ADP Case Study - CEdMA Europecedma-europe.org/newsletter articles/Brandon Hall... · important part...

CA

SE S

TUD

Y

Learning On-Demand

Extra Space Storage Drives Performance of Key Business Initiatives with LMS Technology

IN THIS CASE STUDYWhen companies merge, the need for employee learning and development often becomes acute. Management’s top priority is to align two previously separate workforces to act and think as one cohesive enterprise. At least some, if not all, employees must relearn most of what they know about the corporate culture and mission, operating procedures and processes, information technologies and systems – and much more.

Extra Space Storage recently acquired a much larger rival, vaulting it into the number two spot in the U.S. self-storage industry. The merger triggered an urgent need to align employees from the newly purchased company to the goals of Extra Space Storage – not only to ensure a consistent customer experience from coast to coast, but also to minimize employee turnover, boost productivity and comply with regulatory requirements.

In order to reach a geographically dispersed audience with little time for classroom training, Extra Space Storage turned to e-learning and learning management system technology. For a relatively small corporate learning organization, the LMS is a resource multiplier, enabling a nine-person training group to deliver more than 250,000 training hours per year, with an average of 136 hours per year for newly hired employees.

BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

BERSIN & ASSOCIATES

PLANNING& STRATEGY

CONTENTDEVELOPMENT

LEARNINGPROGRAMS

LEARNINGTECHNOLOGY

ANALYTICS &MEASUREMENT

TALENTMANAGEMENT

LEADERSHIP DEVELOPMENT

FOCUS:

—Chris Howard, Principal Analyst | February 2008

�BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

Over the past two years, Extra Space Storage has made e-learning an important part of its culture, strategy and overall way of doing business. This case study will examine how Extra Space Storage:

• Merged with a larger company, prompting the need for retraining the workforce on everything from essential duties and responsibilities to administrative processes and procedures;

• Organized its learning and development department around a federated model (with a centralized shared services group, learning managers embedded in geographic divisions and additional training resources at the field level);

• Selected and deployed a hosted, on-demand learning management system (LMS) solution to deliver e-learning curriculums and certification programs;

• Developed basic and advanced e-learning curriculums and certification programs to help employees develop the skills and knowledge needed to progress from storage consultants to store managers to corporate management and leadership positions;

• Leveraged LMS functionality to create a learning library and communities of practice forum to provide on-demand performance support resources;

• Conducted a marketing campaign for the LMS launch to inform employees in an approachable and fun manner, generate interest and overcome fear of change and technology; and,

• Measured both hard and soft benefits, finding a less than 12 month return on investment (ROI) for the LMS implementation. e

BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

TABLE OF CONTENTSCompany Overview 5

Business Environment 5

Learning Environment 7

Learning Organization 7

Training Audience and Challenges 10

Learning Management System 11

Learning Center Implementation 12

Curriculum Development and Blended Delivery 14

e-Learning Program 15

Bronze New Hire Learning Plan and Certification 17

Silver Learning Plan and Certification 18

Gold Learning Plan 19

Content Development 20

Learning Library and Communities of Practice 20

Marketing to Employees 22

Soft Benefits Productivity 23

Human Resources 23

Soft Benefits 23

New Hire Orientation and Training 24

Regulatory and Compliance 24

Hard ROI Benefits 24

Turnover Reduction 25


LEARNING ON-DEMAND

Drive Performance of Key Business Initiatives 26

Looking Ahead 27

Lessons Learned 27

Learning Is Not a One-Time Event 28

Get Buy-In from Stakeholders 28

Keep It Simple 28

Don’t Leave Reporting as an Afterthought 28

Conclusion 29

Appendix II: Table of Figures 30

About Us 31

About This Research 31


LEARNING ON-DEMAND

Company Overview

Extra Space Storage, Inc. (NYSE: EXR) is the second largest operator of self storage in the U.S., and is a national owner, developer, acquirer and operator of professionally managed self-storage properties. Organized as a real estate investment trust (REIT) based in Salt Lake City, Utah, Extra Space Storage is a growth-oriented company creating a new standard in the self-storage industry. Extra Space Storage has been investing in self-storage facilities since 1977.

Both customers and communities benefit from Extra Space Storage’s professional approach to storage. Featuring attractive, convenient and secure facilities operated by professional managers, the company seeks to change the association of self storage as a temporary holding place for rarely-used things to a desirable, safe and customer-oriented facility perfectly suited for maintaining and accessing valued personal or business possessions.

Business Environment

Extra Space Storage’s mission is sustainable growth, based around six basic company goals:

• Maximize customer satisfaction;

• Provide an excellent product and service;

• Develop and maintain mutually beneficial business relationships;

Figure 1: Extra Space Storage at a Glance

• Real Estate Investment Trust (REIT) founded in 1977

• 644 self-storage properties in 33 states and the District of Columbia

• 2006 managed rental revenues of $533 million, up seven percent from 2005

• 2000 Employees

Source: Extra Space Storage, 2008.


LEARNING ON-DEMAND

• Increase shareholder value;

• Grow the business; and,

• Make Extra Space Storage a great place to work.

The self-storage industry is highly fragmented. The top five industry leaders control just over 10 percent of the market. The remaining 90 percent of the market is comprised mainly of small “mom-and-pop” owners who operate one or two facilities.

In 2005, Extra Space Storage – a company that had about 200 storage sites at the time – purchased Storage USA (which was then the number two company by market share) with more than 400 facilities. By combining more than 600 sites, the companies positioned themselves to reduce overhead costs and compete strongly with industry rivals.

As with any acquisition, one of the key challenges for Extra Space Storage was how to get all employees aligned in terms of policies, standard operating procedures, corporate culture, product offerings and sales techniques, company goals and strategy, et al. The company’s nine-person learning and development organization did not have the resources to touch everyone. It needed a way to cost-effectively deliver training to a large, diverse and geographically dispersed audience.

Prior to the merger, both companies administered and tracked training manually– a time-consuming and error-prone approach. When the now vice president of learning and development at Extra Space Storage was with Storage USA, she lobbied for a learning management system1 for years, but the financial resources were never available. Post merger, management quickly saw a compelling business case for the LMS:

• Extra Space has approximately 1,800 field employees with varying degrees of skills and knowledge;

• These employees are located in facilities and offices in 33 states and D.C., making consistency of delivery an issue;

1 For more information, Learning Management Systems 2008: Facts, Practical

Analysis, Trends and Vendor Profiles, Bersin & Associates / Josh Bersin, Chris

Howard and Karen O’Leonard, July 2007. Available to research members at

www.elearningresearch.com or for purchase at www.bersin.com/lms.

http://www.elearningresearch.com

http://www.bersin.com/lms


LEARNING ON-DEMAND

• Training is difficult to schedule for field employees due to staffing constraints;

• Continuously changing policies and programs require on-going delivery of training;

• Employee turnover rates can be kept at or below industry average through investment in employee development;

• Highly profitable insurance products are also very regulated, which require that employees understand the products they are selling; and,

• The purchase price of an LMS solution would be less than the yearly costs for travel and facilities required by instructor-led training.

Learning Environment

Learning Organization

The learning and development department is organized around a federated model�, combining centralized shared services with distributed learning resources at business unit and geographic levels (see Figure 2). The learning and development department reports to a chief operating officer (COO), not human resources, an indication of its principal mission to train operational employees who interact with customers daily.

Located at the corporate headquarters in Salt Lake City, Utah, the vice president of learning and development is responsible for operational, corporate and leadership training. She reports to the chief operating officer, but maintains a close relationship with HR leadership.

The VP oversees the alignment of training programs with overall corporate goals, which are reviewed yearly. In 2007, for example, she directed the group to design learning initiatives around operational

2 A “federated model” has a small core team that manages some technology

and corporate programs, and empowers business and functional units to run their

own training programs.

The merged companies

needed an LMS to deliver

consistent training

that would enable two

workforces to come

together as one.

K E Y P O I N T


LEARNING ON-DEMAND

Figure 2: Extra Space Storage – Learning and Development Department Reporting Structure

goals such as boosting occupancy rates and increasing revenue from sales of customer protection plans (e.g., insurance).

Reporting to the VP is a senior director of corporate learning who directly oversees management development. This includes 360-degree assessments on leaders, as well as leadership and management courses for individuals and groups. The director works primarily with 150 corporate leaders at the company’s headquarters and divisional managers.

Also reporting to the VP is a learning and development coordinator who develops content and also acts as the LMS administrator.

Supporting this three-person centralized shared services group are the learning resources in the field. On the operational side of the business, the company’s self-storage sites are divided into six geographic

Figure 2: Extra Space Storage – Learning and Development Department Reporting Structure

Source: Bersin & Associates, 2008.

100 District Learning

Specialists

Vice President ofLearning andDevelopment

Sr. Director ofCorporateLearning

Learning and DevelopmentCoordinator / LMS

Administration

Chief Operating Officer

L & DManager

L & DManager

L & DManager

L & DManager

L & DManager

L & DManager

Operations

DivisionVP

DivisionVP

DivisionVP

DivisionVP

DivisionVP

DivisionVP


LEARNING ON-DEMAND

divisions, each with approximately 80 to 120 locations. Each division is lead by a vice president.

A learning and development manager resides within each division and is on the L&D department payroll, but he / she has a dual line of responsibility to the division vice president. These division learning managers implement on-boarding and refreshment learning programs at the local field level, as well as ensure that learning is aligned with specific geographic market conditions and divisional objectives. For example, the division learning managers may adjust storage-insurance sales training to address differences in buyer mind-set in Southern California versus the Northeast.

Approximately 100 store managers perform training functions at the facility level. These district learning specialists are store managers whose primary responsibility is to run their stores, but they also provide hands-on training at two to three stores within their district.

To become a district learning specialist, a store manager must be nominated by his / her district manager and division learning manager.

Figure 3: Division and District Learning Manager / Specialist Responsibilities

Role Responsibility

Division Learning Managers

• One for each of the six geographic divisions• Full time learning• Dual reporting to division VP and L&D VP• Aligns division-level learning with

corporate objectives• Manages district learning specialists

District Learning Specialists

• Approximately 100 learning specialists (one to three for each geographic district)

• 85% of time on store management, 15% of time on learning

• Provides hands-on training to 2-3 stores in a district

• Selected by district managers and division learning managers


10BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

Through a series of interviews, managers are selected based on their high performance and skill levels, ability to teach others, comfort level in front of groups, as well as leadership traits like drive and initiative.

Approximately 10 to 15 percent of a learning specialist’s time is spent over the course of a year performing the following functions:

• Training and assisting in the development of new employees, including two weeks of on-the-job training;

• Providing ongoing training and mentoring through e-learning and certification programs;

• Serving as a resource for follow-up operations, sales, marketing and computer training;

• Delivering training in district meetings as directed by the district manager and division learning manager;

• Assisting in the training of new policies and procedures in the district;

• Piloting and testing new training programs; and,

• Providing job aids, content, ice breakers, team building, et al, for district meetings.

For performing these additional training functions, the company compensates learning specialists an additional $0.50 to $1.00 per hour. Each district has from one to three learning specialists, based on the number of stores and the geography of the area.

Training Audience and Challenges

Extra Storage has approximately 2,000 employees – with 10 percent (200 employees) located at the corporate headquarters in Salt Lake City, while the other 90 percent work in the field at self-storage facilities around the United States. There is an average of 2.5 employees at each facility site – typically a store manager and one or more storage consultants.

There are several challenges associated with training the 1,800 field employees. Because the workers are so geographically dispersed, flying instructors around the country is cost prohibitive. In addition,

By having specialists

test new programs,

the learning and

development

organization gets buy-in

from peers at the district

level, which helps to

overcome employee

skepticism and distrust

of change.

BEST PRACT ICE


LEARNING ON-DEMAND

workers cannot easily leave their facilities for face-to-face instructor-led trainings held at centralized locations.

It even can be difficult for “store” employees to have time for online learning due to the steady flow of customer interaction throughout the day. Another issue is that facility worker’s computer skills range from being completely illiterate to very savvy, so online training has to be stripped of complexity and presented in a clear, easily comprehensible manner.

In addition, consistency of training is a primary business focus for many reasons. Regulatory compliance training, for example, demands that learners receive information in a consistent and uniform manner. Also, creating a consistent customer experience across hundreds of sites in 34 states requires that all facility workers understand the customer service training and apply it in the exact same way.

Learning Management System

The business case for the learning management system investment was premised on the achievement of multiple learning objectives, including:

• Improving training efficiency;

• Managing enterprise initiatives;

• Facilitating e-learning;

• Meeting regulatory compliance (OSHA, Sarbanes Oxley);

• Implementing skills and competencies; and,

• Improving morale.

Because the urgency to get employees trained after the merger was so intense, the VP of learning and development focused on a hosted software model with the intent of quickly launching training to the intended audience. Additionally, the IT department was unable to commit the resources needed to host the LMS in-house.

In December 2005, after thoroughly appraising the vendor options and conducting a Request for Proposal (RFP) process, Extra Space Storage selected Learn.com’s Learn Center learning management system. The Extra Space Storage Learning Center was launched for employees in March 2006.

1�BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

The LMS is used primarily to deliver e-learning courses and skills management (rather than classroom scheduling and logistics, enrollment, registration, et al). For Extra Space Storage, key LMS functionalities include:

• Portal for accessing training courses;

• Skills management;

• Course assignment by job role;

• Users organized by reporting structure;

• Training paths or curriculum programs;

• Assessments;

• Resource Management;

• Competency / certification tracking and notification;

• Management of blended learning (mixed media); and,

• Virtual classroom (e.g., Webex, Centra).

The LMS has proven to be a resource multiplier for the relatively small learning and development department at Extra Space Storage. The total 2007 budget for the department was approximately $2.25 million, with $1.5 million set aside for payroll. The remaining $750,000 must cover annual expenses for course development, instructor travel, technology infrastructure, conferences and much more.

For an initial purchase price of less than $100,000, Extra Space Storage implemented an LMS that allows a nine-person training department to deliver 250,000 training hours per year, with an average of 136 hours of training for a new hire over the course of their first year with the company.

Learning Center Implementation

The three-month implementation of the Extra Space Learning Center focused on the need for users to have easy access to e-learning resources. The company experienced a setback when they tried to integrate the LMS with its ADP HR management system (HRMS). After

On-demand learning

management systems

are enabling small

training groups to

produce and distribute

training more efficiently.

This capability

– previously reserved

for larger organizations

– is enabling companies

in similar situations to

respond more quickly

to changes in business

needs.

A N A LY S I S


LEARNING ON-DEMAND

Figure 4: Design Similarity between Intranet and Learning Home

putting together a team with representatives from each vendor and the director of payroll, the issue was resolved.

The top priority of the team was to ensure that logging onto the learning home page was clear and easy. The LMS vendor provided design assistance as part of the licensing agreement. In the final process flow, employees:

1. Log on to the company’s intranet home page;

2. Click on the Learning and Development tab; and,

3. Click on the Learning Center link.

As a change management strategy, Extra Space wanted to ensure that employees would feel comfortable with the online learning experience. By building in design similarities (see Figure 4), employees could seamlessly move from the intranet home page to the Learning Center home page.

LMS and HRMS

integrations usually

require customizations

by both vendors. Bring

both sides together to

minimize the ability of

vendors to point fingers.

A N A LY S I S

Figure 4: Design Similarity between Intranet and Learning Home


ESS Intranet Home Page ESS Learning Center Home Page


LEARNING ON-DEMAND

Figure 5: Extra Space Learning Center

The Learning Center home page (see Figure 5) is specifically designed so that users need fewer clicks to reach resources such as learning plans, the learning library and forums (e.g., communities of practice). Everything is clearly laid out on a clean page with no esoteric features or unfamiliar navigation.

Curriculum Development and Blended Delivery

The e-learning curriculum is designed to help employees master the competencies that are required for three basic job profiles:

Figure 5: Extra Space Learning Center


Less “Clicks”

Access to Forums

Easy access to Learning Plans

Access to the Learning Library


LEARNING ON-DEMAND

• Store Managers;

• Store Consultants; and,

• Store Maintenance.

While the store maintenance position requires mainly basic facility information, the competencies for the other two job profiles include:

• Computer skills;

• Software systems;

• Sales skills and marketing;

• Problem solving; and,

• Critical thinking.

Sales skills, for example, might include how to present products, how to close a customer sale, or how to “up sell” customers on insurance coverage. Training programs and curriculum are developed to address whatever the specific needs of the enterprise are, whether it is a content refresher that is best delivered online, or a major push for sales training that requires instructor-led training at district meetings. As each initiative develops, the learning department chooses the most appropriate and cost-effective mode of delivery.

The learning organization has started to utilize WebEx to stream videos and PowerPoint presentations that new hires watch on their first day on the job. The Extra Space Storage Learning Center has a link that brings users directly to the WebEx page. The department experimented with live virtual instructor-led training (VILT), but found there were too many customer interruptions for employees to participate in real-time online learning.

e-Learning Program

e-Learning curriculum is divided into two learning plans and certification levels – Bronze and Silver (see Figure 6). The programs are designed to direct the learning and development of employees so that they acquire the requisite skills and knowledge.

Approximately 73

percent of training

hours are completed

online through the LMS,

while 27 percent are

fulfilled in classroom or

on-the-job training.

K E Y P O I N T

Live, online instruction

can be effective for

some retail applications,

such as product training

for commissioned

sales staff.

A N A LY S I S


LEARNING ON-DEMAND

Figure 6: Bronze and Silver Learning FlowFigure 6: Bronze and Silver Learning Flow


Bronze Learning PlanWeek One

On the Job Training at DLS Site

OrientationStorage Facility Management Software

Basic Storage OperationsSales Process

Week TwoOn the Job Training at Trainee Site

Basic Storage OperationsSales Process

Proficiency Self Assessment

Week ThreeEmployee Begins e-Learning Modules

Basic Customer Service ModuleDLS Mentorship

Comprehensive Exam – 80% to pass

Week FourEmployee Continues e-Learning

Modules

Basic Facility Maintenance ModuleDLS Mentorship


Week FiveEmployee Continues e-Learning

Modules

Basic Financial Management ModuleDLS Mentorship


Week SixEmployee Continues e-Learning

Modules

Basic Sales and Marketing ModuleDLS Mentorship


Week SevenEmployee Completes e-Learning

Modules

Basic Store Operations ModuleDLS Mentorship


Weeks Eight - Twelve

Practical Application of all Bronze trainingStudy for Final Comprehensive Exam

Pass Bronze Level Certification Exam – 80% or higher

District Manager ApprovalProficiency Self Assessment

Months Four thru Nine

Employee Begins Silver Certification Learning Plan

Silver Learning PlanMonth Four

Employee Begins Silver Learning Plan

Advanced Customer ServiceDLS Mentorship

Comprehensive Exam – 80%

Month FiveEmployee Continues Silver

Learning Plan

Advanced Financial ManagementDLS Mentorship


Month SixEmployee Continues Silver

Learning Plan

Advanced Store OperationsDLS Mentorship


Month Seven Employee Continues Silver

Learning Plan

Advanced MarketingDLS Mentorship


Month EightEmployee Continues Silver

Learning Plan

Advanced Facility MaintenanceDLS Mentorship


Month NineEmployee Completes Silver Learning Plan

Advanced SalesDLS Mentorship

Comprehensive Exam – 80%District Manager ApprovalProficiency Self Assessment


LEARNING ON-DEMAND

Figure 7: Bronze Learning Plan

Before embarking on the Bronze learning plan, employees first complete an introductory e-learning module – which explains the purpose and scope of the training programs, how the certifications programs work, as well as how to navigate and use the e-learning software.

Bronze New Hire Learning Plan and Certification

The Bronze learning plan and certification program (see Figure 7) is essentially a new hire training program that runs from day one until the end of the third month of employment. At the time of the LMS launch, however, every Extra Space Storage employee (including those with years of experience) was required to attain Bronze certification.

Figure 7: Bronze Learning Plan



LEARNING ON-DEMAND

Prior to taking the e-learning modules, new employees first receive two weeks of one-on-one, instructor-led training at the local storage facility. Many of the learning activities in the online modules relate back to the instructor-led training, which is delivered by the district learning specialist with input and guidance from the division learning manager.

The Bronze program takes approximately 90 days and requires the completion of eight modules – such as store essentials, customer service, financial management, and sales and marketing – each comprised of several individual courses. Learners must pass an exam at the end of each lesson before they can progress onto the next topic.

Evaluation of performance is measured and compared in three different ways. Before training begins, the employee completes a self-assessment of their competencies using a scale of one to seven. Later, this assessment gets compared with both the learning specialist’s evaluation of the hands-on training and the e-learning test scores. In this way, Extra Space Storage can measure how confident the employee was at the beginning of the learning process, how much they learned after two weeks of instructor training, and then how much they ultimately know and understand about the business after receiving their Bronze certification.

Silver Learning Plan and Certification

Completion of the Bronze learning plan is a prerequisite for starting the Silver plan and receiving certification (see Figure 8). The Silver learning plan (which was launched several months after the Bronze program) is based on six advanced e-learning modules that expands the learner’s knowledge of the self-storage industry and demands more skill from each individual.

Whereas the Bronze program teaches employees the basics of the business, the Silver plan gives employees a better understanding of financials and budgeting strategies, more advanced sales skills, facility management skills and troubleshooting skills. After completing the six modules, employees must pass a comprehensive exam to attain Silver certification.


LEARNING ON-DEMAND

Figure 8: Silver Learning Plan

Gold Learning Plan

At the time of this report, the learning department was launching a Gold-level e-learning program with no certification attached. Gold is a personal and / or professional development program open to Silver-certified store employees and corporate employees.

The Gold curriculum is based on six e-learning titles purchased from a leading content vendor. Topics include “Developing and Leading an Effective Team,” “Dynamic Business Presentations” and “Effective Time Management.”

Figure 8: Silver Learning Plan


�0BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

Employees who wish to take a Gold-level course must first complete a submission form stating why they wish to take the module and how they plan to apply their knowledge. Their supervisor must approve the application.

Content Development

More than 95 percent of the e-learning, print and instructor courseware is developed in house using Microsoft PowerPoint and Adobe Captivate. There is a team approach to content development, reflected in the fact that no one person has the title “content developer.”

Content development is handled by the learning and development coordinator, division learning managers and even the vice president. To ensure consistency of content, the learning team utilizes a standard PowerPoint template for e-learning modules. A member of the learning team meets with a business unit to understand learning requirements, and then gathers content and information from internal subject matter experts (SMEs).

A small number of courses are outsourced, mainly those covering subjects like desktop productivity tools, personal development and other topics outside of the company’s expertise. External vendors are sometimes used to augment internal resources if time is a critical factor, if an unusually large amount of content is needed, or if the course requires HTML coding.

Extra Space Storage finds that new courses are easily loaded into the LMS and reports no problems with integrating third-party courses.

Learning Library and Communities of Practice

Extra Space has leveraged LMS technology capabilities to deliver two value-added learning resources – a learning library and community of practice forums. The Learning Library (see Figure 9) is populated with job aids, worksheets, forms and checklists that users can download and print for just-in-time performance support.


LEARNING ON-DEMAND

Figure 9: Learning Library

Communities of practice (see Figure 10) allow employees to share tips, new ideas and best practices through six moderated forums – each related to a specific company goal. Anyone can post a question or comment or reply to a posting in the forum. A shared documents feature allows users to post and access spreadsheets, presentations, images and media files.

The L&D coordinator monitors these forums weekly to ensure that any posted questions are answered by contacting an appropriate resource in a community to make sure that they are aware of the outstanding question. Certain communities get more chat activity than others – mostly driven by site-level employees asking questions about best practices.

Figure 9: Learning Library


Job aids, worksheets and checklists users can download / print

��BERSIN & ASSOCIATES © FEBRUARY 2008 • NOT FOR DISTRIBUTION • LICENSED MATERIAL

LEARNING ON-DEMAND

Figure 10: Communities of Practice Forums

Marketing to Employees

To launch the LMS and Bronze and Silver e-learning programs, the learning department sent out e-mail “teasers” that were meant to be humorous and pique the interest of employees who may have been anxious about the idea of web-based training.

After sending out a series of weekly e-mails with funny school-related photos, the department sent a final message saying “Help is here – your new Learning Center!” The e-mail explained how to logon to the Learning Center via the company’s intranet page.

Division learning managers and district learning specialists helped to follow-up on the initial marketing of e-learning at the local field level and they continue to be responsible for driving users within their geographic area to the Extra Space Storage Learning Center.

Figure 10: Communities of Practice Forums


Each of the six forums relates

to a company goal

Anyone can post a question / comment or reply to a posting

in the forum


LEARNING ON-DEMAND

Soft Benefits

Although less easily quantified and translated into hard dollars, “soft benefits” are no less important than “hard benefits” in their tangible contribution to reaching an organization’s most important business objectives. The learning organization at Extra Space has identified several important soft benefits that have emerged since the LMS was implemented in 2006 in the following areas:

Productivity

• Efficiency improvements for division learning managers and district learning specialists;

• Productivity gains for division learning managers and district learning specialists by reducing time spent away from core job responsibilities;

• Consistency: same training to every employee, every time; and,

• Just-in-Time Training: content, Q&A, tips, et al, are always available for reference as well as continuous training and improvement.

Human Resources

• Supporting documentation, forms and employee information are all provided through this single employee portal;

• Launching of skill assessments to determine competency gaps;

• Creating development plans tailored to skills, company needs and career aspirations; and,

• Efficiently providing field access for HR personnel to successfully inform unemployment arbitrators, EOC commissions and others on the employee development provided by Extra Space Management, Inc.


LEARNING ON-DEMAND

Figure 11: Productivity and Efficiency Gains

New Hire Orientation and Training

Every new hire hears the same message no matter the time or location. An LMS provides a consistent message – as well as a learning plan – that is automatically assigned to the new employee to ensure that they are trained and productive as quickly as possible.

Regulatory and Compliance

Courses, documents and so on can be launched through the LMS in a timely manner, and the system is able to track every action.

Hard ROI Benefits

Cost savings generated by the LMS have been tracked, calculated and documented by the Extra Space learning organization. They range

Figure 11: Productivity and Efficiency Gains


Tracking and reporting:

District Learning Specialists (DLS): @2 hours weekly on tracking and reporting 2 x $10/hour = $20 per DLS in weekly labor costs 80 DLS’s x $20 x 52 weeks = $83,200

District Learning Managers (DLM): @4 hours weekly on tracking and reporting 4 x $26/hour = $104 per DLDM in weekly labor costs 6 DLDM’s x $104 x 52 weeks = $32,448

HR Managers (HRM): @2 hours per termination devoted to tracking down documentation 2 x $30/hour = $60 per HRM per termination 6 HRM’s x $60 x 25 terms/yr = $9,000

$124,648 in labor costs that can be redeployed to actually work with employees, not do administrative work.


LEARNING ON-DEMAND

from productivity and efficiency gains (see Figure 11), to reductions in employee turnover, to increased revenue from sales of customer insurance products.

Turnover Reduction

In theory, better oriented and trained employees should reduce the turnover rate. Extra Space estimates that an average facility employee costs $46,2003 to replace, while the average corporate employee costs $105,000� to replace.

Keeping one field employee and one corporate employee per year that would have left the organization due to inadequate training or orientation, more than pays for the LMS. Any additional reduction in turnover is further savings for the company.

According to the learning and development managers at Extra Space, the results to date (see Figure 12) indicate a marked reduction in turnover since the LMS was launched in early 2006.

3 Source: Workforce.com 4 Ibid.

Figure 1�: New Hire Turnover Within First 90 Days – Pre / Post LMS

New Hire Turnover Within First 90 Days (Pre/Post LMS)

Turnover by Quarter

Quarter 1 Quarter 2 Quarter 3 Quarter 4

2005 12.50% 22.22% 19.65% 81.58%*

2006 10.85% 13.02%** 16.89% 22.22%

2007 7.50% 10.06% 7.83% 7.43%

5pp reduction

Q1 2005 to Q1 2007

12.16pp reduction

Q2 2005 to Q1 2007

11.82pp reduction

Q3 2005 to Q3 2007

14.79pp reduction

Q4 2006 to Q4 2007

*T/O number reflects acquisition of Storage USA.**LMS and Bronze New Hire Learning Plan launched in March 2006


http://www.Workforce.com

26bersin & associates © February 2008 • not For distribution • licensed material

learning on-demand

Figure 13: Customer Protection Plan Results – Pre / Post LMS

Drive Performance of Key Business Initiatives

Insurance is the second highest source of revenue for Extra Space Storage, but Customer Protection Plan (CPP) revenues had suffered since the acquisition of Storage USA. Executive management asked the learning department to devise a training and communication strategy to address this performance gap.

The VP of learning and development met with various members of senior management, operations and risk management to fully understand the scope of the performance gap. With operations management’s assistance, the learning group analyzed the results currently being produced at the sites and compared them with the desired results. In addition, risk management assisted in the development of the program to ensure that it met required government regulations.

CPP training modules were launched for all employees through LMS in late 2006. The goal of the program is to ensure that all site employees are trained quickly and in the exact same way, thereby allowing Extra Space to capture increased revenue immediately. All store managers and storage consultants have completed the training with participants receiving an average score of 85 percent for comprehension and proficiency. These modules are now part of the Bronze New Hire Learning Plan.

The graph below (see Figure 13) shows an upward trend in tenant insurance penetration since the modules were launched. Five months

the learning

department has

weekly “results”

communications with

field supervisors and

trainers to highlight

top performers and

those not meeting

expectations.

BEST PRACT ICE

Figure 13: Customer Protection Plan Results – Pre / Post LMS


Tenant Insurance Penetration - All Properties

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2004 2005 2006 2007


LEARNING ON-DEMAND

after the launch of the program, the company achieved 60 percent new renter penetration. This number grew over the next five months to 75 percent. Overall penetration reached the 30 percent goal 10 months into the program and revenues at the 10 month mark were 140 percent over the same period last year and 20 percent higher than the stated goal.

Looking Ahead

Now that executive management has seen the benefits of using a learning management system and e-learning technology to train employees in the field, the learning and development department has been given approval and funding to begin an e-learning program for the employees working at headquarters. This initiative has already begun with a series of Microsoft technology courses that Extra Space Storage received for free from its LMS vendor. Over the next 12 to 18 months, more and more e-learning courses will be rolled out to corporate employees.

The second major initiative is focused around building a more formalized competency model in 2008. At the time of this report, the VP of learning and development was still researching the relative merits of purchasing a competency framework from a vendor versus attempting to create one internally. Eventually, the model will be used as a springboard to accelerate future course development. This will make it easier for the learning department to align the content with competency requirements at the enterprise, departmental and individual level.

Lessons Learned

Extra Space Storage has learned several important lessons that can be used by other enterprises seeking to implement a learning management system and e-learning programs:


LEARNING ON-DEMAND

Learning Is Not a One-Time Event

To grow and sustain progress towards the goal of aligning the employees from two merged companies, the learning department had to have a long-term strategy that ran the course of the program. This is still on-going (even though stated goals have been exceeded) so that the company does not lose focus or momentum.

Get Buy-In from Stakeholders

According to the VP of learning and development, it is critical to the success of a learning strategy or initiative to attain buy-in from senior management and forge partnerships with other key departments. In the case of the Customer Protection Plan training program, marketing, operations analysts and risk management were key partners in helping to develop creative, fun communications and functional, informative reporting. Engaging an effective selling community of practice to share best practices allowed all levels of the operations to participate.

Keep It Simple

The learning department keeps the learning portal and courseware pages barebones simple in terms of graphics, multimedia and other non-essentials. This is partly out of necessity, since the company does not budget the resources to support HTML programmers for e-learning content. Nonetheless, they believe this approach encourages learners to come back because the user experience is fast, efficient and straightforward.

Don’t Leave Reporting as an Afterthought

Despite the high marks given to the LMS in almost every area, the learning department did report that the software fell short of their expectations in terms of reporting tools. Bersin & Associates research�

5 For more information, Learning Management Systems 2008: Facts, Practical

Analysis, Trends and Vendor Profiles, Bersin & Associates / Josh Bersin, Chris

Howard and Karen O’Leonard, July 2007. Available to research members at

www.elearningresearch.com or for purchase at www.bersin.com/lms.

http://www.elearningresearch.com

http://www.bersin.com/lms


LEARNING ON-DEMAND

shows that reporting solutions often fall short of customer expectation, often due to a lack of understanding on the part of the buyer in terms of what type(s) of reports they require. Companies that require robust reporting functionality sometimes integrate third-party reporting packages with the LMS.

Conclusion

Extra Space Storage may be the only company in the self-storage industry currently using a learning management system to deliver employee training and development. Perhaps this is because most companies in the industry see themselves as real estate companies, whereas Extra Space Storage has positioned itself as a retailer, selling a customer experience. To solve the issues of bringing two disparate workforces together, the company made learning a top priority and invested in learning technology. Hosted LMS software has enabled a relatively small training group to produce outsized results. The payoff for the enterprise in terms of both hard and soft benefits has been significant, with a total return on investment of less than one year.

Reporting is often the

last feature considered,

but one of the first

capabilities that fall

short of expectations.

A N A LY S I S


LEARNING ON-DEMAND

Appendix II: Table of Figures

Figure 1: Extra Space Storage at a Glance 5

Figure 2: Extra Space Storage – Learning and Development Department Reporting Structure 8

Figure 3: Division and District Learning Manager / Specialist Responsibilities 9

Figure 4: Design Similarity between Intranet and Learning Home 13

Figure 5: Extra Space Learning Center 14

Figure 6: Bronze and Silver Learning Flow 16

Figure 7: Bronze Learning Plan 17

Figure 8: Silver Learning Plan 19

Figure 9: Learning Library 21

Figure 10: Communities of Practice Forums 22

Figure 11: Productivity and Efficiency Gains 24

Figure 12: New Hire Turnover within First 90 Days – Pre / Post LMS 25

Figure 13: Customer Protection Plan Results – Pre / Post LMS 26


LEARNING ON-DEMAND

About UsBersin & Associates is the only research and advisory consulting firm focused solely on WhatWorks® research in enterprise learning and talent management. With more than 25 years of experience in enterprise learning, technology and HR business processes, Bersin & Associates provides actionable, research-based services to help learning and HR managers and executives improve operational effectiveness and business impact.

Bersin & Associates research members gain access to a comprehensive library of best practices, case studies, benchmarks and in-depth market analyses designed to help executives and practitioners make fast, effective decisions. Member benefits include: in-depth advisory services, access to proprietary webcasts and industry user groups, strategic workshops, and strategic consulting to improve operational effectiveness and business alignment. More than 3,500 organizations in a wide range of industries benefit from Bersin & Associates research and services. Bersin & Associates can be reached at http://www.bersin.com or at (510) 654-8500.

About This ResearchCopyright© 2008 Bersin & Associates. All rights reserved. WhatWorks® and related names such as Rapid e-Learning: WhatWorks® and The High Impact Learning Organization® are registered trademarks of Bersin & Associates. No materials from this study can be duplicated, copied, republished, or re-used without written permission from Bersin & Associates. The information and forecasts contained in this report reflect the research and studied opinions of Bersin & Associates analysts.

http://www.bersin.com

ADP Case Study - CEdMA Europecedma-europe.org/newsletter articles/Brandon Hall... · important part...

Documents

Transcript of ADP Case Study - CEdMA Europecedma-europe.org/newsletter articles/Brandon Hall... · important part...