0 MTPT – PGDM FT Sem V Sunday, January 17, 2016

1 Training Measurement If a measurement program cannot help answer “today’s urgent questions,” then it is clearly a failure. In addition, it must be able to do more – the measurement program must also help : Understand performance against plan; Decide what “not to do;” and, Identify specific areas of opportunity to change programs to drive dramatic performance improvements.

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4 4 Measurement- Training effectiveness Level 1 Level 2 Level 3 Level 4 Level 5 Did they like it? Did they learn? Do they use it? What were the results? What’s the ROI?

5 Training Measurement Corporate training is a notoriously difficult thing to measure. While most organizations understand the vital need for ongoing employee development at all levels, training professionals still need ways to develop actionable, pragmatic measurements of activity, utilization, efficiency and impact. Such measurement is important for many reasons, such as: Validating financial investments; Helping trainers in optimizing their programs; and, Helping executives understand the value of the training programs they support.

6 Training Measurement All training programs have four major phases: 1. Identify a problem; 2. Develop a training solution; 3. Improve individual performance; and then, 4. Improve organizational performance.

7 Training Measurement All training programs have four major phases: 1. Identify a problem; 2. Develop a training solution; 3. Improve individual performance; and then, 4. Improve organizational performance.

8 Training Measurement Problem Definition – In the area of problem definition, consider how to measure business alignment, performance consulting, root cause analysis and the needs capturing process. If you develop a fantastic training program that focuses on the “wrong problem,” no measures of satisfaction or learning will be relevant.

9 Training Measurement Development and Delivery of Training Solution – In the area of training development and delivery, measure the ability to efficiently and effectively: a. Design and develop training programs; b. Target the right audience; c. Roll out the program; and, d. Deliver an interesting and relevant learning experience. In this phase, look at learner satisfaction, amount of learning and adoption – did they really attend and complete the program. Also look at the efficiency of training development processes, along with how well it is aligned with the business during the design, development and delivery stages.

10 Training Measurement Individual Performance Improvement – measure how well the individuals being trained actually improved their performance (based on the needs analysis conducted in phase 1. If the problem identified was machine errors, did the error rate decrease? Also want to look at the learners: a. Existing skills (e.g., maybe some learners were already very good at avoiding errors and others were not); b. Motivation (e.g., some class attendees are there for the food and location others are there to really reduce their error rates); and, c. Attitudes (e.g., do the learners actually want to learn or do we need to coerce them?). Role of the manager – no training program has impact if the managers do not reinforce its use for many months after the program is completed. While a learner may score a course high in satisfaction, if the manager scores it low or does not reinforce the materials, the course is likely to be a waste of time and money.

11 Training Measurement Organizational Performance Improvement – Finally, one must consider how the improvement in learner results impacts the business. If these individuals actually reduce their error rates, do we get the resulting improvement in manufacturing quality that we set out to achieve? Can we somehow make sure that the information gained from this course is shared among others, and now reinforced and improved over time? Training a few “people” may help for a while, but can we find ways to transfer this learning back into the organization, so that it improves itself over the long term?

12 Training Measurement Most companies start with the basics measurement and build sophistication over time.

13 Training Measurement Satisfaction Learning Utility Alignment Attainment Adoption Efficiency Attainment (of Client Objectives) Individual Performance Organization Performance

14 Training Measurement While more than 85 percent of all organizations measure enrollments in training, fewer than one-half measure actual training hours by employee and only 35 percent measure true completion on a regular basis.

15 Training Measurement Adoption Did you reach the desired audience? Did they complete or comply as desired? Who did not comply and why? When time comes to reduce costs and one need to cut back training programs, it is very important to have detailed information about the utilization of all programs, such as: Total enrollments; Student hours; Completion rates; and, Segmentation by audience (including job role, geography, facility, level, tenure and other dimensions). You can quickly find problems in courses simply by analyzing adoption in detail.

16 Training Measurement Utility How well do the programs solve the workforce’s particular problems? How well did it align to the specific job related problems and issues? Would learners recommend this program to their peers? Here one seek to understand how well the learners themselves rate the training in “usefulness” to their actual work environments. While one will not use this measure to compute return on investment, it varies very widely from learner to learner and program to program and it gives tremendous insights into how well one : Developed the right course; Targeted the right audience; and, Provided a delivery experience that was relevant and useful. When compared across many programs, the “utility” measure is almost a perfect measure of real training value.

17 Training Measurement Efficiency How efficient and cost – effective was it ? How did it compare to other similar programs or competitive programs? How well did it use the learner’s time ? Efficiency, is one that many organizations forget. While one may get a very positive outcome from a program, did we build and deliver it in a cost-effective way? There is a real cost to training – development, delivery, infrastructure and employee time. While some courses may be highly valued, we really need to compare them against others on the basis of total value to cost, since our dollars and resources are limited. Additionally, all training departments are cost centers, so we must use efficiency measures to make sure we are continuously driving down the cost per hour, cost per page, cost per enrollment, et al.

18 Training Measurement No training program will drive value unless it is: 1. Highly relevant to the organization’s current business and talent challenges; 2. Timely and up to date in its delivery and content; and, 3. Completely adopted and well understood by management and leadership. Need a whole set of measures to clearly measure business alignment – from the beginning of the problem definition phase through the program rollout and follow-up course updates. Alignment How well were program business priorities defined? How well did business units buy in on the value of this program relative to other investments?

19 Training Measurement Attainment How well did you meet specifically defined client (business user or customer) objectives? These may be revenue, time to market, compliance, time to complete, etc. Attainment, refers to the measurement of actual customer satisfaction. This type of measure may be considered a “onestop” measurement for any internal business process. How well does your customer (e.g., the vice president of sales, the vice president of operations) feel that you obtained his / her stated goals? These goals may include performance enhancement, as well as other critical goals, such as: Completing the program on time and by a certain date; Staying within budget; Taking less than a certain number of hours of employees’ time; and, Engaging with other business programs taking place. By considering attainment for every program, you ensure that you have a clearly documented set of “customer objectives” against which to measure yourself for each program

20 Training Measurement Individual Performance Indicators asked of learners and managers to gauge performance improvements. Specific operational measures identified in the performance consulting process

21 Training Measurement Organizational Performance General business measures or HR measures that are already captured in the organization (i.e., engagement, retention). Special surveys can be used to determine indicators using the “wisdom of crowds.” - sales per employee, errors per hour and customer satisfaction levels - carefully identify the business performance problems in advance, you will be able to capture this data directly from the business

22 Training Measurement Now organizations not only care about the efficiency and effectiveness of the training department – but they also want to understand how L&D programs impact, fit and help talent management programs. So most organizations today are looking at learning measurement in the context of a much broader set of business measures, including: Employee engagement or satisfaction with manager and department; Turnover and exit interviews; Employee skills, readiness and certification versus career and competency models; Leadership skills and depth; Succession depth and employee mobility; Cost to hire, time to hire and time to proficiency; and, Cost, efficiency, and benchmarking of HR and L&D spending. These broader measurement areas go beyond training and try to measure the real “talent business model” of an organization. Ideally, any HR or L&D manager should understand the precise roles, skills and behaviors that drive the greatest levels of business value

23 Training Measurement There are really three major obstacles to building a sound training measurement program: 1. Executive Support – Sixty-one percent of companies cite that their leadership is not giving them the support they need and 91 percent state that they need more resources. This problem can only be solved through education. 2. Poor Data Capture and Analysis Tools – Eighty-four percent of organizations feel they are held back by poor data capture tools and 80 percent by poor analysis tools. In most cases, the LMS itself can serve as the assessment and data collection tool – and also as the analysis tool. We are no longer in a market in which these tools are difficult to find and use. The problem is one of funding and implementation, not one of finding the right tool. 3. Lack of Clear Methodologies – Seventy-seven percent of organizations cite this as their biggest challenge.

24 Organizational Development  Organizational Development (OD) –A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being  OD Values –Respect for people –Trust and support –Power equalization –Confrontation –Participation

25 Six OD Techniques 1.Sensitivity Training –Training groups (T-groups) that seek to change behavior through unstructured group interaction –Provides increased awareness of others and self –Increases empathy with others, listening skills, openness, and tolerance for others 2.Survey Feedback Approach –The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested 3.Process Consultation (PC) –A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.

26 Six OD Techniques (Continued) 4.Team Building –High interaction among team members to increase trust and openness 5.Intergroup Development –OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other 6.Appreciative Inquiry –Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance  Discovery: Recalling the strengths of the organization  Dreaming: Speculation on the future of the organization  Design: Finding a common vision  Destiny: Deciding how to fulfill the dream