The Business of Learning: 15 Steps to Running Learning Like a Business
Corporate learning is a $200 billion a year business that needs to be run like a business in order to deliver maximum impact to the bottom line. Unfortunately, few learning and development (L&D) organizations are currently managed in this way. Consequently, the L&D group is not viewed as a valued, strategic partner contributing to the overall success of the organization, and it is very likely underfunded and contributing far below its potential.
There are 15 steps L&D functions can take to significantly improve their own effectiveness and their contribution to the bottom line of their organization.
- Appreciate that learning is a business and is expected to produce business results.
- Resolve to run learning like a business.
- Adopt a strategic focus.
- Create a board of governors.
- Create a vision and mission statement.
- Create a multi-year plan to achieve your vision.
- Ensure that your organizational structure will support a strategic focus.
- Adopt a workable funding model.
- Strategically align learning to your organization's goals.
- Build the business case for learning.
- Create the business plan for learning.
- Plan for monthly, disciplined execution of the plan.
- Adopt an evaluation strategy that ensures planned impact is achieved and provides for continuous improvement.
- Use business and economic concepts to make better decisions.
- Benchmark with others. Learn. Improve
The first three sound deceptively simple, but most L&D functions do not get past them and consequently do not succeed on the rest. Every L&D function should have powerful mission and vision statements, and a multi-year strategy to achieve the vision. A governing body, like a board of governors, can help create these other structures as well as provide invaluable ongoing support. Of course, the right L&D organizational structure must also be in place, along with a workable funding model, both tailored to the particular organization.
Step 9 is the most critical of the operational steps for success in any given year and for the long-term success of the L&D group. Best-in-class L&D functions will meet with their CEO, senior leaders and key stakeholders before the year begins to ensure understanding of the corporate challenges, goals and priorities. These are business discussions that form the basis for a "macro" needs analysis.
Following these discussions, L&D leaders should be able to align learning to the corporate goals, prioritize the learning and reach an understanding with stakeholders about the likely impact of the learning programs. At this point a business case can be constructed that brings together the expected benefits, costs and net benefits of the learning to facilitate a discussion and support decisions about funding and staffing for the coming year. The business case, along with other key elements like the budget, a detailed work plan, and an evaluation and measurement strategy should be captured in a written business plan for learning, which will then be approved by the CEO and governing body.
Once the plan is approved, it needs to be executed with discipline to ensure the promised results are delivered. The evaluation and measurement strategy will help ensure the results are delivered and that opportunities are identified for continuous improvement. Use of economic theory, like opportunity costs and marginal analysis, will also help ensure that the investment in L&D achieves the maximum impact for the organization.
Learn more about these steps and their impact by attending the webinar The Business of Learning: 15 Steps to Running Learning Like a Business October 26th at noon PT with Kevin Oakes and Dave Vance.
Dave Vance is the former President of Caterpillar University and author of The Business of Learning: How to Manage Corporate Training to Improve Your Bottom Line. The book is currently available for purchase on Amazon.com.
