Measuring Effectiveness and Impact 061814

EMPLOYEE TRAINING AND DEVELOPMENT: How To Measure Effectiveness and Impact

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EMPLOYEE TRAINING AND DEVELOPMENT: How To Measure Effectiveness and Impact

A Completion Certificate will be emailed within 24 hours and a link will be shared at the end of the webinar!

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Chris OsbornVice President of Marketingcosborn@bizlibrary.com@chrisosbornstl

Erin PinkowskiMarketing Manager

epinkowski@bizlibrary.com

6,000+ Courses. 25 Topic

Areas. Unlimited Access.Improve your employees' performance with the

largest and fastest-growing library of on-

demand training videos and eLearning courses

today!

How do you currently measure your training program and efforts?

a. Don’t worry be happy - smile sheets all the way.

b. Completion – at least they did something.

c. We make an effort to track behavior changes.

d. Data-driven – the more information and analysis the better.

e. Something else.

?

What You’ll Learn:

Training metrics – where we’ve

been and where we’re going.

How to determine goals and key indicators?

5 Steps process to create a measurement plan.

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Overall spending on employee training in U.S. organizations is $164 billion.

COMPANY SIZE (# of Employees)

Smaller organizations typically spend more per employee than larger organizations.

10,0

00+

500-9

,999 $700

$964

$1,80

0<

500

COST PER EMPLOYEE PER YEAR

$1,195

KPI’S AND BENCHMARKS: How do you currently measure success?

Use existing data to set benchmarks.

MEASUREMENT AND BUSINESS: 1951: Edward DemingThe power of analytics to drive improvement.

1954: Peter DruckerThe business of management and the knowledge worker.

1959: Donald KirkpatrickMeasuring the impact and ROI of training.

1970: Jack PhillipsData-driven return on investment.

KIRKPATRICK – PHILLIPS MODEL:

KIRKPATRICK PARTNERS LLC

LEVEL 1REACTION participant satisfaction

LEVEL 2LEARNINGknowledge, skills and attitudes

LEVEL 3BEHAVIORApplication and on-the- job learning

LEVEL 4RESULTSbusiness impact

LEVEL 5RETURN

ON INVESTME

NT

THE COST OF ONE GALLON OF

GAS

2013: $3.61

1970: $0.36

1959: $0.25

2013: $271,600

THE AVERAGE COST OF A NEW HOUSE

1959: $12,400

1970: $23,500

2013

1970

1959

SPUTNIK – launch of first manmade satellite

FIRST FLOPPY DISK

3D PRINTING

THEN AND NOW

It's not the 95% that's right that makes something work; it's the 5% that's wrong that messes everything up.

Measuring, Managing and Maximizing PerformanceWill Kaydos

ISOLATION TECHNIQUES:

SYSTEM/PROCEDURE CHANGES

INCENTIVE/MOTIVATION

MANAGER SUPPORT/ATTENTION

EXTERNAL FACTORS

EFFECT OF LEARNING ON IMPROVEMENT

TOTAL IMPROVEMENT

AFTER PROGRAM

LEARNING PROGRAM

TREND LINE ANALYSIS:

CONTROL GROUP:

Recruiters and Hiring Managers Group 1

Recruiters and Hiring Managers Group 2

OTHER METHODS:• participant and manager estimation of

impact – ONLY AS GOOD AS THE EMPLOYEES ABILITY TO PROVIDE INFORMATION.

• senior management estimation – BIAS AND SIMPLE HUMAN ERROR.

• success case method – WHAT DID THIS PESON LEARN THAT WAS NEW? HOW DID THIS PERSON USE THE LEARNING ON THE JOB? DID THE USAGE HELP PRODUCE A WORTHWHILE OUTCOME?

SUCCESS CASE METHOD:

RECOMMENDED RESOURCETelling Training’s Story by Robert O. Brinkerhoff

1. What, if anything, did this person learn that was new?

2. How, if at all, did this person use the new learning in some sort of job-specific behavior?

3. Did the usage of the learning help to produce any sort of worthwhile outcome?

TRAINING IMPACT

• Manager support.

• Opportunities to apply learning.

• Peer support.

• On-demand access.

• Senior management involvement.

FIVE STEPS TO CREATE A MEASUREMENT AND EVALUATION PLAN:

Focus and plan the evaluation.1

Create an impact model that defines potential results and benefits.2

Design and conduct a survey to gauge overall success versus non-success rates.3

Conduct in-depth interviews of selected success and non-success instances.4

Formulate conclusions and recommendations, value, and return-on-investment.

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1. Identify performance areas.

2. Engage all of the key stakeholders.

3. Clarify and define success.

4. Establish the data points.

Focus and plan the evaluation

1

What does success look like and

how do I know?

Create a model for success.2

Organizational Goals

Business Unit Goals

Employee Behaviors or Actions

Employee Skills or Knowledge

Design and conduct a survey to gauge overall success versus non-success rates.

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Which statement below best describes your experience since participating in the Performance Management training?

• I learned something new, I have used it, and it has led to some very worthwhile results.

• I learned and tried some new things but can’t point to any very worthwhile results yet.

• While I may have learned something new, I have not been able to use it yet.

• I already knew about and was doing the things this training taught.

• I don’t think I can really use what I learned in the training.

Conduct in-depth interviews with employees who’ve been BOTH successful and unsuccessful.

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HIGH PERFORMERSLOW PERFORMERS

MANAGER SUPPORTOPPORTUNITY TO APPLY LEARNING

PEER SUPPORT

ON-DEMAND ACCESS TO RESOURCES

SENIOR LEADER INVOLVEMENT

• Areas of increased performance

• The VALUE of this increase

• The costs to deliver value

• Recommended improvements to increase value

Develop conclusions, write action plans and implement needed changes.

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RECOMMENDED RESOURCECourse Title:Developing Others - Connect every employee's individual goals to the organization's vision and strategy

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REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES MANAGERS

Goal: Reduce time to fill open positions from over 70 days to less than 55.

Value: The expected value to be gained is measured by using the average revenue generated by new sales reps in their first 90 days of work on a per day basis, and the added value realized in the first 6 months of employment for each day we can get them onboard and trained more quickly.

$435/day $32,000

In six monthsThe average rep closes two more deals at an average value of $16,000 each when they started in 60 days after position opened.

First 90 days.

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Training Costs: Human Resources: $45,000Sales: $15,000 Total: $60,000

Impact: Seven reps were hired with an average reduction of 10 days saved per rep in the six month time frame of the study.

Value Added From Improved Performance: 7 reps X 10 days each = 70 days. 70 days saved were worth $30,450. 4 of 7 reps started in 60 days or less after open position. $128,000 added in new sales.

TOTAL VALUE GAINED:$158,450 on a $60,000 program.

Other Factors: Better communication and cooperation between sales managers and HR recruiters meant the candidates being interviewed fit a success profile for sales reps more clearly than before the program started. We also learned that social media sourced candidates tended to be more successful in the first six months than blind applicants.

REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES MANAGERS

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REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPSGoal: Reduce turn around time on bug fixes from an average of 21 days to 10 days.

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.

$50/day $1,155,000

In six monthsThe average bug eats revenue while customers are not accessing our service at a rate of $50 per day. In the last 6 months, 1,100 customers experienced bugs each taking an average of 21 days to fix. 80% of the bugs required a return of the written report to the rep for clarification.

The average bug.

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Training Costs: Human Resources: $90,000Reps: $300,000 Total: $390,000

Impact: Written reports of bugs were shortened and clarified so less than 10% were returned for rewrites in 6 months after program. Average bug fix reduced from 21 days to 12 days. Total bugs affected 1,210.

Value Added From Improved Performance: 500 reps X $600 days each for access 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.

TOTAL VALUE GAINED:$544,500 on a $390,000 program.

Other Factors: Better general communication and cooperation between the programmers and customer facing employees. We also learned that our customer service employees did not have a deep enough understanding of the technical side of our service. The enhanced writing skills helped clarify the knowledge gaps which we filled quickly.

REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS

Key Ideas

Focus on employees

Can I apply it today?

What barriers exist?

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In a world of learning and development where complexity is the enemy… simple and nimble approach…“ “

MICHAEL ROCHELLE Chief Strategy OfficerBrandon-Hall Group

Informal poll:  What are you doing to measure the business impact of your training initiatives?

WORDLE.NET

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Course: Organizational Effectiveness - Take action to provide the resources employees need for success Target: Managers

Providing Resources - Define the strategic priorities for the

department and align the required resources

Target: Managers

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Free trial of the BizLibrary Collection

6,000+ Courses. 25 Topic

Areas. Unlimited Access.Improve your employees' performance with the

largest and fastest-growing library of on-

demand training videos and eLearning courses

today!

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QUESTIONS

Use the Q&A box in the lower right hand portion of your screen.

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Click the link in chat for the completion certificate. You will also be emailed a link to the completion certificate within 24 hours.

Join us next week, How to Create a

Competency-Based Training Program

Activity ID #206854