Post on 26-Jan-2015
description
You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference.
If you would like to join the teleconference, please dial 1.650.479.3208 and enter access code 922 392 963 #
You will be on hold until the seminar begins.
#CLOwebinar
How to Build a Business Case and Measure the Effects of Leadership
Development Programs
Speaker: Jeffrey BerkCOOKnowledgeAdvisors
Moderator: Deanna HartleySenior EditorChief Learning Officer magazine
#CLOwebinar
How to Build a Business Case and Measure the Effects of Leadership
Development Programs
• Q&A– Click on the Q&A icon on
your floating toolbar on the top of your screen.
– Type in your question in the space provided
– Click on “Send.”
Tools You Can Use
#CLOwebinar
• Polling
– The poll will appear on the right side of your screen
– Select the best option for each question
– Click on “Submit”
#CLOwebinar
Tools You Can Use
Frequently Asked QuestionsWill I receive a copy of the webinar recording?
YES
Will I receive a copy of the slides?
YES
Please allow up to 2 business days to receive these materials
#CLOwebinar
#CLOwebinar
Deanna HartleySenior EditorChief Learning Officer magazine
How to Build a Business Case and Measure the Effects of Leadership
Development Programs
#CLOwebinar
Jeffrey BerkCOOKnowledgeAdvisors
How to Build a Business Case and Measure the Effects of Leadership
Development Programs
How to Build a Business Case and Measure Effectiveness for Leadership Programs
Jeffrey BerkChief Operating Officer
www.knowledgeadvisors.com
© KnowledgeAdvisors. All rights reserved
Agenda
8
Developing the business case for a leadership development initiativeDefining the leadership development measurement strategy to evaluate impactIdentifying what analytics are important Communicating the results of leadership development investments to executives
© KnowledgeAdvisors. All rights reserved
Who is KnowledgeAdvisors?
Our software, Metrics that Matter®, helps organizations measure and improve their talent development programs.We also have experts on staff to design specific solutions for our clients.
We are a Learning Analytics company.
9 10/31/2012 © 2012 Copyright KnowledgeAdvisors
What is Metrics that Matter®?Metrics that Matter® is the leading learning analytics system.
It combines a world-class evaluation system with powerful analytic tools to provide comprehensive reporting.It is the only system that fully automates the entire Level One through Five evaluation process.
10 10/31/2012 © 2012 Copyright KnowledgeAdvisors
Leadership Development Need
11 © KnowledgeAdvisors. All rights reserved
Strategic, visible and costly program
Leadership Development Programs are critical to:create a high performing workforcedevelop future leadersbuild succession plans
Need for formal measurement to yield better and timelyinformation for decision-making
Need to validate leadershipprogram investment and identify improvement areas
Types of Metrics to Report
12 © KnowledgeAdvisors. All rights reserved
Balanced Metrics/Better Decisions
13 © KnowledgeAdvisors. All rights reserved
Outcome Metrics - Business Outcomes •Leader Retention•Employee Engagement•Employee Retention•Leader Performance Ratings•Leader Financial ManagementEffectiveness Metrics – Program Performance•Delivery Quality•Knowledge Gain•Application to Job•Business Alignment•ValueEfficiency Metrics – Cost and Activity•# of Participants•% of Employees Trained•Total L&D Investment•L&D Investment per Participant•Courses Utilized•Classes Conducted•Instructors Utilized•Locations Used
Business Case Components
14
1. Increased performance– Improved performance in running training like a business– Improved workforce performance through data driven decision-making– Research shows 2.4% improvement in performance from analytics
2. Reduced scrap learning – Over half of training investments are not optimally used– Most organizations waste .5% to 2% of revenue on under-used training– Lack of manager follow-through is a significant problem
3. Reduced administration – Majority of time spent on measurement is transactional and tactical– Talented practitioners are doing data compilation vs. data analysis– Data is not provided with any relevant reference points to make sense
© KnowledgeAdvisors. All rights reserved
Business Case Examples
15
1. Performance Case: European Government Entity leadership program saw more than double (69%) on-the-job performance change vs. benchmark and showed a 2 to 1 benefit-to-cost ratio from leadership program. Finally 87% saw improved customer retention vs. 37% for benchmark.
2. Scrap Case: Consumer goods firm used on-the-job reinforcement tools to engage managers and employees after a strategic program. Nearly 70% used the program with reinforcement vs. less than 33% without reinforcement.
3. Admin Case:15 minutes to retrieve actionable data for decision-making vs. 15 hours prior to automating the measurement process. This automation of 1 report alone saved over $36,000 per year.
© KnowledgeAdvisors. All rights reserved
A Tale of Two Programs
16 © KnowledgeAdvisors. All rights reserved
1.Company A went back 2 years… and identified that they had 1,019 people rated #3, “needs improvement” in recent performance reviews
2.They calculated that they spent an average of$13,090 per year on highly visible leadership development (Coaching, counseling, mentoring, retraining and manager time) to elevate them to #1’s ,“high performers”
3.They identified 2 years later… the number that were currently ranked as #1’s, was ZERO
A Tale of Two Programs
17 © KnowledgeAdvisors. All rights reserved
Leadership program with optional ‘project’Determine if optional project influenced employee retention in leadership programEmployees with no learning projects averaged a turnover rate of 21%Employees with 2 or more learning projects averaged a turnover rate of 2%Clearly the control group vs. learning group shows a difference
Furthering the Case
18
Create a 1 page business case (simple and concise). Emphasize productivity, waste and admin.
Put an executive report or dashboard together that has at least 1 metric for outcome, effectiveness and efficiency data.
Do a pilot of analytics. Evaluate your training in an analytics tool, compare to benchmarks, view results in reports, dashboards and scorecards.
© KnowledgeAdvisors. All rights reserved
1 Page Business Case
19 © KnowledgeAdvisors. All rights reserved
Value Summary
$2,500,000 Performance Gain
$250,000 Waste or Scrap Avoided
$116,250 Administration Savings
$2,866,250 Total Quantified Value
Dashboard/Executive Reports
20 © KnowledgeAdvisors. All rights reserved
The Top 10 Measurement Tools
21 © KnowledgeAdvisors. All rights reserved
1. Identify Key Performance Indicators2. Create Smart Sheet Evaluations3. Build Communication Plan4. Design the Dashboard5. Provide Executive Reports, Scorecards, and Statements6. Conduct Capability Assessment7. Perform a Test/Certification8. Gather Sponsor Satisfaction Data9. Deploy On-the-Job Reinforcement10.Conduct Business Impact Exercise
Leadership Metric Sustainability
22
Processes
Standards, Tools
Technology
Data Utilization
• Established and consistent processes, technologies and communications for measurement
• Broad base of skills in analytics and measurement and strong capabilities in end-to-end measurement methods
• Standardization for a consistent and single point of analytics with integration to and from feeder systems
• Roles and accountabilities for metrics are defined with consistent expectations on what should be measured.
• Strong desire to use the data for decision making
• Maturity in how data is reported and used to improve end to end talent processes
• Strong leadership for driving measurement with governance to support it.
• Standards have been created for data collection• Data integrity exists
• Culture supports and drives need for standards and common talent development processes and measurement
3
5
8
1
2
3
46
7
© KnowledgeAdvisors. All rights reserved
Contact Us
23
For further information contact:
Jeffrey BerkChief Operating Officer+1 312 676-4411jberk@knowledgeadvisors.comwww.knowledgeadvisors.com
© KnowledgeAdvisors. All rights reserved
#CLOwebinar
Questions & Answers
Jeffrey BerkCOOKnowledgeAdvisors
Join Our Next CLO WebinarTuesday, November 13, 2012
CLO Webinars start at 2 p.m. Eastern / 11 a.m. Pacific
Register at www.clomedia.com/events
Join the CLO Network: http://network.clomedia.com/
#CLOwebinar