At the time of the first book, the availability of data was limited. Now almost twenty-years later it is everywhere. And yet we continue to see L&D organizations struggle to put it to work for them. This is not say that there have not been great strides made. The work of the ROI Institute to capture a clear and credible approach to identifying the impact and return of learning initiatives. The Center for Talent Reporting has created a proposed approach for describing the learning function that would allow for consistent comparisons and reporting. However, the gap between knowing and doing remains.
Just as having too many choices as a consumer, measurement today can cause decision paralysis and feel overwhelming. Because of this, L&D organizations must focus on key performance indicators, ensure the measures are actionable and act on them. Startups have far more data than a typical L&D organization. From pixel by pixel eye tracking to clicks and cookies, there is data everywhere. So how are fast-growing startups dealing with the data tsunami?
The best startups focus on “evidence-based execution”. Put simply, this is the use of data to improve what and how things get done. Startups make data a priority, understanding that it is critical for focus, alignment and communication. They use collections of key data points, in dashboards, not single data points, to make the data actionable. And finally, they know that behavior doesn’t lie. If people rate your product positively but are not using it, engaged, recommending it or coming back for more, the product is insufficient.
Dashboards are interrelated collections of key data points around key processes that drive an understanding of how to better execute. It also allows for the determination of where in a given value chain is the weakest link. For startups, a dashboard may track the customer acquisition funnel which follow the progress of a customer from awareness to retention. For a L&D organization this may mean a series of metrics tracking the performance of the team moving from problem identification to solution.
Focusing only on a select set of key metrics is another way startups use their resources wisely while gaining impactful information. Honing in on key areas for optimization allows for internal and external stakeholders to understand the priorities of the organization. These key performance indicators are not necessarily static. As organizations change, so do their KPI’s. Once you know you are delivering quality learning you may then turn your measurement attention to the speed of delivering a solution or other areas or focus.
Startups look at things like market share and daily active users to see progress. As mentioned previously, having a 5-star rating means nothing if your product isn’t being used. Similarly, if the L&D organization is only supporting 50% of the learning that is occurring in the organization, how valuable is the product? What are the barriers to acquiring the other 50%? Is it speed, expertise, organizational barriers or something else? If compliance trainings are the only learning events that are being consumed by a high percentage of its L&D’s target employee base, is non-compliance training seen by the employees as a nice to have or seen as a way to truly improve performance. Behavior doesn’t lie. Trying to shield yourself with activity or satisfaction numbers without taking action on them is only a temporary refuge.
Data will continue to be more and more easily collected. This can result in L&D organizations being overwhelmed or suffering from analysis paralysis. Focusing on KPI’s, interconnected sets of data and remaining committed to acting on that data will be essential to those organizations that want to truly deliver the next generation of value to their companies.
What are your customers (learners, managers and executives) telling you through their behavior?