talking to the c-suite: building a business case for employee development and training | webinar...
TRANSCRIPT
?THE MOST COMMON OBJECTION FROM SENIOR EXECUTIVES ABOUT LEARNING INITIATIVES IS…
?IN YOUR ORGANIZATION, WHAT ARE YOUR BIGGEST CHALLENGES WITH CHANGE…
WHAT WE HOPE YOU’LL TAKE-AWAY
How to communicate the cost justification and
strategic impact of your training initiatives.
Understand your current situation, where you
want to be and when and how you will get
there.
How to communicate how your plan will benefit
the overall organizational goals.
Executives Want to See More Impact and Value
RANKEDIMPORTANCE
TO EXEC’SMEASURE
LEARNING EVALUATION
LEVELEXAMPLE
CURRENTLY MEASURED
1 Impact 4 “The Accel project contributed 20% to our reduction in error rates this fiscal.”
8%
2 Value 5 “Within one year, the East program will achieve a 2:1 benefit-cost ratio.”
4%
3 Awards 0 “Our learning program won an award from Chief Learning Officer magazine.”
40%
4 Application 3 “78% are applying their new skills to their jobs”
11%
5 Learning 2 “92% of participants increased theirskills”
32%
6 Activity 0 “Last year 7,800 employees participated in our learning programs”
94%
7 Efficiency 0 “Formal learning costs $2.15 per hour” 78%
8 Reaction 1 “Employees rated our training very highwith an average of 4.5 on a 5 point scale”
53%
Source: How Executives View Learning Metrics by Patti and
Jack Phillips, CLO Magazine, Dec 2010
58%SKILLS
Organizations with a strong learning culture significantly outperform their peers…
INNOVATION 46%
PRODUCTIVITY 37%
CUSTOMER
SERVICE33%
PROFITABILITY 17%
ELEMENTS OF A BUSINESS CASE
SCENARIO ANALYSIS
Best, most likely, worst
CAUSE/EFFECT ANALYSIS
Link to specific benefits
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
Risk of no investment
ALIGN WITH ORGANIZATIONAL
GOALS
It takes all the running you can do, to keep in the same place.
If you want to get somewhere else, you must run at least twice as fast as that.
The Red QueenThrough the Looking Glass
by Lewis Carroll
RISKS OF THE STATUS QUO
What could happen to the company's
bottom line?
Could the company lose customers?
Or market share?
Could some future costs be avoided if the
investment is made today?
SCENARIO ANALYSIS
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
Organizations with comprehensive training programs:
Higher income per employee than those with less comprehensive training.
Higher profit margin than those
who spend less on training.
Higher shareholder return if the training expenditure per employee increases
by $680.
SOURCE: Association of Talent Development
Most likely results
Best case scenario
Worst case scenario
SCENARIO ANALYSIS
SCENARIO ANALYSIS
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
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.
CAUSE / EFFECT ANALYSIS
SCENARIO ANALYSIS
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
BUSINESS IMPACT
IMPROVE EMPLOYEE PERFORMANCE IN AREAS THAT IMPROVE ORGANIZATIONAL OUTCOMES
COST JUSTIFIED VS. ROI
QUALITY
EFFECTIVENESS
BUSINESS RESULTS
JOB IMPACT
REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an average
of 21 days to 10 days.
x x x x x x x
x x x x x x x
x x x x x x x
x x x x x x x
x x x
$1,155,000
80% OF THE BUGS REQUIRED A RETURN OF
THE WRITTEN REPORT TO THE REP FOR CLARIFICATION.
$50 / DAY – OVER 6 MONTHS – 1,100 BUGS
VALUE: The expected value to be gained is measured by using the average
revenue lost for each day the service is down for customers due to
sloppy or unclear written explanations of bugs to the programmers.
TRAINING COSTS:
Human Resources: $90,000Reps: $300.000Total = $390,000
VALUE ADDED FROM IMPROVED PERFORMANCE: 500 reps X $600/day/repAccess to online writing courses including time to take and complete 5 courses
each and successfully complete writing evaluations to prove increased skills. 2 HR
reps needed to administer program and build writing evaluations.
IMPACT:• Less than 10% of written reports of bugs
were returned for rewrites in 6 months
after program.
• Average bug fix reduced from 21 days to
12 days.
• Total bugs affected 1,210.
TOTAL VALUE GAINED:
$544,500 ON A $390,000 PROGRAM
Identify the KPI for the business problems
you are trying to solve.
What will improved performance
look like, and how will we know?
KPI’S FOR EACH BENEFIT
SCENARIO ANALYSIS
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
A process of continuous adjustment to keep
the parts in their correct relative position.
GOAL ALIGNMENT
SCENARIO ANALYSIS
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
Will employees participate, use it etc…
What are the costs? What’s the value?
Is the learning initiative relevant to our
business needs?
BARRIERS TO PROGRAM ADOPTION
RESISTANCE SUCCESS STRATEGIES
No Help
• Create an advisory committee
• Use a coach
• Ask supervisors for support and provide them tools
Communication• Work with your internal learning team to develop strategies for high-
level and end-user communication
Not Enough Time
• Focus on just-in-time learning: search and learn, job aids
• Deliver kickoff events, blended learning, learning labs
• Emphasize time management courses
• Create learning in progress signs
Fear and Anxiety
• Nurture safety and trust with perceived freedom of choice
• Focus on individual needs and help folks to see the benefits of having
online learning available
Not Relevant
• Emphasize on-the-job application
• Understand the goals of others and ask questions: “how can you use
this initiative to meet your goals?”
WE DON’T HAVE TIME FOR TRAINING - Case Study
CHALLENGE: Making time for
training
SOLUTION:
TAG TRAINING –
5-10 minutes for a video
Tag cube neighbor
Discuss at the end of the day
BENEFIT: Maintain workflow
and service standard
YOUR BUSINESS CASE
EXECUTIVE SUMMARY (1 page)
Objective sentence and bullet points on each key element.
CURRENT SITUATION (1-2 pages)
The business challenges being addressed and business goals
to be met.
PROPOSED SOLUTION (2-3 pages)
Explanation of the solution – include a simple statement of
each expected benefit and risk assessment of the status quo.
1
2
3
YOUR BUSINESS CASE
EXPLANATION OF BUSINESS BENEFITS (2-3 pages)
A thorough analysis of the bottom-line impact including
business benefit gains and costs of the proposed solution
(ROI) EMPHASIS on business benefits.
CONCLUSION (1page)
Executives will “bottom-line” it, so they will inevitably read the
summary and conclusion before reading anything else. Be
concise and cover each major element of business case.
SUPPORTING MATERIAL (3-4 pages)
Include key supporting material, data and research.
4
5
6
1. Don’t get stuck on ROI only. Communicate the cost
justification and strategic impact of your training
initiatives.
2. Plan and organize. Understand your current situation,
where you want to be and when and how you will get
there.
3. Know the facts and risks back it up with data.
4. Communicate how your plan will benefit the overall
organizational goals.
KEY TAKE-AWAYS
Executing Your Plan
Overcoming Resistance
WWW.BIZLIBRARY.COM/FREE-TRIAL
FREE 30-DAY TRIAL!no risk – no obligation
THOUSANDS OF COURSES .
25 TOPIC AREAS . UNLIMITED ACCESS
Jessica Petry
Sr. Marketing Specialist
@JessLPetry
@BizLibrary
Chris Osborn
Vice President of Marketing
@chrisosbornstl
#BIZWEBINAR