Jos AretsBusiness case: working smarterFact Sheet
Business case: working smarterAgenda1. Knowledge-‐intensive organiza4ons .2. Working smarter.3. The Business case working smarter.4. Roadmap.Introduc8onKnowledge-‐intensive organiza2ons can work more smartly in the 21st century by providing knowledge workers with intelligent forms of knowledge and informa2on while working – naturally based on the aims of the organiza2on, so that working smarter (Cross,2010) supports people & organiza2on to achieve sustainable, measurable results. In this way, working smarter becomes a tool for knowledge workers to eliminate the ar2ﬁcial dis2nc2on between working and learning, in support of ﬂexible working. This is working smarter as a contemporary alterna2ve to the more tradi2onal forms of knowledge development in organiza2ons such as training courses. In the 21st century, working smarter is synonymous with smarter use of people and money. This is possible with a qualita2ve and quan2ta2ve business case.“In the 21st century, the most valuable assets of an organiza9on (proﬁt or non-‐proﬁt) are the knowledge workers and their produc9vity. -‐ Peter Drucker
Knowledge-‐intensive organiza8ons How is knowledge produc2on assured in your organiza2on?Massive growth of knowledge produc6on and sharing through internet, o8en mobile: The informa,on used from the internet on 1 day would ﬁt onto 168 million DVDs. 294 billion e-‐mails are sent every day. 1 million blogs are published every day (enough to ﬁll Time Magazine for 770 years). 250 million photos are taken every day. 864,000 hours of video are uploaded onto YouTube daily. By 2015, it would take you 5 years to watch all the videos distributed over the internet in the space of 1 second.ansomalex.com
Knowledge-‐intensive organiza8ons How does your organiza2on produce knowledge using mobile internet?History of 7 mass mediaArt of prin6ng -‐ 1500Tape recording of music & ﬁlms -‐ 1890Cinema -‐ 1910Radio -‐ 1920TV -‐ 1950Internet -‐ 1995Mobile Internet -‐ 2000The growth of mobile Internet is historic; see the ﬁgure above. The result is that everyone is online 24/7, producing and sharing knowledge in a contemporary wayGrowth rates1970 1990 20101975 1980 1985 1995 2000 2005TVPCInternetMobile
Knowledge-‐intensive organiza8ons Do you s2ll believe in the impact of training?Key ﬁgures for business training from Sta4s4cs Netherlands (2010):•The market for business training amounts to 1.7 billion euros. That is 1200 euros per par4cipant or an average of 460 euros per employee.•Approximately 40% of employees follow training courses, with big diﬀerences between sectors (the greatest numbers in construc4on).•60% of employees are not reached!•The average dura4on of a training program or course is nearly 1 working week.•Nearly half of course hours are spent on technical, prac4cal and professional skills.•The results of eﬃciency measurements for business training remain unclear and low.TrainingWorkHours a yearTradi9onal learning in organiza9ons is not keeping pace with knowledge produc9on using the internet (in organiza9ons)!
Knowledge-‐intensive organiza8ons How much training is just-‐in-‐8me in your organiza2on?Unfortunately, most process and product training offers onlycursory practice opportunities. There’s usually not enough timeallowed for extensive practice as there’s so much ‘knowledge’ toimpart, or there is no access to the system/product prior to rolloutand any practice that does occur is often on some cut-downsystem, the ‘training’ servers or a simple simulation.Truth 3: Post-Training Drop-Off has a Major ImpactPost-training drop-off is another reason why formal pre-rollouttraining simply can never be the most effective approach todeveloping user competence.Harold Stolovitch & Erica Keeps carried out some veryinteresting research on desired vs. actual knowledge acquisitionand performance improvement. The data from their researchuncovered some important facts about human memory andprocessing. The graph below shows the results.Following an initial dip during the training event (the ‘typing/golfpro dip’) - where performance drops as new ways of carrying outtasks are tried out and tested - knowledge and performance thenimprove during the training session. The individual walks out thedoor knowing more than they did prior to the training session andusually with higher levels of task performance than when theystarted the training.September 2010 EditionEbbinghausThe ‘forgeng curve’ shows that people typically forget 90% of the informa4on from the training program within 30 days, unless it is consistently repeated. See the ﬁgure shown here on the impact of training on an organiza4on’s performance.John Medina 7-‐9 units of informa4on can be stored in a person’s short-‐term memory. It can only be remembered through repe44on and it takes ten years before the long-‐term memory has integrated/stored this informa4on at system level.How eﬀec9ve is it if the training for the implementa9on of new soGware took place two months before ‘go live’? Will employees s9ll know how the system works by the actual ‘go live’ date?For most training courses in subjects designed to improve the performance of organiza9ons, it is literally physically impossible to plan training just-‐in-‐9me.
Knowledge-‐intensive organiza8ons What impact does this ﬁgure have on your thinking and ac8ons?The ﬁgure shows that tradi6onal learning in organiza4ons through training courses, for example, does not suﬃciently keep pace with the needs of organiza4ons to adapt or with knowledge produc6on and sharing through social media/learning.knowledge produc2on & sharing via social media / learningAdapta2on organiza2onstradi2onal learning in organiza2onsTimePerformance
Knowledge-‐intensive organiza8ons Do you make the jump towards knowledge produc8on -‐and sharing in the 21 century?Industrial economyTrainingKnowledgeKnowledge possession9/5 working of learningLearning = workingFormal learningOne-‐way traﬃcHierarchyknowledge economyWorking smarterInforma6onKnowledge sharing24/7 knowledge produc6on -‐and sharingWorking = learningInformal learningTwo-‐way traﬃcNetworkst
How can you support the applica2on of knowledge in prac2ce other than through training?Working smarterEmployees o_en have a lot of knowledge, gained from books or during their previous educa4on. But applying this theory in daily work prac4ce o_en proves hard for them. Even so, most training courses focus on increasing the knowledge of employees and there is li`le support available for applying that knowledge and suppor4ng daily work. This is a result of the rather strict division between the classroom and support in the workplace. It is therefore not surprising that training courses have hardly any measurable impact on the results of organiza4ons at all.Knowledge from booksTraining in aclassroomPar9cipants more competentDuring workno training or supportWith problems or innova9on no supportDemonstrate diﬃcult to measureperformance The chain of formal traininglearning not on workplace no support during work
Working smarterDo you see that working = learning?Instead of making one working week of training available to 40% of employees per year and focusing training courses on increasing knowledge, it is also possible to make available all possible resources which support work ac4vi4es to everyone. This can be done by oﬀering e-‐performance support. This is an electronic form of support for tasks which are cri4cal to an organiza4on’s results – for example checklists, videos, demonstra4ons, etc. Or by oﬀering short e-‐learning (micro learning) which can help employees to learn cri4cal tasks. The advantage of this is that the electronic resources for all appear to be nearly limitless. Knowledge and informa4on for everyone in the workplace changes from a situa4on of scarcity (too few resources to develop everyone) to a free provision at lower costs than formal training.The chain of working smarter24/7 support during workBusiness casefor working smartermeasurable performance organiza9on possibleDuring workand linked to tasksMicro-‐learning &performancesupport50-‐70% reduc9onformal training24/7 access to resources for everybody
Working smarterHow future-‐proof is your organiza2on in terms of working smarter?In our view, working smarter means people having access to the right knowledge or informa4on while at work, enabling them to do their work be`er. Tradi4onally, learning takes place in a classroom, and li`le or no support is oﬀered while you are actually working. In other words, precisely at the moment when you need knowledge and informa4on, it is not available. This changes with working smarter. Working smarter involves providing knowledge by means of short e-‐learning units (micro learning) and prac4cal task support (performance support). Task support is based on the cri4cal tasks of the organiza4on and follows the standards which have been drawn up. In this way, working and learning are consistently 4ed to the desired results of the organiza4on.The ﬁgure shown here demonstrates that tradi4onal learning and working are separated – whereas working smarter makes it possible to support competent professionals and experts in their work with the desired knowledge and informa4on in electronic form. And naturally this support can also take place while learning. The delivery of working smarter is consistently 4ed to the desired results of the organiza4on.WorkingLearningNoviceAdvancedbeginnerCompetent ProﬁcientExpert Organiza9onal resultsoﬀer working smarter with social learning, micro learning & performance support
Working = learning in small teams with the improvement approachSmall teams work together methodically with an improvement approach. Firstly, the desired results of the organiza,on are iden,ﬁed. Then the problem is deﬁned in measurable terms: the gap between the current and the desired situa,ons. Only once the causes of the problem are completely clear are interven,ons selected and implemented – consistently, with measurable results for the organiza,on as a consequence.Plan DoCheck ActOrganiza9onal resultsContemporary resources in the cloud 24/7 for all employees:Social learning via wikis, blogs, forum a.o. Micro learning, e-‐performance support, social learning, e-‐pdp, 360 degrees feedback completed with workplace learning , improvement projects and 70% less formal training.
Working smarterIn transit to working smarter?Tradi6onal learning/trainingE-‐learningClassroomInstruc8on / trainingTarget groupsKnowledge by trainingClassTeachingDocuments & presenta8onsCatalogue course oﬀerPushWorking smarterE-‐workingWorkplaceInforma8onpersonalized / InternetJust-‐in-‐8me informa8on at workplace through micro learning & performance support & social learningCommunityCoaching & (e-‐)collabora8onWiki, podcast, blogs etc. Knowledge & informa8on 24/7 accessiblePull
Working smarterAre you also interested in a sustainable solu8on to support working smarter?The digital working and learning world can be accessed on a mobile placorm and consists of a results-‐focused combina4on of technological interven4ons with other forms of working = learning.Knowledge produc8on -‐ and sharingMicro learning Social learninge-‐PDPPerformancesupportWorkplacelearningtraining,coaching,communi8esDigital work-‐ and learning world
Working smarterThe eﬀects of working smarter with the digital working and learning world.• Knowledge and informa4on support at work• Spectacular, measurable increase in knowledge produc4on and sharing• 24/7 (mobile) access to all resources (knowledge and informa4on) for every employee within the organiza4on• More manageable for board and management, because everyone has access to relevant knowledge and informa4on that can be updated real-‐4me. Employees can no longer claim they ‘didn’t know something’. Making it easier for the board and management to target the desired performance of tasks in accordance with the standards of the organiza4on• Working = learning is supported by technology• Informal learning in the workplace is supported and disseminated• Knowledge and informa4on are no longer a scarce good for all employees• Increased sa4sfac4on among employees about this contemporary way of support at work• Business case with regard to formal training is always present for larger organiza4ons
Business case working smarterThe business case for working smarter as a rou8ne?The working smarter business case has the following proper4es:• Qualita4ve• Quan4ta4ve in ROI and in measurable increase in knowledge produc4on or other business metricsSlimmerwerkenalsbusinesscaseResources((In)formeellerenwordtmettechnologieopdewerkplekondersteundMeer(bereik(Lagerekostenviamicro<learningenlerenwordtschaalbaarVerbinding(met(de(core(business(Vanleerdoelennaarorganisa>eresultaten(Uitsluitendleerinterven>esalsdeoorzaakeenkennistekortis.Werken(=(leren(MeetbaarminderverletenmeerdraagvlakbijprofessionalsWorking smarter as a business caseTied to the core business, from learning objec2ves to organiza2onal resultsLearning interven2ons only if the root cause is a lack of knowledgeGreater reach. Lower costs thanks to micro learning and learning becomes scalableResources. Formal/informal learning is supported through technology in the workplaceWorking = learning. Measurably fewer lost hours and more support among professionals
Business case working smarterBusiness case qualita2ve: ‘soc indicators’.• Working = learning• 24/7/365 accessibility• Learning is a process• Context-‐deﬁned learning• Pull versus push• More sa4sfac4on/contemporary• Working = learning = relevant for the business
Business case working smarterBusiness case quan2ta2ve: ‘hard indicators’.• Lower costs training / par4cipant• Measurable increase knowledge produc4on -‐and sharing • ROI possible• Measurable contribu4on to organiza4onal results50%less lost hours cost50-‐70%Decrease of budget formal training30%Cost digital work-‐ and learning world in comparison to tradi4onal training100%Spectacular higher reach. From 40% to 100% of all employees
Business case working smarterTradi6onal learning / training Digital work-‐and learning worldCost per par6cipantTotal cost4000 employees€ 75 € 300.000absenteism cost€ 80 € 320.000300 managers € 300 € 150.000absenteism cost€ 200 € 60.000Total € 830.000year 1 year 2 year 3Digital work-‐ and learning world€ 150.000 € 125.000 € 125.000Cost training employees€ 50.000 € 25.000 € 25.000absenteism cost€ 0 € 0 € 0Cost training managers€ 50.000 € 50.000 € 50.000absenteism cost€ 0 € 0 € 0Business case+ € 580.000 € 630.000 € 630.000ROI 132% 320% 320%
Business case working smarterWorking smarter = learning with business case.• Scalability• Formal & informal learning• Working = learning• Micro learning & performance support• Connec4on with the measurements of the organiza4on. O_en, the Balanced Score Card is used to measure performance in four important areas (deﬁned by the organiza4on)• Measurable increase in knowledge produc4on and sharing• Measurable increase in knowledge networking in the organiza4on.• Working smarter is a measurable investment with a posi4ve business case.
RoadmapSlimmer werken voor organisa2es op hoofdlijnen.1.Choice of strategic (cri6cal) issue for organiza6on2.Main points of business case3.Digital working and learning world opera6onal within six months4.Quick wins in costs, reach and quality5.Basic elements of working smarter vision and strategy in place1.Working smarter vision and strategy completed and implemented2.Choice of second and possibly third strategic issue/theme3.Business case posi6ve in qualita6ve and quan6ta6ve terms4.Working smarter annual report with outputs, predic6ons and points for improvement1.Working smarter with digital working and learning worlds pay oﬀ measurably with posi6ve ROIs, increased quality and greater sa6sfac6on in the organiza6on2.Possibly use digital working and learning world in order to improve customer serviceYear 1Year 2Year 3
Working smarter with business case:๏ Are you interested in a sustainable improvement approach on the work ﬂoor?๏ For management and employees?๏ Would you like to organize advice and development for management and employees?๏ To make e-‐learning available to all employees?๏ To have task support made available electronically for everyone in accordance with the organiza4on’s own standards?๏ To oﬀer opportuni4es to all employees in order to share best prac4ces 24/7 online and measurably produce and share more knowledge with each other?๏ Do you want to be a contemporary employer with a posi4ve image among clients and employees?๏ In short: do you want to implement ‘working smarter’ too?๏ With a posi4ve business case?Tulserwww.tulser.com | firstname.lastname@example.org Knowledge produc8on -‐ and sharingMicro learning Social learninge-‐PDPPerformancesupportWorkplacelearningtraining,coaching,communi8esDigitale work-‐ and learningworld
bibliography•Arets, J. & V. Heijnen. (2008). Kostbaar misverstand. Den Haag: Academic Service•CBS.nl (2010) Bedrijfsopleidingen•Cross, J. (2010). The Working Smarter Fieldbook. Berkely: Internet Time Press.•Gery.G.(1991). Electronic Performance Support Systems. Tolland: Gery Performance Press.•Quinn, C. (2011). Designing Mlearning. Tapping into the mobile revolution for organizationalperformance. San Francisco: Pfeiffer.•Medina, J. (2008). Brainrules. Seattle: Pear Press•Rossett, A. & A.(2007). Job aids & Performance Support. San Francisco: Pfeiffer.•Stolovitch, H.D. & E.J. Keeps (2004). Training ain’t Performance. Alexandria: ASTD press.