Webinar: Selling Learning to the C-Suite

Making Learning a Strategic
Leadership Decision
Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA!
!
Based Upon the Book!
The Trainer’s Balanced Scorecard: !
A
Complete
Resource
for
Linking
Learning
to

Organizational
Strategy

CentralKnowledge inc.
Where Learning…Means Business

CentralKnowledge.com
Where Learning…Means Business t: 866.4.VXPERT e: ajayp@centralknowledge.com tw: @ajaypangarkar
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About the speaker:!
Ajay M. Pangarkar CTDP, CPA, CMA
Workforce Revolutionary
t: 866-489-7378 x 1
e: ajayp@centralknowledge.com

Building Business Acumen for Trainers:
Skills to Empower the Learning Function (with CD)
Published by Wiley
Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood
Background…
The Trainer’s Balanced Scorecard:
A Complete Resource for Linking Learning
to Organizational Strategy
Ajay M. Pangarkar, Teresa Kirkwood
Published by Wiley
Available at Pfeiffer.com and Amazon.com
Search: “Ajay Pangarkar”

Leader’s Expectations
The 4 Steps: Answer the following…

1.  How do your leaders see “training”

2.  What “investment” means to leaders

3.  Evaluate “financial” impact to business

3.  Evaluate “financial” impact to business
4.  Evaluate “qualitative” impact to business

A Quick Question…
“Training”?

How do your
Leaders view...

What are your challenges to gaining support?
q  Organizational apathy and indifference
q  Getting noticed by or involving the right people
q  Lack of financial or other resources
q  Perceived as “costing too much!” / “waste of money”
q  Can’t effectively communicate it’s purpose/results
A Quick Poll…

Leadership Secrets
Business Leader Secret #1
à View everything though a business lens
à Viability and validity is through operational alignment
à Demonstrate tangible performance benefits
Nothing in business is an absolute need

à The real questions:
à Does it make economic/business sense?
à Will present tangible benefits?
Business leaders are sold on training
Leadership Secrets

Business leaders acknowledge that:
à Employee and knowledge retention is essential
à Competitive advantage is through people
à Workplace learning/HR must play a strategic role
Workplace learning’s role remains precarious
Leadership Secrets

Never take your role for granted!
If your leaders ask you to participate in decision-
making processes they’re clearly stating:
“Sell us on what training will do for the organization”
…In terms leaders understand”
Leadership Secrets

A Quick Poll…
Do Business Leaders view “training” as:
q  An essential need?
q  A non-essential or project expense?
q  A “nice-to-have”?
q  Something to appease employees/unions?
q  Not sure how they see us?

Management views training in 3 ways:
1.  Necessary, expected training
(e.g. job training and development)
Positioning to Prove Value

2.  Measuring impact of major investments
(e.g. “training” as a component)

3.  Investing in major elements of training
(e.g. e-learning infrastructure)

3.  Investing in major elements of training
(e.g. e-learning infrastructure)
Contact me or Axonify for:
“The Business Leader’s
Bottom Line”

How do your

Leaders deﬁne...

“Investment”?

q  Tangible purchases/assets
q  Measurable financial return
q  Long term business growth
q  You got me…No Idea!

Leader’s View of “Investment”
Physical assets?
(e.g. buildings/machinery)
Intangible assets?
(e.g. patents, goodwill)
➔  Does “training” have
tangible investments?
➔  Does “training” contribute
to long-term value?

What’s another big
issue Leaders have?

issue Leaders have?
“Training ROI”

issue Leaders have?
“Training ROI”

q  Cost of doing it
q  Deciding on what to measure
q  The ROI results (in question)
q  Still no clue

“Training ROI” (lack of) Credibility

5% training
evaluated
Training ROI states
to evaluate only 5%
of training efforts

5% training
evaluated
Training ROI states
to evaluate only 5%
of training efforts
Because costs
exceed benefit

5% training
evaluated
95% of
training
not
evaluated
Training ROI states
to evaluate only 5%
of training efforts
Because costs
exceed benefit

5% training
evaluated
95% of
training
not
evaluated
Training ROI states
to evaluate only 5%
of training efforts
Because costs
exceed benefit
If so, then how
are the remaining
95% evaluated?
??

➔  Measuring ROI for ‘training’ expenses
➔  Undermining credibility using training ROI
➔  Measuring ROI for tangible, long-term
learning investments
➔  Identifying profitability impact for
learning investments
STOP
START
Training’s a COST CENTER….
NOT A DISEASE!

This how
you do it…
but it gets a
little…
Tricky!!!

Building E-learning Acceptance
Evaluating
E-learning
Strategy

Evaluating
E-learning
Strategy
Learning Aspects

Evaluating
E-learning
Strategy
à Needs Identification
à Learning Retention
Learning Aspects
Level 1, 2

Evaluating
E-learning
Strategy
Learning Aspects
Infrastructure
Level 1, 2

Evaluating
E-learning
Strategy
à Capital investment
à Operational Expenses
Learning Aspects
Infrastructure
Level 1, 2

Evaluating
E-learning
Strategy
Learning Aspects
Infrastructure
Management Needs
Level 1, 2

Evaluating
E-learning
Strategy
Learning Aspects
Infrastructure
Management Needs
à Business Objectives
à Operational Activities
Level 1, 2

Evaluating
E-learning
Strategy
Learning Aspects
Infrastructure
Management Needs
à Business Objectives
à Operational Activities
Level 1, 2
Level 3, 4

Here’s where gets
a little more…
Confusing?!

Do your leaders expect “learning” budget
allocations demonstrate:
q  A tangible financial return ($1 in < $1 out)
q  Improved financial performance among departments
q  Targeted qualitative performance improvement
q  Not sure what they expect from learning!
A Quick Poll…

Leadership Decision Tools
Return on
Investment
Evaluation

Cost-Volume-Profit
(CVP)
Return on
Investment
Evaluation
§  Cost/volume affect on profitability
§  Activity level to achieve profit
Analyzes changes in costs

§  Contribution to major projects
§  Assess infrastructure investment
Cost-Volume-Profit
(CVP)
Net Present Value
(NPV)
Return on
Investment
Evaluation
Analyzes project profitability
§  Cost/volume affect on profitability
§  Activity level to achieve profit
Analyzes changes in costs

CVP E-Learning Decision!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income

Fixed Costs E/M-learning increases fixed costs

To leaders this means:
•  Increase revenue (units sold)

•  Reduce variable costs

Question to ask:
What extent will e-learning
contribute to production/profit?

Question to ask:
What extent will e-learning
contribute to production/profit?
Let’s work through
an example…

•  Variable cost: $120 each unit
•  Selling 4000 units for $200/each
•  Current fixed costs: $200,000
FinaX Inc. sells AccountX Software
E-Learning Example!

•  New E-learning course: $60,000
•  Post course sales incr.: 700 units
•  E-learning is a fixed cost
E-Learning Example!

Leader’s question:
Should we spend
$60,000 for e-learning?
•  New E-learning course: $60,000
•  Post course sales incr.: 700 units
•  E-learning is a fixed cost
E-Learning Example!

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$940,000
($200 x 4700)
$140,000
($200 x 700)
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$480,000
($120 x 4000)
$940,000
($200 x 4700)
$564,000
($120 x 4700)
$140,000
($200 x 700)
$84,000
($120 x 700)
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$480,000
($120 x 4000)
$320,000
($80 x 4000)
$940,000
($200 x 4700)
$564,000
($120 x 4700)
$376,000
($80 x 4700)
$140,000
($200 x 700)
$84,000
($120 x 700)
$56,000
($80 x 700)
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$480,000
($120 x 4000)
$320,000
($80 x 4000)
$200,000
$940,000
($200 x 4700)
$564,000
($120 x 4700)
$376,000
($80 x 4700)
$260,000
$140,000
($200 x 700)
$84,000
($120 x 700)
$56,000
($80 x 700)
$60,000
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$480,000
($120 x 4000)
$320,000
($80 x 4000)
$200,000
$940,000
($200 x 4700)
$564,000
($120 x 4700)
$376,000
($80 x 4700)
$260,000
$140,000
($200 x 700)
$84,000
($120 x 700)
$56,000
($80 x 700)
$60,000
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)
Now, what decision
would your leader take?

E-Learning Example!
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4000)
$480,000
($120 x 4000)
$320,000
($80 x 4000)
$200,000
$120,000
$940,000
($200 x 4700)
$564,000
($120 x 4700)
$376,000
($80 x 4700)
$260,000
$116,000
$140,000
($200 x 700)
$84,000
($120 x 700)
$56,000
($80 x 700)
$60,000
($4,000)
4000 units NO
e-learning (1)
4700 units w/
e-learning (2)
Difference
(2) – (1) = (3)

What Do Leaders
Expect?
They want
business impact!
(Kirkpatrick level 4)

Yes, but Ajay...

How do we do this?

R
A
D
A
R
Building Learning Acceptance

R Resistance
A
D
A
R
“What will this cost us?” Level 3-4

R Resistance
A Apathy
D
A
R
“What will this cost us?”
“What will this do for us?”
Level 3-4
Level 4

R Resistance
A Apathy
D Disruptions
A
R
“Why now?”
Level 3-4
Level 4
Level 4

R Resistance
A Apathy
D Disruptions
A Application
R
“Why now?”
“What difference will it make?”
Level 3-4
Level 4
Level 4
Level 3-4

R Resistance
A Apathy
D Disruptions
A Application
R Results
“Why now?”
“What will it do for the business?”
“What difference will it make?”
Level 3-4
Level 4
Level 4
Level 3-4
Level 4

Know your audience
Recognize who to approach and why…
R A D A R
Senior
Leaders
Mid-level/BU
Managers
Employees/
Users

R
R
Financial Results
“What do I get if I give you the money?”
Performance Results
(non-financial)
“What are the tangible benefits/results?”

Discover how Leaders
actually position learning
What to Retain
Address the secrets Leaders
believe about learning
What Leaders mean by ROI
Answer Leader’s questions to
validate “learning”
Evaluating
Learning
Strategy

What to Retain

What to Retain
§  Respect how each management
level perceives “learning”

What to Retain
§  Measure appropriate “return” of learning
§  Utilize existing financial evaluation tools

What to Retain
§  Demonstrate Level 3 and 4 results
§  Speak in relatable terms

What to Retain
§  Demonstrate Level 3 and 4 results
§  Speak in relatable terms
§  Address each management level questions
§  Report results with financial evidence

TrainingIndustry.com
—  The CLO Reality:
What It Takes to Lead & Manage the Learning Function
—  The Business Leaders Bottom Line:
Aligning Learning With Organizational Needs
—  Building Strategic Learning Linkages:
Mapping & Measuring Your Learning Strategy
TrainingMag “Last Word”
—  Taking Care of Business
—  Let’s Get Naked!
“Workforce Revolution!” blog.centralknowledge.com
thank you…please follow my blog

Ajay M. Pangarkar CTDP, CPA, CMA
t: 866-489-7378 x 1
e: ajayp@centralknowledge.com

!
@ajaypangarkar

30% DISCOUNT CODE: WLY15 @Wiley.com
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