Get the data you require

Training leaders are faced with the challenge of getting accurate and reliable data on the effectiveness of the training programs. To overcome this challenge one has to generate less data, and more learning intelligence.

Cost and activity measurement is suitable to some extent. But many training leaders struggle in this area, knowing the data they bring to the executive table has limited strategic value. This includes information such as total training hours delivered, total learners trained, and the quantity of classes conducted etc.

In most cases, organizations face two important challenges – unsophisticated LMS reporting capabilities, and data that’s limited to whatever resides in the LMS. In other words, the data they need to produce more valuable business intelligence is hiding in disconnected data sources. That’s because training departments rarely capture some of the most useful information for their reports.

Working closely with various business units can help to overcome the first obstacle, because they typically gather critical performance data. For example, you’re likely to find appropriate performance metrics, quota attainment data, and employee evaluation scores-all of which is valuable.

Comparing that information with training participation patterns will provide evidence that helps quantify the impact of your training programs.

For the second issue – dealing with fragmented data distributed throughout disconnected databases – there are three possible solutions:

(1) Pulling data into a single system. Usually, this is an unrealistic option, especially for large corporations.

(2) Build connection points between specialized systems. Assessment data typically exists within an assessment tool database (LMS or HRMS). And various functional groups in your company may have their own performance or evaluation-focused systems. The challenge is how to create and maintain feasible connections to gather all the critical data needed for a complete reporting structure.

(3) Create data marts or similar repositories. This implies consolidating all essential data from multiple systems into a single database, enabling you to build reports from a central resource. This is usually the easiest and most cost-effective solution.

To learn more about this concept, and to find out more about how to optimize your learning technology, download the white paper: Secrets of Successful Learning Systems.

If you need more advice on how to increase the efficiency of your learning organization, feel free to contact me.

Obtaining the real value of outsourcing

One of the key reasons why organizations outsource training activities is to achieve cost savings. And most accomplish this objective. According to a 2005 survey, firms that outsource training reduce total per learner costs by 31%. But what does this mean? These savings come at the cost of satisfaction and customized support of business units. And without these critical stakeholders, any outsourcing initiative is likely to fail.

THE EXPERTUS FORMULA FOR SUCCESS

Costs are certainly important. Outsourcing can bring efficiencies in many areas that businesses just can’t match. For instance, those companies outsourcing training administration have a reduction of 30 to 40% in administrative staff (per 1,000 learners). Nevertheless, focusing solely on cost reductions can be extremely short-sighted. Consider this: The typical corporation allocates from 1 to 3% of its overall operating budget to learning. On average, labor costs absorb 70% of that same budget. By identifying where training can impact overall workforce performance and have direct correlation to business results, even fractional improvements can produce remarkable financial reward. Through complete understanding of business unit requirements and an objective analysis of business processes, Expertus can help its customers identify areas of greatest business impact and help in establishing how these rank in terms of priority. Learning strategy Consultants assigned to each business unit ensure each manager is made to feel like a major stakeholder and has the opportunity for direct input. They can also be highly valuable in preparing formal, business-based proposals for new investments or programs.

We also encourage continual input and feedback from business managers. Typically, we set up quarterly review meetings to go over learner data collected and to discuss all aspects of current and planned programs. Besides helping us continually improve service, these meetings also increase each manager’s level of involvement and ownership in learning.

Optimizing training costs

While optimizing your learning organization, it is important to consider optimizing learning technology support and training administration. This is the human activity that surrounds learning technology, like technology support, or the cost of administration.

This is where Software as a Service (SaaS) can play an essential role. Today  as many LMS providers provide software as a hosted service, the need to buy, implement, and manage learning technology is reducing. Security isn’t the issue that it used to be and you can be confident that your technology and training is secure.

In a recent survey by TrainingIndustry.com and Expertus, we found that the average corporate training organization spends 39% of their budget on training administration and training technology. This means that only 61% of the average training budget is spent on training development and delivery, which is the “reason for being” of any training organization.

Much to the delight of learning executives, there are organizations like Expertus with teams of people focused solely on learning technology support. These vendors train and manage their people to support various LMS and LCMS systems and have deep experience with learning domains, best practices, efficient processes, and IT bandwidth. This deep experience is typically lacking in most corporate training departments.

The big benefit is more efficient training processes, which result in lower costs that can be re-allocated to the important stuff, which is training development and delivery.  I highly recommend tapping into these types of services.

For more information, take a look at the recent white paper, Eliminate Waste and Reap the Rewards: Nine Ways to Trim Operational Expenses to fund Strategic Learning, available at www.TrainingEfficiency.com.

If your organization wants to increase the training efficiency, in terms of your learning technology or training processes, or if looking for LMS implementation and LMS upgrade services contact me.

For more information log on to www.expertus.com

www.trainingefficiency.com

Increase the value of your training budget

As training budgets are slashed and money becomes tighter, our recent research findings are being quite useful to training organizations across the country.

To maximize the value of your training budget it is very important to start managing your training organization like a business.

To start with, it is important to know your training organization’s core competency, and your true value to the company as a whole. If your value is not in training administration or application management, then it would be a good idea to shed that work or find ways to streamline it. This will help you gain focus on your core areas. Training content development is one other area of this kind which could either be shed or streamlined for improved efficiency in the training organization.

According to our research, cost of training administration accounts for around 40% of a total training budget. Streamlining or shedding some of these responsibilities makes it possible to redeploy a percentage of your budget to more valuable services like training delivery and content development, and yields a greater return on investment. Business process reengineering and outsourcing allow your organization to operate in a more strategic way – by letting you focus on designing and delivering learning initiatives that directly help your company improve its performance and competitive position.

It is also important to market your training programs, especially during this financial crunch. Just because you build a program doesn’t mean learners will enroll! This is especially true if you’re moving away from instructor-led training to more cost-effective models such as e-learning development. This cultural shift typically requires internal marketing to achieve a reasonable adoption rate.

To learn more about this concept and to learn how to eliminate training waste, download our white paper.

If you need advice on how to increase the training efficiency of your learning organization, feel free to contact me.