Blog Post

Learning ROI, Part Three: Performance & Compliance

Brett C. Wilson

Principal of Thought Leadership and Advisory Services, Cornerstone

Welcome back to our ongoing series on the ROI of learning programs. In Part One, I discussed the importance of asking the right questions starting with why you wish to procure an LMS and why you will want to document your answers as it relates to how to measure return on investment. In Part Two, I focused on non-mathematical ROI considerations and examined the "employee happiness factor" as a possible key consideration for asking the right questions in terms of ROI. In review, my last blog discussed possible reasons for why you are procuring an LMS. Are your reasons:

  • To increase productivity?

  • To decrease costs (e.g., less travel to classrooms and more eLearning)?

  • To satisfy mandatory training for compliance?

  • To improve employee job performance?

  • To increase revenue (e.g., beef up sales training to drive more sales)?

  • To enhance career development?

  • Some combination of the above?

Stick to the ROI rules – ask the right questions, document your answers, and measure the results over time. This will properly guide you on your path to a successful implementation, provide legitimacy for your reasoning through solid documentation that specified how you will measure success over time, and ultimately, validate the rationale for your investment.

In this installment, I want to close the circle – how integrated talent management, specifically performance management can help to answer the more difficult "why" questions and how compliance can be a "slam-dunk" for determining ROI.

Closing the Circle with Employee Performance

If one of your reasons to procure an LMS was to improve employee job performance, your ROI plan should be very clear in terms of why and how an LMS will make a positive difference. But can an LMS measure job performance? Not really. An LMS will serve up training content and track an individual’s training progress which should always be a component of employee performance. One could argue, and for that matter measure, that an employee’s performance measurably improved because of training delivered by an LMS (e.g., Cornerstone for Salesforce).

On the other hand, if you decided that one of your reasons for procuring an LMS was to improve employee job performance, consider including an employee performance module (EPM) in your purchase. Why? Because you will not be able to measure all of the criteria for job performance through an LMS – only some components.

By design, an EPM module is configured to align with corporate goals and cascade down to individual role performance and numerically measure (usually as a percentage) whether the goals that were established were indeed achieved. This data can be aggregated to measure overall performance by the workforce and the achievement of improved performance or increased productivity. Be sure to include these goals in your ROI plan and identify the reports from the EPM that will be used to measure success.

Dirty Laundry & Compliance Risk

Let’s talk about compliance training. Compliance ensures that an organization has the processes and internal controls to meet the requirements imposed by governmental bodies, regulators, industry mandates or internal policies. Put more simply, don’t lie, don’t steal, and don’t cheat.

Compliance training is a way to keep the business out of hot water and ensure that safe business practices are upheld. They are usually recurring requirements and require accurate reporting (tasks well suited for an LMS).

Research conducted by the ADP Research Institute stated that the average employment lawsuit award exceeds $490,000 and that 52% of midsized companies report at least one recent incident of HR-related complaints. Consider industries where lives are at stake – energy, manufacturing, and transportation are just examples. Each year, large, multi-national firms pay billions of dollars for a variety of infractions that translate to non-compliance. Do you think these firms take compliance training seriously? You bet they do.

So what does that have to do with learning ROI? Ask your legal department about compliance and the cost of non-compliance. It’s the kind of dirty laundry in a company that is closely held information. Depending on what your company does, the dirty laundry pile might be small or it could be huge. Consider these costs and potential non-compliance risks as a sensible reason to invest in an LMS. Your ROI calculations can quickly become very impressive.

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Taking A Company-Wide Approach to Learning & Development

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Taking A Company-Wide Approach to Learning & Development

There’s a lot of coordination that goes into a company’s learning and development programming, from identifying skills gaps and creating engaging content to scaling initiatives company-wide. And because there’s so much complex planning involved, organizations can sometimes get caught up in the details, and overlook how L&D fits into broader organizational goals. A recent survey—titled "The Revolution is Now: New-Skill Your Workforce to Catalyze Change"—from Cornerstone People Research Lab (CPRL) and the Human Capital Institute (HCI) found that only 55% of organizations believe their L&D programs are well-aligned with their company’s overarching strategy. But CPRL and HCI’s survey reveals two logical ways to overcome this challenge. First, there’s a need for L&D executives to participate in strategic conversations around organizational goals to ensure that L&D planning aligns with broader business plans. And second, it’s important to share responsibility for learning effectiveness. If facilitating continuous learning is a part of everyone’s role, it becomes easier to integrate it organization-wide. Promote Cross-Departmental Collaboration and Responsibility To better align L&D efforts with overarching business goals, learning executives have to participate in strategic conversations about organizational direction. For instance, when business leaders gather to discuss goals and KPIs for the coming year or quarter, HR and L&D leaders should be involved in those conversations. And the opposite is also true: Business leaders need to help direct the learning outcomes framed against those goals. According to the "Revolution is Now: New-Skill Your Workforce to Catalyze Change" survey from CPRL and HCI, only about half (51%) of learning leaders report being involved in these discussions. During these business planning discussions, it’s important to establish accountability, especially among people managers. CPRL and HCI found 67% of people managers report being involved in the creation of content, but only 47% are involved in the accountability for the results. By holding more people accountable to the success of L&D programs, it can be easier for a company to spot pitfalls or opportunities for improvement. It creates shared goals for measuring effectiveness, and establishes a process for making changes. For example, by getting people managers involved in L&D initiatives, L&D leaders can work with them to get a better understanding of a specific team’s skill gaps or what reskilling or new skilling solutions will work best for them. All leaders in an organization, in fact, should be eager to participate and own their team’s newskilling, reskilling or upskilling efforts. Ask a people manager in the IT department to reiterate the importance of learning to their team, and track the amount of time their employees spend on learning content. This approach will not only create a shared commitment to continuous learning, but can also help leaders outside of L&D and HR get a better idea of what content or formats work best for their teams and recommend adjustments accordingly. Continuous Learning Is Everyone’s Responsibility Aligning overarching business plans and strategy with learning and development efforts can improve each’s efficacy. The more cross-departmental collaboration that exists, the more information that HR and L&D leaders have about their workforce and its needs, strengths and weaknesses. And with more accountability, all stakeholders in an organization can become more involved in ensuring the successful partnership between L&D and a company’s overall strategy. To learn more about the findings from Cornerstone’s "The Revolution is Now: New-Skill Your Workforce to Catalyze Change" survey and its recommendations for using cross-departmental collaboration and accountability to help with L&D efforts, click here to download and read the full report.

Why supporting neurodiversity is essential for any successful workforce today

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Why supporting neurodiversity is essential for any successful workforce today

When we think of diversity in the workforce, we typically think of it along the lines of race, religion, sexual orientation or gender. But focusing only on those four is its own sort of constraint. To truly create a successful and diverse workplace, you need to ensure you're also embracing neurodiversity too. Understanding neurodiversity In the late 1990s, a single mother in Australia named Judy Singer began studying Disability Studies at University of Technology Sydney. Her daughter had recently been diagnosed with what was then known as “Asperger’s Syndrome,” a form of autism spectrum disorder. As she read more and more about autism as part of her studies, Singer also suspected that her mother, and she herself, may have had some form of autism spectrum disorder. Singer describes crying as she realized that her mother, with whom she'd had a tumultuous relationship throughout her childhood, wasn’t purposefully cold or neurotic as she had thought. She just had a different kind of mind. In her honors thesis, Singer coined the term “neurodiversity.” For Singer, people with neurological differences like autism spectrum disorder, attention deficit hyperactivity disorder (ADHD), or dyslexia were a social class of their own and should be treated as such. If we are going to embrace diversity of race, gender, religion, sexuality, etc., then we must embrace a diversity of the mind. The following video is an excerpt from the "Neurodiversity" Grovo program, which is available in the Cornerstone Content Anytime Professional Skills subscription. Neurodiversity in today's workplace Recently, neurodiversity has become a trendy term in diversity, equity, inclusion, and belonging spaces. And many organizations are working to hire more neurodivergent people, as well as give them opportunities to thrive at work. That’s why, at Cornerstone, we recently produced a series of lessons on neurodiversity. If your organization hasn’t prioritized neurodiverse inclusion yet, here are some reasons why it both supports your people and organization. 1) Neurodivergent people are underemployed Neurodivergent people, especially people with autism, are widely under-employed, regardless of their competence. In the United States, 85% of college graduates with autism are unemployed. According to a 2006 study, individuals with ADHD have higher rates of unemployment than individuals without. However, there is no evidence that neurodivergent people are less competent or less intelligent than neurotypical people. Organizations are missing out on talented people. 2) Neurodivergent people are more common than you may think Neurodiversity manifests in many different ways. It can encompass autism spectrum disorder, ADHD, dyslexia, dyspraxia, dyscalculia, Tourette syndrome, and many other conditions. And as scientists have learned more about what makes someone neurodivergent, they're identifying more and more people. According to the World Health Organization, 1 in 160 children have some form of autism spectrum disorder. The Centers for Disease Control and Prevention estimate that 1 in every 162 children have Tourette Syndrome, and roughly 8 percent of children under 18 have attention deficit hyperactivity disorder, or ADHD. And that's just children. How many adults, like Judy Singer's mother, have struggled their whole lives without a diagnosis? People who are neurodivergent are everywhere. Diverse organizations are stronger Diverse organizations and teams not only have better financial returns than less-diverse ones, but they also perform better. Having the different perspectives presented by people who are neurodivergent can help your team solve more difficult problems. Different perspectives and different ways of thinking lead to creativity and innovation.

Why Selecting a Leadership Development Program Is Way Too Complicated

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Why Selecting a Leadership Development Program Is Way Too Complicated

Many organizations face a leadership gap and cannot find the talent needed to grow. We could blame the retiring baby boomer phenomenon, the free agent nation, or the lack of investment made in developing leaders. But since blame is a lazy man’s wage, I will not entertain that debate because there are too many options out there for developing leaders. There are many leadership development programs in the market. In minutes, with a simple Internet search or over coffee with your head of human resources, you can discover myriad high-quality leadership development programs that you could use in your organization to develop leaders. The problem is not finding a good program, but in choosing one. Answer the Right Questions So how does one choose? The problem we face in evaluating leadership development programs is that we get caught up in evaluating the content rather than asking a simple question, "What do we want our leaders to be able to do?" Each organization is unique in how it answers this question. And that is where the secret lies. If an organization can select a program that matches the answer to the question above, the selected program will likely be the right one. After all, each leadership development program is very good in some way. It is not so important which one you select. It is important that you use the one you select. In other words, the key is to not let it become another un-opened binder on the bookshelves of your management team. Be An Effective Leader Let me give you an example: If an organization’s answer to the question above is, "We want our leaders to be proactive and focused on the things that drive results," your choices are narrowed down to only a few programs that would deliver on that answer. And if I had to pick one program that would deliver on that answer, without hesitation, I would choose, "The Effective Executive" by Peter F. Drucker. It is a classic, and all five of the behaviors of effective executives taught in the book remain vital skills that any leader should practice if he or she wants to be effective in his or her organization. In the book, Drucker teaches that effective executives: Know where their time goes Focus on contribution and results Build on strengths Concentrate on first things first Make effective decisions This is not a book review or a plug for "The Effective Executive," though I do believe if you had to choose one set of skills to teach your leadership, it would be the five from Drucker’s book. This is a challenge for every organization to simplify the selection of leadership development programs, and ask, "What do we want our leaders to be able to do?" Answering this question clearly will help you choose the right program. After all, many programs are excellent. The secret to success is not in which program you choose, but that you get people to apply the program you choose. Photo: Can Stock

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