LEARNING CAFE

WORKPLACE TRENDS FORUM

Linking Learning to the Bottom Line 8 November, Thursday, 12 – 1 pm, EST

DRAFT

Looking back at

2012. What is

coming in 2013

6 Dec, Thurs 12 pm EST

Next

Month

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Date & Time: 8 Nov 2012

Webinar ID: 676-771-272

Telephone Conf Call - +61 3 8644 7040

Access Code: 111-689-892

Any questions please

send it via Q&A box or

raise your hand.

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on mute till you are ready

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This session is being

recorded for replay.

This is a discussion

amongst peers, we would

love your thoughts and

comments.

Participation Webinar Information

Co

mm

un

ity o

f exp

erie

nce

d le

arn

ing

&

pe

rform

ance

pro

fessio

ns

Building L&D Capability

Integrate Learning,

Performance &

Knowledge

Making Learning

Work in the Real World

Practitioners Forum

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Sydney Feb 2013

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Coffee Catch Ups

Capability Building

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Personalised and

Flexible

When you want it.

How you want it

Learning Café UnConference 2013

• A professional development event with a difference.

Focus on

Performance

Effective

Learning

Developing

our profession Leveraging

Technology

Bob Spence

Thought Leader

Michael Eichler.

Head of Learning

IAG Group

Nicola Atkinson

Head of Learning

Ashurst

Rob Wilkins

Head - Learning

Aussie Home Loans

Peter Davis Jeevan Joshi

Learning Cafe

Synthesis &

Integration

Str

ea

ms

Leads

No exhibitions or sales.

Limited seats – 100 ($300 Early Bird 275)

95% wanted to come back next year.

Facilitated sessions by Experts

Innovative structure

Contemporary topics and trends

Panel

Background Chat with the panel

Your questions

Paul Vorbach

Director

AcademyGlobal

Vijay Kashyap

HR Director

Asia Pac

Campari

David Le Page

Thought Leader

Webinar Registrations

ANZ

Australian Unity

Blended

CBA

CBH Group

Dept of Family & Comm

Services

E&Y

IAG

ING Direct

PWC

SAI Global

Siemens

Starwood Hotels

Sydney Adventist

Suncorp

TP3

Vinculum Group

UTS

Westpac

* More

Helping out

Jeevan Joshi

Robin Pettard

Learning Evaluation Model

Reaction

Learning

Behaviour

Result

ROI

Impact on external clients and society

Kirkpatrick's four levels

JJ Phillips

Roger

Kaufman

Scope of our discussion

Calculating ROI and cost of measurement

• Example • Benefits per program (1st year) $120,00

• Costs per program (25 participants) $ 40,000

ROI

$ 120,000 (Benefits) – 40,000 (Costs)

---------------------------------------------------- = 200%

$ 40,000 (Costs)

How are you measuring

direct impact of learning

on the bottom line ?

On the flip side are you

quantifying the adverse

impact of lack of

adequate training ?

Case Study – Professional Services

Situation

Challenge of balancing

professional development

billable utilisation.

Solution

Promote an opt-in program for

professional development run

on weekend in a “nice”

location.

Linking to Bottom Line

• More expensive to deploy but the

improved billable utilisation meant

higher profit.

• Intangible benefits provided through

networking opportunities and

improved employee morale.

• Program also offered during the

week. Most opted for the weekend

option.

• More requested by the business

due to business benefits

Case Study – Professional Services

Situation

A major technology

deployment had virtual

development teams operating

across five geographical

locations.

Project delivery and

profitability negatively

impacted due to lack of team

cohesion

Solution

A team working program was

delivered for a half day in

each location.

Linking to Bottom Line

• Program / Project Management

capability is critical for

delivering and profitability

• Led to improved team working

and improved delivery of the

project.

What process do you follow to

identify and implement measures

that are acceptable to senior

managers and stakeholders?

Do they value the metrics or is it a

report that does not garner much

attention ?

Days Invested in Overall Training - No. of overall training days per

year/per staff (aggregate or segmented by function/level/location/gender)

Days Invested in Competency-based Training No. of days in competency-based training per year/per staff member

(agg. or by seg.)

Participation rate in Training % of total staff in overall (or competency-based) training per year (agg.

or by seg.)

$ Investment Per Staff Learning & development spend per staff member (agg. or by seg.)

Payback period in months = $ costs / monthly benefits

Return on Investment (%) = $ benefits/ $ costs x 100

Discounted pay back period (adjusts benefits for inflation)

Discount Cash Flow/ Net Present Value (adjusts benefits for

inflation & riskiness)

Widely used Metrics for Training and Learning

Process Involved in Developing Metrics

Understand key

deliverables of

the business

www.academyglobal.com

Devolve work force metrics (including L&D

measures) from business goals and

operational measures 1. Business Goal to increase sales by 10% through cross selling

& bundling of products

2. Operational requirement is sales skills training to develop sales

force competency

3. Tactical L&D metric % of sales staff are up-skilled by month

end

4. Calculate Payback in months - $ costs / monthly increase in $

gross profit

5. Calculate ROI (%) – % increase in $ gross profit/$ costs x 100

Do you use “out of the box”

approaches for the measurement

and communication if you are

unable to find suitable metrics ?

Do you have different treatment

for measuring compliance and

non compliance learning ? What

about Informal Learning ?

Do you use the balanced

score card approach or do

you tend to focus on the hard

and quantifiable measures to

win credibility ?

Measuring Benefits – Case Study

Operational Benefits Strategic Benefits

Organisational

Benefits Managerial Benefits

IT Infrastructure

Benefits

Stakeholder

Benefits

Cost reduction

Productivity Improvement

Cost reduction

Productivity Improvement

Changes employee

behaviours with shifted

focus

Better Performance Control

• 13 days assignment

• Findings presented to

the board

L&D Performance Measurement

Opportunities

• Develop stronger business

cases to secure, maintain

resource allocation to L&D

• To demonstrate L&D activity as

synchronised to operations and

overall organisation goals

• Better secure significant

investment in new HRM

initiatives through CAPEX

Challenges

• Deciding upon the most critical

measures (“vital few versus trivial

many”)

• The financial literacy of L&D

• Proving links between the training

intervention/s and the operating and

business outcomes

• “how confident am I that the

increase in sales was due to

training as opposed to

advertising/promotional activity”

Which direction are we

heading in trying to measure

the impact of learning on the

bottom line and business

results ?

Learning Café Point of View

• Learning needs to be accountable not only

to learners but also to the organisation.

• Impact of learning on bottom line can be

quantified. It is a myth that it cannot be

done robustly or consistently.

• Learning professionals need to improve

financial and business literacy.

• Explore other models of measuring such

as Intellectual Capital Approach and

granulate your approach for different types

of learning.

Market Value

Financial Capital

Intellectual Capital

Human Capital

Structural Capital

If you don’t define

your own

accountability

someone else will.

Linking to Bottom Line Im

me

dia

te

Valu

e

Low High

Low

H

igh

Complex,

Changing,

Limited Shelf Life

Complex,

Relatively Stable

Good Shelf Life

Simpler

Changing

Short Shelf Life

Learning Café Model for measuring impact of learning

Direct to Bottom Line

Supporting Bottom Line

Base Line

Compliance

Leadership

Learning for

Strategic

Priorities

complexity of

measurement

Immediate

Value =

Increasing

profit or

competitive

position.in

short and mid

term

Enterprise

Learning

Foundation

www.learningcafe.com.au

learningcafemag

http://bit.ly/lcafefb

blogs

learning conversations

free resources

workshops

UnConference 2013 Sydney Melbourne

Webinar recording, ebooks, L&D frameworks

Building Effective Employee Social Networks

Looking back at

2012. What is

coming in 2013

6 Dec, Thurs 12 pm EST

http://bit.ly/lcafedec12