Linking Learning and Development Linking Learning and Development to Business Success through ROIto Business Success through ROI
Tony WigginsTony Wiggins
Principal Workforce Capability ConsultantPrincipal Workforce Capability Consultant
Helping Queenslanders Build Better
22
My Contribution TodayMy Contribution Today
……. . discuss how learning and developmentdiscuss how learning and development
strategies that BSA and possibly yourstrategies that BSA and possibly your
organisation have used to link ROI toorganisation have used to link ROI to
business success business success
33
44
Key points of session Key points of session
• platform to build organisational capabilityplatform to build organisational capability
• stimulus for changestimulus for change
• behavioural and attitudinal changebehavioural and attitudinal change
• financial versus non-financial benefitsfinancial versus non-financial benefits
• HR as a partner in businessHR as a partner in business
55
Shared Understanding
Return on Investment is ……
Lifelong Learning is …
Learning and Development is ……
66
Shared Understanding
Return on Investment - level 5 training evaluation model - compares costs to benefits - expressed as a percentage
Lifelong Learning - ongoing acquisition of knowledge orskills - formal, non-formal + informal
Learning and Development - activities designed toimprove the capabilities of people - technical skills andknowledge people have, but also their attributes, attitudesand behaviours.
77
Return on InvestmentReturn on Investment
• people are an investment not an expense
• good employment proposition
• transformation
• known versus unknown
88
Evaluation + ROI – Evaluation + ROI – Revisiting the BasicsRevisiting the Basics
• validates training as a business tool
• justifies the costs incurred in training
• improves the design of training
• helps in selecting training methods
99
BSA ProfileBSA Profile
• established 1992• building standards, equity and confidence • remedies for defective work• support, education and advice • funded by licensee fees
• 250 employees• head office - South Brisbane + 8 regional offices• building construction, insurance and legal staff• learning + development function - head office
1010
What does it mean to learn at BSA?What does it mean to learn at BSA?
Just more of the same - excellent
Practical - used real life examples
Interactive, well-paced and informative
Peer participation
Facilitation, scenarios and group discussions
Course exceeded expectations
BSA is supportive of me using the skills I learnt
1111
ROI - BSA styleROI - BSA style
Smart State Workforce Strategy
LeadershipDevelopment
RETURN ON INVESTMENT
Evaluation Strategy
Learning and Development Initiative
Relationship Management
Organisational Capability
1212
Our Success So FarOur Success So Far
National RecognitionNational Recognition• Human Resource Magazine Awards
• Best Learning and Development Strategy 2004+2005• Best HR Champion 2005• Best Change Management Strategy (Finalist) 2005
OrganisationalOrganisational• Leadership Development • Performance management • Lifelong learning culture• ROI model
1313
Restraining ForcesRestraining Forcesbefore 2001before 2001
• Funding problems• No business direction• Inadequately skilled
staff • Reactive • No quality service• No customer value• Externally driven
DriversDrivers
Aligning Learning with Corporate Direction
1414
Our Approach
• Smart State workforce focus
• Strong focus human capital innovation research and development
• Outcomes builds the foundations for delivering learning supports individual and business performance encourages creativity and innovation
1515
Learning + Development Learning + Development InitiativeInitiative
• develops a high energy, high spirit and values-based BSA team
• action-learning, experiential based learning
Relationship Management
Organisational Capability
Leadership
1616
LeadershipLeadership
• executive + senior managers and team leaders (36%)
• direction, values and leadership skills• interactive action learning based workshops• on-line modular coaching and support• coaching and sponsoring individuals - shared
learning experience • EQ and transformational leadership
1717
Relationship ManagementRelationship Management
• Market research - Customer Continuum
• Creating Business Relationship Program - builds upon current and future relationships Customer Continuum Cross Cultural Communication Managing Challenging Behaviour and Conflict Mediation Skills Presentation and Facilitation Skills Managing Client Expectations
1818
Organisational CapabilityOrganisational Capability
• Learning and Development Calendar • capabilities developed have prepared our people
to respond to our customer’s need in the community and a challenging building industry
• strategic linked to the corporate plan and workforce strategic plan
1919
PartnershipsPartnerships
• Queensland University of Technology - Law Faculty
• University of Queensland • Institute of Public Administration Australia
(IPAA)• Boutique leading consultants - Drew
International
2020
• Research - transfer of learning - Princess Alexandra Hospital, Brisbane
• Masters study• Kirkpatrick Model• Extrapolated to work Phillips and Stone
Building The Model
2121
Levels of Evaluation
% Programs Evaluated
Research Model
BSA Model
Kirkpatrick
Level 1 Reaction 100% 100%
Level 2 Learning 75-90% 75%
Level 3 Application 40-70% 50%
Level 4 Impact 0-20% 20%
Phillips + Stone
Level 5 ROI 0-20% 20%
BSA Evaluation
• set realistic targets for resources available
• level 4 + 5 consume the most resources
• reserved for impact business strategies
2222
Developing the ROI FormulaDeveloping the ROI Formula
1. Determine market return on cash invested with QIC 2. Identify organisational factors impacting - learning
outcomes3. Develop outcome and baseline data questionnaire
2323
Current ResultsCurrent Results
• solid evidence of change
• link - design, development and delivery
• estimated ROI results - varies
• Mediation Skills Program - 2 years savings $1.89 million application of skills 90% ROI 75%
• Team Challenge - Central Queensland (2005)•ROI
2424
2525
• small flexible, responsive agency • visionary General Manager• linkage to corporate goals• executive sponsorship• enjoy situations that stretch them • innovative and creative
Critical Success FactorsCritical Success Factors
Corporate Plan
Workforce Strategic Plan
Fun EnvironmentLearning + Development
Rewards and Recognition
Work/Life/Family Balance
Rewards and Recognition
2626
TipsTips• BSA mirrors an ecosystem• inter-relationships• resource intensive• stakeholders• PDCA model • it takes time
2727
• inspires a shared vision• challenges the norm • enable others to act• models the way• encouragement from the heart
HR - Business PartnerHR - Business Partner
2828
Looking Forward
• measures the contribution of specific programs to business objectives
• enabler to focus on training results
• alters management perceptions that training is an investment and not an expense
• setting of priorities based on a programs level of contribution in meeting business objectives
Thank youThank you
Helping Queenslanders Build Better