Webinar: Selling Learning to the C-Suite

Making Learning a Strategic Leadership Decision

Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA!!Based Upon the Book!The Trainer’s Balanced Scorecard: !A Complete Resource for Linking Learning to Organizational Strategy

CentralKnowledge inc. Where Learning…Means Business

CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar

Housekeeping!

The event is being recorded

Use the chat window (Q&A)

On Twi9er: @ajaypangarkar | @axonify | #AxonWeb

Use the polling funcGon – click SUBMIT

About the speaker:!

Ajay M. Pangarkar CTDP, CPA, CMA

Workforce Revolutionary

t: 866-489-7378 x 1 e: ajayp@centralknowledge.com

Building Business Acumen for Trainers: Skills to Empower the Learning Function (with CD) Published by Wiley Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood

Background…

The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy Ajay M. Pangarkar, Teresa Kirkwood Published by Wiley

Available at Pfeiffer.com and Amazon.com Search: “Ajay Pangarkar”

Leader’s Expectations

The 4 Steps: Answer the following…

1.  How do your leaders see “training”

2.  What “investment” means to leaders

3.  Evaluate “financial” impact to business

4.  Evaluate “qualitative” impact to business

A Quick Question…

“Training”?

How do your Leaders view...

What are your challenges to gaining support?

q  Organizational apathy and indifference

q  Getting noticed by or involving the right people

q  Lack of financial or other resources

q  Perceived as “costing too much!” / “waste of money”

q  Can’t effectively communicate it’s purpose/results

A Quick Poll…

Leadership Secrets

Business Leader Secret #1

à View everything though a business lens

à Viability and validity is through operational alignment

à Demonstrate tangible performance benefits

Nothing in business is an absolute need

à The real questions:

à Does it make economic/business sense?

à Will present tangible benefits?

Business leaders are sold on training

Leadership Secrets

Business leaders acknowledge that:

à Employee and knowledge retention is essential

à Competitive advantage is through people

à Workplace learning/HR must play a strategic role

Workplace learning’s role remains precarious

Leadership Secrets

Never take your role for granted!

If your leaders ask you to participate in decision-making processes they’re clearly stating:

“Sell us on what training will do for the organization”

…In terms leaders understand”

Leadership Secrets

A Quick Poll…

Do Business Leaders view “training” as:

q  An essential need?

q  A non-essential or project expense?

q  A “nice-to-have”?

q  Something to appease employees/unions?

q  Not sure how they see us?

Management views training in 3 ways:

1.  Necessary, expected training (e.g. job training and development)

Positioning to Prove Value

2.  Measuring impact of major investments (e.g. “training” as a component)

3.  Investing in major elements of training (e.g. e-learning infrastructure)

Contact me or Axonify for:

“The Business Leader’s Bottom Line”

How do your Leaders define...

“Investment”? q  Tangible purchases/assets

q  Measurable financial return

q  Long term business growth

q  You got me…No Idea!

Leader’s View of “Investment”

Physical assets? (e.g. buildings/machinery)

Intangible assets? (e.g. patents, goodwill)

➔  Does “training” have tangible investments?

➔  Does “training” contribute to long-term value?

What’s another big issue Leaders have?

“Training ROI”

“Training ROI” q Cost of doing it

q Deciding on what to measure

q  The ROI results (in question)

q  Still no clue

“Training ROI” (lack of) Credibility

5% training evaluated

Training ROI states to evaluate only 5%

of training efforts

Because costs exceed benefit

95% of training

not evaluated

of training efforts Because costs exceed benefit

95% of training

not evaluated

of training efforts Because costs exceed benefit

If so, then how are the remaining 95% evaluated?

➔  Measuring ROI for ‘training’ expenses

➔  Undermining credibility using training ROI

➔  Measuring ROI for tangible, long-term learning investments

➔  Identifying profitability impact for learning investments

Training’s a COST CENTER….

NOT A DISEASE!

This how you do it… but it gets a little…

Tricky!!!

Building E-learning Acceptance

Evaluating E-learning Strategy

Learning Aspects

à Needs Identification à Learning Retention

Learning Aspects

Level 1, 2

Learning Aspects

Infrastructure

Level 1, 2

à Capital investment

à Operational Expenses

Learning Aspects

Infrastructure

Level 1, 2

Learning Aspects

Infrastructure

Management Needs

Level 1, 2

Learning Aspects

Infrastructure

Management Needs à Business Objectives à Operational Activities

Level 1, 2

Learning Aspects

Infrastructure

Management Needs à Business Objectives à Operational Activities

Level 1, 2

Level 3, 4

Here’s where gets a little more…

Confusing?!

Do your leaders expect “learning” budget allocations demonstrate:

q  A tangible financial return ($1 in < $1 out)

q  Improved financial performance among departments

q  Targeted qualitative performance improvement

q  Not sure what they expect from learning!

A Quick Poll…

Leadership Decision Tools

Return on Investment Evaluation

Cost-Volume-Profit (CVP)

§  Cost/volume affect on profitability §  Activity level to achieve profit

Analyzes changes in costs

§  Contribution to major projects §  Assess infrastructure investment

Cost-Volume-Profit (CVP)

Net Present Value (NPV)

Analyzes project profitability

§  Cost/volume affect on profitability §  Activity level to achieve profit

Analyzes changes in costs

CVP E-Learning Decision!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

Fixed Costs E/M-learning increases fixed costs

To leaders this means: •  Increase revenue (units sold)

•  Reduce variable costs

Question to ask:

What extent will e-learning contribute to production/profit?

Question to ask:

What extent will e-learning contribute to production/profit?

Let’s work through an example…

•  Variable cost: $120 each unit

•  Selling 4000 units for $200/each

•  Current fixed costs: $200,000

FinaX Inc. sells AccountX Software

E-Learning Example!

•  Variable cost: $120 each unit

•  New E-learning course: $60,000

•  Post course sales incr.: 700 units

•  E-learning is a fixed cost

E-Learning Example!

•  Variable cost: $120 each unit Leader’s question:

Should we spend

$60,000 for e-learning?

•  New E-learning course: $60,000

•  Post course sales incr.: 700 units

•  E-learning is a fixed cost

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

4000 units NO e-learning (1)

4700 units w/ e-learning (2)

Difference (2) – (1) = (3)

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$940,000 ($200 x 4700)

$140,000 ($200 x 700)

Difference (2) – (1) = (3)

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$480,000 ($120 x 4000)

$940,000 ($200 x 4700)

$564,000 ($120 x 4700)

$140,000 ($200 x 700)

$84,000 ($120 x 700)

Difference (2) – (1) = (3)

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$480,000 ($120 x 4000)

$320,000 ($80 x 4000)

$940,000 ($200 x 4700)

$564,000 ($120 x 4700)

$376,000 ($80 x 4700)

$140,000 ($200 x 700)

$84,000 ($120 x 700)

$56,000 ($80 x 700)

Difference (2) – (1) = (3)

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$480,000 ($120 x 4000)

$320,000 ($80 x 4000)

$200,000

$940,000 ($200 x 4700)

$564,000 ($120 x 4700)

$376,000 ($80 x 4700)

$260,000

$140,000 ($200 x 700)

$84,000 ($120 x 700)

$56,000 ($80 x 700)

$60,000

Difference (2) – (1) = (3)

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$480,000 ($120 x 4000)

$320,000 ($80 x 4000)

$200,000

$940,000 ($200 x 4700)

$564,000 ($120 x 4700)

$376,000 ($80 x 4700)

$260,000

$140,000 ($200 x 700)

$84,000 ($120 x 700)

$56,000 ($80 x 700)

$60,000

Difference (2) – (1) = (3)

Now, what decision would your leader take?

E-Learning Example!

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

$800,000 ($200 x 4000)

$480,000 ($120 x 4000)

$320,000 ($80 x 4000)

$200,000

$120,000

$940,000 ($200 x 4700)

$564,000 ($120 x 4700)

$376,000 ($80 x 4700)

$260,000

$116,000

$140,000 ($200 x 700)

$84,000 ($120 x 700)

$56,000 ($80 x 700)

$60,000

($4,000)

Difference (2) – (1) = (3)

What Do Leaders Expect?

They want business impact! (Kirkpatrick level 4) Yes, but Ajay...

How do we do this?

Building Learning Acceptance

R Resistance

“What will this cost us?” Level 3-4

R Resistance

A Apathy

“What will this cost us?”

“What will this do for us?”

Level 3-4

Level 4

R Resistance

A Apathy

D Disruptions

“Why now?”

Level 3-4

Level 4

R Resistance

A Apathy

D Disruptions

A Application

“Why now?”

“What difference will it make?”

Level 3-4

Level 4

Level 3-4

R Resistance

A Apathy

D Disruptions

A Application

R Results

“Why now?”

“What will it do for the business?”

“What difference will it make?”

Level 3-4

Level 4

Level 3-4

Level 4

Know your audience Recognize who to approach and why…

R A D A R

Senior Leaders

Mid-level/BU Managers

Employees/ Users

R A D A R

Senior Leaders

Employees/ Users

R A D A R

Senior Leaders

Employees/ Users

R A D A R

Senior Leaders

Employees/ Users

Financial Results

“What do I get if I give you the money?”

Performance Results (non-financial)

“What are the tangible benefits/results?”

Discover how Leaders actually position learning

What to Retain

Address the secrets Leaders believe about learning

What Leaders mean by ROI

Answer Leader’s questions to validate “learning”

Evaluating Learning Strategy

What to Retain

§  Respect how each management level perceives “learning”

What to Retain

§  Measure appropriate “return” of learning

§  Utilize existing financial evaluation tools

What to Retain

§  Demonstrate Level 3 and 4 results

§  Speak in relatable terms

What to Retain

§  Demonstrate Level 3 and 4 results

§  Speak in relatable terms

§  Address each management level questions

§  Report results with financial evidence

TrainingIndustry.com �  The CLO Reality:

What It Takes to Lead & Manage the Learning Function

�  The Business Leaders Bottom Line: Aligning Learning With Organizational Needs

�  Building Strategic Learning Linkages: Mapping & Measuring Your Learning Strategy

TrainingMag “Last Word” �  Taking Care of Business

�  Let’s Get Naked!

“Workforce Revolution!” blog.centralknowledge.com

thank you…please follow my blog

Ajay M. Pangarkar CTDP, CPA, CMA

t: 866-489-7378 x 1 e: ajayp@centralknowledge.com

@ajaypangarkar

30% DISCOUNT CODE: WLY15 @Wiley.com

Q&A Period

Webinar: Selling Learning to the C-Suite

Education

Selling C-suite

SalesITV | Webinar | Holiday Selling Strategies

Nuke suite webinar social fashion

OnPath Webinar - Slap Chop Selling (slide notes)

Webinar: Introdução ao Social Selling - 27/07

Webinar: Introducción al Social Selling

AdminStudio Suite 2014 Webinar

Leadtail + Social-Centered Selling Webinar

Webinar: Introdução ao Social Selling

Webinar Social Selling para Equipos de Ventas

Selling Scrum to the C-Suite

Webinar Introdução ao Social Selling 26.10.2016

Fish4jobs FREE webinar: Selling Yourself to Employers

Webinar: SpagoBI Suite

Selling Content to the C-Suite

Selling Better Together - Webinar with Work.com

Selling to the C Suite

Social Selling Webinar with Jeff Zelaya

Webinar 3 - KAM - Consultative Selling

Successful Selling Tips for Introverted Authors Webinar