Elearning - Winter 2005 - (Page 19)

5 even be untenable. Here is where outsourcing solutions protect companies from investments that, in fact, may leave them less able to respond to change. But lets also turn that around. Downside risk can translate into upside opportunity for companies that can design and administer their learning function in such a way to give them an edge over their competitors in responding to environmental change. Shareholder Value. Bit by bit, researchers are creating an increasingly compelling picture of how value is created in a company through its human performance investments, particularly in learning. Recent studies show a high correlation between learning investments, employee development, and longterm business performance. For example, consider a recent study from the American Society of Training and Development, which found that companies in the top 25 percent of per-employee training expenditures had revenue per employee that was 218 percent higher, profit margins that were 24 percent higher, and price-to-book ratios that were 26 percent higher than companies in the bottom 25 percent. “By making the training environment look like the work environment, companies now have the potential to realize big business benefits.” These numbers are impossible to ignore. Of course, the level of training spend is only one measure of commitment to employee development and doesn’t address issues of effectiveness and resource leverage. Nevertheless, such indicators are important. They create some urgency for companies struggling to compete effectively. They point to a truth that is surprisingly easy to ignore: Learning is an investment in people…and in the business. Unless companies are prepared to make their leaning investments with an eye toward actual financial return, they are not going to reap benefits from cost reduction moves; they will not see a successful return on the learning investment; and they will miss opportunities to create new kinds of value. Learning costs may be high; but without the proper business perspective, the opportunity costs will be even higher. Thomas Kraack, Ph.D., is a lead partner for Accenture’s global learning services business, Accenture Learning. In that role, he is responsible for leading the firm’s initiative in learning transformational outsourcing (LTO). Kraak is an industry leader in the learning and human resources outsourcing marketplace, responsible for developing and leading several marketdefining engagements. He is based in Accenture’s Minneapolis Office. For more information on Accenture’s services visit www.accenture.com. Companies in top 25% of training investment/employee net 24% higher profit margins 218% higher revenue per employee 26% higher price to book ratios than lower investing companies Source: American Society of Training and Development 2005 Elearning! Winter 2004 19 http://www.accenture.com

Table of Contents Feed for the Digital Edition of Elearning - Winter 2005

Elearning - Winter 2005 Contents Editor’s Note News & Analysis Witness Buys Blue Pumpkin Deals in the Making People on the Move Trendline Executives Rate Importance of Training Requirements for Support Put Pressure on Tech Companies Hiring Trends: Small Companies, Big Plans Measuring the Return on Your E-earning Investments Building Interactivity into E-learning Partnering with Colleges and Universities for E-learning Content Strategy VoIP Voice Over IP Case Study: LMS Content Development & Collaboration Tools Case Study: ePerformance Last Word

Elearning - Winter 2005

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