Unleashing the Power of Analytics: Driving Performance at the Intersection of Learning and Business

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Unleashing the Power of Analytics: Driving
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Frequently
Asked
Ques0ons

Driving Performance at the Intersection of
Learning and Business
Unleashing the Power of
Analytics:

Presenters
Tracy Cox
Director, Performance
Consulting,
Raytheon Professional Services
Sarah Kimmel,
VP of Research,
Chief Learning Officer
magazine

Seize the Moment
n  Evolution/challenges of Learning Analytics
– Analytics has a lot of “buzz” right now in business but what is it really?
– In many organizations L&D continues to struggle to have a seat at the
table. But some organizations are ahead of the game here. What are
they doing differently?
– It’s not just about making the business case for learning anymore- in
some organizations, analytics has made it possible to problem solve,
choose between learning investments, and maximize the impact of
L&D. Analytics presents the opportunity to not just prove the value of
learning to the business, but substantially contribute to creating
business value.

Research Methodology
n  N=467
n  Org size:
– Small (less than 1,000) 48%
– Mid-sized (1,000-5,000) 16%
– Large (more than 5,000) 36%
n  Workforce distribution:
–  28% are domestic organizations located in one region
–  28% are domestic organizations with several regional locations.
–  12% are multinational organizations
–  32% are global organizations
n  65% are CLOs and senior HR and Learning Executives or
C-suite. An additional 16% are business unit, learning and
HR managers.
n  Research conducted by survey in August 2015 to CLO
subscribers.

WHAT IS LEARNING
ANALYTICS?

Learning Analytics Definition
n  Definition: Aristotle or Plato?
n  Learning analytics is a data-driven approach used to optimize how
organizations manage and deploy learning and development that
supports execution of their business strategy. Examples may include:
–  Analyzing Learning Management System (LMS) data to identify gaps, trends or
patterns over time.
–  Using HR/Talent Management data analytics to investigate the relationship
between employee learning, job performance, business outcome, and financial
impact.
–  Using data analytics to identify the gaps in the current L&D system and
prioritizing areas for improvement.
–  Comparing employee learning data or outcomes across different workforce
segments.
–  Measuring the effectiveness of L&D and the return on learning investments.
–  Predicting the impact of alternative learning practices by extrapolating from
historical data.

Half of all organizations are using HR and
business data in their learning analytics.
71%
54%
48%
11%
0% 20% 40% 60% 80%
Learning analytics (i.e. course and
curriculum completions, certification
level)
Performance analytics (i.e. business
KPIs [descriptive, diagnostics or
predictive])
HR or talent management analytics
(i.e. attrition, loyalty, education level)
None of the above
Sources of Data used by L&D

At present, analytics practices more
involved than internal reporting are rare
45%
18%
10%
7%
29%
25%
29%
14%
0% 20% 40% 60% 80%
Internal reports or analytics (e.g.,
hours of training completed,
satisfaction with training)
Workforce segmentation (e.g.,
learning data comparisons among
groups of employees by business
External benchmarking (e.g., data
comparisons of common metrics and
rankings)
Predictive modeling (e.g., using
statistical analysis to project the
outcome of various L&D actions)
Types of Analytics used by L&D
Often Sometimes

Organizations are the most likely to be using the kinds of
analytics that are less likely to produce effective action
23%
11%
8%
6%
44%
33%
32%
19%
34%
55%
60%
75%
0% 20% 40% 60% 80% 100%
Internal reports or analytics (e.g., hours
of training completed, satisfaction with
training)
Workforce segmentation (e.g., learning
data comparisons among groups of
employees by business unit, location,
function or job roles)
rankings)
Effective Action Taken on Analytics
Very Effective Somewhat effective Not effective
Relative
Success
Rate:
51%
61%
80%
86%

60%
59%
47%
45%
39%
30%
29%
22%
18%
34%
41%
37%
30%
32%
23%
24%
27%
31%
0% 10% 20% 30% 40% 50% 60% 70%
To discover and leverage factors that increase
productivity/business performance
To better equip employees with the skills/knowledge
they need to support the business
To make data-driven decisions on learning investments
To better inform learning and development efforts on
the key factors of employee performance
To support long-term learning strategy for the
organization
To problem solve for critical business issues related to
learning and development
To better inform decisions on succession planning and
leadership development
To mitigate legal and compliance risk
To provide ongoing reporting of learning trends to
leadership
Motivations and Use Cases
Top 3 Motivation Used in the past year
Strategic outcomes, not compliance are the
primary motivations for using analytics

DOES YOUR LEARNING ORGANIZATION PLAN TO INCREASE ITS
LEARNING ANALYTICS CAPABILITIES IN THE NEXT TWO YEARS?
YES
NO
Poll Question

Analytics capability and use of analytics
software will grow quickly in the next 2 years
80%
20%
8 in 10 Organizations
plan to increase their
learning analytics
capability over the next 2
years
Yes
No
17%
33%
50%
Half of all organizations
will be using learning
analytics software in the
next two years
Currently
Use
Yes
No

Lack of integration and skills in effectively
using analytics are the primary roadblocks
50%
48%
42%
36%
34%
25%
23%
22%
16%
14%
8%
0% 10% 20% 30% 40% 50% 60% 70%
Lack of analytics skills within the learning team
Lack of integration among various data systems
Lack of budget for analytics software/projects
Lack of management experience in effectively
using analytics data
Data not collected
Lack of buy-in from senior leadership about the
value
Difficulty explaining the results/data/value of
learning analytics
Difficulty getting consensus across the
organization on how to structure the data
Don’t know where to start
Difficulty hiring and retaining skilled and
experienced learning analysts
Concerns about data security
Roadblocks to increasing use of Analytics

HOW SUCCESSFUL HAVE YOU BEEN AT USING ANALYTICS
EFFECTIVELY IN YOUR L&D ORGANIZATION?
HIGHLY SUCCESSFUL
MODERATELY SUCCESSFUL
SLIGHTLY SUCCESSFUL
NOT AT ALL SUCCESSFUL
NOT APPLICABLE
Poll Question

How successful does L&D think it is at using
analytics?
8%
24%
34%
22%
12%
0% 10% 20% 30% 40%
Highly successful
Moderately successful
Slightly successful
Not at all successful
Not applicable
Top 32%:
Analytics
Vanguard

WHAT DOES IMPACTFUL
LEARNING ANALYTICS LOOK
LIKE?

Analytics Vanguard more likely to have an analytics
function, and more likely to have it attached to Corporate Strategy
47%
29%
17%
16%
7%
3%
0% 20% 40% 60%
Part of HR
Do not have
Part of Corporate
Strategy
Decentralized
Co-sourced
Outsourced
All Organizations
52%
5%
36%
21%
11%
6%
0% 20% 40% 60%
Part of HR
Do not have
Part of Corporate
Strategy
Decentralized
Co-sourced
Outsourced
Analytics Vanguard

Vanguard use more sources of data and more
business data for analytics
71%
54%
48%
11%
85%
72%
54%
3%
0% 20% 40% 60% 80% 100%
Learning analytics (i.e. course and
curriculum completions, certification
level)
Performance analytics (i.e. business
KPIs [descriptive, diagnostics or
predictive])
HR or talent management analytics
(i.e. attrition, loyalty, education level)
None of the above
Data Sources Used by L&D
All Organizations Analytics Vanguard

Vanguard significantly more likely to use more
analytics practices- and go past reporting
45%
18%
10%
7%
73%
41%
22%
16%
0% 20% 40% 60% 80%
rankings)
Types of Analytics used often by L&D
All organizations Analytics Vanguard

Vanguard organizations have an 18%
higher success rate with using internal reports
67%
45%
40%
25%
93%
75%
70%
51%
0% 20% 40% 60% 80% 100%
rankings)
Effective action taken on analytics
Relative
Success
Rate:
69%
72%
83%
100%

Vanguard use analytics for more purposes,
and use it to problem solve for L&D
41%
37%
34%
32%
31%
30%
27%
24%
23%
64%
57%
56%
53%
43%
52%
29%
35%
41%
0% 25% 50% 75%
To better equip employees with the skills/knowledge they
need to support the business
To make data-driven decisions on learning investments
To discover and leverage factors that increase productivity/
business performance
To support long-term learning strategy for the organization
To provide ongoing reporting of learning trends to
leadership
To better inform learning and development efforts on the
key factors of employee performance
To mitigate legal and compliance risk
To better inform decisions on succession planning and
leadership development
To problem solve for critical business issues related to
learning and development
Use Cases

Vanguard leaders at all levels are more
likely to request learning analytics data
45%
41%
42%
24%
25%
17%
11%
72%
69%
64%
45%
43%
34%
22%
0% 20% 40% 60% 80%
Divisional business
leaders
C-Suite/Senior
executives
Line managers
Business analysts
Finance leaders
Board of Directors
Legal advisors
Groups requesting learning analytics quarterly or
more

Vanguard organizations are more likely to
package results for easy consumption
53%
51%
35%
29%
22%
18%
10%
65%
61%
52%
32%
30%
25%
4%
0% 20% 40% 60% 80%
Written report
In-person presentation
Dashboard
Available by request or on intranet when
needed
Scheduled email communications (i.e.
monthly or quarterly email newsletter)
Custom reporting/consultation work due to
strategic nature
Results are not communicated to leadership
How analytics are communicated

Vanguard organizations are more likely to have
increased business value on the harder business metrics
50%
36%
41%
31%
36%
31%
18%
20%
11%
69%
55%
52%
50%
47%
45%
31%
30%
13%
0% 20% 40% 60% 80%
Increased skills/capabilities in the workforce
Increased productivity
Increased employee engagement
Increased quality of product/service
Increased credibility of the learning function
with business leaders
Increased efficiencies in business processes
Increased revenue
Increased employee retention
Decreased legal costs and compliance fees
Business Outcomes from Learning Analytics

Vanguard organizations are less likely to
experience roadblocks with skills and buy-in
50%
48%
42%
36%
34%
25%
23%
22%
16%
14%
8%
36%
45%
36%
25%
18%
12%
20%
20%
4%
18%
10%
0% 20% 40% 60%
Lack of analytics skills within the learning team
Lack of integration among various data systems
Lack of budget for analytics software/projects
Lack of management experience in effectively using
analytics data
Data not collected
Lack of buy-in from senior leadership about the value
Difficulty explaining the results/data/value of learning
analytics
Difficulty getting consensus across the organization on
how to structure the data
Don’t know where to start
Difficulty hiring and retaining skilled and experienced
learning analysts
Concerns about data security
Roadblocks

Vanguard organizations are less likely to have a
manual process and more likely to have an integrated system
36%
32%
14%
10%
8%
17%
39%
12%
22%
10%
0% 20% 40% 60% 80%
It's a manual process
In-house systems for different
functions (not integrated)
Commercial systems for different
functions (not integrated)
In house system (integrated)
Commercial system (integrated)
Technology used to aggregate data

Desired capabilities in a learning
analytics platform
91%
64%
59%
56%
54%
53%
50%
44%
33%
87%
60%
55%
56%
56%
55%
56%
47%
34%
0% 20% 40% 60% 80% 100%
Reporting
Benchmarking
Trending
Forecasting
Connecting with operations data
Correlation analysis
Visualization
Flexible reporting
Mobile-enabled

Vanguard organizations are more likely to
increase analytics capability and software use
85%
15%
Analytics Vanguard are
even more likely to
increase their learning
analytics capability over
the next 2 years
Yes
No
33%
32%
36%
The number of Analytics
Vanguard using
analytics software will
double in the next two
years.
Currently
Use
Yes
No

Sources of Data Matter:
The LMS does not stand alone
n  Analytics Vanguard are using more sources of data. Highly
successful organizations are nearly 5% more likely to use
HR data, nearly 15% more likely to use learning data and
nearly 20% more likely to use performance data than the
average.
n  Reporting capability does not ensure the success of learning
analytics. To problem solve for pressing issues related to
learning Vanguard organizations are using workforce
segmentation, external benchmarking and predictive
analytics more than the average.

Metrics Matter: More is More
n  Analytics Vanguard are tracking more KPIs.
– They use every metric related to learning impact, learning efficiency
and business impact more than the average.

Report more often, and further down the
chain of command
n  Analytics Vanguard are delivering reporting on analytics more
often, and to employees at lower levels. In fact, among our
successful organizations, their line managers are requesting
learning analytics data almost as often as their divisional
business leaders.
– 64% of Analytics Vanguard say their line managers are requesting
learning analytics data quarterly or more compared to 42% of all
organizations.
n  Enabling business leaders to understand how to best use
analytics to drive value is of critical importance.
– 36% of all organizations say that lack of management experience in
effectively using analytics is a roadblock. This is only 25% among the
Analytics Vanguard.

Drive Business Value
n  Analytics Vanguard are dramatically more likely to use
analytics to drive business value. And the greatest
differences are with the harder business measures.
– 19% more likely to experience increased productivity
– 19% more likely to have increased skills/capabilities in the workforce
– 19% more likely to have increased quality in products/services
– 14% more likely to have increased efficiencies in business processes
– 13% more likely to have increased revenues
– 11% more likely to have increased employee engagement
– 11% more likely to have increased credibility of the learning function
with business leaders
– 10% more likely to have increased employee retention.

Driving Performance at the Intersection of
Learning and Business
Unleashing the Power of
Performance Analytics:

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