have a deep enough understanding of the technical side of our service. The enhanced writing skills helped clarify the knowledge gaps which we filled quickly. REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS
  • 16. KPI’s For Each Benefit • Identify the KPI for the business problems you are trying to solve. • If this training works, how will we know it? • What will improved performance • look like, and how will we know? SCENARIO ANALYSIS CAUSE/ EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORG’S GOALS
  • 17. It doesn’t have to be complicated… You have 5,000 customers Each is worth $20,000 You increase customer retention by 1% THAT’S $1 MILLION
  • 18. TIME AWAY FROM THE JOB TRAINING COSTS AND CONSIDERATIONS TRAVEL EXPENSES The cost of losing employees due to the lack of or ineffective training
  • 19. Goal Alignment • Organizational Goal: • Maintain an 85% client retention rate for 2013. • Department Goal: Improve performance in handling of customer complaints within 90 days. SCENARIO ANALYSIS CAUSE/ EFFECT ANALYSIS KPI’S FOR EACH BENEFIT RISK OF THE STATUS QUO ALIGN WITH ORG’S GOALS
  • 20. Barriers to Program Adoption • Will employees participate, use it etc… • What are the costs? What’s the value? • Is the learning initiative relevant to our business needs?
  • 21. Resistance Success Strategies No Help • Create an Advisory Committee • Use a Coach • Ask Supervisors for support and provide them tools Communication • Work with your internal learning team to develop strategies for high-level and end-user communication Not Enough Time • Focus on Just-in-time learning: Search and Learn, Job Aids, SkillBriefs • Deliver kickoff events, Blended Learning, Learning Labs • Emphasize Time Management courses • Create Learning in Progress signs Fear and Anxiety • Nurture safety and trust with perceived freedom of choice • Focus on individual needs and help folks to see the benefits of having online learning available Not Relevant • Emphasize on-the-job application • Understand the goals of others and ask questions: “How can you use this initiative to meet your goals?”
  • 22. Needs Analysis: Survey Results Do you feel access to more training would help you perform your job more effectively? Yes No If online training was offered, how many courses would you enroll and complete per year? 1-3 per year 3-6 per year More than 6 per year Don’t know If offered online, would you take advantage of a customized training curriculum specific to your job? Yes No Would you like to see <Company> play a more active role in your professional growth/development? Yes No
  • 23. BIZLIBRARY.COM Participant materials were useful on the job. Training expectations were set with the manager prior to training. Use of the training was discussed with the manager after the training. Adequate resources were provided to apply training on the job. 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 JOB SUPPORT SURVEY
  • 24. 1. Don’t get stuck on ROI only. Communicate the cost justification and strategic impact of your training initiatives. 2. Plan and organize. Understand your current situation, where you want to be and when and how you will get there. 3. Know the facts and risks back it up with data. 4. Communicate how your plan will benefit the overall organizational goals. KEY POINTS
  • 25. BIZLIBRARY.COM Course Series: How to Know What We Know Short videos each less than 10 min. Course Title: QuickTalks: Rob Kaplan: Leadership Lesson: You Must Ask the Right Questions to Adapt Target: Leaders at All Levels
  • 26. BIZLIBRARY.COM Free trial of the BizLibrary Collection 6,000+ Courses. 25 Topic Areas. Unlimited Access. Improve your employees' performance with the largest and fastest-growing library of on-demand training videos and eLearning courses today!
  • 27. BIZLIBRARY.COM Chris Osborn Vice President of Marketing cosborn@bizlibrary.com @chrisosbornstl Jessica Batz Marketing Specialist jbatz@bizlibrary.com @jessbatz @BizLibrary

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