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L+D ROI

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L+D ROI

  1. 1. Strengthening your position as a people oriented employer through learning and development <ul><li>Queensland Building Services Authority (BSA) </li></ul>
  2. 2. Nature of Queensland Building Services Authority <ul><li>plays crucial role in the residential building and construction industry in Queensland </li></ul><ul><li>provides remedies for defective work, support, education and advice for both community and industry stakeholders </li></ul><ul><li>led significant changes in the regulation of the building industry both in Queensland and Australia over the past 3 years </li></ul>
  3. 3. People and Location <ul><li>230 employees </li></ul><ul><li>Head Office – South Brisbane </li></ul><ul><li>7 Regional Offices </li></ul><ul><li>Learning and Development function located in Human Resource Services team located in Head Office. </li></ul>
  4. 4. Stimulus for Change <ul><li>Out of fit being reactive </li></ul><ul><li>Industry driven </li></ul><ul><li>Divided leadership team </li></ul>
  5. 5. Engaging community + building industry <ul><li>Platform for change underpinned by systems theory approach </li></ul><ul><ul><li>Commitment to total quality management </li></ul></ul><ul><ul><li>Customer value </li></ul></ul><ul><ul><li>Leadership </li></ul></ul><ul><li>Solution = Integrated Systems Framework (ISF) 2002 </li></ul><ul><ul><li>Score card approach (Kaplan and Norton, 1992) 2004 </li></ul></ul>
  6. 7. Integrated Systems Framework BUSINESS APPROACH Corporate Direction Executive Quality Philosophy Drive Customer Value Framework Guided Self Assessment People Quality Council Well directed learning and development Improvement Teams Customer Satisfaction Quality Assurance Certification Team Approach
  7. 8. Integrated Systems Framework <ul><li>Philosophy of a Smart State workforce </li></ul><ul><li>Platform for learning delivery - Learning and Development Initiative (LDI). </li></ul><ul><li>Aligned to supporting individual and organisational performance </li></ul><ul><li>Learning seen as ‘silent’ driver for change </li></ul><ul><li>Strengthen our position as a people-oriented employer </li></ul>
  8. 9. Learning and Development Initiative <ul><li>Leadership </li></ul><ul><ul><li>(Building Organisational Capability) </li></ul></ul><ul><li>Relationship Management </li></ul><ul><ul><li>(Improving and Responding to Current and Future </li></ul></ul><ul><ul><li>Relationships) </li></ul></ul><ul><li>People Development </li></ul><ul><ul><li>(Developing, Valuing and Involving Staff) </li></ul></ul>
  9. 10. Stimulus for Change
  10. 11. Benchmarking <ul><li>Kirkpatrick’s Model was utilised as platform to define parameters at 3 </li></ul><ul><li>distinct levels – </li></ul><ul><li>  </li></ul><ul><li>Benchmarking   </li></ul><ul><li>Research </li></ul><ul><ul><li>evidence based research at Princess Alexandra Hospital, Brisbane </li></ul></ul><ul><ul><li>Jack Phillips and Ron Stone model focusing on Return on Investment strategies at Level 5 evaluation </li></ul></ul><ul><li>Completion of Masters level studies in the area of organisational development and training </li></ul>
  11. 13. <ul><li>To measure the success of this lifelong learning and its impact on stakeholders’ satisfaction in the community and building industry, a research based evaluation model has been developed with strategic links to business outcomes. </li></ul>
  12. 14. Achieving a ROI Model <ul><li>Kirkpatrick’s Four Level Evaluation Model </li></ul><ul><li>Extrapolated to a fifth level - Phillips and Stone </li></ul><ul><li>Consistent valid methodology - identified and developed performance indicators reflecting BSA commitment to community and industry stakeholders </li></ul><ul><li>Clear demonstration of impact on business outcomes - customer satisfaction. </li></ul>
  13. 15. 4 <ul><li>ROI model </li></ul><ul><ul><li>Research based </li></ul></ul><ul><ul><li>Masters </li></ul></ul><ul><ul><li>Kirkpatrick Model </li></ul></ul><ul><ul><li>Extrapolated to work Phillips and Stone </li></ul></ul>
  14. 16. Levels of Evaluation 20% 0-20% Level 5 Return on Investment Phillips and Stone 20% 0-20% Level 4 Business Impact 50% 40-70% Level 3 Job Applications 75% 75-90% Level 2 Learning 100% 100% Level 1 Reaction and Planned Action Kirkpatrick BSA Model Research Model Percentage of Programs Evaluated Levels of Evaluation
  15. 17. Data Collection Methodology <ul><li>Level 1 Course Evaluation </li></ul><ul><li>Emphasis on relevancy of knowledge and skills transference back to the workplace. </li></ul><ul><li>Level 2 Pre and Post Assessment Analysis </li></ul><ul><li>Changed attitudes, improved knowledge and increased skill </li></ul><ul><li>Level 3 Transfer of Learning </li></ul><ul><li>Change in behaviour - testing the participants’ capabilities to perform the learned skills back in the workplace </li></ul>
  16. 19. Developing the ROI Formula Adapted from: Phillips, J. J., Stone, R. D., Phillips, P. P. (2001) The Human Resources Scorecard: Measuring the Return on Investment . Boston, MA: Butterworth-Heinemann Develop Evaluation Plans and Baseline Data Stage 1 Evaluation Planning Stage 2 Data Collection Collect Data During Solution Implementation Collect Data After Solution Implementation Develop Objectives Of Solution Level 1 Level 2 Level 3 Level 4
  17. 20. Tabulate Costs Of Solution Isolate the Effects of Solution Convert Data to Monetary Value Calculate the Return On Investment Implement Communication Process Stage 3 Data Analysis Identify Intangibles Stage 4 Communicate Results Level 5 Intangible Benefits
  18. 21. Data Collection Methodology <ul><li>Level 4 and Level 5 Evaluation </li></ul><ul><li>Business impact - building relationships the community and industry stakeholders </li></ul><ul><li>Tracking improvements in strategic courses such leadership development program and Creating Business Relationship program </li></ul>
  19. 22. Developing the ROI Formula <ul><li>ROI formula developed form the planned evaluation framework </li></ul><ul><li>- strategies based upon research by Phillip and Stone </li></ul><ul><li>Stage 1 </li></ul><ul><li>Determining the current market return on cash </li></ul><ul><li>invested </li></ul><ul><li>Stage 2 </li></ul><ul><li>Identifying organisational factors impacting on the learning </li></ul><ul><li>outcomes </li></ul><ul><li>Stage 3 </li></ul><ul><li>Outcome and Baseline Data Questionnaire developed . </li></ul>
  20. 23. LDI scorecards include seven categories of data. <ul><li>Indicators </li></ul><ul><li>Reaction and Planned Action </li></ul><ul><li>Learning </li></ul><ul><li>Application </li></ul><ul><li>Business Impact </li></ul><ul><li>ROI </li></ul><ul><li>Intangibles </li></ul>
  21. 24. LDI scorecards Level 1. Reaction & Planned Action 2. Learning 3. Application 4. Impact 5. Return on Investment Measurement Focus Measures participant satisfaction with the program and captures planned actions Measures changes in knowledge, skills, and attitudes Measures changes in on-the-job behavior Measures changes in business measures Compares program benefits to the costs Economic System Individual
  22. 25. Current Results <ul><li>Solid evidence of change </li></ul><ul><li>Number of scientific requirements satisfied - credible </li></ul><ul><li>Significant correlation - learning when expertly designed and delivered reflected in positive business outcomes </li></ul><ul><li>estimated ROI results obtained varies </li></ul><ul><li>Example - Mediation Skills Program - 2 years - generated significant financial returns of $1.89 million </li></ul>
  23. 26. The Future <ul><li>ROI – sixth level – measure intangibles </li></ul><ul><li>ROI – Team Building Interventions </li></ul><ul><li>Validating model through further research </li></ul>

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