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Business impact with learning analytics
September 23, 2014; 1:00 PM ET
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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
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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.
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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
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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.
4
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
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Stay tuned…The webinar will start shortly.
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For the audio portion of today’s event:
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.
In North America, Call-in: 1-855-244-8681 or 1-650-479-3207
Global numbers also provided in WebEx.
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Question
How do you currently show the business impact of learning in your
organization?
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Showing value
Training
StatisticsBenefit
Measurement
Traditional training
activity
Soft vs. Hard Benefits Getting to business-
linked metrics
Business
linked
metrics
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Showing value
Training
StatisticsBenefit
Measurement
Traditional training
activity
Soft vs. Hard Benefits Getting to business-
linked metrics
Business
linked
metrics
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What L&D usually reports on…
• Hours of training delivered
• Completion rates
• Training scores
• Delegate satisfaction rates
• Cost of training
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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
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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
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Learning Effectiveness
62%13%
25%
Learning Effectiveness
Pass
Fail
Incomplete
Learning Effectiveness: %
of users passing, failing, or not
yet completing training
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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”
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Showing value
Training
StatisticsBenefit
Measurement
Traditional training
activity
Soft vs. Hard Benefits Getting to business-
linked metrics
Business
linked
metrics
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Attributable but
non-measurable
Types of value
Directly attributable
and measurable
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Attributable but Non-Measurable
Qualitative Benefits
Strategic Benefits
Soft Benefits
Also called:
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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
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Maximize dissemination of Culture and Brand
Provide more targeted training
Improve teamwork
Reduced stress and anxiety
Examples Cont…
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Directly Attributable and Measurable
Also called:
Hard Benefits
Used in benefit calculation.
Need to be able to stand up
to challenge by F&A
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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
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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
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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
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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
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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)
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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
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Reduction of Training AdministrationRational
Training administration processes will be streamlined on
the LMS, resulting in the reduction of relative effort
related to these activities
Cost Savings Formula
Savings is equal to:
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)
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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
Cost Savings Formula
Savings is equal to:
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
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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
Cost Savings Formula
Savings is equal to:
Current average
cost of e-Learning
development
Localization cost
(translation, course
modification)( )- x
# of e-Learning
courses re-
used / year
COPY
MASTER
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Personalized LearningRational
Ability to “test out” of all or parts of
training based on personalized
knowledge reduces time away from
work
Cost Savings Formula
Savings is equal to:
Average time
reduced per
course
# of courses x # of participantsx
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Showing value
Training
StatisticsBenefit
Measurement
Traditional training
activity
Soft vs. Hard Benefits Getting to business-
linked metrics
Business
linked
metrics
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… what the business cares about.
• Sales
• Performance
• Employee turnover / retention
• Customer satisfaction
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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
Average TrainingHours / employee
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
Average TrainingHours / employee
4. Satisfaction / Training
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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.
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A real-world example
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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?
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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
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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
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Showing value
Training
StatisticsBenefit
Measurement
Traditional training
activity
Soft vs. Hard Benefits Getting to business-
linked metrics
Business
linked
metrics
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