Training for Success: The New Training Imperative and What ...usmedia.niit.com/Resources/NIITWP_TrainingforSuccess.pdf · niit® p. 3executive insight seriesTraININg fOr SucceSS:

Training for Success: The New Training Imperative and What It Means for Your Organization Wh ite pape r | executive i n s ig ht s e r i e s

With new technologies, ways of communicating, and genera-

tional shifts happening in today’s workforce, learning leaders

face greater challenges—as well as opportunities—in regard to

their training initiatives.

n i it® executive i n s ig ht s e r i e s TraI N I Ng fOr SucceSS: Th e N eW TraI N I Ng I M pe raTIve aN d WhaT IT M eaNS fOr YOu r OrgaN I zaTION p. 3

OverviewIn order to remain viable in this fast-paced, results-hungry, and resource-constrained business environment, learning leaders must understand how to apply these technologies to streamline and deploy training, improve skills among multigenerational employees, and, most importantly, prove the bottom line impact of their initiatives.

In this paper, we’ll discover:

• Why training needs to be viewed differently• The economic opportunities of transforming training• How to connect with a multigenerational workforce• Ways to leverage new technologies in training initiatives• What the training transformation means for your organization

What value does training bring to your organization? Can you measure it? Are you able to discern—concretely—its trans-formative impact on your employees, strategic positioning, or bottom line growth? If you’re like most learning leaders, right now you’re probably shaking your head.

But in today’s ever-shifting economic climate, one in which the way we exchange knowledge, information, and goods is equally as dynamic, lack of evidence is no longer enough. Every operation is under increased pressure to perform—and prove how this is being accomplished. Training is no exception.

Those that thrive will seize this period of change to recreate the way training is run, and in return, generate quantifiable impact on worker performance, productivity, and organizational growth. The onus, then, is on learning leaders to make this transformation a reality—and to reach out for expert guidance and support to effectively create and manage this change.

In this three-part Executive Insights series, we’ll explore the new training paradigm, including what it means, what it looks like , and, ultimately, how it can bring your department—and the entire organization—to new levels of success.

“THOSE THAT THRIVE WILL SEIZE THIS PERIOD OF CHANGE TO

RECREATE THE WAY TRAINING IS RUN, AND IN RETURN, GENERATE

QUANTIFIABLE IMPACT ON WORKER PERFORMANCE, PRODUCTIVITY,

AND ORGANIZATIONAL GROWTH.”


all good Things . . . TransformAccording to one McKinsey & Company report, most companies measure the impact of training by tallying the number of employees who have completed courses or by surveying training attendees. “This approach was, perhaps, accept-able when companies had money to spare. Now most don’t,” the report notes.1

While surveying trainees can help gauge the perceived quality of a program’s effectiveness, this method does not pro-vide a true measure of success. Yet, in the midst of cutbacks, restructures, and an increasing reliance on top perform-ers, retaining and deepening the skills of employees is more important than ever. How can this be accomplished if the effects of training are uncertain?

Simply put, we need to view and apply training differently. While the development and execution of training programs may have sufficed in years past, businesses today need to verify the measurable impact of training. As Edward Trolley and David van Adelsberg write in their co-authored book Running Training Like a Business, meeting these new expectations “requires transforming the traditional training operation into a customer-driven, results-hungry, value-producing machine.”2

TODAY’S ECONOMY IS RIPE WITH OPPORTUNITY

Despite the inundation of dismal economic and unemploy-ment forecasts, many organizations indicate that their training budgets will increase (38%) or remain the same (33%) in 2010.3 Additionally, a recent survey conducted by Bersin & Associates shows that 41 percent of respondents believe their organization will grow within six months.4

Clearly, then, businesses want to continue investing in training—but they expect training to address crucial talent needs and position them for growth. Thus, the impetus for change is stronger now than it has been, and we are entering an era in which the economy does not just sup-port this transformation, it mandates it. In other words, embracing change is now easier than ever before. Figure 1: 2010 Training Budgets Survey Results

“WE ARE ENTERING AN ERA IN WHICH THE ECONOMY DOES NOT JUST

SUPPORT THIS TRANSFORMATION, IT MANDATES IT.”


Entering into this “brave new world” of training is aboumore than creating innovative training programs; innovation is nothing without impact. Instead, it requires a wholly new approach—one that links training programs with the needs of every facet within an organization. One that gains stakeholder backing. One that demonstrates a higher ROI from train-ing investments, more productivity from employees, and perhaps even increased revenue from improved engagements between sales forces and customers.

TECHNOLOGY IS EVOLVING—IS YOUR TRAINING?

The article “2010’s Top Training Technology Trends” featured in the winter 2010 edition of Training Industry Quarterly, suggests that training continues to evolve alongside technology.5 Wikis, microblogging communi-ties, and streaming video tools are helping businesses find new ways to strengthen and progress existing training programs. That is, formal learning, such as live, classroom-based instruction, and informal learning, such as virtual classrooms, can be blended to produce more effective ways of sharing information and boosting knowledge retention.

This idea of “formalizing informal learning” has been adopted by several organizations. For example, Intel cre-ated a Wikipedia-like site wherein employees could con-tribute their own articles, share them with colleagues, and engage in lively discussions about each topic.6

New technologies have the potential to radically trans-form the way you conduct your training programs. In turn, they can change the dynamic between employees so that they communicate differently, work together more effectively, and generate new ideas that material-ize as successful products for your organization. This community-centric approach can have profound effects on your bottom line. In his book Change or Die, Alan Deutschman indicates that one company realized it out-performed the competition by 200 percent through this “power of community.” How will you leverage technology in your training to achieve similar results?

THE “GEN Y” FACTOR—ENGAGING WITH A MULTI-GENERATIONAL WORKFORCE

In the next 10 years, 76 million baby boomers will retire and 46 million Gen Yers will join the workforce (Fig. 2).8 This new generation, which NAS describes as the “learning-oriented generation,” is characterized as having adept communication skills, as having the ability to master new tasks quickly, and as being incredibly techno-savvy.9 However, another source indicates that “when confronted with unclear guidelines or minimal management, Millenials tend to flounder.”10

HOW TO LEVERAGE TECHNOLOGY IN YOUR ORGANIZATION’S TRAINING

Make online exchanges searchable and edit-able so employees can find valuable information and add their own insights, feedback, and sugges-tions. This will not only create a corporate culture of sharing, but also deepens employee engage-ment and heighten knowledge retention.

Use recorded media to give virtual tours, on-line classes, webinars, and Web-based testing centers for employees. These recordings can be saved, shared, and reused to lower costs.

Create interactive electronic employee handbooks. These will make learning business processes easier and more engaging for employ-ees, while reducing the need to print and reprint manuals when new hires come on board or when organizational changes are made.

Follow up on e-Learning training with in person assessments to round out your overall training and reap the best benefits from self-service and social learning environments.


Kris Whipple, author of “Training Multi-Generational Audiences: From Boomers to Gen Y,” states that motivating younger groups requires “systematic and frequent feed-back, unique training opportunities via creative media, engaging experiences, and a fun, team-oriented learning environment.” 11(11) At the same time, Whipple writes, earlier generations respond to “team-based training and communication that is open, direct, and detailed.”

This underscores the importance of actively engaging with the new influx of young workers while supporting the learning styles of older generations. Blended learn-ing programs—those that use both formal and informal learning methods—can achieve this. But in the end, these training initiatives must be able to demonstrate more than participation rates or survey results; they need to demon-strate bottom-line value. To begin this new way of work-ing, training managers must first decipher how training links to the organization’s fundamental business goals.

Business Linkage—connecting The dotsA report by Booz & Co. defines business linkage as the “logical framework that establishes the links between business strategy and organization structures, processes, databases, and technologies.”12 This includes understanding the needs and challenges of an organization, identifying strengths and weaknesses, assessing skills gaps, and, most importantly, determining how training can help deliver value.

This is part of the transformation in training “from a backroom support function to a strategic tool, fully aligned with the company’s central business plans.”2 And this transformation is absolutely critical in realizing quantifiable business results. Tapping on partners who specialize in Managed Training Services can ensure this is achieved. NIIT, for example, assesses the strategic initiatives of organizations and tailors programs to integrate with these objectives and align with overarching business goals.

TRAINING IS NOT A BUSINESS PROCESS

The old way of managing training meant treating it as a process—one that was largely far removed from the rest of the organization. “Many companies have not measured the benefits and related them to the cost of training in a way that reveals the rate of return on a firm’s investment. Apparently there is no other workplace issue on which so much money is spent with as little accountability as training,” says Bettina Brown in her training book Myths & Realties.13

Consider the following scenario: A process-oriented goal in a sales department might be to log transactions faster—and perhaps the department achieves this through technology training. Would the sales department leaders be able to point out the percentage gain in productivity as a direct result of that training? Even if so, would leaders be able to map this gain in productivity back to the overall objectives of the company? In a typical situation, this would be unlikely.

Figure 2: Gen Y in the Workplace


Now, contrastingly, an organizational goal for that sales department could be to increase sales by 10 percent within one business quarter. Undoubtedly, the head of the sales organization would find a way to achieve this—and keep vigilant records to prove that the department met its objective. It might require contests or bonuses or promotions, but one can be sure this department would do everything in its power to achieve it.

If training were approached with that same sense of urgency, what do you think would happen? Businesses that treat training as a core business function rather than a process have changed their thinking fundamentally. As a result, they are able to measure training’s effects, take any necessary steps to improve the impact of training, and clearly see the link between training and achieving business goals.

For one business, after the training department uncovered the organizational needs—that the sales team needed cus-tomized selling tools—it was able to develop a training program linked directly to this need. As a result, the sales team was able to achieve $80 million in incremental revenue, $20 million of which was attributed directly to the training initia-tive. “All in all, a pretty effective return on total investment . . . of $375,000,” the source concludes.14

SOLUTIONS ARCHITECTURE—TRAINING BY DESIGN

A recent survey conducted by Client Opinions shows that a large percentage of businesses are seriously considering or already beginning to partner with learning experts to help transform their training initiatives.15 That is because they see the value in tapping on external experts, or learning organizations such as NIIT, to streamline training processes while reducing training expenditures. In fact, a report by Booz & Co. shows that outsourcing training functions can reduce the total expenditure per learner by 31 percent (Fig. 3).16

Calling on outside partners for strategic support can help you “coordinate training efforts, prioritize initiatives, gain economies of scale, share resources, eliminate redundancies, improve business processes, and align training with organizational goals,” according to Rob Pannoni and Grant Ricketts, authors of Learning Gov-ernance: How to Cut Training Costs without Crippling Your Learning and Development Efforts.17

MEASURING TRAINING’S VALUE

As the old adage goes, you can’t manage what you don’t measure. And unless training is aligned with business objectives, it is nearly impossible to measure training’s impact. So how can you ensure that training is producing value for your organization?

Figure 3: Cost Benefits of Outsourcing Training

“A REPORT BY BOOZ & CO. SHOWS THAT OUTSOURCING TRAINING

FUNCTIONS CAN REDUCE THE TOTAL EXPENDITURE PER LEARNER BY 31%.”


First, businesses need to identify which skills and competencies are in the highest demand and, again, ensure that the resources invested in training are aligned with business needs. Some ways to measure the effectiveness of training in-clude comparing learners’ retention and skill-testing scores against their peers and measuring the impact on information technology (IT) or administration support.

According to the article “The Business Case for Measuring Learning,” featured in the spring 2010 edition of Training Industry Quarterly, companies that measure learning investments experience nearly triple the performance over those that investing in training alone.18 “When [measurement is] done for a typical billion-dollar organization, we find that the total value of measurement can return nearly $3 million, and this is ultra conservative,” the article reports. As previously indicated, many companies today rely on surveys to gauge the effectiveness of training. Yet, this is only one tier of a multiple-step measurement strategy. The Kirkpatrick Model, developed by Donald Kirkpatrick in the late 1950s, remains one of the most practical ways to evaluate training. It has since been modified from its original four-step process to include a fifth step, measuring the ROI.

While the Kirkpatrick method applies to all training, the NIIT Critical Mistake Analysis (CMA) methodology can augment the Kirkpatrick method for learning leaders by truly driving business impact. CMA-based training uses empirical data to determine the most important issues for businesses and how interactive, real-world learning scenarios can help learners practice targeted skills in a safe environment. Learners also receive coaching on how to improve these skills and reduce the chances of making mistakes in practical application.

The following is an image that compares the Kirkpatrick method with CMA (Fig. 4)

“COMPANIES THAT MEASURE LEARNING INVESTMENTS EXPERIENCE

NEARLY TRIPLE THE PERFORMANCE OVER THOSE THAT INVESTING

IN TRAINING ALONE.”

Figure 4: Kirkpatrick and CMA: A Side-by-Side Comparison


What does Transformation Look Like?The roots of training lie in education. And while executives agree that knowledge is critical in today’s economy, they are also “demanding increased accountability from both internal and external training functions.”19 This means the focus must shift from an academic view to a business-centric focus.

Training is no longer about how learners perceive pro-grams or even what skills they grasp as a result. It’s how their behaviors, actions, and attitudes transform in measurable ways. Are they working more productively? Are they creating new ideas that translate into profitable products? Are they closing more sales? Most importantly, do the numbers prove that these changes are taking place?

For most learning leaders, this is a new directive, which requires a new approach. And as with all change, the transition can be daunting. That is why many businesses are tapping on external support from reputable vendors—which can yield profound results.

For example, when the Diageo Academy partnered with NIIT to improve productivity, it was able to recapture the costs of training within three months. The company’s main challenge was in helping new employees make better use of technology and reduce dependence on IT support. The solution delivered by NIIT, which enables Diageo employees to choose between traditional classroom, virtual classroom, and e-Learning platforms, resulted in reduced time to proficiency, optimization of internal resources, and a greater ROI.20 Recently, this initiative earned the Brandon Hall Award for Best Re-sults in a Learning Program.

This kind of success requires finding ways to prioritize training initiatives, improve processes, share resources, and, above all, coordinate training efforts with business objectives.(4) By partnering with an outside expert who specializes in learning strategies and applications—and understands the new imperative of training as a results-generating business process—businesses can celebrate these kinds of successes.

KIRKPATRICK EVOLVED: THE TIERED APPROACH TO MEASURING TRAINING’S IMPACT

Step 1: Quantify reactions. Surveys and forms can deliver near real-time feed-back on how trainees viewed courses, trainers, and learning methodologies.

Step 2: Evaluate skills gained. Tests that measure against peer group perfor-mance can show whether knowledge and atti-tudes have changed.

Step 3: Assess changes in behavior. After time, organizations can measure the impact on job performance. Is productivity improving? Are sales conversions improving?

Step 4: Determine business results. Weigh the costs and benefits of training. Did the training goals tie into business objectives?

Step 5: Measure the dollar value impact. Measure productivity improvements, performance, and costs of training, and subtract the dollar value benefit from the training expenditures to determine the ROI.


conclusionAs organizations tighten spending, learning leaders cannot expect executives to ramp up training investments without proof that it provides quantifiable value to the business—and they need that proof today more than ever. In the upcom-ing papers of this series, we’ll discover how to ensure your training organization speaks the same language as business executives so you can gain key buy-in for your transformation—and produce the tangible value they demand. This begins with thinking and acting like a leader, galvanizing employees and business executives to support the transformation, and creating a clearly defined roadmap of where you want training to take your organization—and how you will get there.

Get involved in this ongoing discussion now by joining our LinkedIn discussion group, reading our blog, and ordering your free copy of Edward Trolley’s and David van Adelsberg’s book Running Training Like a Business: Delivering Unmis-takable Value. You may also reserve your copy of the soon-to-be-released NIIT research report, “Running Training Like a Business: The 2010 Research Update and Framework Revealed.”

NI IT® EXECUTIVE INS IGHT SER IES TRAI N I NG FOR SUCCESS: TH E N EW TRAI N I NG I M PE RATIVE AN D WHAT IT M EANS FOR YOU R ORGAN I ZATION P. 11

About NIIT’s Enterprise Learning Solutions BusinessNIIT’s Enterprise Learning Solutions Business delivers innovative strategies that help clients accelerate business impact. NIIT Managed Training Services are a suite of best-in-class training processes that enable customers to reduce costs, sharpen their business focus, and drive quantifiable results. Our Managed Training Services deliver more relevant training to organizations, bring proven best practices into business processes, and redirect surplus training capital into core busi-ness functions.

Known worldwide as a leader in learning outstourcing, with presence in more than 44 countries, NIIT’s Enterprise Learning Solutions Business offers products and services including curriculum design and custom content development, learning administration and operations, learning delivery and management, learning technology development and admin-istration, learning management systems, virtual labs, student retention services, and strategic assessments. Together with its organization, Cognitive Arts, NIIT’s global talent development programs help clients achieve real-world skills to bettercompete in today’s market.

Established in 1981, NIIT is known globally as the number one choice for strategic learning solutions. NIIT has earned more than 50 awards, including 13 Brandon Hall awards.

For more information about NIIT’s Enterprise Learning Solutions Business, please visit NIIT.com or www.facebook.com/niitels. You may also contact Kimberley Kelly, Director of Marketing at [email protected]


SOURCES

Putting a value on training. 1. Cermak, Jenny and McGurk, Monica. s.l. : McKinsey & Company, July 2010, McKinsey & Company.

Trolley, Edward. 2. Running Training Like a Business. NIIT. [Online] 2008. http://www.humanresourcesiq.com/article. cfm?externalid=459.

Blau, Dan. 3. The New Learner: Trends for the new corporate learner. thenewlearner.com. [Online] March 1, 2010. http://thenewlearner.com/2010/03/01/the-results-of-the-new-learner-2010-industry-trends-survey/.

Bersin & Associates. 4. Learing Leaders(R) 2010: Lessons from the Best. s.l. : Bersin & Associates, 2010. Mallon, David.5. 2010’s Top Training Technology Trends. trainingindustry.com. [Online] Training Industry, 2010.

http://www.nxtbook.com/nxtbooks/trainingindustry/tiq_2010winter/index.php?startid=28#/28. Rickets, Grant and Pannoni, Rob.6. A New Taxonomy for Learning. Chief Learning Officer. [Online] http://www.

clomedia.com/index.php?pt=a&aid=2993&start=6091&page=3. Deutschman, Alan. 7. Change or Die. HarperCollins. 2007. 8. Adressing the Requirements of an Aging Workforce. adp.com. [Online] 2006. http://www.adp.com/workforce-

management/docs/whitepaper/Aging_Workforce_White_Paper_2006.pdf. NAS. 9. Generation Y: The Millenials | Ready or Not, Here They Come. [Online] http://www.nasrecruitment.com/docs/

white_papers/Generation-Y.pdf. Gilburg, Deborah.10. CIO. cio.com. [Online] October 26, 2007. http://www.cio.com/article/149053/Management_

Techniques_for_Bringing_Out_the_Best_in_Generation_Y?page=3&taxonomyId=3185. Whipple, Kris.11. onlinelegacy.org. Legacy Magazine. [Online] March 12, 2010. http://onlinelegacy.org/2010/03/

training-multi-generational-audiences-from-boomers-to-gen-y/. Trepant, Hugo and Newman, Daniel.12. Strategy by Design and the Importance of Enteprise Architecture. thecre

ativeleadreshipforum.com. [Online] June 2, 2010. http://www.thecreativeleadershipforum.com/creativity-matters- blog/2010/6/2/strategy-by-design-and-the-importance-of-enterprise-architec.html.

Brown, Bettina L. 13. Myths & Realities. Ohio State University. 2001 van Adelsberg, David and Trolley, Edward A.14. Running Training Like a Business. s.l. : Berret-Koehler Publishers,

Inc., 1999. Client Opinions.15. Diamond Dashboard(TM) Report: Training Outsourcing. s.l. : Client Opinions, Inc., 2009. Howard, Chris.16. Managed Learning Services: How to best Leverage Technology & Training Outsourcing Servic

es.bersinassociates.com. [Online] February 9, 2005. http://www.bersinassociates.com/free_research/managed_ svcs_2_5.pdf.

Pannoni, Rob and Ricketts, Grant.17. Learning Governance: How to Cut Training Costs without Crippling your Learning and Development Efforts. Razor Learning. [Online] April 2009.

Berk, Jeffrey. 18. The Business Case for Measuring Learning. trainingindustry.com. [Online] Spring 2010. http://www. nxtbook.com/nxtbooks/trainingindustry/tiq_2010spring/index.php?startid=14.

Potemski, Bob.19. Run your training department like a business. TechRepublic.com. [Online] December 28, 1999. http://articles.techrepublic.com.com/5100-10878_11-5033101.html

NIIT20. . Diageo Academy | Partnership: The Essence of a Strategic Business Relationship that Delivers Busness Im pact at Diageo. s.l. : NIIT USA, Inc., 2009.

Documents

Training for Success: The New Training Imperative and What ...usmedia.niit.com/Resources/NIITWP_TrainingforSuccess.pdf · niit® p. 3executive insight seriesTraININg fOr SucceSS: