Presentation to The BILD Connect Event 14th January 2009

1. Organisational contribution of Learning & Development BILD Connect Workshop 14 th January 2009 David Vachell MA, FBILD

2. In many organisations, learning is not seen as a key driver for success What they want... What we do... What they do...

3. Learning & Development is one of the most significantly leveraged investments any organisation can make

4. We have a sound process and some ideas about how to evaluate learning and development programmes

5. But L&D professionals are still struggling to be taken seriously by business leaders Board Room

7. WHAT ARE THE GOVERNING FACTORS DRIVING INVESTMENT CHOICES IN ORGANISATIONS?

8. L&D is in competition for investment.... ...and it’s not a level playing field Investment in L&D Investment in other things Perceived Value of L&D Perceived Value of Other things + - + - + +

9. This system creates a “feast & famine” cycle Investment Time “ Our people are our greatest asset” “ L&D spend is not getting results” “ We need to do something to train these people”

10. Three broad stakeholder groups – each have different perceptions of value Value criteria Will it contribute to our strategy? Will it help achieve my team objectives? Will it develop me and my earning potential? Horizon Multiple years < 1 Year Depends... Control (investment) Money Time Commitment

11. So what is on the mind of your executive stakeholders?

12. HOW CAN WE BUILD A STRATEGIC BUSINESS CASE FOR L&D?

16. Work out the projected ROI for all proposed programmes and order by BCR/ROI

17. The graph can be used to make tough decisions on programme prioritisation Target BCR Budget

18. Worked example Programme Fixed cost Per participant cost Per participant benefit No of participants Total participant cost Total cost Total benefit BCR ROI Cumulative Cost Cumulative Benefit A 35,000 50 150 2,500 B 2,000 500 1,000 400 C 10,000 1,000 2,000 100 E 5,000 1,000 2,000 20 D 5,000 1,500 2,000 150

19. You should end up with a table like this.... Programme Fixed cost Per participant cost Per participant benefit No of participants Total participant cost Total cost Total benefit BCR ROI Cumulative Cost Cumulative Benefit A 35,000 50 150 2,500 125,000 160,000 375,000 2.34 134% 160,000 375,000 B 2,000 500 1,000 400 200,000 202,000 400,000 1.98 98% 362,000 775,000 C 10,000 1,000 2,000 100 100,000 110,000 200,000 1.82 82% 472,000 975,000 E 5,000 1,000 2,000 20 20,000 25,000 40,000 1.60 60% 497,000 1,015,000 D 5,000 1,500 2,000 150 225,000 230,000 300,000 1.30 30% 727,000 1,315,000

20. This information can be used to communicate strategic decisions about programmes Programme Fixed cost ROI Cumulative Cost Cumulative Benefit A 35,000 134% 160,000 375,000 B 2,000 98% 362,000 775,000 C 10,000 82% 472,000 975,000 E 5,000 60% 497,000 1,015,000 D 5,000 30% 727,000 1,315,000 Total 57,000

21. IT IS ESSENTIAL TO COMMUNICATE PERFORMANCE AGAINST PLAN

22. There is frequently a significant time lag between action and visible response Average size of opportunity in sales reps pipeline compared to average overall 0% 50% 100% 150% 200% Wave Start Start+6 Start+12

24. Participant judgement can be used to predict impact across the system and accelerate reporting cycles J K L Good use of my time Good investment by company Relevant to my role

25. Create dashboards that can be readily accessed by all stakeholders

26. Using this three stage approach could change the way that people development is viewed in organisations Use participant estimates to create timely impact assessments Use ROI practice to project impact results and prioritize projects Evaluate Programmes to create reliable and credible impact statements