Transformation THE VIEW IS WORTH THE CLIMB.

Transcription

1 Transformation THE VIEW IS WORTH THE CLIMB. Edward Trolley Senior Vice President, Consulting and Advisory Services and Co-author of Running Training Like A Business NIIT

2 The Industry Analysts Say Recent research indicates that, while employee development has never been as important, faith of the organization in the L&D function to deliver value has also never been so low. - Bersin By Deloitte, 2016 Transforming L&D in 9 Easy Steps This year s third most important challenge was the need to transform and accelerate corporate learning. Bersin By Deloitte, 2015 Global Human Capital Trends 96% of executives want to see the business impact of learning; yet only 8% receive it now and 74% of executives want to see ROI data, but only 4% have it now. Phillips & Phillips via Corporate Executive Board, 2016 The vast majority of learning supplied across the organization (64% inside & 70% outside the L&D function) is going to waste because it is redundant or of low quality. Corporate Executive Board, Building the Nest- Generation L&D Function, 2016 Transformation is not about changing out curriculum and designing new courses it s about re-engineering the training function to solve business problems, eliminate waste, and drive value. Bersin By Deloitte, Predictions for 2015 corporate executives and learning leaders alike, looking for ways to transform their organization by ensuring training activities are aligned to the needs of the business. Executives are more focused on how much money is being spent relative to the value it creates. TrainingIndustry.com 2015

3 This is what we see in many learning organizations across the globe. Unanswered Questions How much are we spending today? Where is the money going? What value are we getting from our current investment? How can we make it Better more relevant and value adding Faster available where and when we need it Cheaper how do we ensure greatest value for the least cost How do we ensure operational and financial control? How do we begin and gain organizational support? How do we achieve and sustain these improvements? How do we measure the value of our future investment? Business Imperative for Training Reduce Costs Move fixed costs to variable costs Become more relevant Increase Value Focus on strategic elements of the business

4 96% of companies with strong learning cultures reported high employee productivity - Bersin and Assoc Since 2011, U.S. productivity gains have slowed to a crawl -Bersin by Deloitte citing U.S. Bureau of Labor Statistics, 2015 Spending 10% of a company s revenue on capital improvements increased productivity by 3.9%. But investing that same amount in developing the employee capital more than doubles that amount to a whopping 8.5%. University of Pennsylvania

5 And yet...when times are tough, training is the first thing that gets cut!! 5

6 A Broken Equation Training Value Investment

7 You can t transact your way to transformation. TRANSFORMATION REQUIRES A LEAP Must think from the goal backwards. 7

8 A Transformation Framework for Learning & Development Training Department Cost of Training Attendees Measuring Activity Levels What Training do you need? Training as the end result Mastering Content Allocation of expense Activity Smile Sheets Training Enterprise Investment in learning TO Customers Measuring results What business issues are you trying to solve Business results as the end result Improving performance Pay for use Application Customer success

9 To Run Training like a Business, You Must Improve EFFECTIVENESS Link T&D to business strategy Focus on business issues rather than training content Let customer demand shape T&D s offerings Clarify T&D s business mission See T&D as an enterprise, not as a function EFFICIENCY Expose hidden costs Managing the total cost Aggressively reduce costs Build and maintain reliable systems and processes Operate as variable, not fixed cost Be flexible and opportunistic in sourcing

10 You Must Manage The Total Cost of Training It is 5X Direct! INDIRECT INDIRECT DIRECT Staff & Other Fixed & Variable Participant Cost Salary, benefits while training Cost of Poor Quality Rework due to ineffective training INDIRECT Productivity Cost Lost productivity while training

11 Business Linkage Planning, Selection, Sourcing Design and Development Delivery and Reinforcement Measurement Infrastructure Systems & Processes Value Add You Must Redirect Your Investment High Low Value add Investment Value Chain Activities Slide 11

12 You Must Understand Your Strategic Learning Portfolio Alignment STRATEGIC LEARNING PORTFOLIO ALIGNMENT Company Knowledge?%?% Run The Business?%?% Advance The Strategy State Parkway Partners Generic Knowledge State Parkway Partners, LLC

13 MUST DO S 13

14 MUST DO Run at the speed of business.

15 MUST DO Be lean and agile.

16 MUST DO Ensure a Laser Focus on Business (to drive business value).

17 MUST DO Provide Data-Driven Analytics. (to prove business value)

18 MUST DO Drive Innovation.

19 And some no brainers Install Relationship Managers to link to the business. Optimize training delivered by outside providers. Dramatically reduce your fixed costs. Measure what matters. Utilize outsourcing as a strategic lever to: Gain access to capability and experience you don t have and/or can t afford to build Variablize your costs Reduce your unit costs Gain scalability 19

20 The View is Worth the Climb. Edward Trolley Senior Vice President, Consulting & Advisory Services NIIT