How to Improve the Impact of L&D Function on Business Outcomes



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A Recent Challenge from Our Members How can we improve the impact of the L&D function on business outcomes? How We Find the Best Solutions Best Practitioners Uncovered We leverage quantitative and qualitative analysis to determine what tactics are working in our network companies. Gathered senior line customer feedback on L&D and documented the backgrounds, skills, behaviors, and time spend of nearly 1,500 L&D team members located around the world at approximately 50 organizations Conducted probing interviews with L&D leaders at approximately 100 organizations around the world to surface critical challenges and proven solutions from leading companies 1

Root Cause of the Challenge Positive feedback does not equal business impact. L&D functions receive plenty of positive feedback on individual learning interventions, but this success is not translating into impact on business outcomes. Implication To ensure it is creating value, L&D must understand and focus on the enablers of business impact, not line satisfaction. High Satisfaction with Individual Learning Interventions Percentage of Learners Satisfied with the Learning Intervention 1 84% Little Line Satisfaction with the Function as a Whole Percentage of Line Leaders Reporting Satisfaction with the Overall Effectiveness of the L&D Function 3 23% Positive Line Leader Feedback on Individual Learning Interventions Percentage of Heads of L&D Reporting Positive Line Feedback for Individual Learning Interventions 2 79% Few Line Leaders Rate L&D Function as Critical to Achieving Business Outcomes Percentage of Line Leaders Reporting the L&D Function Is Critical to Business Outcomes 3 24% 1 Learners who have attended a training program assessed by the Training Effectiveness Dashboard in 2011 answered question as on a 7-point agreement scale. 2 Heads of L&D answered question as on a 7-point agreement scale. 3 Line leaders answered question as on a 7-point agreement scale. 2

What the Best Companies Do Relative Impact of L&D Function Enablers on Line Leader Achievement of Business Goals Percentage of Impact by L&D Component L&D s impact on the achievement of business outcomes is a function of L&D staff capabilities and L&D strategy, not foundational structure, processes, and tools, which provide only limited opportunity for driving business impact. 51% 43% 5% 1% Implication L&D leaders must recognize that boosting the capabilities of their L&D staff is crucial to delivering business impact. L&D Staff Capabilities L&D Strategy L&D Structure and Process L&D Tools and Resources Decision Influencers Not Order Takers The most effective L&D staff are learning advisors who impact business outcomes by taking advantage of their L&D and business expertise to proactively influence talent and business decisions. 3

A Framework for Success The best organizations are oriented around three opportunities for shifting L&D from simply building capabilities to influencing the business: Focus L&D staff on the behaviors and activities that matter most. Enable L&D staff to effectively apply those behaviors and execute key activities. Utilize day-to-day work to develop critical capabilities. Current State: Building Capabilities L&D staff focus on executing L&D processes effectively. Interactions with the line are passive and focus on effectively informing talent decisions. Development of L&D staff is de-prioritized, overly formal, and not focused on high-impact business activities. 1 Target High-Impact Activities and Interactions Define and Map High- Impact Capabilities to Day-to-Day L&D Activities Build and Sustain High- Impact L&D and HRBP Partnerships 2 Activate Learning Advisor Capabilities to Extend Impact Build L&D Staff Confidence to Have Challenging Conversations with the Line Collect and Use Intelligence to Drive Business Decisions 3 Develop Learning Advisor Capabilities on the Job Target On-the-Job Development Activities to Individual Needs Take advantage of Peer Learning to Accelerate and Broaden Development Desired State: Influencing the Business L&D staff focus on excelling at the activities with highest business impact. Interactions with the line are active; L&D staff challenge (when appropriate) and influence talent and business decisions. On-the-job development of L&D staff is relevant for the individual, team, and business outcomes. Embed Learning Advisor Capabilities into Accountability Measures 4

Best Practice Example The most effective L&D staff are learning advisors who impact business outcomes by utilizing their L&D and business expertise to proactively influence talent and business decisions. Defined (ler-ning ad-vīzar) noun: Learning advisors impact business outcomes by utilizing their L&D and business expertise to proactively influence talent and business decisions. Building Capabilities Current State Informing decision making TRADITIONAL L&D EXPERTISE L&D Terrain Knowledge EMERGING BUSINESS EXPERTISE Analysis Skills Influencing the Business Desired State Challenging decision making Executing L&D processes effectively Driving for line satisfaction Advisory Capability Using day-today activities for influence Driving for business impact L&D Process Skills Client-Specific Business Acumen A Scarce Resource Just 24% of L&D staff qualify as learning advisors. 5

Working with You to Turn Insight into Action Driving the Business Impact of L&D Staff Evaluate L&D Staff Capabilities Define and Communicate Learning Advisor Capabilities Activate and Develop Capabilities Hold L&D Staff Accountable for Strategic Impact Assess your team s skills and behaviors to identify areas for improvement. Define and map highimpact capabilities to day-to-day L&D activities. Provide L&D staff with development opportunities that close the knowing doing gap. Provide ongoing support and measurement to ensure sustainability. Capability Assessments Cisco s High-Impact Activity Map Shell s On-the-Job Development Framework PepsiCo s L&D Impact and Influence Scorecard Your dedicated Executive Advisor helps evaluate opportunities for focus. Knowledge and Behavior Map E-Learning and Performance Support Tools for L&D Staff Training Effectiveness Dashboard Features Proven Best Practices Research and Insight Peer Benchmarks Decision and Diagnostic Tools Executive Networking Advisory Support Live and Online Learning Events 6