Chief Learning Officer- September 2008

IN PRACTICE BORROWING MEASUREMENT PRACTICES FROM INVESTORS I nvestors know the importance of a balanced portfolio to optimize return on investment. They manage portfolio effectiveness by balancing risky investments that offer high returns with safer ones with lower paybacks. Foundation Learning and development (L&D) teams can use the same principle to balance learning investments. They must consider that a certain percentage of the budget is needed to provide mandated, compliance-related training. Organizations focusing investments here are operating at a foundation level and are achieving the business equivalent of keeping the lights on. While the programs are essential, they do not push critical business objectives. L&D should consider purchasing off-the-shelf content when this training involves generic topics such as safety, diversity, regulatory compliance, and minimize, if not eliminate, time to customize these programs. The objective at this level is to invest the exact amount required to get the job done. One large gas and chemical company found that its objective to be the safest company in the industry led to an overinvestment in safety training. While it achieved the objective, it did so to the detriment of other critical areas of the business, leaving the door open for competitors to slip in and take away market share. Progressive At the next investment threshold, organizations allocate funds for programs that will help ensure the company remains competitive. These programs teach employees to use the professional tools they need to be effective in functional/technical roles and to understand and interface well with company operations. Other programs in this category include those that improve business operations, including topics such as Six Sigma and common leadership practices such as coaching for performance. Programs in this segment represent a mix between generic and industry-speciﬁc content. For example, Six Sigma is a standard methodology with training available from many sources. However, L&D teams may customize modules to supplement Six Sigma programs that would help practitioners evaluate company-speciﬁc projects to ﬁnd those promising the biggest beneﬁts. Leading Edge Companies on the leading edge allocate ample funding for L&D programs targeted at new initiatives, innovation, company growth objectives and other areas with potential to push the company ahead of competitors. Programs at this level require a signiﬁcant degree of customization because they present management innovations and business trends in the context of the company’s industry and in relation to its speciﬁc challenges. This is the key area where L&D has the potential for the greatest impact but also presents the most risk. A basic portfolio management tool that analyzes investments by projected return, required funding, resources, timing and other decision criteria can signiﬁcantly improve the overall impact of learning on corporate sustainability and success. CLO – Susan M. Todd FOUNDATION Minimize cost PROGRESSIVE Remain competitive LEADING EDGE Major advantage B Business strategies Executive development l Leader development Quality tools Business Utility Products and services Professional development Individual Utility Applications and tools Compliance Orientation Foundation Knowledge Business Creation LEARNING INFRASTRUCTURE 40

Table of Contents Feed for the Digital Edition of Chief Learning Officer- September 2008

Chief Learning Officer Editor’s Letter Contents Connections Imperatives Selling Up, Selling Down Strategies Take Five Lifestyle Learning: Improve the Bottom Line With Behavioral Education Tracom’s Social Style Model CLO Profile IOL: Determining the Impact of Learning Communicating With the Boss About Impact Mission Accomplished? Measuring Success of Corporate Universities Borrowing Measurement Practices From Investors Value Creation With Human Capital Investment Business Impact Analysis at Chrysler Learning or Performance Enhancement: Which Is It? Best Practices in Global Project Management Training Case Study Business Intelligence Advertisers’ Index Editorial Resources In Conclusion

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