The Business of Learning: 15 Steps for Running Learning Like a Business Presented by: Dave Vance

1. The Business of Learning: • 15 Steps for Running Learning Like a Business • Presented by: • Dave Vance • Former President of Caterpillar University • Kevin Oakes • CEO, i4cp • October 26, 2010

2. What Does i4cp Do? We help organizations leverage the core areas of high performance through 4 delivery vehicles: • Research • Peers • Tools • Technology

3. The 5 Domains of High-Performance OrganizationsAnd i4cp’s Centers of Knowledge That Support Them

4. Defining High Performance 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: • Revenue growth • Market share • Profitability • Customer satisfaction

5. Members (partial list)

6. About Kevin Oakes Background • Founder, CEO of i4cp • Chairman, Jambok • Former Chairman, ASTD Board • Founder, President, SumTotal Systems • Former CEO, Chair of Click2learn • Founder, CEO Oakes Interactive Kevin Oakes CEO i4cp

7. About Dave Vance Background • 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 Vance President Manage Learning, LLC

8. Webinar Logistics 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.

9. Steps 1 and 2 • Appreciate that learning is a business • 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!

10. Steps 3-6 • Adopt a strategic focus • Create a board of governors • Create vision and mission statements • Create a multi-year plan to achieve your vision • This will be your journey • Manage expectations • Communicate

11. The Business of Learning

12. Steps 7 and 8 • Ensure that your organizational structure will support a strategic focus • Centralized or hybrid • Adopt a workable funding model • Often will be a combination of corporate, allocation and discretionary (charge back)

13. Step 9: Strategically Align Learning to your Organization’s Goals • 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

14. Step 9: Strategically Align Learning to your Organization’s Goals (cont.) • 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

15. Strategic Alignment of Learning

16. Step 10: Build the Business Case for Learning • 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)

17. 2011 Summary Business Case

18. Step 11: Create the Business Plan for Learning • 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

19. Step 11: Create the Business Plan for Learning (continued) • 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

20. Step 12: Plan for Monthly, Disciplined Execution of the Plan • 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

21. Step 13: Adopt an Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous Improvement • 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

22. Step 13: Adopt and Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous Improvement • 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

23. Steps 14 and 15 • Use business and economic concepts to make better decisions • Like opportunity cost and marginal analysis • Benchmark with others. Learn. Improve Remember, it is a multiyear journey. The goal is continuous improvement.

24. Resources • 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

25. The i4cp 2011 Annual ConferenceNext Practices of High-Performance Organizations March 15 – 18, 2011 | InterContinental Montelucia | Scottsdale, AZ • Speakers include: • John Conéformer CLO of Dell • Dr. John Sullivan Professor • Stephen M.R. Covey Thought leader • Marshall Goldsmith Author • Bill Price former VP of Amazon.com • Dottie Brienza SVP of Hilton • Kevin Wilde CLO of General Mills • Antoinette Handler VP of Lockheed Martin • Marilyn FiglarCLO of Metlife • Paul Humphries VP of HR, Flextronics • Members Only – Vendors and consultants aren’t permitted. For more information, visit http://www.i4cp.com/conference

26. Upcoming Events & Programs Register 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 EST Online - 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 EDT Online 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 EDT Online – 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 EST Online - complimentary Webinar : John Coné – A History of FailurePresented by John Coné, Principle, 11th Hour GroupDecember 9, 2010, 1:00pm – 2:00pm EST Online - complimentary

27. Corporate 411 First Avenue South • Suite 403 • Seattle, WA, U.S.A. 98104 Telephone 866-375-i4cp (4427) • Fax 206-624-6951 Research 8950 Ninth Street North• Suite 115 • St. Petersburg, FL, U.S.A. 33702 Telephone 727-345-2226 • Fax 727-345-1254 www.i4cp.com