Accountability for the Learning Organization:

Transcription

1 Accountability for the Learning Organization: Documenting the Business Impact HR Executive Webinar December 14, 2010 Archive on: humancapitallab.org

2 Agenda Today s Objectives Measuring Activities Business Outcomes of Interest to the C Suite The Question Your CFO Will Ask Key Business Drivers Best Practice Case Studies What Stops HR? Next Steps Question and Answer

3 Measurement Typical Activities Number of courses Butts in seats Dollars spent on learning and development Average annual number of hours of training Business Outcomes Sales Productivity Talent/Leadership Development Job Performance Job Mobility Retention

4 Hazards of C Suite Perspective Senior executive experience: When I was a Anecdotal data (sample size of one): I know a person who used the tuition assistance and then resigned, therefore HR survey data is suspect No external standards HR does not have the expertise to do this work Wall Street doesn t care about smiley sheets

5 The Question the CFO will Ask How do you (HR) know that the business impact improvement you are showing is the result of the HR program(s) and not something else?

6 Key Business Drivers & HR Solution Productivity Accelerating change, exploding knowledge, increasing complexity Education and Training Demographics Baby boomers leaving / taking knowledge Mentoring Millennials entering / strong culture of community Social Learning

7 Target: Client: Sun Microsystems Leadership Development: Mentoring Managers and technical personnel Scope: 838 mentees, 677 mentors Business outcomes: 6,000 control/compare Retention, Salary grade, Performance rating, Merit raises, Promotion raises Results: Cost $1.1 million, savings $6.9 million Implications: Mentoring is a measurable strategy

8 Client: High Tech Fortune st Management: Bellevue University degree completion program Target: All engaged employees Scope: 2,000+ intervention and control Business Outcomes: Sales Results: Statistically significant increase in sales by employees enrolled in program Implications: Tuition assistance as a strategic resource to increase business performance and seed the leadership pipeline with engaged, educated employees.

9 Client: Chrysler Sales Training: Training Target: Dealer sales associates Scope: 30,000+ sales associates Business outcomes: Vehicles sold Results: Average 16+ more vehicles per associate per year 5,280% ROI on training delivery cost Implications: Major catalyst to change dealer investment/training

10 Client: ACS a Xerox company Leadership Development: Training Target: Call Center Supervisors Scope: 1,427 supervisors Business outcomes: Retention Results: Implications: Enforcement of training mandated required to have business impact

11 Client: Sun Microsystems Sun Learning exchange (SLX): Social Learning Target: All employees Scope: All employees Business outcomes: Sales, Collaboration, Communications, Training Results: Creation & delivery 3,982 titles Benefit to cost ratio of 75:1 Net benefit $25.9 million Implications: Prototype social learning with business impact measurement

12 Client: Mutual of Omaha Tuition Assistance Benefit: Education Target: All employees Scope: 693 using benefit 6,765 in non participant compare group Business outcomes: Results: Career mobility, Retention Mobility Participants had twice the number of positive job changes as non participants. Implications: HR benefit impact measured as investment with business impact

13 Client: ConAgra Foundations of Leadership : Training Target: Supervisors in food production plants Scope: 600 trained 1,600 untrained as control/compare Business outcomes: Retention, Productivity Results: $2.3 million net savings Retention Significant increase in plant throughput Implications: Major shift in corporate funding for program development and deployment

14 What Stops HR? Survey Results from The Conference Board Metrics Conference New York City, NY October 2010

15 Our Senior Management Doesn t Ask for Measurement 79% 21% Agree Disagree

16 Unspoken Fear THE FEAR: I Am Concerned the Analysis Will Prove the INTERVENTION to be Ineffective 44% 56% Agree Disagree

17 The Data The Data Needed to do Measurement is Accessible in my Organization 50% 50% Agree Disagree

18 Conditions Required to be Credible in the C Suite Business Impact data must come from outside HR preferably finance Business impact results must be compared to something Change over time Change relative to control group Impact measure in the aggregate not at the individual Statistically significant sample sizes Third party data and methods validation

19 Next Steps Human Capital Lab partners with organizations Alternatives: 1. Proprietary to client, funded by client, results not published 2. Co funded by Bellevue University Human Capital Lab results published humancapitallab.org

20 Implications & Recommendations Situation: C SUITE DOESN T KNOW WHAT IT DOESN T KNOW therefore HR must lead i.e. take its Seat at the Table To lead, these things need to happen: 1. Evidence of the business case for impact analysis research and case studies 2. Education of the C Suite, especially CHR, CFO & CEO 3. HR Strategy on how to do measurement example: Bellevue University s Ph.D. in Human Capital

21 Question and Answer