SAP SuccessFactors White Paper

Business Briefing

Learning and Analytics

Why learning with analytics bridges the gaps in your
workforces capabilities, improves performance and
delivers a quantifiable ROI
2016 SAP SE or an SAP affiliate company. All rights reserved.
Table of Contents

5 More Training Isnt Necessarily Better

6 Analytics Show You What Real Results You CanGain

7 Improving Learning Through Workforce Analytics is a Continuous Process

8 Use ADDIE to Guide the Implementation of Learning Analytics

9 Workforce Analytics Gives You Real Intelligence on the Impact of Training

10 You Can Identify Problems and How to SolveThem

11 Conclusion Analytics Equips You to Execute Your Strategy More Efficiently and Profitably

2016 SAP SE or an SAP affiliate company. All rights reserved.

2/11
Learning and Analytics

There are always gaps between your strategic goals and

your workforces capabilities. Training will get you part of
the way there, but inisolation not far enough to bridge
the critical capability gaps. According to an IDC Chief
Learning Officer Survey, from 2010 until 2015, more
CLOs were dissatisfied than were satisfied with the tools,
resources, or data available to them to properly establish
trainings impact. They found that in organizations that
expanded use of analytics to support their business
decisions, three out of five CLOs report that their
learning and development measurement data is regularly
leveraged by divisional leaders and line managers,
butonly half of C-suite executives review learning
measurement data quarterly or monthly.1 All too often,
training is managed without the tools to deliver the right
training or measure its impact on the business. How do
you know if your training programs are effective? How do
you know if they deliver a real ROI for your business?

Only when you use business metrics and analytics to

support your training programs will you start to see the
impact across the business.

1. IDC, Chief Learning Officer Survey: Measuring Learning and Development, Doc# US41067116, March 2016.

2016 SAP SE or an SAP affiliate company. All rights reserved.

3/11
Learning and Analytics
The relationship between learning and analytics
is often misunderstood and under utilized.
Typically, when people discuss analytics they are
talking about reporting within a specific learning
management system. Reporting only shows
evidence that something has been done. They
are talking about course completions, scores,
pass rates and usage data. While useful, this
information doesnt really help you to make the
connection with what is happening in your
organization, or whether the training is having
the desired effect of boosting productivity,
improving service and raising levels of efficiency.
Differentiating Analytics from Reporting
Reporting
How many took the training?
How many passed the training?
How many hours were spent taking
thetraining?
4/11
Training without the right analytics is like driving
without a GPS. You know what you want the
training to achieve, but you have little idea
whether you are delivering the right solution
oreven providing it to the right people. The use
ofanalytics as part of the process helps
organizations:
1. Identify the problems in their business
2. Quantify the cost of the problems
3. Provide evidence that the training was
effective.
Without analytics, you are at risk of driving your
learning strategy blind, and never realizing the
results you expect to gain in theprocess.
Analytics
How many failed a specific task on ajob?
After receiving the training, what was the
success rate of the task?
How was production in the business impacted
by the training?
2016 SAP SE or an SAP affiliate company. All rights reserved.
Learning and Analytics

More Training Isnt Necessarily Better

As e-learning took off in the early 1990s, many
companies started taking a buckshot approach.
Purchasing and delivering e-learning was cheap
compared with running face-to-face classroom
sessions. So companies bought entire libraries of
content, creating huge curriculums for new
employees and assuming that by the time they
finished, they would be ready to do their jobs or
do them better.
These companies substituted e-learning courses
for classroom instruction, mistakenly assuming
the courses were equally beneficial. But without
analytics, they had no way of knowing whether
the quality and performance of their employees
might actually be dropping. Their mistake was
assuming more was better. In fact, the more
targeted and concise your training curriculum,
the more effective it will be.

4 out of 5 enterprises use general training out-

put data (courses, students, hours of training,
etc.) to help justify the impact of training. And
measurement of learner satisfaction with train-
ing programs is used as justification in 7 out of
10 organizations.
IDC, Chief Learning Officer Survey: Measuring Learning and Development,
Doc#US41067116, March 2016.

2016 SAP SE or an SAP affiliate company. All rights reserved.

5/11
Learning and Analytics

Analytics Show You What Real Results

You CanGain

When deploying a modern Learning Management
System (LMS), business metrics should be used
to show what actual value the organization gains,
and not just to use analytics which traditionally
measures the amount of training completed.
EFFECTIVE INSIGHTS SHOULD SHOW THE
LINKBETWEEN:
1. Training completed and revenue earned. This
may be for revenue generating roles or
between organization units. You should look at
the best and worst sales people and analyze
what training they are taking and when. Then
compare that to their sales performance and
see if training is making a difference.
2. Compliance training and safety performance.
Are you reducing the number of accidents and
issues?
3. Training completed and performance ratings.
Are the top performers completing more
training or scoring better?
4. Training completed and salary increases. Do
individuals who excel in training get higher
salary increases? Do those who dont complete
the training, or get poor results, get lower
salary increases?
5. Training completed and the development and
retention of high performers. Is training a good
engagement method to keep your top
performers at the company?
6. Training completed and development of new
career paths to develop the future capability
required by companies, rather than the
continued building of historical competencies
The key to successfully using Analytics with
Learning is that you must combine the traditional
training reporting with business data from other
systems (e.g. CRM and ERP systems). This
business data is critical to understanding the
business impact of training otherwise you are
just reporting on training completions and such.

To increase the impact of learning, CLOs must

demonstrate through metrics and business
language that every learning investment is
helping the enterprise achieve some portion of
its strategic objectives.
IDC, Chief Learning Officer Survey: Measuring Learning and Development,
Doc#US41067116, March 2016.

2016 SAP SE or an SAP affiliate company. All rights reserved.

6/11
Learning and Analytics

Improving Learning Through Workforce

Analytics is a Continuous Process

For decades, training departments have used
methodologies like ADDIE (Analysis, Design,
Development, Implement, and Evaluation) to
clearly define what to teach and whats going to
be of most value. ADDIE was extremely effective,
but fell out of favour with the arrival of e-learning
because of the amount of time it took to do
ADDIE properly.
Its become clear that learning management
systems must have integrated analytics and
metrics, to allow continual evaluation of the
trainings impact. More importantly, the LMS
must be integrated into a business full suite of
applications, along with workforce analytics, to
determine exactly what the entire business gains
from the investment in training.

What the industry did not recognize was that,

with the proper use of learning management and
analytics, ADDIE becomes a continuous process,
instead of a once per curriculum type event.

The ADDIE Model for Instructional Design

Evaluation Analysis

Implementation Design

Development

2016 SAP SE or an SAP affiliate company. All rights reserved.

7/11
Learning and Analytics

Use ADDIE to Guide the Implementation

of Learning Analytics

The first step, when developing a training
program, is identifying what business problem
you are trying to solve. By using analytics, you
can then actively measure the key metrics
related to the problem, whether working in a
manufacturing or an office environment for
example, and how they improve.
This Analysis stage is the A in ADDIE, which helps
you determine who and what training needs to be
done. The Design and Development phases are up
to the training department to define and create.
The Implementation phase is typically done within
the LMS, when training is deployed to employees
identified during the analysis phase.
Once the learners have consumed the material,
the Evaluation phase begins. The effectiveness
ofthe training is measured by looking at the
impact on the problems first identified. As before,
the Evaluation phase is performed with an
analytics package.
Whether you use ADDIE or a different
methodology, it is always good practice to know:
What are the business problems within your
company?
Can the problems be solved through training?
Once the training has been delivered, was it
effective?
What was its impact?
The best way of answering these questions is
through the use of workforce analytics to
continually measure your companys
performance, and the only way to truly measure
impact on companys performance is to
incorporate business data and metrics in
youranalysis.

2016 SAP SE or an SAP affiliate company. All rights reserved.

8/11
Learning and Analytics
Workforce Analytics Gives You Real
Intelligence on the Impact of Training
Historically, companies collected and visualized
performance data using business intelligence
tools. But training departments rarely used this
data to guide their curriculum. Often, you would
find the LMS feeding data in but almost never
taking data out to direct future training.
But with the addition of true business metrics,
beyond just standard analytics and reporting,
this has begun to change.
FEEDING DATA BACK IN WILL IMPROVE THE
DATA YOU PULL OUT
To maximize your organizations performance,
workforce analytics needs to be integrated into
afull suite of applications with both workforce
metrics and analytics capability. This is where the
true insights will be gained.
For example, using analytics with learning
strategies you can determine:
What is the relationship between span of
control, learning and revenue? Can
departments that complete all of the training
have a larger span of control, less overhead
costs and greater profitability?
9/11
What is the relationship between learning
completed and the ratio of high performers
andrevenue? Do departments that have
completed the training have a higher ratio of
high performers? Does this result in higher
revenue and revenue growth? Do these
departments have lower levels of poor and
marginal performers?
What is the relationship between the types of
training and their business impact? Does sales
and product training correlate with higher
revenue, higher ratio of higher margin sales?
Does program content training within a
government department correlate with higher
levels of program outcomes within the
community, such as placements within a
childrens community department?
What is the relationship between training
completed and career paths? Do departments
that have completed all the relevant training
have a higher ratio of internal promotions to
external recruits? If so, do we than reward
managers who develop their staff more? Do we
reward managers who export talent more than
those who import talent?
These are just a few examples of how everyone,
from line managers to executives, can benefit
from insight into the impact training is having
across the enterprise, and not just a status report
on how much training was delivered.
2016 SAP SE or an SAP affiliate company. All rights reserved.
Learning and Analytics

You Can Identify Problems and

How to SolveThem

Workforce analytics also gives you insights into
what problems are occurring within the business
or if there is an increased number of incidents,
and how you can solve them through training.
Inaddition, it gives you a transparent way of
calculating the ROI across the entire company,
instead of just within your training department.
Traditionally, training departments have been
measured by how cheaply and effectively they can
deliver training. However, with the use of analytics
against company metrics, you can now measure
the impact of training in terms of how much
money you save the company per training dollar
spent. For example, if you identify a $500,000/
year problem that can be addressed through
$50,000 worth of training, you can easily justify
the budget through the results you can achieve.

QUANTIFYING THE IMPACT OF TRAINING ON SALESFORCE REVENUE

In one example company used data from their core HR, LMS, Performance Management and Cus-
tomer Relationship Management (CRM) systems to draw insights into its onboarding and mentoring
initiatives for newly hired sales representatives helped fine tune its mentoring program so:
New sales reps who engaged with their mentor on day 1 of hire had almost a 300% improvement
in deals closed
Time to achieve average quota attainment was cut in half
New sales reps made 3x more quota as compared with new hires in prior year
First year attrition of new sales reps was down 80% compared with prior year
Overall, significant improvement in sales performance was achieved as compared to new hires in
prior years in terms of revenues booked per month, average deal sizes, and conversion ratio.

2016 SAP SE or an SAP affiliate company. All rights reserved.

10/11
Learning and Analytics
Conclusion Analytics Equips You to Execute
Your Strategy More Efficiently and Profitably
SAP SuccessFactors has always had a firm belief
that data-driven, targeted learning methodology
helps drive business breakthroughs by focusing
on key areas of development and delivering
measurable business impact.
SAP SuccessFactors makes this simple and
practical by providing the backbone, integrated
solutions for Learning and Workforce Analytics,
and providing support to bring in business data.
Combined, they can offer a tremendous amount
of insight for your training department, as well as
delivering a powerful business performance
measuring tool.
In todays economy, this type of intelligence
allows you to be more effective with your budget,
and to increase the impact of training across the
entire business. The integration of Workforce
Analytics and Learning will generate insights
which in turn create a real and sustainable
competitive advantage while demonstrating
thevalue to thebusiness.
SIX STEPS TO SUCCESS:
1. Deliver fact/data based business cases for
what training you are doing and why.
2. Demonstrate why investing in training program
X, will help the company execute on its strategy
and deliver ROI through authoritative insight.
3. Engage the business leaders, HR, finance, sales
and operations with business metrics to really
show what impact training is having and what
needs to be measured.
4. Embrace workforce analytics as an integrated
part of decision making and combine multiple
data sources from finance, sales, HR and
11/11
training, to allow you to measure the
relationship and impact training has on the
strategy, alignment, people performance and
productivity of your organization, thereby
linking your training strategy to the business.
5. Embark on a transformation journey a
phased development with each phase
representing a more mature use of workforce
analytics and a more specific strategic
business impact. Move from reporting
(understanding whats happening today) to
analytics (why its happening), to planning
(how do we take action today to ensure we
have the right workforce trained for tomorrow).
6. Proactively engage with HR and the business
touncover potential problem areas and
ensurethat they can quantify the impact
ofinterventions.
Ultimately, youll be able to identify the gaps in
your workforces capabilities, and to bridge them
with the right training. Performance will improve
across the business as a result, and you will be
better equipped to execute your strategy more
efficiently and profitably.
The financial business case is real and significant.
When you can fine tune how you manage your
most strategic asset human capital it leads
toresults.
LEARN MORE
To learn more about how SAP SuccessFactors
Learning and Workforce Analytics can help you
improve performance and deliver quantifiable
ROI, visit http://www.successfactors.com/
en_us/solutions/analytics.html.
vQ216 2016 SAP SE or an SAP affiliate company. All rights reserved.
 2016 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other
countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for
additional trademark information and notices. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only,
without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for
errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company
products and services are those that are set forth in the express warranty statements accompanying such
products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business
outlined in this document or any related presentation, or to develop or release any functionality mentioned
therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy
and possible future developments, products, and/or platform directions and functionality are all subject
to change and may be changed by SAP SE or its affiliated companies at any time for any reason without
notice. The information in this document is not a commitment, promise, or legal obligation to deliver
any material, code, or functionality. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak only as of their dates, and
they should not be relied upon in making purchasing decisions.