The Business of Learning: 15 Steps to Running Learning Like a Business
The Business of Learning: 15 Steps to Running Learning Like a BusinessPresented by: Dave VancePresident, Manage Learning LLCFormer president, Caterpillar UniversityAuthor, The Business of Learning
To:ASTD Lincoln ChapterSoutheast Community College Continuing Ed Center
April 21, 2011
How would you characterize most learning in your organization?Strategic and planned proactively (before the year begins)Strategic but planned just in timeTimely but not necessarily strategicMost is not strategic and should have been planned sooner2Steps 1 and 2Appreciate that learning is a businessResolve to run it like a business
Implies thatLearning should produce measurable resultsMust be planned carefullyAnd executed with disciplineAlso, that numbers will be involved!
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Steps 3-6Adopt a strategic focusCreate a board of governorsCreate vision and mission statementsCreate a multi-year plan to achieve your visionThis will be your journeyManage expectationsCommunicate4
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Steps 7 and 8Ensure that your organizational structure will support a strategic focusCentralized or hybrid
Adopt a workable funding modelOften will be a combination of corporate, allocation and discretionary (charge back)
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Step 9: Strategically Align Learning to your Organizations GoalsStart with the business and strategic plan
Meet with the CEO, senior leaders, key stakeholdersUnderstand company goals and challengesLearn the prioritiesThese are business discussions7
Step 9: Strategically Align Learning to your Organizations 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 goals8
Strategic Alignment of Learning
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Step 10: Build the Business Case for LearningThe 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 costNet benefit or ROI (if appropriate)10
2011 Summary Business Case
112011 Detailed Business Casewithout Gross and Net Benefits12 Thousands of Dollars Expected %Opport-UniqueTotalImpact onBudgetunityTotalPriorityOrganization ObjectiveKey Learning ProgramsTarget AudienceParticipantsParticipantsCorp ObjImpact of LearningCostCostCost1Increase customer satisfactionCustomer service skills (new)Call center employees2020 score by 10%New services information (revised)Call center employees2020 Total key programs404050%5% higher customer satisfaction$25$19$442Reduce complaints by 20%Billing course (new)Accounting employees1010Service Sched. & Mgt course (new)Logistics employees1515Total key programs252570%14% reduction in complaints $35$14$493Reduce Injuries by 25%Five Safety courses (3 new) Transportation ee's100500One Safety course (revised)Division managers1515Two Safety courses (1 new) Office employees250500Total key programs3651,01560%15% reduction in injuries$65$45$1104Improve leadershipIntro to supervision (revised)New supervisors1010 score by 5 pointsLeadership for managers (new)Division managers1515 on employee surveyAdvanced leadership (existing)Department heads55Total key programs303040%2 point increase$35$40$755Increase retention by Individual development plansAll employees550550 10 pointsPerformance mgt (new)Mgt employees285285Total key programs83583530%3 point increase$18$32$50==================================Total for Top Five Priorities Learning for Top Five Objectives1,2951,945Range = 30%-70%$143$110$253Courses: 9 New , 3 Revised Does your learning organization follow a business plan for learning?Yes, of courseYes, but is is not a written documentNo, not reallyWere working on that nowWere moving in that direction13Step 11: Create the Business Plan for LearningIdeally, a written document with the following chapters:
Executive SummaryLast Years AccomplishmentsStrategic AlignmentBusiness Case for LearningLearning Resources, Expenditures, BudgetDetailed Work PlansEvaluation Strategy14
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
Very scalable: An L&D function with just one person can still do this
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Step 12: Plan for Monthly, Disciplined Execution of the PlanCreate scorecards to measure progress against goals
Calendar at least one staff meeting per month dedicated to a review of your progress
Share progress at least quarterly with the board of governors and/or CEO16
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Step 13: Adopt an Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous ImprovementStart with the basics and add as you go
Sample strategy:Level 0: number of participants, courses, completion dates, costsAll coursesLevel 1: reactionAll courses, not necessarily all participantsLevel 2: learningWhere appropriate. All compliance courses
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Step 13: Adopt and Evaluation Strategy that Ensures Planned Impact is Achieved and Provides for Continuous ImprovementSample strategy (continued):Level 3: applicationSelect coursesLevel 4: impactA few key coursesLevel 5: ROI or Net BenefitA few key courses
Purpose: Ensure results and improve
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Steps 14 and 1514. Use business and economic concepts to make better decisionsLike opportunity cost and marginal analysis
15. Benchmark with others. Learn. Improve.
Remember, it is a multiyear journey. The goal is continuous improvement20
Questions?Resources
The Business of Learning: How to Manage Corporate Training to Improve Your Bottom Line by Dave VanceAvailable at poudrerivergroup.com or at Amazon.com
A 36-page Sample Business Plan for Learning(PDF, Word and Excel files) available at poudrerivergroup.com21
Dave [email protected]
Sheet1Table 9.2For SlidesCorporate UniversityCorporate UniversityEffectiveness ScorecardEffectiveness ScorecardResults Through JuneResults Through JuneFor 2011For 201110 ActualPlanJun YTD% PlanForecastPlanning10 ActualPlanJun YTD% PlanForecastImpactImpactTotal ParticipantsNumber40,00050,00022,01344%48,000Unique ParticipantsNumber20,00023,00011,85452%24,000Top Priority ProgramsSafety# Particip.5,00010,0006,00960%11,000Top Ten ProgramsReduction in InjuriesParticipantsNumber25,00030,00017,26858%32,000Corporate%-10%-20%-17%-20%Net Dollar BenefitsMillion $$40.0$50.0$27.254%$51.0Impact of training (70%)%NA-14%-12%-14%Quality# Particip.1,0005,0002,08942%4,000Top Priority ProgramsReduction in DefectsSafety# Particip.5,00010,0006,00960%11,000Corporate%-5%-10%-6%-8%Reduction in InjuriesImpact of training (50%)%NA-5%-3%-4%Corporate%-10%-20%-17%-20%Marketing# Particip.2001,00042342%700Impact of training (70%)%NA-14%-12%-14%Increase in SalesQuality# Particip.1,0005,0002,08942%4,000Corporate%2%10%4%8%Reduction in DefectsImpact of training (40%)%NA4%2%3%Corporate%-5%-10%-6%-8%Impact of training (50%)%NA-5%-3%-4%FeedbackMarketing# Particip.2001,00042342%700ParticipantOn 6 point scale4.85.15.2102%5.1Increase in Sales%Sponsor/OwnerOn 6 point scale4.55.04.896%4.8Corporate%2%10%4%8%Impact of training (40%)%NA4%2%3%Learning% passed85%90%87%88%Total ParticipantsNumber40,00050,00022,01344%48,000Application%60%70%72%74%Unique ParticipantsNumber20,00023,00011,85452%24,000Learning Index%70%70%70%70%Learning Index%70%70%70%75%Leadership Index%75%80%77%80%Leadership Index%75%80%77%80%ReachLanguages for LMS0588100%8ILT Courses in 5+ Languages010121192%12WBT Courses in 5+ Languages0751006565%120Corporate UniversityEffectiveness ScorecardResults Through June(continued)For 201110 ActualPlanJun YTD% PlanForecastFeedbackParticipantOn 6 point scale4.85.15.2102%5.1Sponsor/OwnerOn 6 point scale4.55.04.896%4.8PartnerOn 6 point scaleNA4.5NA4.5ReachLanguages for LMSNumber588100%8ILT Courses in 5+ LanguagesNumber10121192%12WBT Courses in 5+ LanguagesNumber751006565%120
&LCorporate University&CMetrics/Effectiveness Scorecard&RJuly 10, 2007
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