Leadership development is essential to successfully navigate at today’s business speed. This webinar will offer practical and credible advice on how to construct a business case to substantiate leadership development initiatives and measure the effects. Development of your leaders can have big payoff in terms of revenue generation and organizational risk mitigation, but how will you know if you’ve been successful if you don’t have a formal plan and strategy to evaluate impact? Join us for an insightful webinar by one of the industry’s leading authorities on measurement and analytics, Jeffrey Berk, COO of KnowledgeAdvisors. Learning objectives: Developing the business case for a leadership development initiative. Defining the leadership development measurement strategy to evaluate impact. Identifying what analytics are important. Communicating the results of leadership development investments to executives.

1. How to Build a Business Case and
Measure the Effects of Leadership
Development Programs
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2. How to Build a Business Case and
Measure the Effects of Leadership
Development Programs
Speaker: Jeffrey Berk
COO
KnowledgeAdvisors
Moderator: Deanna Hartley
Senior Editor
Chief Learning Officer magazine
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6. How to Build a Business Case and
Measure the Effects of Leadership
Development Programs
Deanna Hartley
Senior Editor
Chief Learning Officer magazine
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7. How to Build a Business Case and
Measure the Effects of Leadership
Development Programs
Jeffrey Berk
COO
KnowledgeAdvisors
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8. How to Build a Business Case and
Measure Effectiveness for
Leadership Programs
Jeffrey Berk
Chief Operating Officer
www.knowledgeadvisors.com
© KnowledgeAdvisors. All rights
reserved

9. Agenda
Developing the business case for a
leadership development initiative
Defining the leadership development
measurement strategy to evaluate impact
Identifying what analytics are important
Communicating the results of leadership
development investments to executives
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reserved

10. Who is KnowledgeAdvisors?
We are a Learning Analytics company.
Our software, Metrics that Matter®,
helps organizations measure and
improve their talent development
programs.
We also have experts on staff to
design specific solutions for our
clients.
9 10/31/2012 © 2012 Copyright KnowledgeAdvisors

11. What is Metrics that Matter ®?
Metrics that Matter® is the leading learning analytics system.
It combines a world-class evaluation
system with powerful analytic tools to
provide comprehensive reporting.
It is the only system that fully
automates the entire Level One
through Five evaluation process.
10 10/31/2012 © 2012 Copyright KnowledgeAdvisors

12. Leadership Development Need
Strategic, visible and costly program
Leadership Development Programs are critical to:
create a high performing workforce
develop future leaders
build succession plans
Need for formal measurement
to yield better and timely
information for
decision-making
Need to validate leadership
program investment and
identify improvement areas
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13. Types of Metrics to Report
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14. Balanced Metrics/Better
Decisions
Outcome Metrics - Business Outcomes
•Leader Retention
•Employee Engagement
•Employee Retention
•Leader Performance Ratings
•Leader Financial Management
Effectiveness Metrics – Program
Performance
•Delivery Quality
•Knowledge Gain
•Application to Job
•Business Alignment
•Value
Efficiency Metrics – Cost and Activity
•# of Participants
•% of Employees Trained
•Total L&D Investment
•L&D Investment per Participant
•Courses Utilized
•Classes Conducted
•Instructors Utilized
•Locations Used
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15. Business Case Components
1. Increased performance
– Improved performance in running training like a business
– Improved workforce performance through data driven decision-making
– Research shows 2.4% improvement in performance from analytics
2. Reduced scrap learning
– Over half of training investments are not optimally used
– Most organizations waste .5% to 2% of revenue on under-used training
– Lack of manager follow-through is a significant problem
3. Reduced administration
– Majority of time spent on measurement is transactional and tactical
– Talented practitioners are doing data compilation vs. data analysis
– Data is not provided with any relevant reference points to make sense
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16. Business Case Examples
1. Performance Case: European Government Entity leadership program
saw more than double (69%) on-the-job performance change vs.
benchmark and showed a 2 to 1 benefit-to-cost ratio from leadership
program. Finally 87% saw improved customer retention vs. 37% for
benchmark.
2. Scrap Case: Consumer goods firm used on-the-job reinforcement
tools to engage managers and employees after a strategic program.
Nearly 70% used the program with reinforcement vs. less than 33%
without reinforcement.
3. Admin Case:15 minutes to retrieve actionable data for decision-
making vs. 15 hours prior to automating the measurement process.
This automation of 1 report alone saved over $36,000 per year.
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17. A Tale of Two Programs
1. Company A went back 2 years… and identified
that they had 1,019 people rated #3, “needs
improvement” in recent performance reviews
2. They calculated that they spent an average of
$13,090 per year on highly visible leadership
development (Coaching, counseling, mentoring,
retraining and manager time) to elevate them to
#1’s ,“high performers”
3. They identified 2 years later… the number that
were currently ranked as #1’s, was ZERO
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18. A Tale of Two Programs
Leadership program with optional ‘project’
Determine if optional project influenced
employee retention in leadership program
Employees with no learning projects
averaged a turnover rate of 21%
Employees with 2 or more learning
projects averaged a turnover rate of 2%
Clearly the control group vs. learning
group shows a difference
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19. Furthering the Case
Create a 1 page business case (simple and
concise). Emphasize productivity, waste and admin.
Put an executive report or dashboard together that
has at least 1 metric for outcome, effectiveness and
efficiency data.
Do a pilot of analytics. Evaluate your training in an
analytics tool, compare to benchmarks, view results
in reports, dashboards and scorecards.
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20. 1 Page Business Case
Value Summary
$2,500,000 Performance Gain
$250,000 Waste or Scrap Avoided
$116,250 Administration Savings
$2,866,250 Total Quantified Value
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21. Dashboard/Executive Reports
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22. The Top 10 Measurement Tools
1. Identify Key Performance Indicators
2. Create Smart Sheet Evaluations
3. Build Communication Plan
4. Design the Dashboard
5. Provide Executive Reports, Scorecards, and Statements
6. Conduct Capability Assessment
7. Perform a Test/Certification
8. Gather Sponsor Satisfaction Data
9. Deploy On-the-Job Reinforcement
10. Conduct Business Impact Exercise
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23. Leadership Metric Sustainability
• Strong leadership for driving measurement
1 with governance to support it. • Roles and accountabilities for
metrics are defined with
• Culture supports and drives
2 consistent expectations on
what should be measured.
need for standards and
8 common talent development
processes and measurement
• Strong desire to use the data for 3 • Broad base of skills in
decision making Data analytics and
• Maturity in how data is reported Utilization 3 measurement and strong
and used to improve end to end capabilities in end-to-end
7 talent processes measurement methods
• Standardization for a consistent
and single point of analytics with
6 integration to and from feeder Technolog • Established and consistent
Processes processes, technologies and
systems y
4 communications for
measurement
Standards,
• Standards have been created for data collection
Tools
• Data integrity exists
5
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24. Contact Us
For further information contact:
Jeffrey Berk
Chief Operating Officer
+1 312 676-4411
jberk@knowledgeadvisors.com
www.knowledgeadvisors.com
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25. Questions & Answers
Jeffrey Berk
COO
KnowledgeAdvisors
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