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How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
How to Build a Business Case for Formalization of Learning Analytics
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How to Build a Business Case for Formalization of Learning Analytics

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This presentation will offer practical advice on how learning leaders should build a business case to formalize learning analytics into the L&D organization and budget. The session will cover critical …

This presentation will offer practical advice on how learning leaders should build a business case to formalize learning analytics into the L&D organization and budget. The session will cover critical tools and techniques to establish relevancy for learning measurement and positively create a culture supportive of L&D measurement.

Learning objectives:

Discuss examples of L&D metrics’ value to the organization.
Review techniques (KPIs, pilot/beta tests, financial analysis) to create a business case.
Provide an overview of the attributes necessary to create and sustain L&D analytics.

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  • 1. You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference,please dial 1.650.479.3208 and enter access code: 923 369 627 #. You will be on hold until the seminar begins. #CLOwebinar
  • 2. Speaker: Jeffrey Berk Chief Operating Officer KnowledgeAdvisorsModerator: Deanna Hartley Senior Editor Chief Learning Officer magazine #CLOwebinar
  • 3. • Q&A – Click on the Q&A icon on  your floating toolbar on the  top of your screen. – Type in your question in the  space at the bottom. – Click on “Send.” #CLOwebinar
  • 4. Polling Polling question will  appear in the “Polling” panel.  Select your response  and click on “Submit.” #CLOwebinar
  • 5. 1. Will I receive a copy of the slides after the webinar? YES 2. Will I receive a copy of the webinar recording? YES Please allow up to 2 business days to receive these materials. #CLOwebinar
  • 6. Deanna HartleySenior EditorChief Learning Officer magazine #CLOwebinar
  • 7. Jeffrey BerkChief Operating OfficerKnowledgeAdvisors #CLOwebinar
  • 8. How to Build a Business Case to Measure the Effectiveness of Learning ProgramsJeffrey BerkChief Operating Officerwww.knowledgeadvisors.com © KnowledgeAdvisors. All rights reserved.
  • 9. Agenda Provide brief overview of KnowledgeAdvisors Describe the challenges of leadership programs Discuss the types of leadership metrics Articulate the business case components Compute the business case and provide examples Review techniques to further the business case Conclude with a Top 10 Business Case List9 © KnowledgeAdvisors. All rights reserved.
  • 10. Leader in Learning & Talent AnalyticsContinuously OptimizeImprove Results
  • 11. 5 CLOs450+ Clients of the Year9 of 10 Training 4 of 5 Best Hall of Fame Places to Work
  • 12. Onboarding Learning Leadership EDITION EDITION EDITION1st Year Retention Expertise & Skills Manager CapabilitySpeed to Workforce Strategic Vision &Performance Performance Execution Capabilities Engagement Performance EDITION EDITION EDITIONBench Strength Retention of Talent Goal AchievementTalent for Future Workforce OrganizationalSuccess Productivity Alignment
  • 13. Manager Capability Strategic Vision & Execution Decision SupportHow do we reduceturnover among leaders?What are the gaps for ouremerging leaders?What leadership areasneed development?
  • 14. Why does it matter? It’s about having a quality control system for leadership programs It’s about ensuring credible executive reporting that showcases value, impact, and utilization of leadership programs It’s about maintaining advanced analytics that provide data to drive toward high performing leaders14 © KnowledgeAdvisors. All rights reserved.
  • 15. Leadership Development KPIs Outcome Metrics - Business Outcomes Leader Retention Employee Engagement Employee Retention Leader Performance Rating Leader Financial Management Effectiveness Metrics – Program Performance Delivery Quality Knowledge Gain Application to Job Business Alignment Value Efficiency Metrics – Cost and Activity # of Participants % of Employees Trained Total L&D Investment L&D Investment per Participant Courses Utilized Classes Conducted Instructors Utilized15 Locations Used © KnowledgeAdvisors. All rights reserved.
  • 16. Business Case Components 1. Increased leader productivity – Improved performance in running training like a business – Improved workforce performance through data driven decision-making – Research shows 2.4% improvement in performance from analytics 2. Reduced waste (scrap learning in leader programs) – Over half of training investments are not optimally used – Most organizations waste .5% to 2% of revenue on under-used training – Lack of manager follow-through is a significant problem 3. Reduced administration in measuring leader programs – Majority of time spent on measurement is transactional and tactical – Talented practitioners are doing data compilation vs. data analysis – Data is not provided with any relevant reference points to make sense16 © KnowledgeAdvisors. All rights reserved.
  • 17. Performance - Examples 1. Major services firm realized $200,000 increased annual profit by using predictive analytics capabilities. 2. Through measurement a leading federal agency significantly increased output and business impact without increasing budget over a 3 year period. 3. Major telecommunications firm using metrics was able to increase sales by $1.25 million dollars through better supply chain management. 4. 15,000 hours in improved productivity by a floral company in identifying appropriate training investments via data analysis.17 © KnowledgeAdvisors. All rights reserved.
  • 18. Performance - Calculation $1,000,000,000 Revenue 25% Labor Percentage $250,000,000 Labor Cost Increased Productivity from 1% Measurement% Increased Performance from $2,500,000 Measurement18 © KnowledgeAdvisors. All rights reserved.
  • 19. Waste - Examples 1. 25 retail stores avoided $100,000 of wasted training. Retail store training measured after first of six weeks saw 1 set of ineffective trainers and discontinued using them. 2. Instructor compared herself to other instructors and changed approach. 6 months of additional sessions performed better to avoid at least $100,000 in scrap learning. 3. $500,000 in funding gained by measuring scrap learning. Services firm measured training results and found high quality but low impact. The program was retained and additional funding rewarded to consult with managers on increasing impact.19 © KnowledgeAdvisors. All rights reserved.
  • 20. Waste- Calculation Description $1,000,000,000 Revenue 1% L&D as % of Revenue $10,000,000 L&D Investment 50% Waste or Unrealized Value % $5,000,000 Waste or Unrealized Value 5% Waste Reduction from Measurement% Waste Reduction from $250,000 Measurement20 © KnowledgeAdvisors. All rights reserved.
  • 21. Admin - Examples 1. 75% reduction in administration costs from automating measurement process vs. manual measurement. 2. 15 minutes to retrieve actionable data for decision-making vs. 15 hours prior to automating the measurement process. This automation of 1 report alone saved over $36,000 per year. 3. $400,000 savings by major accounting firm that used smarter measurement in a practical way to yield similar results compared to complex and burdensome alternative measurement techniques21 © KnowledgeAdvisors. All rights reserved.
  • 22. Admin - Calculation Description $55,000 Salary of 1 FTE admin for metrics $50,000 Cost avoided from unnecessary analysis $50,000 Cost to replicate fraction of benchmarks Admin savings from measurement and 75% benchmarks Administration Savings from $116,250 Measurement22 © KnowledgeAdvisors. All rights reserved.
  • 23. Summary – Business Case Value Summary $2,500,000 Performance Gain $250,000 Waste or Scrap Avoided $116,250 Administration Savings $2,866,250 Total Quantified Value23 © KnowledgeAdvisors. All rights reserved.
  • 24. A Tale of Two Programs 1. Company A went back 2 years… and identified that they had 1,019 people rated #3, “needs improvement” in recent performance reviews 2. They calculated that they spent an average of $13,090 per year on highly visible leadership development (Coaching, counseling, mentoring, retraining and manager time) to elevate them to #1’s ,“high performers” 3. They identified 2 years later… the number that were currently ranked as #1’s, was ZERO24 © KnowledgeAdvisors. All rights reserved.
  • 25. A Tale of Two Programs Leadership program with optional ‘project’ Determine if optional project influenced employee retention in leadership program Employees with no learning projects averaged a turnover rate of 21% Employees with 2 or more learning projects averaged a turnover rate of 2% Clearly the control group vs. learning group shows a difference25 © KnowledgeAdvisors. All rights reserved.
  • 26. Furthering the Case Create a 1 page business case (simple and concise). Emphasize productivity, waste and admin. Put a brief scorecard together that has at least 1 metric for outcome, effectiveness and efficiency data. Do a pilot of analytics. Evaluate your training in an analytics tool, compare to benchmarks, view results in reports, dashboards and scorecards.26 © KnowledgeAdvisors. All rights reserved.
  • 27. Dashboard/Executive Reports27 © KnowledgeAdvisors. All rights reserved.
  • 28. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns.28 © KnowledgeAdvisors. All rights reserved.
  • 29. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI.29 © KnowledgeAdvisors. All rights reserved.
  • 30. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning.30 © KnowledgeAdvisors. All rights reserved.
  • 31. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly.31 © KnowledgeAdvisors. All rights reserved.
  • 32. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results.32 © KnowledgeAdvisors. All rights reserved.
  • 33. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results. 6. Cycle Time. Automate reporting to stakeholders.33 © KnowledgeAdvisors. All rights reserved.
  • 34. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results. 6. Cycle Time. Automate reporting to stakeholders. 7. Cost Savings. Reduce admin and increase data use.34 © KnowledgeAdvisors. All rights reserved.
  • 35. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results. 6. Cycle Time. Automate reporting to stakeholders. 7. Cost Savings. Reduce admin and increase data use. 8. LMS ROI. Combine LMS data for powerful reporting.35 © KnowledgeAdvisors. All rights reserved.
  • 36. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results. 6. Cycle Time. Automate reporting to stakeholders. 7. Cost Savings. Reduce admin and increase data use. 8. LMS ROI. Combine LMS data for powerful reporting. 9. Waste Reduction. Identify scrap and ways to reduce it.36 © KnowledgeAdvisors. All rights reserved.
  • 37. Top 10 Business Case List 1. Alerts. Metrics should alert you to breakdowns. 2. Predictive Measures. Metrics should forecast value/ROI. 3. Social Learning. Metrics to validate informal learning. 4. Qualitative Analysis. Harness feedback quickly. 5. Business Outcomes. Measure alignment to results. 6. Cycle Time. Automate reporting to stakeholders. 7. Cost Savings. Reduce admin and increase data use. 8. LMS ROI. Combine LMS data for powerful reporting. 9. Waste Reduction. Identify scrap and ways to reduce it. 10. Business Insights. Data-driven decisions.37 © KnowledgeAdvisors. All rights reserved.
  • 38. Next Steps Just ask and we can…. • Send you a business case Thank you for explaining your needs to us template Provide a sample leadership dashboard and sample leadership executive report Provide a business case white paper emphasizing quantifiable benefits to analytics in L&D38 © KnowledgeAdvisors. All rights reserved.
  • 39. Contact Us For further information contact: Jeffrey Berk Chief Operating Officer +1 312 676-4411 jberk@knowledgeadvisors.com www.knowledgeadvisors.com39 © KnowledgeAdvisors. All rights reserved.
  • 40. Jeffrey BerkChief Operating OfficerKnowledgeAdvisors #CLOwebinar
  • 41. Join Our Next CLO Webinar Virtual Learning Environments: Redefining the Training Experience Tuesday, April 9, 2013CLO Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming CLO Webinars at www.clomedia.com/webinarsJoin the Chief Learning Officer magazine Network http://network.clomedia.com/ #CLOwebinar

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