Linking Learning and Development Linking Learning and Development to Business Success through ROIto Business Success through ROI

Tony WigginsTony Wiggins

Principal Workforce Capability ConsultantPrincipal Workforce Capability Consultant

Helping Queenslanders Build Better

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My Contribution TodayMy Contribution Today

……. . discuss how learning and developmentdiscuss how learning and development

strategies that BSA and possibly yourstrategies that BSA and possibly your

organisation have used to link ROI toorganisation have used to link ROI to

business success business success

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Key points of session Key points of session

• platform to build organisational capabilityplatform to build organisational capability

• stimulus for changestimulus for change

• behavioural and attitudinal changebehavioural and attitudinal change

• financial versus non-financial benefitsfinancial versus non-financial benefits

• HR as a partner in businessHR as a partner in business

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Shared Understanding

Return on Investment is ……

Lifelong Learning is …

Learning and Development is ……

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Shared Understanding

Return on Investment - level 5 training evaluation model - compares costs to benefits - expressed as a percentage

Lifelong Learning - ongoing acquisition of knowledge orskills - formal, non-formal + informal

Learning and Development - activities designed toimprove the capabilities of people - technical skills andknowledge people have, but also their attributes, attitudesand behaviours.

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Return on InvestmentReturn on Investment

• people are an investment not an expense

• good employment proposition

• transformation

• known versus unknown

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Evaluation + ROI – Evaluation + ROI – Revisiting the BasicsRevisiting the Basics

• validates training as a business tool

• justifies the costs incurred in training

• improves the design of training

• helps in selecting training methods

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BSA ProfileBSA Profile

• established 1992• building standards, equity and confidence • remedies for defective work• support, education and advice • funded by licensee fees

• 250 employees• head office - South Brisbane + 8 regional offices• building construction, insurance and legal staff• learning + development function - head office

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What does it mean to learn at BSA?What does it mean to learn at BSA?

Just more of the same - excellent

Practical - used real life examples

Interactive, well-paced and informative

Peer participation

Facilitation, scenarios and group discussions

Course exceeded expectations

BSA is supportive of me using the skills I learnt

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ROI - BSA styleROI - BSA style

Smart State Workforce Strategy

LeadershipDevelopment

RETURN ON INVESTMENT

Evaluation Strategy

Learning and Development Initiative

Relationship Management

Organisational Capability

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Our Success So FarOur Success So Far

National RecognitionNational Recognition• Human Resource Magazine Awards

• Best Learning and Development Strategy 2004+2005• Best HR Champion 2005• Best Change Management Strategy (Finalist) 2005

OrganisationalOrganisational• Leadership Development • Performance management • Lifelong learning culture• ROI model

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Restraining ForcesRestraining Forcesbefore 2001before 2001

• Funding problems• No business direction• Inadequately skilled

staff • Reactive • No quality service• No customer value• Externally driven

DriversDrivers

Aligning Learning with Corporate Direction

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Our Approach

• Smart State workforce focus

• Strong focus human capital innovation research and development

• Outcomes builds the foundations for delivering learning supports individual and business performance encourages creativity and innovation

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Learning + Development Learning + Development InitiativeInitiative

• develops a high energy, high spirit and values-based BSA team

• action-learning, experiential based learning

Relationship Management

Organisational Capability

Leadership

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LeadershipLeadership

• executive + senior managers and team leaders (36%)

• direction, values and leadership skills• interactive action learning based workshops• on-line modular coaching and support• coaching and sponsoring individuals - shared

learning experience • EQ and transformational leadership

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Relationship ManagementRelationship Management

• Market research - Customer Continuum

• Creating Business Relationship Program - builds upon current and future relationships Customer Continuum Cross Cultural Communication Managing Challenging Behaviour and Conflict Mediation Skills Presentation and Facilitation Skills Managing Client Expectations

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Organisational CapabilityOrganisational Capability

• Learning and Development Calendar • capabilities developed have prepared our people

to respond to our customer’s need in the community and a challenging building industry

• strategic linked to the corporate plan and workforce strategic plan

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PartnershipsPartnerships

• Queensland University of Technology - Law Faculty

• University of Queensland • Institute of Public Administration Australia

(IPAA)• Boutique leading consultants - Drew

International

2020

• Research - transfer of learning - Princess Alexandra Hospital, Brisbane

• Masters study• Kirkpatrick Model• Extrapolated to work Phillips and Stone

Building The Model

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Levels of Evaluation

% Programs Evaluated

Research Model

BSA Model

Kirkpatrick

Level 1 Reaction 100% 100%

Level 2 Learning 75-90% 75%

Level 3 Application 40-70% 50%

Level 4 Impact 0-20% 20%

Phillips + Stone

Level 5 ROI 0-20% 20%

BSA Evaluation

• set realistic targets for resources available

• level 4 + 5 consume the most resources

• reserved for impact business strategies

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Developing the ROI FormulaDeveloping the ROI Formula

1. Determine market return on cash invested with QIC 2. Identify organisational factors impacting - learning

outcomes3. Develop outcome and baseline data questionnaire

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Current ResultsCurrent Results

• solid evidence of change

• link - design, development and delivery

• estimated ROI results - varies

• Mediation Skills Program - 2 years savings $1.89 million application of skills 90% ROI 75%

• Team Challenge - Central Queensland (2005)•ROI

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• small flexible, responsive agency • visionary General Manager• linkage to corporate goals• executive sponsorship• enjoy situations that stretch them • innovative and creative

Critical Success FactorsCritical Success Factors

Corporate Plan

Workforce Strategic Plan

Fun EnvironmentLearning + Development

Rewards and Recognition

Work/Life/Family Balance

Rewards and Recognition

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TipsTips• BSA mirrors an ecosystem• inter-relationships• resource intensive• stakeholders• PDCA model • it takes time

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• inspires a shared vision• challenges the norm • enable others to act• models the way• encouragement from the heart

HR - Business PartnerHR - Business Partner

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Looking Forward

• measures the contribution of specific programs to business objectives

• enabler to focus on training results

• alters management perceptions that training is an investment and not an expense

• setting of priorities based on a programs level of contribution in meeting business objectives

Thank youThank you

Helping Queenslanders Build Better