The ROI of learning

1 Welcome + Introduction April 22, 2015 bsmith@lynda.com webinars@lynda.com Brian Smith Director of Enterprise Marketing Demonstrating the ROI of Learning A Robust Online Training Library Content in Business Leadership, Management, Productivity, Software, Communication, Career Development, and more 3,400+ courses Avg 20 courses released per week 10,000+ hours of learning Avg hours released per day 138,000+ videos Avg 750 released per week Demonstrating the ROI of Learning Britt Andreatta Leadership consultant since 1989 PhD in Education, Leadership + Organizations Professor and Dean at UC Santa Barbara and Antioch University, teaching leadership and success skills lynda.com Member > Author > Director of Learning + Development Please view my seven courses on lynda.com Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning Sources Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning History Peter Drucker “If you can’t measure it, you can’t manage it.” Demonstrating the ROI of Learning Donald Kirkpatrick Four levels of evaluation Demonstrating the ROI of Learning Donald Kirkpatrick Results Behavior Transfer Reaction 10 Demonstrating the ROI of Learning Be a Learning Guide They will help you show ROI 64 Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process 65 Demonstrating the ROI of Learning ROI Methodology Five Levels of Evaluation V Model for Business Alignment Process Model to Analyze Impact Data Collection 66 Demonstrating the ROI of Learning Jack Phillips ROI R OI Impact Implementation Learning Reaction/Satisfaction 67 Did the learning investment payoff? Did the learning impact business results? Did the learners deploy the learning on the job? Did the learners learn the content? Did the learners like the program? Demonstrating the ROI of Learning V Model 68 Demonstrating the ROI of Learning The ROI Process Methodology 69 Demonstrating the ROI of Learning 70 Demonstrating the ROI of Learning Data Options Hard/soft data Surveys/questionnaires Tests Observation Interviews Focus groups Performance Records 71 Demonstrating the ROI of Learning 72 Demonstrating the ROI of Learning Isolating Effect of Program Pre-test, post-test Control group Trend analysis Use of expert studies/data Estimation of impact by: 73 • Participants • Supervisors • Leadership Demonstrating the ROI of Learning Learn More About ROI 74 Demonstrating the ROI of Learning Learn More About Learning at lynda.com Instructional Design Essentials series: ❯ The Neuroscience of Learning with Britt Andreatta ❯ Flipping the Classroom with Aaron Quigley ❯ Models of Instructional Design with Shea Hanson ❯ Needs Analysis with Jeff Toister Running a Profitable Business with Jim Stice Finance Fundamentals with Jim and Kay Stice 75 Demonstrating the ROI of Learning 76 Demonstrating the ROI of Learning 77 Demonstrating the ROI of Learning Questions + Answers lynda.com 78 BrittAndreatta.com Demonstrating the ROI of Learning [...]...Jack Phillips The Father of ROI 11 Demonstrating the ROI of Learning Jack Phillips ROI R OI Impact Implementation Learning Reaction/Satisfaction 12 Did the learning investment payoff? Did the learning impact business results? Did the learners deploy the learning on the job? Did the learners learn the content? Did the learners like the program? Demonstrating the ROI of Learning The Math Benefit-cost... $20,000 = 1.75 Demonstrating the ROI of Learning Return on Investment (ROI) Economic indicator of accountability for results The benefit (return) of an investment is divided by the cost; expressed as percentage ROI = % 16 (Program Benefit Minus Program Costs) Program Costs X 100 Demonstrating the ROI of Learning ROI Example It cost ¥20,000 to implement new learning program The learning resulted in ¥35,000... program The learning resulted in ₹35,000 savings The program would pay for itself in 6.84 months Payback = 6.84 months 19 ₹20,000 ₹35,000 = 57 x 12 = 6.84 Demonstrating the ROI of Learning Overwhelmed? You only need to build a compelling case for your context 20 Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method... Activity vs Results Learning vs Performance 33 Demonstrating the ROI of Learning 34 Demonstrating the ROI of Learning 35 Demonstrating the ROI of Learning Increasing X vs Decreasing Y To B by when From A To B by when From A Time Time Increase productivity or decrease inefficiency? Increase retention or decrease attrition? Increase revenue or decrease waste? 36 Demonstrating the ROI of Learning ... such a large amount of content at an affordable price, lynda.com was by far our best bet.” Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process 30 Demonstrating the ROI of Learning Business Cents > Business Sense What problem are you solving? How can progress be measured? Who are the stakeholders?... (ROI) Time to payback Works with any currency $ ¥ ₹ €, etc 13 Demonstrating the ROI of Learning Benefit-cost Ratio (BCR) Economic indicator of accountability for results The benefit (return) of an investment is compared to the cost; expressed as a ratio BCR = (x:y) 14 Program Benefits Program Costs Demonstrating the ROI of Learning BCR Example It cost $20,000 to implement new learning program The learning. .. benefit ROI = 75% 17 ¥35,000-¥20,000 ¥20,000 X 100 = 75 Demonstrating the ROI of Learning Time to Payoff Economic indicator of accountability for results Estimated time in which a program will break even (time after that is added benefit); expressed in time Payback = Time 18 Program Costs Program Benefits X time unit Demonstrating the ROI of Learning Payoff Example It cost ₹20,000 to implement new learning. .. has what expectations? 31 Demonstrating the ROI of Learning ROI vs ROE Justification Evaluation 32 Investment Expectation Estimate cost and benefit of investment Align your design, and estimate cost and benefit Isolate the effect of investment and calculate its value Demonstrate extent that expectations were met and calculate the value Demonstrating the ROI of Learning Measuring Success Identify metrics... outside of class • Encourages staff and faculty professional development 35,000 students + 31,000 fulland part-time faculty and administrative staff 28 “I honestly think this handson learning is the best way to learn software I’m glad UCLA provides lynda.com to all students I think the more software we know, the more it prepares us for the job market once we graduate.” Demonstrating the ROI of Learning. .. Demonstrating the ROI of Learning Reality Check Is HR/L+D seen as a trusted and valued business partner? Do you have an established record of success? Are you empowered to take intelligent risks and make decisions? Are you justifying an upcoming purchase or evaluating one you have already implemented? 22 Demonstrating the ROI of Learning Plenty of Options Cost Output Time Quality Energy 23 Demonstrating the ROI ... Phillips The Father of ROI 11 Demonstrating the ROI of Learning Jack Phillips ROI R OI Impact Implementation Learning Reaction/Satisfaction 12 Did the learning investment payoff? Did the learning. .. That Matter The Amazing Value of Learning The ROI Method and Process 43 Demonstrating the ROI of Learning Training + Learning learning training Not to scale! 44 Demonstrating the ROI of Learning. .. Demonstrating the ROI of Learning Agenda Return on Investment (ROI) Your Context Results That Matter The Amazing Value of Learning The ROI Method and Process Demonstrating the ROI of Learning Sources