Creating an evidence-based strategy

13th May 2015

Laura Overton, Founder – Towards Maturity@LauraOverton

Ruth Stuart, L&D Research Adviser – CIPD@RStuartCIPD

HOW DOES L&D DELIVER BUSINESS VALUE?

Achieving alignment

@RStuartCIPD @LauraOverton

Achieving greater business alignment is the number 1 focus for L&D professionals over the next 2 years

…organisations that measure the impact of L&D are more likely to be aligned to business needs…

Lack of clarity regarding the

business strategy

Changing / conflicting business priorities

Lack of business insight

Barriers to alignment

L&D undervalued Silo culture Lack of

resources

@RStuartCIPD @LauraOverton

Learning evaluation

• Half do not conduct any evaluation on the majority of L&D activities, or limit it to satisfaction

• Just 7% evaluate the wider impact on the business and/or society@RStuartCIPD @LauraOverton

WHICH OF THE FOLLOWING BUSINESS OUTCOMES JUSTIFY

A SUBSTANTIAL INVESTMENT IN WORKFORCE DEVELOPMENT?

→ Lower employee turnover→ Increased employee engagement→ Positive ROI→ Change in business direction→ Reduced cost→ Increased productivity→ Greater responsiveness to the new→ Increased profitability → Stronger Employee brand

55% Increased productivity40% Greater responsiveness to new39% +ve employee engagement37% Increased profitability 36% Lower employee turnover

ECONOMICS INTELLIGENCE UNIT EVIDENCE

22% Positive ROI18% Reduced cost14% Change in business direction11% Stronger Employee brand

Economic Intelligence Unit Sept 2014

Today’s L&D professionals

also want more.

Data-Driven Decision Making

Business leaders use data to:

PersuadePrioritisePersonalisePredictPlanImprove performanceOutperformer:

An organisation with clear purpose that uses benchmarking to continually stay ahead of its peers!

“”

WHAT EVIDENCE IS THERE THAT CAN A MODERNISED LEARNING STRATEGY CAN ADD REAL BUSINESS VALUE?

Persuade and Prioritise

Gaining Market Share17% rise in customer satisfaction10% improvement in revenue

Talent9% reduction in attrition17% improvement in engagement14% improvement in productivity12% reduction in time to competency

Deliver New Products & ServicesChange new products & services 23% fasterRoll out new IT applications 26% faster

Independent evidence from over 400 L&D leaders:

Gaining Market Share17% rise in customer satisfaction10% improvement in revenue

Talent9% reduction in attrition17% improvement in engagement14% improvement in productivity12% reduction in time to competency

Deliver New Products & ServicesChange new products & services 23% fasterRoll out new IT applications 26% faster

Independent evidence from over 400 L&D leaders:

AND Deliver Efficiency

- 17% Cost reduction+21% Volume- 22% Delivery time - 20% Study time

How Do our Staff Learn Best?

91% learners learn from collaboration with team workers

81% from manager support

73% from web search

64% from formal education courses

50% from live online learning, mobile or self paced e-learning

82% want to learn at their own pace

What is stopping staff from learning online?

63% Lack time40% Can’t find what they need

41% Irrelevant content28% Lack of somewhere appropriate to study

26% Uninspiring content25% Technology issues22% unclear objectives

5,700 staff

ONLY 1/3OF L&D LEADERS

KNOW HOW THEIR STAFF ACTUALLY

LEARN AT WORK…

This type of evidence helps us to Predict and Plan

Metrics used always or frequently

Learner reflection

(80%)

Manager reflection & feedback

(52%)

HR metrics (e.g. absence)

(39%)

Standard internal

measures (e.g. engagement)

(37%)

Strategic measures

(e.g. business behaviours)

(35%)

Stakeholder reflection and

feedback (35%)

ROI(22%)

@RStuartCIPD @LauraOverton

Business metrics(32%)

Using the findings

Always or frequently:

• 66% update the L&D intervention• 52% share the results with the business• 53% review the delivery method• 49% share the results to specifically inform business

strategy

1 in 5 say they produce a report of summary of the findings but rarely act on the data!

@RStuartCIPD @LauraOverton

Those who are doing things differently are more likely to be aligned

They always or frequently:

• Update the L&D intervention (84% vs. 48%)

• Share the results beyond HR (75% vs. 33%)

• Share results to inform business strategy (71% vs. 29%)

@RStuartCIPD @LauraOverton

Barriers

IT systems

39%

Funding

28%

L&D / HR capability to

conduct evaluation

25%

Quality of data

32%

Other business priorities

45%

Other L&D / HR priorities

21%

@RStuartCIPD @LauraOverton

Do we have the skills?

• L&D: Evolving roles, enhancing skills research

Analytical capability is a critical gap

• Towards Maturity Benchmark:

96% consider programme evaluation a priority41% say they have the skills in-house

@RStuartCIPD @LauraOverton

To drive change and use evidence effectively we need to invest in ourselves first

What skills do you need to build?

21@RStuartCIPD @LauraOverton

Data-Driven Decision Making

Business leaders use data to:

PersuadePrioritisePersonalisePredictPlanImprove performanceOutperformer:

An organisation with clear purpose

that uses benchmarking to continually stay ahead of its peers!

“”

Note of caution about L&D benchmarks

About benchmarking

TM Index

THE TOP 10%New for 2014

Exploring effective practices of the top performing learning organisations

DNA of the Top Deck companies

Improved application of learning in the

workplace

Faster response to changing business

conditions

Increased productivity

on the job

TOP DECK Average

New Learning benchmarks

Creating an evidence based learning strategy – where next?

• External evidence• To influence change

• Within the team• Within the business

• To inform decision making• To focus on outcomes

• Benchmarking• External evidence to improve internal

performance

• Internal Evidence• To engage and motivate• To inform

@RStuartCIPD @LauraOverton

Share your email address to receive a CIPD and Towards

Maturity evidence resource pack

What will you do differently?

28@RStuartCIPD @LauraOverton

Thank you

Get in touch at @RStuartCIPD or @LauraOverton

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