The Business of Learning: 15 Steps for Running Learning Like a Business Presented by: Dave Vance
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Transcript of The Business of Learning: 15 Steps for Running Learning Like a Business Presented by: Dave Vance
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The Business of Learning:15 Steps for Running Learning Like a BusinessPresented by:
Dave VanceFormer President of Caterpillar University
Kevin OakesCEO, i4cp
October 26, 2010
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What Does i4cp Do?
We help organizations leverage the core areas of high performance through 4 delivery vehicles:
1. Research2. Peers3. Tools4. Technology
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The 5 Domains of High-Performance OrganizationsAnd i4cp’s Centers of Knowledge That Support Them
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High-performance organizations consistently outperform most of their competitors for extended periods of time.These companies performed better over the past five years, based on these four indicators:
1. Revenue growth2. Market share3. Profitability4. Customer satisfaction
Defining High Performance
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3MAdobe SystemsAlliance OneAllstateAmerican Mgt. Assoc.AmeripriseAmwayApollo GroupAPSBooz Allen Boston ScientificCamecoCatholic HealthCitiGroupConAgra FoodsConnectiCareDarden RestaurantsDeloitte & ToucheDepository Trustdrugstore.comDuke EnergyDuke UniversityEdwards Lifesciences
Eli Lilly & CoExxonMobilFedEx ExpressFedEx GroundFederal ReserveFidelity InvestmentsFlextronicsGAP, Inc.General ElectricGeneral MillsHome Shopping NetworkING AmericasIntelJack in the boxKFCKraftLG ElectronicsLockheed MartinMcDonald’s CorpMetLifeMicrosoftMITRENorthrop Grumman
Olive GardenPelcoPETCOPfizerPizza HutPNC Financial ServicesPrudential FinancialQualcommRaytheonRio Tinto GroupSamsungSaskTelShell OilStarbucksTakeda PharmaceuticalsTampa Electric CompanyT-MobileToyota Motor SalesUnited States NavyU.S. OPMUnited WaterThe YYUM! Brands
Members (partial list)
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Kevin OakesCEOi4cp
About Kevin OakesBackground Founder, CEO of i4cp Chairman, Jambok Former Chairman, ASTD Board Founder, President, SumTotal Systems Former CEO, Chair of Click2learn Founder, CEO Oakes Interactive
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About Dave VanceBackground Former President of Caterpillar
University, which he founded in 2001. Dave was responsible for ensuring that
the right education, training, and leadership were provided to achieve corporate goals and efficiently meet the learning needs of Caterpillar and dealer employees.
He is a member and former director and treasurer of ASTD
Dave VancePresident
Manage Learning, LLC
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All corporate members will receive a PDF copy of today’s presentation.
A link to a recording of today’s webinar will be available on the i4cp site.
If you have any questions, please type them into the Q&A box. We will do our best to address them as we go along or at the end of the session.
Webinar Logistics
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1. Appreciate that learning is a business2. Resolve to run it like a business
Implies that Learning should produce results Must be planned carefully And executed with discipline Also, that numbers will be involved!
Steps 1 and 2
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3. Adopt a strategic focus4. Create a board of governors5. Create vision and mission statements6. Create a multi-year plan to achieve your vision
This will be your journey Manage expectations Communicate
Steps 3-6
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The Business of Learning
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7. Ensure that your organizational structure will support a strategic focus Centralized or hybrid
8. Adopt a workable funding model Often will be a combination of corporate, allocation and
discretionary (charge back)
Steps 7 and 8
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Single most important action for an L&D leader Start with the business and strategic plan Meet with the CEO, senior leaders, key stakeholders
Understand company goals and challenges Learn the priorities These are business discussions
Step 9: Strategically Align Learning to your Organization’s Goals
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Perform a “macro” level needs analysis to determine if learning has a role to play in achieving these goals
Make a preliminary determination of recommended learning programs and their alignment to the prioritized company goals
Step 9: Strategically Align Learning to your Organization’s Goals (cont.)
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Courses to Number of Support Goal Unique Sponsor
Strategic Goal Metric Learning Program New Existing Participants VP Division#1 Increase Sales 10% Consultative selling skills for ee's 1 0 100 Ortega Sales
Product program for employees 3 2 100
#2 Reduce Defects 20% Design course for engineers 5 2 200 D'Agoto Quality
#3 Reduce Injuries 25% Safety courses for mfg ee's 5 5 2,500 Swilthe MfgSafety courses for mgt ee's 2 1 600
#4 Improve Leadership +5 pts Leadership for supervisors 1 0 180 Wang Strategy
#5 Increase Retention +5 pts Individual development plans 5,000 Driese HRPerformance mgt course for ee's 10 20 2,500
==== ==== ======Top Five Goals 27 30 5,000
Strategic Alignment of Learning
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The business case brings together the expected impact (and perhaps benefits) of the recommended learning and the costs Impact: Increase in sales, reduction in injuries, or an increase in
productivity (often these can be dollarized) Cost: Budget costs (design, development, delivery,
reinforcement) and opportunity cost Net benefit or ROI (if appropriate)
Step 10: Build the Business Case for Learning
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Expected Unique Total Gross BudgetOpportunityTotal Net2011 Impact of Partici Partici Benefits Costs Costs Benefit
Priority Corporate Goal Target Learning pants pants (thous.) (thous.) (thous.) (thous.)1 Increase Sales 10% 5% 100 1,100 $1,500 $490 $117 $8932 Reduce Defects 20% 14% 200 800 $2,100 $570 $512 $1,0183 Reduce Injuries 25% 15% 3,100 13,600 $1,200 $410 $376 $4154 Improve Leadership +5 pts +2 pts 180 180 $1,200 $582 $302 $3165 Increase Retention +5 pts +1.5 pts 5,000 7,500 $1,800 $340 $1,150 $310
Subtotal Top Five Prioities 5,000 23,180 $7,800 $2,392 $2,457 $2,952
Subtotal Other Goals 1,950 4,725 $3,050 $1,245 $778 $1,028Total All Goals 5,000 27,905 $10,850 $3,637 $3,234 $3,980
Unaligned Learning 4,000 4,000 $700 $300 $400 $0Other Costs (not included elsewhere) NA $600 $0 -$600
====== ====== ====== ====== ====== ======Grand Total for All Learning 5,000 31,905 $11,550 $4,537 $3,634 $3,380
2011 Summary Business Case
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Ideally, a written document with the following chapters: Executive Summary Last Year’s Accomplishments Strategic Alignment Business Case for Learning Learning Resources, Expenditures, Budget Detailed Work Plans Evaluation Strategy
Step 11: Create the Business Plan for Learning
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Created with input from CEO, governing bodies, stakeholders, learning professionals
Approved by CEO and governing body This is your plan for the year Very scalable: An L&D function with just one person can
still do this With all the information gathered and tables created, a simple
one can be done in 8-12 hours
Step 11: Create the Business Plan for Learning (continued)
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Create scorecards to measure progress against goals Use high-level, program and detailed scorecards
Calendar at least one staff meeting per month dedicated to a review of your progress Ideally, the same day each month like the second Tuesday from
8-10 am Share progress at least quarterly with the board of
governors and/or CEO
Step 12: Plan for Monthly, Disciplined Execution of the Plan
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Start with the basics and add as you go Sample strategy:
Level 0: number of participants, courses, completion dates, costs All courses
Level 1: reaction All courses, not necessarily all participants
Level 2: learning Where appropriate. All compliance courses
Step 13: Adopt an Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous Improvement
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Sample strategy (continued): Level 3: application
Select courses Level 4: impact
A few key courses Level 5: ROI or Net Benefit
A few key courses
Purpose: Ensure results and improve
Step 13: Adopt and Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous Improvement
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14. Use business and economic concepts to make better decisions Like opportunity cost and marginal analysis
15. Benchmark with others. Learn. Improve
Remember, it is a multiyear journey. The goal is continuous improvement.
Steps 14 and 15
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The Business of Learning: How to Manage Corporate Training to Improve Your Bottom Line by Dave Vance
A 36-page Sample Business Plan for Learning (pdf, word, and excel files) available at poudrerivergroup.com
Book is also available at Amazon.com
Resources
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The i4cp 2011 Annual ConferenceNext Practices of High-Performance Organizations
Speakers include:John Coné former CLO of DellDr. John Sullivan ProfessorStephen M.R. Covey Thought leaderMarshall Goldsmith AuthorBill Price former VP of Amazon.comDottie Brienza SVP of HiltonKevin Wilde CLO of General MillsAntoinette Handler VP of Lockheed MartinMarilyn Figlar CLO of MetlifePaul Humphries VP of HR, Flextronics
Members Only – Vendors and consultants aren’t permitted.
For more information, visit http://www.i4cp.com/conference
March 15 – 18, 2011 | InterContinental Montelucia | Scottsdale, AZ
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Upcoming Events & ProgramsRegister online at http://www.i4cp.com/company/events/Webinar : Accelerating Employee Productivity Through OnboardingPresented by Claire St. Louis, Vice President of Human Resources, United WaterOctober 28, 2010, 1:00pm – 2:00pm ESTOnline - complimentary
Webinar Hosted by HRPS - Leadership Agility in High-Performance OrganizationsPresented by i4cp's Kevin Oakes, CEO and Jay Jamrog, SVP of ResearchNovember 2, 2010, 11:00am - 12:30pm EDTOnline
Webinar : Global Leadership Development: Best Practices and Top StrategiesPresented by Sandra Edwards, SVP of Corporate Learning Solutions, AMA; Maria Van Parys, Director of Leadership Education & TM, Boston Scientific and Mark Vickers, VP of Research, i4cpNovember 3, 2010, 12:00pm – 1:00pm EDTOnline – complimentary
Webinar : Applying the Lessons of Best ServicePresented by Bill Price, former Global VP of Customer Support, Amazon.comNovember 18, 2010, 1:00pm – 2:00pm ESTOnline - complimentary
Webinar : John Coné – A History of FailurePresented by John Coné, Principle, 11th Hour GroupDecember 9, 2010, 1:00pm – 2:00pm ESTOnline - complimentary
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Telephone 866-375-i4cp (4427) • Fax 206-624-6951
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Telephone 727-345-2226 • Fax 727-345-1254www.i4cp.com