Adding a Step

Monday, October 29, 2007 - by Rex Davenport

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To Paul Leone, talent acquisition and development at American Express, Level 6 specifically identifies the factors in the participant's work environment that predict a program's impact, while looking at what might inhibit or help the transfer of learning. Learning Executives Briefing spoke with Leone.

LXB: Can you explain the impetus of your work? Was it driven by a company mandate?

Leone: We have, as with every large organization, a challenge around putting a return-on-investment on training programs. Regarding the blended learning approach, one of the primary questions is where do we get the most value? As a global organization, we do a lot of training. We began to (have) questions a few years ago about instructor-led training programs, which are usually a bit more expensive. First, were these instructor-led programs practical? And, second, what was our return-on-investment for different delivery modes?

We launched our flagship program, called Situational Leadership II, which was mandated for about 10,000 to 20,000 leaders. We looked at our different delivery approaches - web-based, instructor-led, or blended - and one of my tasks was not only putting an ROI on training in general, but also looking at how the different ROIs compared across delivery modes.

LXB: Is there anything different about your approach other than how you measure it on the back end?

Leone: The one thing that is different about our approach is that we included the (newly developed) Kirkpatrick Level 6 step. Levels 1 through 5 have been written about extensively. Those measure everything from satisfaction with the program all the way up to ROI. The big difference in this research is that we measured what we call the "transfer climate."

We had suspected that the delivery method that employees had (received their learning) - blended, instructor-led, or solely web-based - is not the most important part of learning; it's the environment that the employees are taking that training back to that matters. That was a huge hypothesis we wanted to test. What we found was that this transfer climate - where the employees return with their training was important. What kind of leader do they have? What kind of environment do they have that provides them an opportunity to practice this training? All of these transfer climate elements are what predict whether a training program will have impact or not. And that is exactly what we showed in our research.

LXB: Had you been bouncing around this concept in your head before putting this study into place? Or did some unique event or opportunity at American Express trigger it?

Leone: There is some research around transfer climate, but it has been at the conceptual level. Many learning professionals and theorists came together and said it would probably make sense to have a leader who supports the training. And it would probably make sense to have continuous follow-up with participants. That was all conceptual. There has never been a Level 6 transfer climate measured at a quantitative level. We know it matters, but how much does it matter? How much can it predict the impact of the program?

Beyond some of the past learning research and drawing on a major need within one of our lines of business, (we asked) why is this working in some areas of our organization and not working in other areas? In some cases we had clients - participants - going through a (learning) program who reported no impact, which means they were getting nothing out of training. Some were coming back reporting incredible impact. From these initial results, we added the Level 6 to determine what is in these different groups that is predicting the impact. It was diving deeper and asking: "What is Group A doing differently than Group B?"

LXB: Do you think your research is more credible because you have a bigger pool? This might not be so easy to study in a smaller organization.

Leone: Absolutely. One of the biggest strengths of this research is the size. I have read results of research with 30 or 50 participants. Our research was conducted with more than 3,000 learners. As you report with sample sizes of 3,000-plus, you really get people's attention.

LXB: What hasn't e-learning completely done away with the instructor-led or blended learning approach?

Leone: The personal connection that can be made with other learners - the sharing of learning - is something that can't be substituted. The strictly web-based approach will always be challenged in terms of value compared to instructor-led and blended learning. Frankly, (instructor-led) is classically the way we are taught from elementary school up to the college classroom. I don't think people are ready to accept just a virtual, self-directed, make-your-own-deadline type of learning. I don't think I would ever say, as a result of our research, that a web-based approach under all the same conditions would be as effective as an instructor-led approach. However, if you maximize your efforts around a web-based approach, you will be able to maximize your investments and see a greater return-on-investment than you would in an instructor-led approach in a horrible climate.

LXB: Was it difficult to get buy-in from employees to do the kind of follow-up work and reporting to make this research and implementation possible?

Leone: Within any company there will be some level of adversarial relationship with an HR group that wants to attribute a certain amount of business success to particular training programs. I don't think any executive wants to admit that he was completely ineffective before going through a training program, and now, miraculously, he is a much better leader. As HR and learning professionals, we get that (response) from many customers and clients as well. The challenge for us, in this case, was to convince them that we can place an ROI figure on learning.

It's a challenge in any organization, but at American Express, we are ahead of the curve in accepting just how much human capital matters, and how much return-on-investment you can get by investing in human capital. While all companies think about the bottom line, American Express buys into the idea that it is employees, and their level of engagement and motivation, that will impact the bottom line a lot more than investing in products and manufacturing.

LXB: Is it more important for a service company like American Express to have a highly engaged and motivated workforce than it might be for a manufacturing company?

Leone: Within our leadership model, we have always known that. The short answer is that as a service company, we know that our employees who interface with customers can literally make or break accounts. We know that they can interact with and satisfy their customers better if they have engaging leaders and leaders are able to motivate them.

If we lose that and we don't have engaged and motivated employees, we lose customers. And that affects the bottom line. We have made the leap. We are going to invest in our leaders. We are going to assure that our leaders are engaging and motivating, and all-around good leaders so that it satisfies the employees. And those employees pass on satisfaction and engagement to our customers.

Adding a Step

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