According the ASTD 2013 State of the Industry, overall spending on employee training in U.S. organizations is $164 billion, the average cost per learning hour used is $89 and the cost per learning hour available is $1,772. How can we make sure the investment of time and resources is making a positive business impact? How can we measure the effectiveness of our training initiatives? In this webinar we'll review: Training metrics - where we've been and where we're going How to determine goals and key indicators How to create a measurement plan for your program

1. EMPLOYEE TRAINING AND
DEVELOPMENT:
How To Measure
Effectiveness and Impact

2. 6,000+ Courses. 25 Topic Areas.
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3. How do you currently measure
your training program and
efforts?
a. Don’t worry be happy - smile
sheets all the way.
b. Completion – at least they did
something.
c. We make an effort to track
behavior changes.
d. Data-driven – the more
information and analysis the
better.
e. Something else.

4. What You’ll Learn:
How to determine goals and
key indicators?
3
2
1

5. BIZLIBRARY.COM
Overall spending on
employee training in U.S.
organizations is $164 billion.
COMPANY SIZE (# of Employees)
Smaller organizations typically
spend more per employee
than larger organizations.
$700
$964
$1,800
COST PER EMPLOYEE PER YEAR
$1,195

6. KPI’S AND BENCHMARKS:
How do you currently
measure success?
Use existing data to
set benchmarks.

7. MEASUREMENT AND
BUSINESS:
1951: Edward Deming
The power of analytics
to drive improvement.
1954: Peter Drucker
The business of
management and the
knowledge worker.
1959: Donald
Kirkpatrick
Measuring the impact
and ROI of training.
1970: Jack Phillips
Data-driven return on
investment.

8. KIRKPATRICK – PHILLIPS
MODEL:
KIRKPATRICK PARTNERS LLC
LEVEL 1
REACTION
participant
satisfaction
LEVEL 2
LEARNING
knowledge, skills
and attitudes
LEVEL 3
BEHAVIOR
Application
and on-the-
job learning
LEVEL 4
RESULTS
business impact
LEVEL 5
RETURN ON
INVESTMENT

9. THE COST OF ONE
GALLON OF GAS
2013: $3.61
1970: $0.36
1959: $0.25
2013: $271,600
THE AVERAGE COST OF A
NEW HOUSE
1959: $12,400
1970: $23,500
2013
1970
1959
SPUTNIK –
launch of first
manmade
satellite
FIRST FLOPPY
DISK
3D PRINTING
THEN AND NOW

10. It's not the 95% that's right that
makes something work; it's the
5% that's wrong that messes
everything up.
Measuring, Managing and Maximizing Performance
Will Kaydos

11. ISOLATION TECHNIQUES:
SYSTEM/PROCEDURE
CHANGES
INCENTIVE/MOTIVATION
MANAGER
SUPPORT/ATTENTION
EXTERNAL FACTORS
EFFECT OF
LEARNING ON
IMPROVEMENT
TOTAL
IMPROVEMENT
AFTER
PROGRAM
LEARNING PROGRAM

12. TREND LINE ANALYSIS:

13. CONTROL GROUP:
Recruiters
and Hiring
Managers
Group 1
Recruiters
and Hiring
Managers
Group 2

14. OTHER METHODS:
• participant and manager estimation of
impact – ONLY AS GOOD AS THE EMPLOYEES ABILITY TO
PROVIDE INFORMATION.
• senior management estimation – BIAS AND
SIMPLE HUMAN ERROR.
• success case method – WHAT DID THIS PESON
LEARN THAT WAS NEW? HOW DID THIS PERSON USE THE LEARNING
ON THE JOB? DID THE USAGE HELP PRODUCE A WORTHWHILE
OUTCOME?

15. SUCCESS CASE METHOD:
RECOMMENDED RESOURCE
Telling Training’s Story by Robert O. Brinkerhoff
1. What, if anything, did this person learn that was new?
2. How, if at all, did this person use the new learning in
some sort of job-specific behavior?
3. Did the usage of the learning help to produce any
sort of worthwhile outcome?

16. TRAINING
IMPACT • Manager support.
• Opportunities to apply
learning.
• Peer support.
• On-demand access.
• Senior management
involvement.

17. FIVE STEPS TO CREATE A MEASUREMENT
AND EVALUATION PLAN:
Focus and plan the evaluation.1
Create an impact model that defines potential
results and benefits.2
Design and conduct a survey to gauge overall
success versus non-success rates.3
Conduct in-depth interviews of selected success
and non-success instances.4
Formulate conclusions and recommendations,
value, and return-on-investment.5

18. 1. Identify performance areas.
2. Engage all of the key stakeholders.
3. Clarify and define success.
4. Establish the data points.
Focus and plan the evaluation1

19. Create a model for success.2
Organizational Goals
Business Unit Goals
Employee Behaviors or Actions
Employee Skills or Knowledge

20. Design and conduct a survey to gauge
overall success versus non-success rates.3
Which statement below best describes your experience since
participating in the Performance Management training?
• I learned something new, I have used it, and it has led to some very
worthwhile results.
• I learned and tried some new things but can’t point to any very
worthwhile results yet.
• While I may have learned something new, I have not been able to
use it yet.
• I already knew about and was doing the things this training taught.
• I don’t think I can really use what I learned in the training.

21. Conduct in-depth interviews with employees who’ve
been BOTH successful and unsuccessful.4
HIGH PERFORMERSLOW PERFORMERS
MANAGER SUPPORT
OPPORTUNITY TO
APPLY LEARNING
PEER SUPPORT
ON-DEMAND ACCESS TO
RESOURCES
SENIOR LEADER
INVOLVEMENT

22. • Areas of increased performance
• The VALUE of this increase
• The costs to deliver value
• Recommended improvements to increase
value
Develop conclusions, write action plans
and implement needed changes.5
RECOMMENDED RESOURCE
Course Title:
Developing Others - Connect every employee's individual goals
to the organization's vision and strategy

23. BIZLIBRARY.COM
REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES
MANAGERS
Goal: Reduce time to fill open positions from over 70 days to
less than 55.
Value:
The expected value to
be gained is measured
by using the average
revenue generated by
new sales reps in their
first 90 days of work on a
per day basis, and the
added value realized in
the first 6 months of
employment for each
day we can get them
onboard and trained
more quickly.
$435/day $32,000
In six months
The average
rep closes two
more deals at
an average
value of $16,000
each when
they started in
60 days after
position
opened.
First 90
days.

24. BIZLIBRARY.COM
Training Costs:
Human Resources:
$45,000
Sales: $15,000
Total: $60,000
Impact:
Seven reps were hired
with an average
reduction of 10 days
saved per rep in the six
month time frame of the
study.
Value Added From Improved Performance:
7 reps X 10 days each = 70 days. 70 days
saved were worth $30,450. 4 of 7 reps
started in 60 days or less after open position.
$128,000 added in new sales.
TOTAL VALUE GAINED:
$158,450 on a $60,000 program.
Other Factors:
Better communication and cooperation between sales managers and
HR recruiters meant the candidates being interviewed fit a success
profile for sales reps more clearly than before the program started. We
also learned that social media sourced candidates tended to be more
successful in the first six months than blind applicants.
REPORT: VALUE OF TRAINING ON INTERVIEWING SKILLS FOR SALES
MANAGERS

25. BIZLIBRARY.COM
REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT
REPRESENTATIVES AND CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an average
of 21 days to 10 days.
Value:
The expected value to
be gained is measured
by using the average
revenue lost for each
day the service is down
for customers due to
sloppy or unclear written
explanations of bugs to
the programmers.
$50/day $1,155,000
In six months
The average bug eats
revenue while
customers are not
accessing our service at
a rate of $50 per day. In
the last 6 months, 1,100
customers experienced
bugs each taking an
average of 21 days to
fix. 80% of the bugs
required a return of the
written report to the rep
for clarification.
The average
bug.

26. BIZLIBRARY.COM
Training Costs:
Human Resources:
$90,000
Reps: $300,000
Total: $390,000
Impact:
Written reports of bugs were
shortened and clarified so
less than 10% were returned
for rewrites in 6 months after
program. Average bug fix
reduced from 21 days to 12
days. Total bugs affected
1,210.
Value Added From Improved Performance:
500 reps X $600 days each for access to
online writing courses including time to take
and complete 5 courses each and
successfully complete writing evaluations to
prove increased skills. 2 HR reps needed to
administer program and build writing
evaluations.
TOTAL VALUE GAINED:
$544,500 on a $390,000 program.
Other Factors:
Better general communication and cooperation between the
programmers and customer facing employees. We also learned that our
customer service employees did not have a deep enough
understanding of the technical side of our service. The enhanced writing
skills helped clarify the knowledge gaps which we filled quickly.
REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT
REPRESENTATIVES AND CUSTOMER SERVICE REPS

27. Key Ideas
Can I apply it today?
3
2
1

28. BIZLIBRARY.COM
In a world of learning and development
where complexity is the enemy… simple
and nimble approach…
MICHAEL ROCHELLE
Chief Strategy Officer
Brandon-Hall Group

29. BIZLIBRARY.COM
Course: Organizational Effectiveness
- Take action to provide the
resources employees need for
success
Target: Managers
Providing Resources - Define the
strategic priorities for the department
and align the required resources
Target: Managers