business impact with learning analytics

1Copyright © 2014. Infor. All Rights Reserved. www.infor.comCopyright © 2014. Infor. All Rights Reserved. www.infor.com 1

Business impact with learning analytics

September 23, 2014; 1:00 PM ET

2Copyright © 2014. Infor. All Rights Reserved. www.infor.com

Agenda

• Introductions and Welcome

• Training statistics

• Benefit measurement

• Business-linked metrics

• Q&A

To receive a call back, provide your phone number when you join the event,

or call the number below and enter the access code: xxx xxx xxx.

Call-in toll-free number (US/Canada): 1-855-244-8681

Call-in toll number (US/Canada): 1-650-479-3207


Today’s host

Donald H TaylorChairman, Learning and Performance Institute

Chairman of the Institute since 2010, Don is a 25+ year veteran of the learning technologies space, and committed to developing the profession.

3






Today’s speaker

Kenneth FungSenior Director Strategy, Learning Technologies, Infor

Kenneth has 18+ years of experience in learning technologies and is currently responsible for Infor Learning Management’s Strategy, Product Management, Development, Support and Services.

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Stay tuned…The webinar will start shortly.

5

For the audio portion of today’s event:



In North America, Call-in: 1-855-244-8681 or 1-650-479-3207

Global numbers also provided in WebEx.


Question

How do you currently show the business impact of learning in your

organization?


Showing value

Training

StatisticsBenefit

Measurement

Traditional training

activity

Soft vs. Hard Benefits Getting to business-

linked metrics

Business

linked

metrics


Showing value

Training

StatisticsBenefit

Measurement


activity


linked metrics

Business

linked

metrics


What L&D usually reports on…

• Hours of training delivered

• Completion rates

• Training scores

• Delegate satisfaction rates

• Cost of training


Adoption / Engagement

Training Completion

Status: Number completed

to number enrolled by

Category, Activity, Class, etc.

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

En

rollm

en

ts /

Co

mp

leti

on

s

Enrolled

Completed


Satisfaction

0% 5% 10% 15% 20% 25% 30% 35%

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

% of responses

% of responses

Learner Satisfaction:

Overall course evaluation

responses


Learning Effectiveness

62%13%

25%

Learning Effectiveness

Pass

Fail

Incomplete

Learning Effectiveness: %

of users passing, failing, or not

yet completing training


Learning Efficiency

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Q3 '12Q4 '12Q1 '13Q2 '13Q3 '13Q4 '13

Learning Investment / Employee

Learning Investment /Employee

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q3 '12Q4 '12Q1 '13Q2 '13Q3 '13Q4 '13

Learning as % of payroll / employee

Learning as % of payroll/ employee

$-

$50

$100

$150

$200

$250

$300

$350

Cost / student day of learning

Cost / student day oflearning

Learning Investment:

“Training investment /

employee”

“Learning as % of Payroll”,

“Cost / student per day of

learning”


Showing value

Training

StatisticsBenefit

Measurement


activity


linked metrics

Business

linked

metrics


Attributable but

non-measurable

Types of value

Directly attributable

and measurable


Attributable but Non-Measurable

Qualitative Benefits

Strategic Benefits

Soft Benefits

Also called:


Establish a common knowledge transfer infrastructure

Connect to the extended enterprise

Have better insight into workforce

strengths and weaknesses

Promote a consistent learning experience

Increased knowledge retention

Examples


Maximize dissemination of Culture and Brand

Provide more targeted training

Improve teamwork

Reduced stress and anxiety

Examples Cont…


Directly Attributable and Measurable

Also called:

Hard Benefits

Used in benefit calculation.

Need to be able to stand up

to challenge by F&A


Directly Attributable and Measurable Benefits

• Reduction of Training Administration

• Classroom Replacement / Reduction

– Cost Savings

• More Content to More People

• Reuse of e-Learning

• Reduction of Printing, Production

and Distribution Costs

• Going Green

• Classroom Replacement / Reduction

– Opportunity Cost of Lost Work

• E-Learning Development Savings

• E-Learning Update Savings

• Online Assessment Development

Savings

• Reduction of Training Needs

Analysis

• Reduction of Agency Fees

• Elimination of Multiple Systems

• Personalized Learning

• Avoidance of Litigation


Benefit Model

Calculate for

each

stakeholder

group

Calculate

over 5

years

Calculate

for each

category

Year 1 Year 2 Year 3 Year 4 Year 5 Total

1) e-Learning Development Savings

Stakeholder 1

Stakeholder 2

Stakeholder 3

2) Streamlining Administration

Stakeholder 1

Stakeholder 2

Stakeholder 3

……..

Total


Assumptions

List assumptions for each category of benefit

e.g. E-Learning Savings Benefit

• Previous e-Learning cost = x

• Current e-Learning cost = y

• Number of e-Learning courses to be

developed per year = z


Replacement / Reduction of Classroom Training

Rational

ILT days reduced due to use of e-Learning as

supplement or replacement

Cost Savings Formula

Savings is equal to:

Cost per day of

instruction / lost work x # of ILT days

reduced( ) - Cost of e-Learning

Development


Replacement / Reduction of Classroom Training

Background

• 28 hours classroom converted to 8 hours e-Learning

• 20 events / year

• 300 participants / year (Avg of 15 per event)

• Instructor cost = $250/day

• Training facility / food cost = $1000/day

• Lodging / travel cost per person = $200/day

• Time away from work = $40/hour

• eLearning cost = $96,000 (8 x $12,000)


Replacement / Reduction of Classroom Training: Benefit Calculation

5 Day ILT Class 2 Day ILT Class + 8 Hour e-Learning

Cost/day Days# events /

Participants Total Cost Cost/day Days# events /

Participants Total CostInstructor $250 5 20 $25,000 $250 2 20 $10,000 Facility / Food $1,000 5 20 $100,000 $1,000 2 20 $40,000 Travel / Living Cost $225 5 300 $337,500 $225 2 300 $135,000 Time away from work $320 5 300 $480,000 $320 2 300 $192,000 e-Learning Dev Cost $96,000 TOTAL $942,500 $473,000

SAVINGS $469,500


Reduction of Training AdministrationRational

Training administration processes will be streamlined on

the LMS, resulting in the reduction of relative effort

related to these activities



Previous cost of

training admin

(scheduling,

enrolment,

attendance,

reporting, etc)

Current cost of

training admin (based

on reduced effort)( )- x

Unit of

administration

(events, reports,

etc)


More Content to More People

Rational

ILT can increase due to ability for current resources to be freed

up due to use of e-Learning. Also, increased reach for learning

due to use of e-Learning



Anticipate / Actual

people reached

with ILT and e-

Learning

Capacity of people

normally trained via

ILT( )- x

Average per

person cost for

an ILT program


Re-Use of e-LearningRational

Ability to reuse library of e-Learning

courses developed by affiliate or head

office organizations. Reuse is facilitated

by common system



Current average

cost of e-Learning

development

Localization cost

(translation, course

modification)( )- x

# of e-Learning

courses re-

used / year

COPY

MASTER


Personalized LearningRational

Ability to “test out” of all or parts of

training based on personalized

knowledge reduces time away from

work



Average time

reduced per

course

# of courses x # of participantsx


Showing value

Training

StatisticsBenefit

Measurement


activity


linked metrics

Business

linked

metrics


… what the business cares about.

• Sales

• Performance

• Employee turnover / retention

• Customer satisfaction


0

5

10

15

20

25

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Average Sale orRevenue / Employee

Average TrainingHours / employee

1. Sales / Training

0

5

10

15

20

25

30

0%

10%

20%

30%

40%

50%

60%

Tra

inin

g h

ou

rs

% o

f E

mp

loyees

Performance

Average Training Hours

2. Performance / Training

0

5

10

15

20

25

93%

94%

95%

96%

97%

98%

99%

100%

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Tra

inin

g H

ou

rs

Rete

nti

on

%

Retention Rate


3. Retention / Training

0

5

10

15

20

25

30

-

10

20

30

40

50

60

70

80

90

100

Ho

sp

ita

l 1

Ho

sp

ita

l 2

Ho

sp

ita

l 3

Ho

sp

ita

l 4

Ho

sp

ita

l 5

Ho

sp

ita

l 6

Ho

sp

ita

l 7

Ho

sp

ita

l 8

Ho

sp

ita

l 9

Ho

sp

ita

l 1

0

Tra

inin

g H

ou

rs

Cu

sto

mer

Sati

sfa

cti

on

In

dex

Customer SatisfactionScore


4. Satisfaction / Training


Business VaultAnalytics | Reporting | Search | In-context BI

Cloud Motion

ApplicationApplication

Infor ION easily integrates a wide

range of disparate systems, providing

a simple but powerful framework for

managing business process flows,

workflows, and alerts.

The result is a unified data and

business process platform that can

reinvent the way end users and IT

interact with core systems.


A real-world example


TTI – Increased speed to competence

The facts:

1) Sales training on new power tools moved from:

• 6 monthly cycle of face-to-face training

to

• On-demand e-learning

2) Sales of power tools increased by $600m over the period

The question: How to show the impact of training?


TTI - CalculationPreviously sales teams waited on average 3 months for training (“dead” time)

Average product life = 5 years, or 60 months

So lost selling time = 3/60 months = 5%

Sales not done for all products, only for those making up top 40% of sales

So impact was:

5% increase for 40% of sales

5% x 40% = 2% impact on overall sales

Sales increased $600m over the period

Impact of training was: 2% x $600m = $12m


TTI – Increased operation efficiency

• TTI was getting returns that needn’t have been returned (i.e. out of warranty returns, fraudulent returns, etc)

• People handling the returned goods were insufficiently aware of how returns should be handled.

• TTI rolled out online training initiative targeting CS reps at retailers on proper return process / policy.

• Results:

• Returns reduced from 4% to 2.2% (45% decrease)

• Saved $33-35 m dollars over 2 years


Showing value

Training

StatisticsBenefit

Measurement


activity


linked metrics

Business

linked

metrics

business impact with learning analytics

Technology