1 / 61

Beyond Measuring Usage - Tools & Techniques for Demonstrating Program Value SkillSoft and Knowledge Advisors

Learning: Re-Imagined. Beyond Measuring Usage - Tools & Techniques for Demonstrating Program Value SkillSoft and Knowledge Advisors. Workshop Agenda. Welcome and Introduction Metrics in Times of Economic Uncertainty Jeffrey Berk - Knowledge Advisors Metrics That Matter ™ Case Study –CNA

erwin
Download Presentation

Beyond Measuring Usage - Tools & Techniques for Demonstrating Program Value SkillSoft and Knowledge Advisors

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Learning: Re-Imagined Beyond Measuring Usage - Tools & Techniques for Demonstrating Program Value SkillSoft and Knowledge Advisors

  2. Workshop Agenda • Welcome and Introduction • Metrics in Times of Economic Uncertainty Jeffrey Berk - Knowledge Advisors • Metrics That Matter ™ Case Study –CNA Tom Simon and Mike Castillo - CNA • SkillSoft Tools & Techniques Heather McCain, Laura Rexford, Lori Turley - SkillSoft • Wrap up

  3. Economic Uncertainty Emphasizes Human Capital Measurement Jeffrey Berk KnowledgeAdvisors

  4. Agenda Measurement in Economic Uncertainty Business Case for Measurement Measurement for Performance Management 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 4

  5. Bumpy Economic Times S&P 500 Down Double Digits $700 Billion Bailout DJIA Record Daily Losses Unemployment on the Rise Well Known Brands in Trouble 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 5

  6. What are Business Leaders Saying? • Firms that don’t train are 2.5 times more likely to fail than those that do train. • “Investing now in building new skills will put us in the strongest position as the economy recovers.” • “The skills of our people are our best guarantee of future prosperity - - and the best investment a business can make in challenging times.” Source: UK Commission for Employment and Skills, November 10, 2008 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 6

  7. The Economy Changed in 16 Years 19920.6:1 20085:1 Intangible/Tangible = HCI(Human Capital Index) 66% Productivity Gain in 16 Years Intangible Assets Intangible Assets MarketValue MarketValue Tangible Assets Organizations Invest More in L&D, Leadership, HRIS, LMS, Analytics, Performance Management, Engagement & Recruiting Gary Becker Wins Nobel Prize in Human Capital S&P 500 Grows at Record Levels Tangible Assets 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 7

  8. Measuring Talent Maximizes Economic Value Shareholder Returns of companies investing in L&D measurement have 15.18% higher returns than the S&P 500 Source: Human Capital Measurement and Its Impact on Stock Performance, KnowledgeAdvisors, 2008 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 8

  9. Identify Gaps in Human Capital Processes Performance Appraisal Succession Planning Leadership Development On-boarding L&D Coaching Knowledge Mgmt PERFORMANCE PERFORMANCE ENGAGEMENT Forecast Workforce Requirements Recruit, Select, and Hire International Assignment Mobile Workforce Employee Turnover LEADERSHIP TALENT L&D RECRUITING Compensation and Benefits Employee Satisfaction Employee Engagement Work/Life Balance Workforce Diversity Competencies Assessment 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 9

  10. Case: Talent Gap Background: Printing and publishing company Business Issue: Gaps identified in skilled resources for changing business strategy Measurement Solution: Provided general skills competency set, collected and reported data w/analysis Results: Data used for L&D strategy and for recruiting job descriptions. 6/10/2014 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 10

  11. Case: Leadership Evaluation Background: Major health benefits provider Business Issue: Turnover in first 90 days of employment was 25 to 30% Measurement Solution: Built a leadership program for the Blue Chip hires and used smarter evaluations to measure it and improve it Results: 93% of Blue Chip new hires were retained and no longer flight risks. 73% reduction in admin burden in the measurement process itself “Metrics that Matter has provided objective data that supports “gut feelings” about where improvements can be made and where things are going well.” -Director of Leadership & Associate Development 6/10/2014 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 11

  12. Case: Template Links L&D to Sales Background: Consumer Packaged Goods firm Business Issue: Needed reasonable evidence of sales impact from training Measurement Solution: Used actual results and reasonable assumptions via impact template Results: Proved that $74,256/person of sales dollars were tied to a $5,000/person training investment. Example of template used to showcase ROI from Sales training Source: KnowledgeAdvisors 6/10/2014 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 12

  13. Case: ERP Technology Company Background: ERP company performing customer education Business Issue: Show value of training to customers in terms of increased productivity and quality Measurement Solution: Collected 12,770 end of program evaluations within 6 months asking participants to forecast impact Analytics Results: 18.2% estimated increase in productivity from the training (adjusted down for self-reported bias) 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 13

  14. Agenda Measurement in Economic Uncertainty Business Case for Measurement Measurement for Performance Management 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 14

  15. Fact • Most organizations invest 1% to 4% of revenue in talent development source ASTD stated L&D is 2 to 3% of revenue • Most organizations waste 50% or more of their talent development expenses source Metrics that Matter 600,000 follow up data points is 55%, IDC sites 50% waste, Brinkerhoff cites 80% or more waste • Most organizations waste .5% to 2% of revenue on ineffective talent development calculation from item 1 x 2 above • Effective investments in predictive analytics increases performance by 2.4% source IDC Talent Measurement Results: Increases Performance * Reduces Waste * Slashes Admin Burden 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 15

  16. Fact • According to IDC, programs that use predictive analytics solutions, such as Metrics that Matter, generate 60% better returns than those that don’t. • Example: If one invests $1,000,000 in an L&D program that generates a $1,000,000 profit, without using a predictive measurement solution, effective use of one, could have generated an additional $600,000 in profit. 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 16

  17. Measurement Impact on Increased Performance • Major services firm realized $200,000 increased annual profit by using Metrics that Matter predictive analytics capabilities. • Through measurement a leading federal agency significantly increased output and business impact without increasing budget over a 3 year period. • Major telecommunications firm using Metrics that Matter was able to increase sales by $1.25 million dollars through better supply chain management. • 15,000 hours in improved productivity by a floral company in identifying appropriate training investments. 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 17

  18. Measurement Impact on Reduced Waste • 25 retail stores avoided $100,000 of wasted training. Retail store training measured after first of six weeks saw 1 set of ineffective trainers and discontinued using them. • Instructor compared herself to other instructors and changed approach. 6 months of additional sessions performed better to avoid at least $100,000 in scrap learning. • $500,000 in funding gained by measuring scrap learning. Services firm measured training results and found high quality but low impact. The program was retained and additional funding rewarded to consult with managers on increasing impact. • 88% of learners not applying training is NOT due to bad training. Waste is due to unsupportive employee environment. A billion dollar company can save at least $1,000,000 if it can reduce waste by just 20% by performance managing the employee environment. 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 18

  19. Measurement Impact on Reduced Admin • 75% reduction in administration costs from automating measurement process vs. manual measurement. • 15 seconds to retrieve actionable data for decision-making vs. 15 hours prior to automating the measurement process. This automation of 1 report alone saved over $36,000 per year. • $400,000 savings by major accounting firm that used smarter measurement in a practical way to yield similar results compared to complex and burdensome alternative measurement techniques 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 19

  20. Calculate Performance Gain 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 20

  21. Calculate Waste Reduction 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 21

  22. Calculate Admin Savings 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 22

  23. Total Value 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 23

  24. Agenda Measurement in Economic Uncertainty Business Case for Measurement Measurement for Performance Management 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 24

  25. Talent and L&D Measurement Tips Identify and Audit Gaps in Human Capital Processes Build a Robust Evaluation Process Track and Link to Actual Business Results Reduce Errors and Scrap Leverage Technology Use Metrics for Performance Management 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 25

  26. Benchmarks for Performance Management Benchmarks: Internal or External Provide a point of reference Motivate by example Available thru Metrics that Matter 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 26

  27. Goals for Performance Management Goals: Actual to Goal Set in Metrics that Matter Move in right direction Challenging yet attainable 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 27

  28. Trends for Performance Management Trends: Time based analysis Available in Metrics that Matter Shows improvement over time 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 28

  29. Dashboards for Performance Management • Dashboards: • Concise Data • Summary Data • Visual View • Available in Metrics that Matter for course managers, instructors, impact and operations 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 29

  30. Track & Link to Actual Business Results A template for the learning team to conduct more comprehensive business impact and ROI analysis. Templates bring stewardship and collaborative guidance to the process of linking training to results. 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 30

  31. Build a Robust Evaluation Process © 2008, KnowledgeAdvisors

  32. Agenda Measurement in Economic Uncertainty Business Case for Measurement Measurement for Performance Management 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 32

  33. KnowledgeAdvisors Experts in metrics that matter KnowledgeAdvisors is a human capital analytics firm. We are the world’s largest provider of learning and talent measurement solutions. 10-Jun-14 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 33

  34. KnowledgeAdvisors Clients 6/10/2014 © 2008, KnowledgeAdvisors © 2008, KnowledgeAdvisors 34

  35. www.knowledgeadvisors.com For further information on the information contact: Jeffrey Berk Chief Operating Officer +1 312 676 4411 (phone) +1 312 676 4401 (fax) jberk@knowledgeadvisors.com 10-Jun-14 © 2008, KnowledgeAdvisors Page 35

  36. Measurement at CNA Tom Simon & Michael CastilloArea of Presenter

  37. CNA At A Glance • 1 million business and professionals insured • 7th largest commercial lines insurer • U.S. and international operations • 9,000 employees • $7.8 billion in revenues • Assets of $52 billion • “A” rated for financial strength by A.M. Best

  38. Why ROI? Benefits of ROI: • Business cases benefit strongly from ROI • Measuring financial impact helps illustrate importance of learning • Value-based measurements support Learning Growth Model progression Challenges of ROI: • Limited time and resources • Hard to evaluate ROI for intangibles (learning) • Securing internal data difficult

  39. SkillSoft Measurement Tools Business Impact Analysis ValueMeasurement Toolkit EZ ROI Calculator time, resources, data involved estimate vs. rigorous measure • EZ ROI Calculator - “soft measure” • Business Impact Analysis – Validated by internal survey • Value Measurement Toolkit (VMT) – ROI, Phillips Level 5

  40. EZ ROI Calculator Business Impact Analysis ValueMeasurement Toolkit EZ ROI Calculator time, resources, data involved estimate vs. rigorous measure

  41. Objectives and Attributes Objectives: • Deliver more value-based metrics • Help strengthen business cases • Prospective use (Should we train?) and retrospective use (How did we do?) • Attributes: • Easy to use • Requires little time and very little data • Defensible • Immediate analysis • Cost displacement and performance improvement measures

  42. EZ ROI CALCULATOR Components: • Introduction and assumptions • Cost displacement calculator • Cost displacement sample • Productivity impact calculator • Productivity impact sample

  43. Application Ideas for EZ ROI Calculator • SkillSoft versus another learning option • Monetary value of productivity gains • Limited licenses? Select wisely

  44. Business Impact Analysis Business Impact Analysis ValueMeasurement Toolkit EZ ROI Calculator time, resources, data involved estimate vs. rigorous measure

  45. Objectives and Attributes Objectives: • Measure satisfaction, determine motivation and determine job impact by the following: • Determine individual skill requirements and needs • Evaluate program satisfaction • Gauge skill improvement (based on individual responses/group roll-up) to determine productivity gains • Attributes: • Easy to use • Company-specific • Requires limited time and data • Longer timeline • Stronger measurement story • Potential testimonials

More Related