Linking L+D to Business Outcomes

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Linking L+D to Business Outcomes

  1. 1. Linking Learning and Development to Business Success through ROI Tony Wiggins Principal Workforce Capability Consultant Helping Queenslanders Build Better
  2. 2. My Contribution Today <ul><li>… . discuss how learning and development </li></ul><ul><li>strategies that BSA and possibly your </li></ul><ul><li>organisation have used to link ROI to </li></ul><ul><li>business success </li></ul>
  3. 4. Key points of session <ul><li>platform to build organisational capability </li></ul><ul><li>stimulus for change </li></ul><ul><li>behavioural and attitudinal change </li></ul><ul><li>financial versus non-financial benefits </li></ul><ul><li>HR as a partner in business </li></ul>
  4. 5. <ul><li>Lifelong Learning is … </li></ul>Shared Understanding Return on Investment is …… Learning and Development is ……
  5. 6. <ul><li>Lifelong Learning - ongoing acquisition of knowledge or </li></ul><ul><li>skills - formal, non-formal + informal </li></ul>Shared Understanding Return on Investment - level 5 training evaluation model - compares costs to benefits - expressed as a percentage Learning and Development - activities designed to improve the capabilities of people - technical skills and knowledge people have, but also their attributes, attitudes and behaviours.
  6. 7. Return on Investment <ul><li>people are an investment not an expense </li></ul><ul><li>good employment proposition </li></ul><ul><li>transformation </li></ul><ul><li>known versus unknown </li></ul>
  7. 8. Evaluation + ROI – Revisiting the Basics <ul><li>validates training as a business tool </li></ul><ul><li>justifies the costs incurred in training </li></ul><ul><li>improves the design of training </li></ul><ul><li>helps in selecting training methods </li></ul>
  8. 9. BSA Profile <ul><li>established 1992 </li></ul><ul><li>building standards, equity and confidence </li></ul><ul><li>remedies for defective work </li></ul><ul><li>support, education and advice </li></ul><ul><li>funded by licensee fees </li></ul><ul><li>250 employees </li></ul><ul><li>head office - South Brisbane + 8 regional offices </li></ul><ul><li>building construction, insurance and legal staff </li></ul><ul><li>learning + development function - head office </li></ul>
  9. 10. What does it mean to learn at BSA? Just more of the same - excellent Practical - used real life examples Interactive, well-paced and informative Peer participation Facilitation, scenarios and group discussions Course exceeded expectations BSA is supportive of me using the skills I learnt
  10. 11. ROI - BSA style Smart State Workforce Strategy Leadership Development RETURN ON INVESTMENT Evaluation Strategy Learning and Development Initiative Relationship Management Organisational Capability
  11. 12. Our Success So Far <ul><li>National Recognition </li></ul><ul><li>Human Resource Magazine Awards </li></ul><ul><ul><li>Best Learning and Development Strategy 2004+2005 </li></ul></ul><ul><ul><li>Best HR Champion 2005 </li></ul></ul><ul><ul><li>Best Change Management Strategy (Finalist) 2005 </li></ul></ul><ul><li>Organisational </li></ul><ul><li>Leadership Development </li></ul><ul><li>Performance management </li></ul><ul><li>Lifelong learning culture </li></ul><ul><li>ROI model </li></ul>
  12. 13. <ul><li>Restraining Forces </li></ul><ul><li>before 2001 </li></ul><ul><li>Funding problems </li></ul><ul><li>No business direction </li></ul><ul><li>Inadequately skilled staff </li></ul><ul><li>Reactive </li></ul><ul><li>No quality service </li></ul><ul><li>No customer value </li></ul><ul><li>Externally driven </li></ul><ul><li>Drivers </li></ul>Aligning Learning with Corporate Direction
  13. 14. <ul><li>Smart State workforce focus </li></ul><ul><li>Strong focus </li></ul><ul><ul><li>human capital </li></ul></ul><ul><ul><li>innovation </li></ul></ul><ul><ul><li>research and development </li></ul></ul><ul><li>Outcomes </li></ul><ul><ul><li>builds the foundations for delivering learning </li></ul></ul><ul><ul><li>supports individual and business performance </li></ul></ul><ul><ul><li>encourages creativity and innovation </li></ul></ul>Our Approach
  14. 15. Learning + Development Initiative <ul><li>develops a high energy, high spirit and values-based BSA team </li></ul><ul><li>action-learning, experiential based learning </li></ul>Relationship Management Organisational Capability Leadership
  15. 16. Leadership <ul><li>executive + senior managers and team leaders (36%) </li></ul><ul><li>direction, values and leadership skills </li></ul><ul><li>interactive action learning based workshops </li></ul><ul><li>on-line modular coaching and support </li></ul><ul><li>coaching and sponsoring individuals - shared learning experience </li></ul><ul><li>EQ and transformational leadership </li></ul>
  16. 17. Relationship Management <ul><li>Market research - Customer Continuum </li></ul><ul><li>Creating Business Relationship Program - builds upon current and future relationships </li></ul><ul><ul><li>Customer Continuum </li></ul></ul><ul><ul><li>Cross Cultural Communication </li></ul></ul><ul><ul><li>Managing Challenging Behaviour and Conflict </li></ul></ul><ul><ul><li>Mediation Skills </li></ul></ul><ul><ul><li>Presentation and Facilitation Skills </li></ul></ul><ul><ul><li>Managing Client Expectations </li></ul></ul>
  17. 18. Organisational Capability <ul><li>Learning and Development Calendar </li></ul><ul><li>capabilities developed have prepared our people to respond to our customer’s need in the community and a challenging building industry </li></ul><ul><li>strategic linked to the corporate plan and workforce strategic plan </li></ul>
  18. 19. Partnerships <ul><li>Queensland University of Technology - Law Faculty </li></ul><ul><li>University of Queensland </li></ul><ul><li>Institute of Public Administration Australia (IPAA) </li></ul><ul><li>Boutique leading consultants - Drew International </li></ul>
  19. 20. <ul><ul><li>Research - transfer of learning - Princess Alexandra Hospital, Brisbane </li></ul></ul><ul><ul><li>Masters study </li></ul></ul><ul><ul><li>Kirkpatrick Model </li></ul></ul><ul><ul><li>Extrapolated to work Phillips and Stone </li></ul></ul>Building The Model
  20. 21. BSA Evaluation <ul><li>set realistic targets for resources available </li></ul><ul><li>level 4 + 5 consume the most resources </li></ul><ul><li>reserved for impact business strategies </li></ul>20% 0-20% Level 5 ROI Phillips + Stone 20% 0-20% Level 4 Impact 50% 40-70% Level 3 Application 75% 75-90% Level 2 Learning 100% 100% Level 1 Reaction Kirkpatrick BSA Model Research Model % Programs Evaluated Levels of Evaluation
  21. 22. Developing the ROI Formula <ul><li>1. Determine market return on cash invested with QIC </li></ul><ul><li>2. Identify organisational factors impacting - learning outcomes </li></ul><ul><li>3. Develop outcome and baseline data questionnaire </li></ul>
  22. 23. Current Results <ul><li>solid evidence of change </li></ul><ul><li>link - design, development and delivery </li></ul><ul><li>estimated ROI results - varies </li></ul><ul><li>Mediation Skills Program - 2 years </li></ul><ul><ul><li>savings $1.89 million </li></ul></ul><ul><ul><li>application of skills 90% </li></ul></ul><ul><ul><li>ROI 75% </li></ul></ul><ul><li>Team Challenge - Central Queensland (2005) </li></ul><ul><ul><li>ROI </li></ul></ul>
  23. 25. <ul><li>small flexible, responsive agency </li></ul><ul><li>visionary General Manager </li></ul><ul><li>linkage to corporate goals </li></ul><ul><li>executive sponsorship </li></ul><ul><li>enjoy situations that stretch them </li></ul><ul><li>innovative and creative </li></ul>Critical Success Factors Corporate Plan Workforce Strategic Plan Fun Environment Learning + Development Rewards and Recognition Work/Life/Family Balance Rewards and Recognition
  24. 26. Tips <ul><li>BSA mirrors an ecosystem </li></ul><ul><li>inter-relationships </li></ul><ul><li>resource intensive </li></ul><ul><li>stakeholders </li></ul><ul><li>PDCA model </li></ul><ul><li>it takes time </li></ul>
  25. 27. <ul><li>inspires a shared vision </li></ul><ul><li>challenges the norm </li></ul><ul><li>enable others to act </li></ul><ul><li>models the way </li></ul><ul><li>encouragement from the heart </li></ul>HR - Business Partner
  26. 28. Looking Forward <ul><li>measures the contribution of specific programs to business objectives </li></ul><ul><li>enabler to focus on training results </li></ul><ul><li>alters management perceptions that training is an investment and not an expense </li></ul><ul><li>setting of priorities based on a programs level of contribution in meeting business objectives </li></ul>
  27. 29. Thank you Helping Queenslanders Build Better

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