Borderless LearningInnovating the ROI

Damien O’DonoghueGeneral Manager

GAC Corporate Academywww.gacacademy.com

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What happens if we spend money on training our people and they leave?

What happens if we don’t and they stay?

Overview

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1.CorporateLearning

Organisations(CLO)

establish the culture oflearning

3. Return on

investment (ROI)

is the key to success

2. e-Learning

and learning without

boundariescan deliver

effective learning outcome

PART 1 –Corporate Learning Organisations

The Learning Organisation

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• Learning is seen as a strategic enabler to growth• Competition is based on being able to learn and adapt

quicker than rivals• People challenged to continuously expand and create• Collaboration and innovation nurtured for competitive

advantage

Training ---> Learning

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TRAINING

Skills developmentExternally appliedShort term skill upliftEquips for known challengesPrimarily structured‘Doing’A “lead” measure

LEARNING

Behaviour change and skill developmentInternally acceptedLong term changeEquips for ambiguous futurePrimarily organic‘Understanding’A “lag” measure

Evolution of Corporate Learning

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Collaborative, Talent-Driven LearningFormalize informal learning

Collaboration and Talent Management by design

2008+…

Blended and informal LearningMixing all forms of media with informal learning

Learning On-Demand and Integrated Programs

1995-today

1998-2004

1980s-1990s

The e-Learning EraPut materials online, information vs. instruction

Web-Based courseware, virtual classroom, and Learner-Facing LMS

Traditional and Computer-Assisted TrainingInstructor and Computer-Based (CBT)

Automated Training Management Systems

The early adopters lead the way:

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McDonalds Hamburger University

Motorola University

Why Corporate Learning Organisations?

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Strategic alignment (L&D + corporate strategy)

Central transmission station for corporate culture

Drive culture of measurement in all L&D activities

Increase employee involvement and collaboration

Develops appropriate pedagogy

Employer branding and alignment with HR

NOW

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Growth of Corporate Learning Organisations is estimated to be 200% faster than the

vocational and academic sectors.

Source: Corporate University Exchange

PART 2 –Emergence of e-Learning and Learning without Boundaries

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A Quick Survey:e-Learning –vs- classroom education

e-Learning is:

1. less-effective than classroom education.

2. an effective substitute for classroom education.

3. superior to classroom education.

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“Today’s students are no longer the people our educational system was designed to teach”

Mark Prensky 2001, “Digital Natives, Digitial Immigrants”.

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Cost effectiveness of e-Learning –vs- face to face corporate learning

• Travel costs eliminated• Eliminates facilities and equipment• Does not take participants out of work environment• Enables out of hours learning• Reduced instructor salaries• Eliminates printing costs

Social constructivism

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• Puts learners at the centre of learning

• Views learning as a social process• Says knowledge is socially

constructed• Believes in the importance of

learning by doing

SMART pedagogy in course design

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Specific

Measurable

Action-based

Relevant

Time-specific

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Limitations of “off-the-shelf” e-Learning

• Poor pedagogy and user-engagement• Competes with abundant internet information• Unduly prescriptive• Expensive• Lack context• No social engagement

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Generation Y

“Never memorise something that you can look up” Albert Einstein

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Blending technology and social constructivism

• Teaching –vs- Facilitation, Student –vs- Participant • Social engagement and learning from each other• Building connections, establishing communities• Moodle – an open source learning management

system.

PART 3 –Innovating Return on Investment

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Possible benefits of corporate learning and development• Improves employee performance• Enhances company profits• Saves money• Improves a company's competitive edge.• Increases worker productivity.• Saves supervisory and administrative time and costs• Improves customer satisfaction• Improves employee satisfaction and retention

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So what should we measure to

find out how we are doing?

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How we measure ROI depends on how the company

VALUES the learning programme

The Value Continuum in Corporate Learning

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In general there are three points on the value continuum:Corporate learning as a publicity exerciseCorporate learning brokering trainingCorporate learning as a strategic enabler

Costs of Corporate Learning

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Potential cost models:1. Corporate overhead2. Cost distribution3. 100% Cost recovery 4. Profit centre

GCA’s ROI measurements

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GAC Strategic Objectives for GCA:• Learning organisation• Skillful and motivated people

Measurement through:• CSF5: We must have motivated and trained personnel.• KPI: Number of training hours (target vs actual)• Employee Engagement Survey measuring perception of

GAC people about progress towards these objectives

GAC Annual Employee Engagement Survey

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• If the following conditions are met:– Full cost recovery, and– EES measures >= target, and – Training Hours >= target, then:

• ROI is +ve

GCA ROI Calculation

CONCLUSION

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Corporate Learning Organisations

e-Learning and learning without boundaries

Return on Investment

Moving from awareness, to knowledge, to skill

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Wading in shallow water aka

“Shallow Dive”

Swimming with the fish aka “Deep

Dive”

View from the shore aka

“Shoreline”

I have basic knowledge; enough to answer to high-

level questions or refer people to others

I’m teaching others and/or applying knowledge in

customer situation

I’m kept informed

Moving from awareness, to knowledge, to skill

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How a corporation values its learning and development

programs directly influences how it is run.

Kirkpatrick’s Learning and Training Evaluation Theory

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Level 1:Reaction

To what degree participants react favourably to the learning event

Level 2:Learning

To what degree participants acquire the intended knowledge, skills, and attitudes based on their participation in the learning event.

Level 3:Behaviour

To what degree participants apply what they learned during training when they are back on the job.

Level 4:Results

To what degree targeted outcomes occur as a result of the learning event and subsequent reinforcement

Source: Training on Trial: How Workplace Learning Must Reinvent Itself to Remain Relevant – James D. Kirkpatrick

Traditional ROI Measurements

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Value of CLO

Objectives

Measuring Results/ ROI

Public Relations/ Brokering TrainingUsually tangible objectives like:• Create an awareness of the company as

committed to learning and development• Meeting the specific learning needs of

various departments

Transactional measurement of ROI like:• Number of participants• Number of training hours• Awareness surveys• Improvement in specific measures like

reduced HSSE incidents

Evolving ROI Measurements

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Value of CLO

Objectives

Strategic EnablerBoth tangible and intangible objectives like:• Build a learning organisation culture• Establishing communities of common

practice • Promoting transference of knowledge• Involvement in developing corporate

strategy• Facilitating the implementation of

corporate strategy

Evolving ROI Measurements (cont.)

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Transactional measures:

Measuring Results/ ROI

As discussed previously

PLUS

Strategic measures such as:• How effectively knowledge is being transferred

throughout the organisation• How are learning pathways being developed• How are customer relations being improved• How is the learning organisation playing a role

in the future development of the strategic plan

• How all this is translating into a more profitable and productive organisation