Unleashing the Power of Analytics: Driving Performance at the Intersection of Learning and Business

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Unleashing the Power of Analytics: Driving Performance at the Intersection of Learning

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Frequently Asked Ques0ons

Driving Performance at the Intersection of Learning and Business

Unleashing the Power of Analytics:

Page 8

Presenters

Tracy Cox Director, Performance Consulting, Raytheon Professional Services

Sarah Kimmel, VP of Research, Chief Learning Officer magazine

Page 9

Seize the Moment

n Evolution/challenges of Learning Analytics

– Analytics has a lot of “buzz” right now in business but what is it really?

–  In many organizations L&D continues to struggle to have a seat at the table. But some organizations are ahead of the game here. What are they doing differently?

–  It’s not just about making the business case for learning anymore- in some organizations, analytics has made it possible to problem solve, choose between learning investments, and maximize the impact of L&D. Analytics presents the opportunity to not just prove the value of learning to the business, but substantially contribute to creating business value.

Page 10

Research Methodology n  N=467 n  Org size:

– Small (less than 1,000) 48% – Mid-sized (1,000-5,000) 16% – Large (more than 5,000) 36%

n  Workforce distribution: –  28% are domestic organizations located in one region –  28% are domestic organizations with several regional locations. –  12% are multinational organizations –  32% are global organizations

n  65% are CLOs and senior HR and Learning Executives or C-suite. An additional 16% are business unit, learning and HR managers.

n  Research conducted by survey in August 2015 to CLO subscribers.

Page 11

WHAT IS LEARNING ANALYTICS?

Page 12

Learning Analytics Definition n  Definition: Aristotle or Plato? n  Learning analytics is a data-driven approach used to optimize how

organizations manage and deploy learning and development that supports execution of their business strategy. Examples may include: –  Analyzing Learning Management System (LMS) data to identify gaps, trends or

patterns over time. – Using HR/Talent Management data analytics to investigate the relationship

between employee learning, job performance, business outcome, and financial impact.

– Using data analytics to identify the gaps in the current L&D system and prioritizing areas for improvement.

– Comparing employee learning data or outcomes across different workforce segments.

– Measuring the effectiveness of L&D and the return on learning investments. –  Predicting the impact of alternative learning practices by extrapolating from

historical data.

Page 13

Half of all organizations are using HR and business data in their learning analytics.

71%

54%

48%

11%

0% 20% 40% 60% 80%

Learning analytics (i.e. course and curriculum completions, certification

level) Performance analytics (i.e. business

KPIs [descriptive, diagnostics or predictive])

HR or talent management analytics (i.e. attrition, loyalty, education level)

None of the above

Sources of Data used by L&D

Page 14

At present, analytics practices more involved than internal reporting are rare

45%

18%

10%

7%

29%

25%

29%

14%

0% 20% 40% 60% 80%

Internal reports or analytics (e.g., hours of training completed,

satisfaction with training)

Workforce segmentation (e.g., learning data comparisons among groups of employees by business

External benchmarking (e.g., data comparisons of common metrics and

rankings)

Predictive modeling (e.g., using statistical analysis to project the outcome of various L&D actions)

Types of Analytics used by L&D

Often Sometimes

Page 15

Organizations are the most likely to be using the kinds of analytics that are less likely to produce effective action

23%

11%

8%

6%

44%

33%

32%

19%

34%

55%

60%

75%

0% 20% 40% 60% 80% 100%

Internal reports or analytics (e.g., hours of training completed, satisfaction with

training)

Workforce segmentation (e.g., learning data comparisons among groups of

employees by business unit, location, function or job roles)


rankings)


Effective Action Taken on Analytics

Very Effective Somewhat effective Not effective

Relative Success Rate:

51%

61%

80%

86%

Page 16

60%

59%

47%

45%

39%

30%

29%

22%

18%

34%

41%

37%

30%

32%

23%

24%

27%

31%

0% 10% 20% 30% 40% 50% 60% 70%

To discover and leverage factors that increase productivity/business performance

To better equip employees with the skills/knowledge they need to support the business

To make data-driven decisions on learning investments

To better inform learning and development efforts on the key factors of employee performance

To support long-term learning strategy for the organization

To problem solve for critical business issues related to learning and development

To better inform decisions on succession planning and leadership development

To mitigate legal and compliance risk

To provide ongoing reporting of learning trends to leadership

Motivations and Use Cases

Top 3 Motivation Used in the past year

Strategic outcomes, not compliance are the primary motivations for using analytics

Page 17

DOES YOUR LEARNING ORGANIZATION PLAN TO INCREASE ITS LEARNING ANALYTICS CAPABILITIES IN THE NEXT TWO YEARS? YES NO

Poll Question

Page 18

Analytics capability and use of analytics software will grow quickly in the next 2 years

80%

20%

8 in 10 Organizations plan to increase their

learning analytics capability over the next 2

years

Yes No

17%

33%

50%

Half of all organizations will be using learning

analytics software in the next two years

Currently Use Yes

No

Page 19

Lack of integration and skills in effectively using analytics are the primary roadblocks

50%

48%

42%

36%

34%

25%

23%

22%

16%

14%

8%

0% 10% 20% 30% 40% 50% 60% 70%

Lack of analytics skills within the learning team

Lack of integration among various data systems

Lack of budget for analytics software/projects

Lack of management experience in effectively using analytics data

Data not collected

Lack of buy-in from senior leadership about the value

Difficulty explaining the results/data/value of learning analytics

Difficulty getting consensus across the organization on how to structure the data

Don’t know where to start

Difficulty hiring and retaining skilled and experienced learning analysts

Concerns about data security

Roadblocks to increasing use of Analytics

Page 20

HOW SUCCESSFUL HAVE YOU BEEN AT USING ANALYTICS EFFECTIVELY IN YOUR L&D ORGANIZATION? HIGHLY SUCCESSFUL MODERATELY SUCCESSFUL SLIGHTLY SUCCESSFUL NOT AT ALL SUCCESSFUL NOT APPLICABLE

Poll Question

Page 21

How successful does L&D think it is at using analytics?

8%

24%

34%

22%

12%

0% 10% 20% 30% 40%

Highly successful

Moderately successful

Slightly successful

Not at all successful

Not applicable

Top 32%: Analytics Vanguard

Page 22

WHAT DOES IMPACTFUL LEARNING ANALYTICS LOOK LIKE?

Page 23

Analytics Vanguard more likely to have an analytics function, and more likely to have it attached to Corporate Strategy

47%

29%

17%

16%

7%

3%

0% 20% 40% 60%

Part of HR

Do not have

Part of Corporate Strategy

Decentralized

Co-sourced

Outsourced

All Organizations

52%

5%

36%

21%

11%

6%

0% 20% 40% 60%

Part of HR

Do not have

Part of Corporate Strategy

Decentralized

Co-sourced

Outsourced

Analytics Vanguard

Page 24

Vanguard use more sources of data and more business data for analytics

71%

54%

48%

11%

85%

72%

54%

3%

0% 20% 40% 60% 80% 100%

Learning analytics (i.e. course and curriculum completions, certification

level)

Performance analytics (i.e. business KPIs [descriptive, diagnostics or

predictive])

HR or talent management analytics (i.e. attrition, loyalty, education level)

None of the above

Data Sources Used by L&D

All Organizations Analytics Vanguard

Page 25

Vanguard significantly more likely to use more analytics practices- and go past reporting

45%

18%

10%

7%

73%

41%

22%

16%

0% 20% 40% 60% 80%





rankings)


Types of Analytics used often by L&D

All organizations Analytics Vanguard

Page 26

Vanguard organizations have an 18% higher success rate with using internal reports

67%

45%

40%

25%

93%

75%

70%

51%

0% 20% 40% 60% 80% 100%





rankings)


Effective action taken on analytics


Relative Success Rate:

69%

72%

83%

100%

Page 27

Vanguard use analytics for more purposes, and use it to problem solve for L&D

41%

37%

34%

32%

31%

30%

27%

24%

23%

64%

57%

56%

53%

43%

52%

29%

35%

41%

0% 25% 50% 75%

To better equip employees with the skills/knowledge they need to support the business

To make data-driven decisions on learning investments

To discover and leverage factors that increase productivity/business performance

To support long-term learning strategy for the organization

To provide ongoing reporting of learning trends to leadership

To better inform learning and development efforts on the key factors of employee performance

To mitigate legal and compliance risk

To better inform decisions on succession planning and leadership development

To problem solve for critical business issues related to learning and development

Use Cases


Page 28

Vanguard leaders at all levels are more likely to request learning analytics data

45%

41%

42%

24%

25%

17%

11%

72%

69%

64%

45%

43%

34%

22%

0% 20% 40% 60% 80%

Divisional business leaders

C-Suite/Senior executives

Line managers

Business analysts

Finance leaders

Board of Directors

Legal advisors

Groups requesting learning analytics quarterly or more


Page 29

Vanguard organizations are more likely to package results for easy consumption

53%

51%

35%

29%

22%

18%

10%

65%

61%

52%

32%

30%

25%

4%

0% 20% 40% 60% 80%

Written report

In-person presentation

Dashboard

Available by request or on intranet when needed

Scheduled email communications (i.e. monthly or quarterly email newsletter)

Custom reporting/consultation work due to strategic nature

Results are not communicated to leadership

How analytics are communicated


Page 30

Vanguard organizations are more likely to have increased business value on the harder business metrics

50%

36%

41%

31%

36%

31%

18%

20%

11%

69%

55%

52%

50%

47%

45%

31%

30%

13%

0% 20% 40% 60% 80%

Increased skills/capabilities in the workforce

Increased productivity

Increased employee engagement

Increased quality of product/service

Increased credibility of the learning function with business leaders

Increased efficiencies in business processes

Increased revenue

Increased employee retention

Decreased legal costs and compliance fees

Business Outcomes from Learning Analytics


Page 31

Vanguard organizations are less likely to experience roadblocks with skills and buy-in

50%

48%

42%

36%

34%

25%

23%

22%

16%

14%

8%

36%

45%

36%

25%

18%

12%

20%

20%

4%

18%

10%

0% 20% 40% 60%

Lack of analytics skills within the learning team

Lack of integration among various data systems

Lack of budget for analytics software/projects

Lack of management experience in effectively using analytics data

Data not collected

Lack of buy-in from senior leadership about the value

Difficulty explaining the results/data/value of learning analytics

Difficulty getting consensus across the organization on how to structure the data

Don’t know where to start

Difficulty hiring and retaining skilled and experienced learning analysts

Concerns about data security

Roadblocks


Page 32

Vanguard organizations are less likely to have a manual process and more likely to have an integrated system

36%

32%

14%

10%

8%

17%

39%

12%

22%

10%

0% 20% 40% 60% 80%

It's a manual process

In-house systems for different functions (not integrated)

Commercial systems for different functions (not integrated)

In house system (integrated)

Commercial system (integrated)

Technology used to aggregate data


Page 33

Desired capabilities in a learning analytics platform

91%

64%

59%

56%

54%

53%

50%

44%

33%

87%

60%

55%

56%

56%

55%

56%

47%

34%

0% 20% 40% 60% 80% 100%

Reporting

Benchmarking

Trending

Forecasting

Connecting with operations data

Correlation analysis

Visualization

Flexible reporting

Mobile-enabled


Page 34

Vanguard organizations are more likely to increase analytics capability and software use

85%

15%

Analytics Vanguard are even more likely to

increase their learning analytics capability over

the next 2 years

Yes No

33%

32%

36%

The number of Analytics Vanguard using

analytics software will double in the next two

years.

Currently Use Yes

No

Page 35

SUCCESSFUL STRATEGIES

Page 36

Sources of Data Matter: The LMS does not stand alone n  Analytics Vanguard are using more sources of data. Highly

successful organizations are nearly 5% more likely to use HR data, nearly 15% more likely to use learning data and nearly 20% more likely to use performance data than the average.

n  Reporting capability does not ensure the success of learning analytics. To problem solve for pressing issues related to learning Vanguard organizations are using workforce segmentation, external benchmarking and predictive analytics more than the average.

Page 37

Metrics Matter: More is More n  Analytics Vanguard are tracking more KPIs.

– They use every metric related to learning impact, learning efficiency and business impact more than the average.

Page 38

Report more often, and further down the chain of command n  Analytics Vanguard are delivering reporting on analytics more

often, and to employees at lower levels. In fact, among our successful organizations, their line managers are requesting learning analytics data almost as often as their divisional business leaders. – 64% of Analytics Vanguard say their line managers are requesting

learning analytics data quarterly or more compared to 42% of all organizations.

n  Enabling business leaders to understand how to best use analytics to drive value is of critical importance. – 36% of all organizations say that lack of management experience in

effectively using analytics is a roadblock. This is only 25% among the Analytics Vanguard.

Page 39

Drive Business Value n  Analytics Vanguard are dramatically more likely to use

analytics to drive business value. And the greatest differences are with the harder business measures. – 19% more likely to experience increased productivity – 19% more likely to have increased skills/capabilities in the workforce – 19% more likely to have increased quality in products/services – 14% more likely to have increased efficiencies in business processes – 13% more likely to have increased revenues – 11% more likely to have increased employee engagement – 11% more likely to have increased credibility of the learning function

with business leaders – 10% more likely to have increased employee retention.

Driving Performance at the Intersection of Learning and Business

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