Maximizing the Value of Learning & Development Robert O. Brinkerhoff Professor Emeritus Western Michigan University
Training: Benefit vs. Business Driver Staff Benefit EXPECTATION: Participate Appreciate Business Driver EXPECTATION: Participate Learn Apply Copyright 2012 Robert Brinkerhoff 2
The proper goal for training is to make important contributions to strategic initiatives. What ARE important contributions?
Skills, knowledge and actions that accelerate execution of critical strategic change
Accelerating Change and Adoption Accelerated rate of adoption Expected rate of adoption 5
Realities of Training
Predictable Training Impact Distribution DID NOT TRY IT AT ALL TRIED IT TO SOME EXTENT BUT GAVE UP TRIED IT AND GOT POSITIVE RESULTS % = < 20% % = 65% % = >15% Copyright 2012 Robert Brinkerhoff 7
Example: Unrealized Value COSTS? % DID NOT TRY IT AT ALL? % TRIED IT TO SOME EXTENT BUT GAVE UP? % TRIED IT AND GOT POSITIVE RESULTS 90/100 did NOT use it or get results Unrealized value = $4.5 million! UNREALIZED VALUE 10/100 @$50,000 Total = $500,000 RETURN Copyright 2012 Robert Brinkerhoff 8
Making Training Work A Case Example National Pharmacies Operations Management Initiative
National Pharmacies Overview National chain of drug (and sundries) stores 12,000 retail stores with pharmacies nationwide Context: Health care costs rising Primary care shortage drives consumers to emergency rooms in hospitals where costs are higher Insurance costs rising; reimbursement rates declining Customers forced to shop for service Copyright 2012 Robert O. Brinkerhoff
National Pharmacies Goals Realize cost reductions per-store of $10,000 per month (total nationally of $120,000,000 per month) Increase brand loyalty Increase customer base Increase revenues Increase profits EXECUTE CHANGES FASTER THAN COMPETITORS Copyright 2012 Robert O. Brinkerhoff
Cost saved based on percentage of stores fully executing new strategy 14,000,000 10% of stores per quarter 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 10% of stores per quarter 2,000,000 0 Costs saved
Cost saved based on percentage of stores fully executing new strategy 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 10% of stores per quarter 20% of stores per quarter 5,000,000 0 Costs saved Copyright 2012 Robert O. Brinkerhoff
Cost saved based on percentage of stores fully executing new strategy 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 10% of stores er quarter 20% of stores per quarter 30% of stores per quarter 0 Costs Saved Copyright 2012 Robert O. Brinkerhoff
Lessons of Reality #1 Aim to grow impact Measure and convert Unrealized Value ROI is driven by number of trainees USING learning The mission is not to do great training but rather Help your company get great results from training. Copyright 2012 Robert O. Brinkerhoff
Courageous Training Goal COSTS 90% TRIED IT AND GOT POSITIVE RESULTS RETURN Copyright 2012 Robert Brinkerhoff 16
Reality #2 Training alone is almost never the principal cause of success or failure STOP evaluating training Evaluate how well your organization uses training to get results Teach: An organization cannot delegate results to the L&D Department Producing results is a whole-organization responsibility Advantage Way Certification 17
A New Model for Performance Create Focus & Build Intentionality Provide Quality Learning Interventions Support Performance Improvement RETURN Implementing this requires new actions from managers. Sustaining this approach is a whole organization accountability not just L&D s accountability Copyright 2012 Robert O. Brinkerhoff Advantage Way Certification 18
Business Impact Copyright 2012 Robert O. Brinkerhoff Advantage Way Certification 19
The Advantage Way SM Process Overview Clarify Overall Business Goal Linkage Educate and Motivate Managers Facilitate Impact Map Dialogue Between Managers & Learners CONDUCT LEARNING PROGRAM Engage Learners in Impact Map Reflection Learners Prepare Action Plan (based on Impact map) Manager & Learner Discuss Action Plan and Set Objectives Managers Provide Ongoing Coaching and Support On-line Resources BTS 2010
The Advantage Way SM Process Overview Clarify Overall Business Goal Linkage Educate and Motivate Managers Facilitate Impact Map Dialogue Between Managers & Learners CONDUCT LEARNING PROGRAM Engage Learners in Impact Map Reflection Learners Prepare Action Plan (based on Impact Map) The Key to Transformation ALL Manager & Learner Discuss Action Plan and Set Objectives Managers Provide Ongoing Coaching and Support Measure Effectiveness and Impact With Success Case Study Copyright 2012 Robert O. Brinkerhoff Online support Advantage Way Certification 21
Key Evaluation Questions Who used their learning, and who did not? When it was used, what good did it do? What is the value achieved by those who used it? When it was used, why? Who did what to help make it work? When it was not used, why? Who did (or did not) do what that created obstacles? Who needs to do what to get more people to use their learning successfully? Copyright 2012 Robert O. Brinkerhoff Advantage Way Certification 22
Success Case Evaluation Method Findings High Impact Learning Resource Used Number and Percent Age (Total = 300) 60 Highest Impact Trainees (Top 20%) Value: $20,000 60 Lowest Impact Trainees (Bottom 20%) Value: - $1,500 Manager completed the impact booster session 294 (98%) 58 (97%) 60 (100%) Trainee and Manager met and completed an impact map 195 (60%) 55 (91%) 12 (20%) Trainee and Manager met after training to agree on action plan 120 (40%) 52 (86%) 4 (7%) Copyright 2012 Robert O. Brinkerhoff Advantage Way Certification 23
Courageous Training Published by Berrett-Koehler Available at amazon.com Advantage Way Certification 24