A CLO comes to a learning director and quotes Lord Kelvin, “I can’t improve it, if I can’t measure it.” We need a measurement strategy. (BTW, Lord Kelvin developed the principle of absolute zero.) CLO continues, “Don’t tell me it will be a cold day in Hell before we get a measurement strategy.”The director goes to his top learning manager. We need a measurement strategy. I don’t want to leave you out in the cold on this one alone, so use all the resources on your team.Learning Manager goes to her team and says, “It’s a very cold winter day outside. Unless we develop a measurement strategy, we going to be out in it looking for a new job.”
Discuss Pros/Cons of each
Business Impact: The Long-Term Value of Metrics That Matter
Business Impact The Long-Term Value of Using Metrics That Matter® KnowledgeAdvisors 17th March 2011
Showing Business Impact High Requires actual resultsInvestment data and advanced analysis techniques Typically Actual Causal Results Modeling employs Correlations surveys Business Impact Templates Advanced Business Human Results Capital Evaluation Approach Determine the Smart appropriate analysis, Sheets then select method LowInvestment Simple Complex
Initial Sample: Telecom CompanyWe examined the metrics for one company first to see if our hypothesis seemed tenable. Here are our results.
Initial Sample: Telecom CompanyEach year large numbers of evaluations were collected.
Initial Sample: Telecom CompanyWe computed the performance increase as a percentage: (2010 value – 2006 value) / (2006 value)
Initial Sample: Telecom CompanySome data were not collected every year, but the trend upward was evident even with only three years of data.
Initial Sample: Telecom CompanyThe combination of all metrics provides a good summary measure. Despite the variability across the four metrics, the average performance still improved 14.9%.
Initial Sample: SummaryWhen all 5 metrics are graphed, it is clear that performance rises over time.The number of evaluations is also overwhelmingly large lending undeniable reliability to the results. The average increase is also substantial.
Case Study vs. Trend The Telecom company is only one example. Does the hypothesis hold true for other companies or is the telecom example an anomaly?
Companies with 5 Years of DataFour organizations contributed 5 years of data: Two insurance companies, a hospital and a telecom company
Companies with 6 Years of DataSix organizations contributed 6 years of data: An office solutions company, an Army Base, a government defense agency, a pharmaceutical company, a US-based accounting firm, and a UK-based accounting firm
Conclusion Measurement leads to performance improvement for L&D departments The size of the improvement ranges from 3 – 5% on average but can be as large as 14.9% Revisit Lauri Bassi’s work—investments in HC lead to business improvement—outpacing the S&P 500 by 17% MTM helps make learning organizations more effective through measurement.