Keys to Effective Knowledge Transfer: Build a Training Program that Really Works

Transcription

1 Keys to Effective Knowledge Transfer: Build a Training Program that Really Works Executive Summary Effective training is an investment. Businesses spend more than $62 billion [per year] on training in the U.S. alone, and more than 50% of all dollars go into technology, tools, coaching and other non-instructor led solutions. Globally we estimate the market at around $135 billion. (Bersin, 2013) With that amount of money on the line, it is imperative that training actually have an impact on an organization s bottom line. But does it? Not always. Without a systematic, ongoing approach to learning that includes reinforcement, approximately 50 percent of learning content is not retained after five weeks, much less applied. Research shows that within 90 days, 84 percent of what was initially learned is lost (Sales Performance International, Part I). Figure 1. Training Retention Rates Over Time NuVue Business Solutions

2 Effective training increases sales, return on investment, customer satisfaction, and has positive participant satisfaction. However, learning managers in organizations agree that there is one major challenge they face: how to guarantee effective training. How do they ensure their employees retain and apply the knowledge they received during classroom training sessions? The bottom line is this: when a company s workforce cannot apply learning to their work, there is very limited ROI. Many organizations view training as a one-time event. Classroom training alone is unlikely to produce sustainable behavior change. The keys to effective knowledge transfer are based on a series of steps designed to motivate and encourage learners to embrace learning and effectively apply new concepts, skills and processes. These steps, implemented at the right time, can improve learning transfer by as much as 186 percent (Wilson Learning). Orchestrated Learning Approach Students learn better from a multimodal approach to learning one version of blended learning that has become more popular in the past 10 years. This approach offers a variety of techniques that engage the learner, and most importantly, lead to the actual use of training on the job (Kenien). The steps to an effective multimodal approach are as follows: Pre-work: Building a successful behavior change program (training) is a lot like building a house where a strong blueprint and foundation are keys to success. Without those, even well-organized efforts can crumble. (Graham) Pre-work is essential to assess what skills or competencies are to be measured. It also helps to prepare the learner for what is expected from training, how they can be ready to learn, and know how the learning can be applied back on the job. Classroom work: Classroom work introduces the concepts that are identified in the initial assessment and allows learners interaction among peers and the instructor. They can learn the information, ask questions when needed and take notes on the training presented. Practicing the skills and roles help to enforce learning. Follow up: This consists of s, conference calls or webinars, personal coaching or mini modules sent to the learners managers; and 6 to 8 weeks of mobile reinforcement. Mobile delivery enables learners to access their reinforcement at the most convenient time for them. The ability for learners to access personalized training reinforcement after a training session is completed either via faceto-face discussions, by conference call or even through personal has a significant effect on learning retention. Effective Training for Knowledge Retention There is no question that training in the workforce is key to reaching company goals. Effective training helps increase employee productivity, customer satisfaction, profitability and recognition for both individuals and the overall organization. Despite continuing economic challenges, senior executives understand that a highly skilled workforce is a strategic differentiator, and they are making substantial investments in the development of their employees. (ASTD, $156 Billion...)

3 Why Follow-Up Training? U.S. training organizations grew their spending by 12 percent in 2012 with similar growth rates expected in 2013, which is the highest growth rate in eight years. Top organizations are spending as much as $3,000 per person per year, on average, depending on the industry (Bersin, 2013). In 2011, employees averaged 49 hours of training each in 2011 (ASTD, 2012 State of the Industry Report). Figure 2. Average Company Spend per Employee in 2012 These statistics related to training investment indicate that organizations understand that workforce training can significantly drive profit but it can also be a considerable cost to an organization. There is no doubt that training can affect sales organizations bottom lines. Chrysler Academy, the primary training provider for Chrysler s dealership personnel, researched the impact of training in 3,216 of its nationwide dealerships. It found that profit was 29 percent higher for dealerships with a trained sales manager than in those without a trained sales manager (Bellevue University). However, training is not all about sales. Training, or lack of it, can also affect employee retention as well. ConAgra studied 600 trained and 1,600 untrained supervisors across 65 U.S.-based plants to determine the effect of training as a part of a leadership initiative and study about leader retention. Research showed that the overall 12-month turnover of trained supervisors was just 5.3 percent. This is compared to 11.4 percent turnover for untrained supervisors. Most importantly, this reduced supervisor turnover translated into a savings of $2.3 million in the first year of the leadership initiative (Keenen). With the amount of potential revenue, as well as funds and time invested in each employee, it is imperative that organizations get the most out of their training. But it is clear that classroom training is not enough to get maximum results. There are several reasons why a learner may not retain information. Some of these are basic reasons, for example, the subject matter may have been new to a learner, so he or she may not have known enough to

4 ask questions during a classroom session. But others may be more difficult to track over the long term. For example, maybe a learner understood the classroom training but new questions arose when the learning was applied in a work situation. Also, learners may be able to apply learning, but may run into new issues or barriers that which now prevent them from continuing their work. No matter the reason, it has been shown that a majority of learning is lost within just one month after training is completed. Companies and individuals both yield a significant ROI when using coaching. A study by the International Coach Federation indicates that the median company return was 700 percent that is, seven times the initial training investment. For the organizations where an ROI could be calculated, the majority of organizations reported that they realized at least a 100 percent return on their initial investment in coaching (International Coach Federation). Conversely, a learning approach that includes extended training follow-up can go a long way toward learning retention. Some studies have found that a continual learning approach can result in retention and adoption rates as great as 90 percent, leading to better sales results (Sales Performance International, Part III). Methods of Follow Up Just as important to training reinforcement is the method used to follow up on initial training. Personal coaching and calls with a coach, where learners have a chance to ask questions, is extremely important to knowledge retention. Learners often need an experienced coach or expert who will answer their questions and provide advice or guidance. Eggleston s analysis of research conducted by Olivero, et al (starting in 1997 and periodically updated), shows the dramatic effects of one-on-one executive coaching as a way to assist with knowledge transfer. Engaging in training alone, without follow-up in some regard, resulted in a quantitative increase in managerial productivity of 22.4 percent. However, with coaching conducted after training, productivity increased by almost four times the previous level, to 88 percent (Eggleston) (Olivero, et al). With the rise in popularity of online and mobile devices, delivering interactive content via mobile technology also has merit and is increasing in popularity. In fact, technology-based instruction delivery accounted for 37.3 percent of formal training hours, which is an increase over 29.1 percent in 2010 (ASTD, 2012 State of the Industry Report). Mobile learning is a growing trend that is quickly headed to becoming the standard. Continual Learning Through Technology The solution to knowledge retention and skill-building lies in reinforcement through automation of post-classroom training. This includes automated and regularly-spaced interactive , text messages, job assignments, short videos that are smartphone-enabled, and access to a coach via conference calls and webinars. The technology revolution has had a large impact on employee development, and that impact will continue to increase in importance during the next decade. Technology has allowed continued learning both at work and at home via mobile devices, such as smartphones and tablets, in addition to the use of more traditional PC and laptop computers. In fact, it has been projected that by the end of 2013, the number of mobile-connected devices will exceed the number of people on Earth (estimated to be 7.6 billion) (Cisco).

5 Figure 3. Mobile Traffic Growth for Smartphones In the workforce, mobile is taking over. Forrester surveyed of 9,766 information workers in 17 countries regarding mobile device use in the workplace. The research found that 63 percent use a laptop every week; 48 percent of workers use smartphones for business each week; and 21 percent do the same with tablets (Brodkin). And that is just the tip of the iceberg for the future of mobile devices in the workforce. In 2016, two-thirds of the mobile workforce will own a smartphone, and 40 percent of the workforce will be mobile, says Carolina Milanesi, research vice president at Gartner. By 2016, Gartner estimates that purchases of tablets by businesses will reach 53 million units, triple the amount sold in 2012 (Gartner). Figure 4. Historical Purchases of Smart Devices (Smartphones and Tablet Computers)

6 Why are mobile devices becoming the foundation of the workforce? Portability (without the need for power plugs) and access to wireless Internet are two of the main factors (Bersin). These devices can go virtually anywhere. They also have the potential to provide access 24-hours/7 days a week to new data and content on the Internet, as more and more websites are becoming mobile-compatible. Users can access data literally on demand. Mobile devices and their uses and features will only continue to evolve, and with it, mobile elearning is projected to be ever more prevalent. Currently, the elearning industry is estimated to be sized at more than $2 billion annually and growing (Bersin, 2013). The reason for this growth is simple: mobile learning allows learners to access information anytime and anyplace, including on the job, at home, while traveling, or at any of thousands of locations. Training Magazine surveyed 2,793 recent training participants about the use of mobile devices and applications (apps) in the workplace. About 42 percent said they used mobile devices at least sometimes to very often with their training. Almost 50 percent of the respondents indicated that they used their mobile devices for gathering research or setting up meetings, and about one-quarter of them used their devices for developing work-related skills (Training Magazine). Interestingly, respondents were not only turning to mobile device use on the job because they were required to do so; nearly half had downloaded a work-related app, even when their employer did not require it. The type of applications that training participants reported using is just as important as their use of mobile devices. More than half indicated they would use a mobile app to help them connect with online training or resources. And 47 percent expressed a willingness to use an app to help review the content of a training course and to practice the skills from that course. Almost 40 percent responded that they would use an app to help them practice a new skill through a simulation (Training Magazine). In addition, there is evidence to support the model that mobile learning increases retention from formal learning, both as a stand-alone method or as part of a blended learning program. For example, one global pharmaceutical company achieved a 53 percent improvement in knowledge retention among its staff by using a mobile learning program to introduce a new product (Werner).

7 Learning That Never Stops Learning That Never Stops NuVue Business Solutions is a global full-service sales and leadership training company. Specializing in classroom training and automated reinforcement, it provides organizations with tools that ensure that skills are retained by learners for future use. NuVue uses a systematic approach that reinforces learning though an automated approach lasting over six months after initial classroom training. Using a variety of technologies NuVue schedules follow-up and skill building at critical times to ensure that the learning sticks. Learning That Never Stops uses a combination of elearning and mobile learning tools that include interactive s containing weekly challenges, short text messages, conference calls, access to a live coach and short videos on key topics available via smartphones. Figure 5. Six-Month Follow-Up Process with Learning That Never Stops Systematic approach to learning Through its automated Learning That Never Stops approach, NuVue uses the concept of learning reinforcement to ensure that organizations get the most out of their investment in training. This system can be used with any classroom training on any topic not only for sales training. The process begins with an assessment of what skills or competencies are to be measured. This process gives organizations a place to start, then helps them to lay out a road map to design a follow-up system that meets the needs both of individuals and the organization. The next step is to prepare each student before the classroom training, laying out what is expected, how they can prepare to learn, and helping them to understand how the learning can be applied to their job. In essence, the follow-up starts with the right foundation: pre-work. In the classroom training, skill practice and role playing help to build the skills that will be measured afterwards. These skills are identified in the initial assessment and will, ultimately, help the organization to maximize its ROI. NuVue s learning reinforcement approach begins after formal training and consists of: One week after program ends: 6 to 8 weekly s Five weeks after program ends: Webinar or conference calls Eight weeks after program ends: Coaching tips and mini-modules for sales managers 16 weeks after program ends: 6 to 8 weeks of mobile reinforcement Measurement

8 Technology as a part of continual learning NuVue uses the power and popularity of mobile learning to reinforce its formal training. Organizations and their individual employees can access follow-up learning through a broad array of mobile devices including smartphones on almost any operating system to facilitate learning when and where it is convenient for each person. Through the classroom training and variety of elearning and mobile learning reinforcement programs, content is transferred to and absorbed by an organization s workforce. From there, a company can coach its employees on the finer aspects of the training, learners can implement skills on their own and, overall, the training dollars invested will be returned to the organization. Reinforcement for Learning Retention Rates: Going Forward Corporate training and learning is a multi-billion dollar industry, and as organizations begin to realize how important a knowledgeable workforce is to their bottom line, this industry will continue to grow. Reinforcement of formal training is critical to increase the potential benefits of training and ensure they are adopted into everyday business practices. Just as important is ensuring that the follow-up makes an impact on each employee. The use of technology and mobile learning in this respect will only continue to increase. As people become more familiar with new technology, their desire to utilize it will permeate all aspects of their life, expanding into work training and support. NuVue Business Solutions has anticipated this trend through its Learning that Never Stops approach, making the reinforcement of formal training via elearning and mobile learning a necessity that helps organizations reach their full potential and reap the benefit of their training investment. Learning that Never Stops Works: The Numbers These are only a few statistics from organizations that have utilized Learning that Never Stops, and the results their organization has achieved. 1. A crop protection manufacturer attributed $28M in sales to a sales course and Learning That Never Stops. 2. A large paint manufacturer attributed $4.5M in sales to the skills and tools reinforced for their learners via Learning That Never Stops % of surveyed participants from a basic manufacturing company indicated that their interactions and relationships with customers were more effective after completing a salesperson course that used the Learning That Never Stops approach NuVue Business Solutions

9 References ASTD. (2012). ASTD 2012 State of the Industry Report. Retrieved October 15, 2013, from ASTD. (2012). $156 Billion Spent on Training and Development. Retrieved October 15, 2013, from Brodkin, Jon. (2013). How mobile technology created a workforce that never stops working. Ars Technica. Retrieved October 15, 2013, from Bellevue University Human Capital Lab. (2010). Case Study: Chrysler Academy Sales Manager Training. Retrieved October 15, 2013, from Bersin, Josh. (2013) Explosive Growth in the Corporate Training Market. Retrieved October 15, 2013, from Cisco. (2012). Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, Retrieved September 12, 2013, from Eggleston, Michelle. (2013). Leveraging Mentoring & Coaching to Sustain Your Training. Retrieved October 16, 2013, from Gartner. (2012). Gartner Says 821 Million Smart Devices Will Be Purchased Worldwide in 2012; Sales to Rise to 1.2 Billion in Retrieved October 15, 2013, from Graham, Andrew. (2013). How to Optimize Behavior Change for Business Impact. Training Industry Quarterly, Summer. Retrieved October 15, 2013, from IDC. (2012). Worldwide New Media Market Model, 1H11. Retrieved September 12, 2013, from ICF - International Coach Federation. (2012) ICF Global Coaching Study. Retrieved October 16, 2013, from Keenen, Charles. (2012). Human Capital: Leveraging Your Company s Greatest Asset. Corporate Board Member, Third Quarter Retrieved October 15, 2013, from Kenien, Alison. (2012). Developing Multimodal e-learning Experiences. Retrieved October 15, 2013, from aspx NuVue Business Solutions

10 References Olivero, Gerald, K. Denise Bane, & Richard E. Kopelman. (1997; edited 2003). Executive Coaching as a Transfer of Training Tool: Effects on Productivity in a Public Agency. Public Personnel Management, 26, (4). Retrieved August 12, 2013, from n+productivity+in+a+public+agency. Sales Performance International. (2011). The Future of Sales Training: Part I. Retrieved October 15, 2013, from Sales Performance International. (2011). The Future of Sales Training: Part III. Retrieved October 15, 2013, from Training Magazine. (2011). Mobile Apps and Training. Retrieved August 11, 2013, from Werner, T. and da Gama, M. (June 2, 2011). How To Implement Mobile Learning: Practical Considerations. Brandon Hall Group webinar. Wilson Learning. (2009). Learning Transfer Model: A Research-Driven Approach to Enhancing Learning Effectiveness. Retrieved October 15, 2013, from NuVue Business Solutions