Looking back at Next Month 2012. What is coming in 2013 6 Dec, Thurs 12 pm ESTLEARNING CAFEWORKPLACE TRENDS FORUMLinking Learning to the Bottom Line8 November, Thursday, 12 – 1 pm, ESTDRAFT
Webinar Information ParticipationDate & Time: 8 Nov 2012Webinar ID: 676-771-272 Any questions please send it via Q&A box orTelephone Conf Call - +61 3 8644 7040 raise your hand.Access Code: 111-689-892 Phones or PC speakers on mute till you are readyParticipants Toolbar to speak. This session is being recorded for replay. This is a discussion amongst peers, we would love your thoughts and comments.
Integrate Making Learning, Practitioners Learning Building L&D Performance Forum Work in the Capability & Real World Knowledgeperformance professionsCommunity of experienced learning & Blog Magazine Capability Webinar Building Discussions Workshops Personalised and Flexible When you want it. How you want it UnConference Coffee Catch Ups Sydney Feb 2013 Twitter Linkedin Facebook
Learning Café UnConference 2013 • A professional development event with a difference. Facilitated sessions by Experts No exhibitions or sales. Innovative structure Limited seats – 100 ($300 Early Bird 275) Contemporary topics and trends 95% wanted to come back next year.Streams Focus on Effective Developing Leveraging Synthesis & Performance Learning our profession Technology IntegrationLeads Michael Eichler. Bob Spence Nicola Atkinson Rob Wilkins Peter Davis Jeevan Joshi Head of Learning Thought Leader Head of Learning Head - Learning Learning Cafe IAG Group Ashurst Aussie Home Loans
Webinar RegistrationsPanel ANZ Australian Unity Blended CBA CBH Group Dept of Family & Comm Services E&Y IAG ING Direct PWC SAI Global Vijay Kashyap Siemens Starwood Hotels Paul Vorbach David Le Page Sydney Adventist Director HR Director Suncorp Asia Pac TP3 Thought Leader Vinculum GroupAcademyGlobal UTS Campari Westpac * More Helping out Jeevan Joshi Robin Pettard Chat with Your Background the panel questions
Learning Evaluation Model Roger Kaufman JJ Phillips Impact on Kirkpatricks four levels external ROI clients and Result society Behaviour LearningReaction Scope of our discussion
Calculating ROI and cost of measurement • Example • Benefits per program (1st year) $120,00 • Costs per program (25 participants) $ 40,000 ROI $ 120,000 (Benefits) – 40,000 (Costs) ---------------------------------------------------- = 200% $ 40,000 (Costs)
How are you measuringdirect impact of learningon the bottom line ?On the flip side are youquantifying the adverseimpact of lack ofadequate training ?
Case Study – Professional ServicesSituation Linking to Bottom LineChallenge of balancing • More expensive to deploy but theprofessional development improved billable utilisation meantbillable utilisation. higher profit. • Intangible benefits provided through networking opportunities andSolution improved employee morale. • Program also offered during thePromote an opt-in program for week. Most opted for the weekendprofessional development run option.on weekend in a “nice” • More requested by the businesslocation. due to business benefits
Case Study – Professional ServicesSituationA major technologydeployment had virtualdevelopment teams operating Linking to Bottom Lineacross five geographicallocations. • Program / Project Management capability is critical forProject delivery and delivering and profitabilityprofitability negativelyimpacted due to lack of team • Led to improved team workingcohesion and improved delivery of the project.SolutionA team working program wasdelivered for a half day ineach location.
What process do you follow toidentify and implement measuresthat are acceptable to seniormanagers and stakeholders?Do they value the metrics or is it areport that does not garner muchattention ?
Widely used Metrics for Training and Learning Days Invested in Overall Training - No. of overall training days per year/per staff (aggregate or segmented by function/level/location/gender) Days Invested in Competency-based Training No. of days in competency-based training per year/per staff member (agg. or by seg.) Participation rate in Training % of total staff in overall (or competency-based) training per year (agg. or by seg.) $ Investment Per Staff Learning & development spend per staff member (agg. or by seg.) Payback period in months = $ costs / monthly benefits Return on Investment (%) = $ benefits/ $ costs x 100 Discounted pay back period (adjusts benefits for inflation) Discount Cash Flow/ Net Present Value (adjusts benefits for inflation & riskiness)
Process Involved in Developing Metrics Understand key Devolve work force metrics (including L&D deliverables of measures) from business goals and the business operational measures 1. Business Goal to increase sales by 10% through cross selling & bundling of products 2. Operational requirement is sales skills training to develop sales force competency 3. Tactical L&D metric % of sales staff are up-skilled by month end 4. Calculate Payback in months - $ costs / monthly increase in $ gross profit 5. Calculate ROI (%) – % increase in $ gross profit/$ costs x 100 www.academyglobal.com
Do you use “out of the box”approaches for the measurementand communication if you areunable to find suitable metrics ?Do you have different treatmentfor measuring compliance andnon compliance learning ? Whatabout Informal Learning ?
Do you use the balancedscore card approach or doyou tend to focus on the hardand quantifiable measures towin credibility ?
Measuring Benefits – Case Study • 13 days assignmentOperational Benefits Strategic Benefits • Findings presented toCost reduction Cost reduction the boardProductivity Improvement Productivity Improvement OrganisationalManagerial Benefits Benefits Changes employeeBetter Performance Control behaviours with shifted focus IT Infrastructure Stakeholder Benefits Benefits
L&D Performance MeasurementOpportunities Challenges• Develop stronger business • Deciding upon the most critical cases to secure, maintain measures (“vital few versus trivial resource allocation to L&D many”)• To demonstrate L&D activity as • The financial literacy of L&D synchronised to operations and overall organisation goals • Proving links between the training intervention/s and the operating and• Better secure significant business outcomes investment in new HRM • “how confident am I that the initiatives through CAPEX increase in sales was due to training as opposed to advertising/promotional activity”
Which direction are weheading in trying to measurethe impact of learning on thebottom line and businessresults ?
Learning Café Point of View• Learning needs to be accountable not only If you don’t define to learners but also to the organisation. your own accountability• Impact of learning on bottom line can be someone else will. quantified. It is a myth that it cannot be done robustly or consistently.• Learning professionals need to improve Financial financial and business literacy. Capital Market Human Value Intellectual Capital Capital• Explore other models of measuring such Structural Capital as Intellectual Capital Approach and granulate your approach for different types of learning.
Linking to Bottom Line Complex, Direct to Bottom Line High Learning for Relatively Stabl Strategic Immediate Good Shelf Life Priorities Value = Increasing profit or Complex, Supporting Bottom Line competitive Immediate Changing, position.in Leadership Limited Shelf Life short and mid Value term Base Line Compliance Simpler Low ChangingEnterprise Short Shelf Life Learning Low complexity of HighFoundation measurement Learning Café Model for measuring impact of learning
www.learningcafe.com.au http://bit.ly/lcafedec12 Looking back at 2012. What isblogs coming in 2013 6 Dec, Thurs 12 pm ESTfree resourcesWebinar recording, ebooks, L&D frameworkslearning conversationsworkshops learningcafemagBuilding Effective Employee Social NetworksUnConference 2013 http://bit.ly/lcafefbSydney Melbourne