14. Showing Business Impact
High Requires actual results
Investment data and advanced
analysis techniques
Typically Actual Causal
Results Modeling
employs Correlations
surveys Business
Impact
Templates
Advanced
Business
Human Results
Capital Evaluation
Approach Determine the
Smart appropriate analysis,
Sheets
then select method
Low
Investment
Simple Complex
19. Initial Sample: Telecom Company
We computed the performance increase as a percentage:
(2010 value – 2006 value) / (2006 value)
20. Initial Sample: Telecom Company
Some data were not collected every year, but the trend upward
was evident even with only three years of data.
21. Initial Sample: Telecom Company
The combination of all metrics provides a good summary measure.
Despite the variability across the four metrics, the average
performance still improved 14.9%.
22. Initial Sample: Summary
When all 5 metrics are graphed, it is clear that performance rises over time.
The number of evaluations is also overwhelmingly large lending undeniable
reliability to the results. The average increase is also substantial.
23. Case Study vs. Trend
The Telecom company is only one example.
Does the hypothesis hold true for other
companies or is the telecom example an
anomaly?
24. Companies with 5 Years of Data
Four organizations contributed 5 years of data:
Two insurance companies, a hospital and a telecom company
25. Companies with 6 Years of Data
Six organizations contributed 6 years of data:
An office solutions company, an Army Base, a government
defense agency, a pharmaceutical company, a US-based
accounting firm, and a UK-based accounting firm
27. Conclusion
Measurement leads to performance improvement
for L&D departments
The size of the improvement ranges from 3 – 5%
on average but can be as large as 14.9%
Revisit Lauri Bassi’s work—investments in HC
lead to business improvement—outpacing the
S&P 500 by 17%
MTM helps make learning organizations more
effective through measurement.
Editor's Notes
A CLO comes to a learning director and quotes Lord Kelvin, “I can’t improve it, if I can’t measure it.” We need a measurement strategy. (BTW, Lord Kelvin developed the principle of absolute zero.) CLO continues, “Don’t tell me it will be a cold day in Hell before we get a measurement strategy.”The director goes to his top learning manager. We need a measurement strategy. I don’t want to leave you out in the cold on this one alone, so use all the resources on your team.Learning Manager goes to her team and says, “It’s a very cold winter day outside. Unless we develop a measurement strategy, we going to be out in it looking for a new job.”