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Roioflearninglyndacom 150422124107-conversion-gate02

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Roioflearninglyndacom 150422124107-conversion-gate02

  1. 1. 1
  2. 2. 2 Demonstrating the ROI of Learning Welcome + Introduction April 22, 2015 bsmith@lynda.com webinars@lynda.com Brian Smith Director of Enterprise Marketing
  3. 3. 3 A Robust Online Training Library Content in Business Leadership, Management, Productivity, Software, Communication, Career Development, and more. 3,400+ courses Avg. 20 courses released per week 10,000+ hours of learning Avg. 5 hours released per day 138,000+ videos Avg. 750 released per week Demonstrating the ROI of Learning
  4. 4. 4 Britt Andreatta Leadership consultant since 1989 PhD in Education, Leadership + Organizations Professor and Dean at UC Santa Barbara and Antioch University, teaching leadership and success skills lynda.com Member > Author > Director of Learning + Development Please view my seven courses on lynda.com Demonstrating the ROI of Learning
  5. 5. 5 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  6. 6. 6 Sources Demonstrating the ROI of Learning
  7. 7. 7 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  8. 8. 8 History Peter Drucker “If you can’t measure it, you can’t manage it.” Demonstrating the ROI of Learning
  9. 9. 9 Donald Kirkpatrick Demonstrating the ROI of Learning Four levels of evaluation
  10. 10. 10 Donald Kirkpatrick Demonstrating the ROI of Learning Results Behavior Transfer Reaction
  11. 11. 11 Jack Phillips Demonstrating the ROI of Learning The Father of ROI
  12. 12. 12 ROI Demonstrating the ROI of Learning Did the learners like the program? Did the learners learn the content? Did the learners deploy the learning on the job? Did the learning impact business results? Did the learning investment payoff? Jack Phillips ROI Impact Implementation Learning Reaction/Satisfaction
  13. 13. 13 The Math Benefit-cost Ratio (BCR) Return on Investment (ROI) Time to payback Works with any currency $ ¥ ₹ €, etc. Demonstrating the ROI of Learning
  14. 14. 14 Benefit-cost Ratio (BCR) BCR = Program Benefits Program Costs Economic indicator of accountability for results. The benefit (return) of an investment is compared to the cost; expressed as a ratio. Demonstrating the ROI of Learning (x:y)
  15. 15. 15 BCR Example $35,000 $20,000 It cost $20,000 to implement new learning program. The learning resulted in $35,000 savings. BCR = = 1.75 1.75:1 Demonstrating the ROI of Learning For every $1 spent, you received $1.75 in total benefit.
  16. 16. 16 Return on Investment (ROI) ROI = (Program Benefit Minus Program Costs) Program Costs Economic indicator of accountability for results. The benefit (return) of an investment is divided by the cost; expressed as percentage. X 100 Demonstrating the ROI of Learning %
  17. 17. 17 ROI Example ROI = ¥35,000-¥20,000 ¥20,000 It cost ¥20,000 to implement new learning program. The learning resulted in ¥35,000 savings. X 100 = .75 75% Demonstrating the ROI of Learning For every ¥1 spent, you received ¥.75 in net benefit.
  18. 18. 18 Time to Payoff Payback = Program Costs Program Benefits Economic indicator of accountability for results. Estimated time in which a program will break even (time after that is added benefit); expressed in time. X time unit Demonstrating the ROI of Learning Time
  19. 19. 19 Payoff Example Payback = ₹20,000 ₹35,000 It cost ₹20,000 to implement new learning program. The learning resulted in ₹35,000 savings. = .57 6.84 months Demonstrating the ROI of Learning The program would pay for itself in 6.84 months. x 12 = 6.84
  20. 20. 20 Overwhelmed? You only need to build a compelling case for your context. Demonstrating the ROI of Learning
  21. 21. 21 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  22. 22. 22 Reality Check Is HR/L+D seen as a trusted and valued business partner? Do you have an established record of success? Are you empowered to take intelligent risks and make decisions? Are you justifying an upcoming purchase or evaluating one you have already implemented? Demonstrating the ROI of Learning
  23. 23. 23 Plenty of Options Cost Output Time Quality Energy Demonstrating the ROI of Learning
  24. 24. 24 Hard Data Demonstrating the ROI of Learning Cost Output Time Quality Energy Unit costs Overhead costs Operating costs Variances Insurance/legal Penalties/fines Accident costs Sales expense Units produced Tons manufactured Items assembled Reports processes Students graduated Grants awarded Tasks completed Accounts signed Cycle time Response time Downtime Overtime Processing time Supervisory time Work stoppages Errors Waste Rework Rejects Defects Shortages Failures Accidents Water Fossil fuels Food Minerals Land Trees Pollution Waste
  25. 25. 25 Plenty of Options Cost Output Time Quality Energy Demonstrating the ROI of Learning Service Creativity Development Culture
  26. 26. 26 Soft Data Demonstrating the ROI of Learning Customer Service Creativity Development Culture Impression Service Loyalty Retention Complaints Returns New ideas Innovation Risk taking Suggestions Collaboration Partnership Alliances Job effectiveness Capability Performance Potential Promotions Requests for transfer Turnover Complaints Grievances Absenteeism Tardiness Engagement Job satisfaction Loyalty
  27. 27. 27 Case Study Demonstrating the ROI of Learning “lynda.com access means there is a constant learning resource for employees. Sometimes it only takes two minutes to improve their knowledge, rather than a full day in a classroom to achieve the same outcome.” BENEFITS • Complements live training • Lets employees quickly find answers to questions • Provides detailed reports that inform future training initiatives ABOUT DENTSU AEGIS Denstu Aegis Network helps clients build relationships with consumers through content creation, digital creative execution, market analysis, and much more. 23,000 employees in 110 countries on 5 continents
  28. 28. 28 Case Study Demonstrating the ROI of Learning “I honestly think this hands-on learning is the best way to learn software. I’m glad UCLA provides lynda.com to all students. I think the more software we know, the more it prepares us for the job market once we graduate.” BENEFITS • Supports students in any major • Provides tools training outside of class • Encourages staff and faculty professional development ABOUT UCLA Founded in 1919, UCLA offers 125 undergraduate and graduate degrees in business, engineering, medicine and more. 35,000 students + 31,000 full- and part-time faculty and administrative staff.
  29. 29. 29 Case Study Demonstrating the ROI of Learning “If we’re struggling to learn something, or if we’re frustrated trying to get something to work, someone will see if a lynda.com course exists. With such a large amount of content at an affordable price, lynda.com was by far our best bet.” BENEFITS • Provides convenient on-demand solution • Offers cost-effective and current training • Teaches wide range of software, creative, and business skills • Helps employees learn at their own level and pace ABOUT EPA Established in 1970, the EPA enforces federal health and environmental laws so that all Americans are safe where they live, learn and work. 17,000 employees located in 10 regional offices across US
  30. 30. 30 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  31. 31. 31 Business Cents > Business Sense What problem are you solving? How can progress be measured? Who are the stakeholders? Who has what expectations? Demonstrating the ROI of Learning
  32. 32. 32 ROI vs. ROE Demonstrating the ROI of Learning Investment Expectation Justification Estimate cost and benefit of investment Align your design, and estimate cost and benefit Evaluation Isolate the effect of investment and calculate its value Demonstrate extent that expectations were met and calculate the value
  33. 33. 33 Measuring Success Identify metrics that matter Use data you can get Increasing vs. Decreasing Activity vs. Results Learning vs. Performance Demonstrating the ROI of Learning
  34. 34. 34 Demonstrating the ROI of Learning
  35. 35. 35 Demonstrating the ROI of Learning
  36. 36. 36 Increasing X vs. Decreasing Y Demonstrating the ROI of Learning From A To B by when Time From A Time To B by when Increase productivity or decrease inefficiency? Increase retention or decrease attrition? Increase revenue or decrease waste?
  37. 37. 37 Activity vs. Results Lead and Lag Measures Demonstrating the ROI of Learning
  38. 38. 38 Demonstrating the ROI of Learning Lead vs. Lag Measures Lead Measure (activity) Lag Measure (results) measures goal predictive of goal + influenceable lose weight/sizediet + exercise doing this… gets that = LEVERAGE
  39. 39. 39 Demonstrating the ROI of Learning Examples Lag Measure (results) reduce equipment failure reduce safety incidents increase accuracy/efficiency reduce churn increase retention of talent Lead Measure (activity) routine maintenance compliance with safety regs time spent practicing touchpoints with clients coaching provided
  40. 40. 40 Demonstrating the ROI of Learning Implement Manager Training Lag Measure (results) Increase retention of talent Decrease complaints to HR Lead Measure (activity) Regular one-on-ones Provide coaching Give autonomy Support growth Build cohesive teams
  41. 41. 41 Demonstrating the ROI of Learning Reaction Objectives Learning Objectives Implementation Objectives Business Impact • Perceive program to be relevant to the job • Perceive program to be relevant to job performance • Perceive program to be value added • Rate the program as effective • Would recommend to others • Understand the value of engagement and their influence • Use skills and clarity coaching to develop employees • Cultivate team cohesion and collaboration • Improve personal effectiveness Complete action plan Show improvements in: • coaching skills • team management • personal effectiveness Identify barriers and enablers to application of knowledge/skills acquired • Increased retention • Increased productivity • Reduced complaints to HR • Reduced absenteeism ROI Impact Implementation Learning Reaction/Satisfaction
  42. 42. 42 Learning + Performance Outcome Demonstrating the ROI of Learning Reaction Objectives Learning Objectives Implementation Objectives Business Impact • Perceive program to be relevant to the job • Perceive program to be relevant to job performance • Perceive program to be value added • Rate the program as effective • Would recommend to others • Understand the value of engagement and their influence on it • Use skills and clarity coaching to develop employees • Cultivate team cohesion and collaboration • Improve personal effectiveness Complete action plan Show improvements in: • coaching skills • team management • personal effectiveness Identify barriers and enablers to application of knowledge/skills acquired • Increased retention • Increased productivity • Reduced complaints to HR • Reduced absenteeism
  43. 43. 43 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  44. 44. 44 Training + Learning Demonstrating the ROI of Learning training learning Not to scale!
  45. 45. 45 Demonstrating the ROI of Learning Training < ----------- ---------- > Learning Specific event or activity Anywhere, any time Designed from organization’s perspective Designed from learner’s perspective Develop new skills, so can carry out specific behavior/process on own (prescriptive) Absorb and retain information to be used in non-specific, unexpected future use (creative) Given to; Organization tells/teaches/directs employee Engaged with; Organization partners with learner to grow, develop, adapt May have goal for compliance and/or risk reduction Goal is to enhance potential and performance of employee in ways that are meaningful Employee can perceive content to be irrelevant or boring, so may be disengaged and unmotivated to pursue further learning Employee perceives content as immediately useful and helpful, so active participant and motivated to pursue further learning
  46. 46. 46 Benefits of Learning Demonstrating the ROI of Learning Active participation Authentic motivation Ongoing improvement Employee engagement Retention of talent
  47. 47. 47 Motivation Demonstrating the ROI of Learning Autonomy opportunities to be self directed Mastery opportunities to learn and grow Purpose contribute to something meaningful
  48. 48. 48 Continued Improvement Growth mindset Dr. Carol Dweck
  49. 49. 49 Demonstrating the ROI of Learning Growth Mindset leads to a desire to learn, so tends to: Believe that skills can always improve with hard work See effort as a path to mastery and therefore essential Embrace challenges and see them as opportunity to grow See feedback as useful for learning and improving Views setbacks as a wake-up call to work harder next time Find lessons and inspiration in the success of others As a result, they reach ever-higher levels of potential and performance. Fixed Mindset leads to a desire to look good, so tends to: Believe that most skills are based on traits that are fixed and cannot change See effort as unnecessary; something to do when you’re not good enough Avoid challenges because could reveal lack of skill; tends to give up easily See feedback as personally threatening to sense of self and gets defensive View setbacks as discouraging; tends to blame others Feel threatened by the success of others; may undermine others in effort to look good As a result, they may plateau early and achieve less than their full potential.
  50. 50. 50 Engagement How much people are emotionally connected and committed to their organizations, and their willingness to go above and beyond the expectations of their jobs. Demonstrating the ROI of Learning
  51. 51. 51 Measuring Engagement Demonstrating the ROI of Learning 1. I am proud to work for this company. 2. This company motivates me to go beyond what I would in a similar role elsewhere. 3. I see myself still working here in 3 years. 4. I would recommend this company as a great place to work. 5. I rarely think about looking for a job at another organization.
  52. 52. 52
  53. 53. 53 In the US Around the World Demonstrating the ROI of Learning % of US Workers Engaged 30% Not engaged 52% Actively disengaged 18%
  54. 54. 54 Demonstrating the ROI of Learning
  55. 55. 55 The Power of Engagement Demonstrating the ROI of Learning A disengaged employee costs an organization approximately $3,400 for every $10,000 of salary (Gallup). Engaged employees are 127% more likely to be A performers than C performers (McLean & Company). Highly engaged organizations have the potential to decrease employee turnover by 87% (Human Capital Institute).
  56. 56. 56 Demonstrating the ROI of Learning From “Making the Case for Employee Engagement”
  57. 57. 57 L+D is a key driver of employee engagement Demonstrating the ROI of Learning
  58. 58. 58 The Role of L+D Demonstrating the ROI of Learning Have data that show how L+D is directly related to: increases in overall employee engagement increases in employee identification with organization’s values increase in positive organization culture
  59. 59. 59 Retaining Top Talent Demonstrating the ROI of Learning Cost to replace an employee is 50% to 250% of annual salary+benefits! SHRM’s “Cost of Turnover” Worksheet • Lost productivity (position + others) • Offboarding • Recruiting > hiring > training • Time to previous employee’s performance
  60. 60. 60 ROI Calculator Demonstrating the ROI of Learning
  61. 61. 61 How to Maximize the Benefits of Learning Demonstrating the ROI of Learning
  62. 62. 62 Cultivate Potential Demonstrating the ROI of Learning Having the capacity to become or develop into something in the future. Unrealized ability. Performance = Potential + Support
  63. 63. 63 Put Learners First Demonstrating the ROI of Learning What is their context? What would make their work life immediately better or easier? Design to solve their problems and maximize their potential.
  64. 64. 64 Be a Learning Guide Demonstrating the ROI of Learning They will help you show ROI.
  65. 65. 65 Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning
  66. 66. 66 ROI Methodology Demonstrating the ROI of Learning Five Levels of Evaluation V Model for Business Alignment Process Model to Analyze Impact Data Collection
  67. 67. 67 Jack Phillips ROI Demonstrating the ROI of Learning ROI Impact Implementation Learning Reaction/Satisfaction Did the learners like the program? Did the learners learn the content? Did the learners deploy the learning on the job? Did the learning impact business results? Did the learning investment payoff?
  68. 68. 68 Demonstrating the ROI of Learning V Model
  69. 69. 69 The ROI Process Methodology Demonstrating the ROI of Learning
  70. 70. 70 Demonstrating the ROI of Learning
  71. 71. 71 Data Options Demonstrating the ROI of Learning Hard/soft data Surveys/questionnaires Tests Observation Interviews Focus groups Performance Records
  72. 72. 72 Demonstrating the ROI of Learning
  73. 73. 73 Isolating Effect of Program Pre-test, post-test Control group Trend analysis Use of expert studies/data Estimation of impact by: • Participants • Supervisors • Leadership Demonstrating the ROI of Learning
  74. 74. 74 Demonstrating the ROI of Learning Learn More About ROI
  75. 75. 75 Learn More About Learning at lynda.com Instructional Design Essentials series: ❯ The Neuroscience of Learning with Britt Andreatta ❯ Flipping the Classroom with Aaron Quigley ❯ Models of Instructional Design with Shea Hanson ❯ Needs Analysis with Jeff Toister Running a Profitable Business with Jim Stice Finance Fundamentals with Jim and Kay Stice Demonstrating the ROI of Learning
  76. 76. 76 Demonstrating the ROI of Learning
  77. 77. 77 Demonstrating the ROI of Learning
  78. 78. 78 Questions + Answers Demonstrating the ROI of Learning BrittAndreatta.comlynda.com

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