Creating a sustainable Creating a sustainable Creating a sustainable

Learning & Development Learning & Development Learning & Development Function Function Function

Created By: Deepak Chawla

Trainer and OD Consultant

Acknowledgement

I got the inspiration to write this article from the discussions I had

with my fellow members on LinkedIn groups. I want to specially

thank Ms. Karin Rigas (Consultant-Leadership Development,

Denmark) for kick starting the discussion specifically aimed at

starting or improving Learning & Development function.

Finally appreciate the efforts of Mr. Amulya Sah (HR-Samsung),

Ms. Ritu Pandhi (HR-People Factor) and Mr. Harvinder Singh(HR

-Aircel) for providing useful insights on the subject.

CONTENT

Context Setting

Sharing a common vision with Management

Creating roadmap for L & D

Learning Model

Gap Identification

Program Design Methodology

ROI - Return on Investment

Business case for ROI

Evaluation framework

Metrics and their Purpose

Conclusion

About the Author

Learning and Development function is one of the key aspect of Human Resource

department in any organization. In some of the industries/sectors L & D might as

well enjoy highest priority for example Information Technology (IT) which highly

depends upon quality of their Human resources. And there is no denying the fact

that it is one of the areas which regards Human resources of paramount im-

portance and the end objective of the function is their development and individual

goal aligning with Organizational goals. L & D holds the key for HR department to

reserve a permanent seat in the organizations round table meetings during busi-

ness planning exercise.

But there is the catch, many L & D professionals tend to

be focused on the development of the Human Resources only and pay little or inad-

equate attention to the organizations objectives. This leads to the point where L &

D function in most of the companies is considered a cost center, which is why is

the first one to feel the heat in the time of cost cutting. This fact was pretty evident

in the Bersin L & D report published in 2012 in UK. The report shows that there

was 5% - 7% cut in the training staff and 10% - 12% reduction in the annual budg-

et during the recent meltdown in Europe.

Individual

Goals

Individual

Goals

Individual

Goals

Individual

Goals

Organization Goals

L & D function’s key role is to

bridge the performance gap and

align individual goals to Organ-

izational Goals

But frankly speaking, the Top Management is not to be

blamed for the measures they take to cut down the overall cost of HR. Unless L &

D professionals takes complete ownership of the each intervention and make it a

point to sell it the Top management and not get it approved::

To consume the allocated budget;

To maintain status quo of L & D;

To justify the existence as a function;

OR the meanest of all, Just in case, if ever required.

May be I am being blunt but lets face it, L & D function doesn't always comes as

the most credible departments in HR domain. But the function has evolved over

the years and there are ways and methods to regain the confidence of Top Manage-

ment and other relevant stakeholders. The article will take readers through very

basic and fundamental aspects of Learning & Development function.

The article may be useful to:

Professionals planning to initiate the Learning and Development function

OR provide a formal structure to the already existing function

Human resource students looking for a generic understanding of the function

(don't copy it for your assignment)

Non-HR professionals for a quick perspective of Learning and Development

The areas covered in the article might seem basic but form the core of any L & D

function.

Answering following questions can provide clarity on the business objectives:

What are their expectations of the champions of the function?

(CLO or HR-Head or Business Head or CEO/MD)

How are they willing to show their support?

What resources are available for the learning interventions?

Based on the inputs on the above from stakeholders one can start creating the

broad roadmap for the function. This would

help to map out what the function should

look like at different time points like three

years or five years and backtrack what

needs to be put in place to achieve that and

stages for attaining that. The roadmap may

look something like figure 1 “Roadmap for

L & D “ . The illustration has macro level

target for the learning function which can

elaborated on a monthly even weekly basis.

It purely depends upon the top manage-

ment’s involvement and intent to measure

the progress on timely basis. Also, while

defining the strategy 5A’s as described

in the below section must be taken into

consideration.

1) Alignment: Performance improvement goals and the organization's strategic

goals are aligned.

2) Anticipation: Everyone shares the same high expectations for performance im-

provement

3) Alliance: Supervisor of learner is active in setting learning goals and helping

learner learn

4) Application: Learner has opportunity to apply learning immediately

5) Accountability: Learning is measured and learner receives feedback on impact

of learning and performance improvement

Sharing a common vision with the Management

Figure 1: Roadmap for L & D

Starting a Learning & Development functions can definitely

be a challenging assignment, keeping in mind its direct rela-

tion with the overall productivity of the Human resources in

the organization. L & D professionals need to ensure that

they have the complete understanding of the business objec-

tives, so that the mission and supporting programs are al-

ways aligned .

But whatever challenges start-

ing a L & D function has,

there is no running away that

it is the most enriching experi-

ence in the career of a L& D

professional.

To begin with one can use following model figure 2 “Systematic model” for creating

a structured framework for L & D.

The first step after creating a broad framework of L & D function, ‘Gap Identifica-

tion’ (GI). And the basic question during GI is;

Where do employees need to be now and in the future to achieve the business

results?

The first stage is the most important and will set the momentum for achieving the

desired L & D objective and ulti-

mately business targets. Doing a

strategic needs analysis will help

identify the top level company driv-

ers and behaviors that help your or-

ganization (departments, etc.) meet

its goal. Knowing the key results

and the measures that affect those

key results will help one focus on the

right areas for development first.

This forms the basis for your train-

ing plan. The gaps can identified us-

ing methods illustrated in figure 3:

Methods of Gap Identification.

These might seem conventional and

basic but are very effective and advisa-

ble to begin with.

Training Model

Figure 2: Systematic Model

Figure 3: Methods of Gap Identification

Gap Identification

Tip: It may happen that Gap Identification activity is delayed or stretches because of certain

reasons. In that case, to establish credibility and be seen as responsive– identify the biggest

and the burning development need of the organization, deliver on that ASAP and publish

the results to the stakeholders. Sometimes it is a basic program like Telephone Skills, or

New Supervisor. Do not do it at the expense of the foundation work, that is ultimately more

important but it is easy for L & D people to be view as too academic if we spend too much

time on assessment. The business side is usually looking for results. So solve the biggest

pain point quickly. The only thing to keep in mind is to look for a need where too many re-

sources are not required or in other words it doesn’t result in budget overruns.

Program Design Methodology

The outcome of GI can be overwhelming and may in-

volve a lot of filtering to arrive at a comprehensive de-

velopment plan for a defined time period. L & D team

should prepare a modular framework for the develop-

ment sessions and start executing it as per the plan.

The six breakthrough Learning Disciplines may be

followed for every development module/session for ef-

fectiveness.

The development plan will have a

monetary impact as well. So due

diligence must be done before pre-

senting the budget to the approv-

ing authorities. In the next sec-

tion we will discuss about the

Return on Investment (ROI) and

also, the business case for calcu-

lating ROI.

THE SIX BREAKTHROUGH LEARNING DISCIPLINES

Define (D1):

Link session objectives to business needs

Describe what participants will do differently

Agree on definition of success

Design (D2):

Include all four phases of learning; plan

prepare promote practice

Manage the learning transfer process

Redine finish line as on-the-job results

Deliver (D3):

Make utility and relevance of content clear

Provide time for practice and feedback

Use methods that make learning memorable

Drive (D4):

Recognise transfer as critical part of the

process

Treat learning objective as business

objective

Put in place systems and processes to

support transfer

Deploy(D5):

Engage participants managers

Provide job aids and performace support

systems

Ensure availiability of feedback and

coaching

Document(D6):

Measure what matters to sponsers

Use insights to drive continous

improvement

Market the results to key stakeholders

Tip: Be cognizant of the concerns of front-line managers who feel the impact a little more di-

rectly when their employees are spending time on training assignments. This can mean be-

ing flexible when scheduling training. For example, at my last company the end of the month

was a productivity push, so I did not schedule training during this time.

While designing development

programs L & D managers should utilize different types of

learning techniques also known as “Blended Learning”. The

managers can create programs using conventional ILT

(Instructor Led Trainings ), e-learning, social media learning,

virtual classrooms, pod-cast, webinars, learning conventions

et al. The list of different ways one can disseminate learning

is endless, since we live in a global village which is virtual

enough to reach anybody, anywhere, anytime.

E-learning: The new

generation will appre-

ciate that they can

learn whenever they

want, "just in time"

and not "just in case".

The most crucial and challenging phase in a training cycle is getting the Manage-

ment’s nod on the plan. This can be strenuous since the Top guys are looking for

numbers and not interested in the L & D jargons and outside trends. I remember

MD of one of the organization I worked with telling me that he doesn’t understands

A-Z but 0-9. The management will approve of any investment if they can see the re-

turns since any development program without return has in built flaws. As L & D

professionals it is our prime responsibility to eradicate those flaws and work out a

mechanism to quantify the gain from our programs. Below mentioned principles can

help calculate ROI for almost every program.

ROI– Return on Investment

Get your head straight:: ROI is more than a calculation; it’s a way of think-

ing. Learning professionals often focus on the quality of their training rather than

the impact of the learning. Quality is certainly important, but it doesn’t go nearly

far enough in bridging that leap-of-faith. After all, the assumption is that quality

leads to learning and learning leads to impact, but that is not necessarily true. If

you are going to prove your value, then you are going to have to shift your thinking

from a quality mindset to an impact and results mindset.

Calculate Early and Often:: Although it is possible to calculate ROI after the

intervention, it is certainly not advisable. First, you would be missing out on one of

the core benefits of ROI—the opportunity to make adjustments to your training

program along the way. By calculating ROI continuously you always know how

much benefit your program is generating and, just as importantly, how it is trend-

ing. If the number is in the red or heading in that direction, you have the ability to

identify the root cause and take action.

THE FIVE FOUNDATIONS OF CALCULATING TRAINING ROI

Build a case:: Getting to ROI is like building a court case. You make argu-

ments and then present facts to support them. Ultimately, these arguments and

facts result in an obvious conclusion—that your training program generates more

value than it costs. The first step in proving ROI is to provide a layer of evidence

that supports the idea that value is being created. We tend to think of business

value as measured in dollars, and for ROI, it is.

However, you can’t credibly jump straight from

training to dollars; you must first show where value

is being created in the business. In other words, you

need to prove:

Your training program improves the employee’s

ability to do the job;

That improvement has a positive impact on the

business;

That impact results in a financial benefit to the

company; and

That benefit is more than the cost of the training.

It stands to reason that if you can’t show job im-

pact, and the business results of that impact, then you can’t credibly prove ROI.

Validate your findings:: The more data points you have, the better. The

people who matter when it comes to making your case are typically analytical—

COO and CFO types—and they are likely going to want an explanation as to how

you reached your conclusions.

Tell the story:: Don’t let the narrative get lost in the data. Ultimately, this is

not about the numbers, it is about the story of your program—where it has been

and where it needs to go. Your story needs to be compelling and interesting.

Clearly state the goals of your program as you first envisioned it, the challenges

you faced and how you overcame them to make a difference for the business. If at

all possible, include testimonials from stakeholders to help tell the story.

Expectations of Business

leaders from the L& D

Business case - ROI

Your organization, an IT company, is planning to hire fresh talent from engineering insti-

tutes for filling the talent gap. The management plans to deploy the new hired directly on

the job without providing any sort of training other than mandatory sessions on organiza-

tion culture and HR operations. The L & D manager proposes to the management for three

months development plan for the campus hires.

How to build the case::

Step 1: - Develop a detailed development plan for the fresh Hires.

A tentative plan or curriculum could be::

Two months of technology training (verified and approved by SME’s) with regu-

lar assignments and Assessments.

One month of project specific training coupled with process instructions, soft

skills training et al.

After the training the resources to be assessed followed by intense assessment

on their projects and technical know-how by Project leads.

Step 2 : - Calculate the Business gain from the intervention. For this ascertain the

level of resources after the training and compare it with the industry standards in

terms of number of years of experience. For calculation sake lets say that after 3

months of training the new hires would be as productive as lateral hires of 1-2 years

of experience.

Step 3 : - Show the numbers to the board/management. So in order to arrive at the

figure one would be required to do some study and collect facts. And these facts

could be::

Number of recruits/Training Cost/manpower cost of the resources v/s manpower cost

of the 1-2 lateral resources and any other that could be useful.

Examine the following figures::

There are 35 campus recruits hired at

3 LPA, with a internship fee of 5K/

Month during the internship period of

3 months.

Average salary of 1-2 years experience

software engineers 4.5 LPA.

Training cost per campus hire 50K.

The table above gives a snapshot of the

HR cost involved for the next three years

of campus and lateral hires. The organi-

zation would save 118.5 Lacs over a peri-

od of 3 years and also, has a check on at-

trition rate since the average stay of a campus hired is 1 to 1.5 years more than the

laterals.

Campus

Hired (in

Lacs)

Cumu-

lative

Cost (in

Lacs)

Lat-

eral

Hires ( in Lacs)

Cumu-

lative

Cost (in

Lacs)

1st year 3 + .55 Training Cost

106.5 4.5 135

2nd

Year 3.75 112.5 5.25 157.5

3rd

Year 4.5 135 6 180

Total 354 472.5

Tip: Involvement of Project leads/SME’s/Managers is very important to get support and

approval of the management because ultimately the resources will be absorbed in their

teams. So the bottom line is they hold the key to the success of this intervention.

Level Type Description Tools and

Methods

Practicability

1 Reaction How the dele-

gates felt about

the training or

learning experi-

ence.

Feedback forms, Ver-

bal reaction, Post-

training surveys or

Questionnaires.

Quick and very easy

to obtain. Not ex-

pensive to gather or

to analyze.

2 Learning The measurement

of the increase in

knowledge - be-

fore and after.

Typically assessments

or tests before and af-

ter the training. Inter-

view observation can

also be used.

Relatively simple to

set up; clear-cut for

quantifiable skills.

Less easy for con-

cept based learning.

3 Behavior The extent of ap-

plied learning

back on the job -

implementation.

Observation and inter-

view over time are re-

quired to assess

change, relevance of

change, and sustaina-

bility of change.

Measurement of be-

havior change typi-

cally requires coop-

eration and skill of

line-managers.

4 Results The effect on the

business or envi-

ronment by the

trainee.

Measures are already

in place via normal

management systems

and reporting - the

challenge is to relate

to the trainee.

Individually not dif-

ficult; unlike whole

organization. Process must attrib-

ute clear accounta-

bilities.

KIRKPATRICK’S FOUR LEVELS OF TRAINING EVALUATION

For evaluation, there can’t be better and more effective way than Kirkpatrick’s four

level of Training evaluation model.

A brief snapshot of the framework is described below;

Evaluation Framework

L & D function of being ambiguous and I still feel that to a certain extent it is. But

we can lower the levels of ambiguity by making it metric oriented. I have tried to list

very basic and common metrics in the following table. These reports can be derived if

we follow the 6th discipline of learning religiously. All the reports may or may not be

published to top management at the frequency mentioned I the table but they

should be maintained for timely analysis.

Metrics Focus Frequency Relevance

Training

Hours

Employee Monthly/

Quarterly

To gauge the overall development efforts in

the organization

Depart-

ment

Monthly/

Quarterly

This helps in focusing on the departments

where development efforts are weak

Grade/

Level

Monthly/

Quarterly

This helps in equal distribution of effort at all

levels

Areas of

training

Monthly/

Quarterly

This would help keep a check on all the four

areas of development: Behavior/Technical/

Project/Processes

Budget

Employee Monthly To have a check on the allocated budget

Depart-

ment Monthly

This helps in focus on the specific depart-

ments as per the allocated budget

Grade/

Level Monthly

This helps in equal distribution of budget at

all levels

Number Internal

Trainers Quarterly

This would help in creating internal talent

pool of trainers

Hours Training

Content Quarterly

To build capability to develop modules inter-

nally

Metrics and their purpose

The first habit of “7 Habits of highly effective people”

states that before we begin anything we should have an

end in mind.

A clear purpose and confidence of the stakeholders would help achieve the end

objective. Though there will be challenges at every stage but what moves L & D

professionals is the possibility of creating a difference in people’s professional

life. The concepts described in the document would help L & D team reach se-

cond level of People Capability Maturity Level. From there the role of L & D

becomes much strategic and consultative.

Hope the document will help the readers develop some perspective of Leaning

and Development. Please share your feedback and suggestions at the below

mentioned contact details

Conclusion

About the Author

Human resource professional and Learning and Development enthusiast with

6 years of Post qualification experience (IT , Manufacturing and Consumer

Durables) in Training & development, Change management, Talent Acquisi-

tion & Management and Organization Development in varied industries

across sectors.

Connect with me on ::

LinkedIn ::http://www.linkedin.com/profile/view?d=27311295&trk=tab_pro

E-mail or Facebook :: deepakubs@gmail.com

Skype :: deeecee2

Tweet :: @oshod

Blog :: http://d-ki-gyanshala.blogspot.com