The story became company legend. Our CTO, let’s call him “Eric,” interrupted band practice to check a developer's status on an important project. Getting a lukewarm response, Eric shot back, “Is band practice really your highest priority now?” After he left, the group realized they had found their band name - “Is This My Highest Priority?” They went on to win the first battle of the bands with an electrifying rendition of “Seven Nation Army.” Inc. magazine published a photo of them practicing above their article on the program.
In my experience, Eric’s skepticism is the norm.
In my experience, Eric’s skepticism is the norm.
Knowledge acquisition is mostly an afterthought at work. Managers relegate learning programs to the province of HR, where executives have other priorities, like compliance or making the workplace equitable. Some companies run, “Welcome to your new job” boot camps, but learning curves are most often viewed as a one-shot climb. And most staff see themselves as educated - past tense.
How high should learning be on the priority list?
How high should learning be on the priority list?
It would be nice if we could start out with a model that compares the ROI of learning programs to prioritize them against other projects. So I bought Josh Bersin’s “The Training Measurement Book.” I’ll save you the read. You really can’t.
Bersin surveyed 136 big company training departments and found that only 5% measure ROI of their programs, and 8% measure “actual business impact.” Why? First of all, it is hard to isolate training’s impact, given all the other external factors. Also, the returns usually come out preposterously large - “far higher than most organizations can compute.” Try measuring the ROI for sales training. I did, using M5's numbers for junior sales reps, average sales, churn and discount rate on the recurring revenue booked. I assumed an expensive training program for a team of 20, in which they all spend a full hour a day for a year learning, supported by 1/2 of a full-time trainer. If the program’s impact after a year is a 5% improvement in revenue, you get a 274% return on investment. Off the charts.
The reason that learning often doesn't get top billing, isn’t only that it is hard to compare to other initiatives. We don't trust learning programs to work. That’s our experience on the ground, usually. We tend to read books and forget them. Or an inspiring speaker gives us a buzz, but in a few days we realize we can’t actually do any of what she said. We usually give up on our commitments to practice a little each day. And our paradigm for learning is school, which hasn't changed much from the one-size fits all lecture + test based model. According to the Conference Executive Board, "Corporations spend an estimated $145 billion annually on training initiatives, but more than half of those dollars fail to result in tangible returns.“
So not only are the benefits fuzzy, the path to achieve them is uncertain. This keeps learning below other tasks on the priority list.
This will change. The benefits of learning are increasing. We’re now in a knowledge economy that values good ideas and decisions more than cranking out more units faster. Networked computers amplify and multiply the skills of any one person in a company.
Plus, we are learning how to learn faster, better, and with more predictable results. New EdTech companies are funded every day. Tim Ferriss is experimenting with how to learn whole languages in a week. Stikk reports that using its portal to setup stakes, referees, and supporters massively improves odds of succeeding with personal change goals. Companies like Udemy, Lynda, Udacity, and Coursera are throwing up tons of quality course content online, enabling a “flipping” of the learning experience that uses everyone’s time better. Skillshare, Everwise, Curious, and many others are facilitating learner-teacher matches quickly. And neuroscience is teaching us a lot about how to rewire the brain, shedding light on how most programs are simply too wimpy and don’t include the practices (like practicing) you really need to make a lasting change.
Bersin surveyed 136 big company training departments and found that only 5% measure ROI of their programs, and 8% measure “actual business impact.” Why? First of all, it is hard to isolate training’s impact, given all the other external factors. Also, the returns usually come out preposterously large - “far higher than most organizations can compute.” Try measuring the ROI for sales training. I did, using M5's numbers for junior sales reps, average sales, churn and discount rate on the recurring revenue booked. I assumed an expensive training program for a team of 20, in which they all spend a full hour a day for a year learning, supported by 1/2 of a full-time trainer. If the program’s impact after a year is a 5% improvement in revenue, you get a 274% return on investment. Off the charts.
The reason that learning often doesn't get top billing, isn’t only that it is hard to compare to other initiatives. We don't trust learning programs to work. That’s our experience on the ground, usually. We tend to read books and forget them. Or an inspiring speaker gives us a buzz, but in a few days we realize we can’t actually do any of what she said. We usually give up on our commitments to practice a little each day. And our paradigm for learning is school, which hasn't changed much from the one-size fits all lecture + test based model. According to the Conference Executive Board, "Corporations spend an estimated $145 billion annually on training initiatives, but more than half of those dollars fail to result in tangible returns.“
So not only are the benefits fuzzy, the path to achieve them is uncertain. This keeps learning below other tasks on the priority list.
This will change. The benefits of learning are increasing. We’re now in a knowledge economy that values good ideas and decisions more than cranking out more units faster. Networked computers amplify and multiply the skills of any one person in a company.
Plus, we are learning how to learn faster, better, and with more predictable results. New EdTech companies are funded every day. Tim Ferriss is experimenting with how to learn whole languages in a week. Stikk reports that using its portal to setup stakes, referees, and supporters massively improves odds of succeeding with personal change goals. Companies like Udemy, Lynda, Udacity, and Coursera are throwing up tons of quality course content online, enabling a “flipping” of the learning experience that uses everyone’s time better. Skillshare, Everwise, Curious, and many others are facilitating learner-teacher matches quickly. And neuroscience is teaching us a lot about how to rewire the brain, shedding light on how most programs are simply too wimpy and don’t include the practices (like practicing) you really need to make a lasting change.
Some leaders have made a major mark with learning programs. CDW’s founder, Michael Krasny, once told me that every dollar he put into training came back in multiples. As David Kaplan tells the story in Verne Harnish’s, “The Greatest Business Decisions of All Time,” soon after becoming CEO Jack Welch invested heavily in GE’s Crotonville learning center while firing 100,000 people. His Board presentation described “infinite” ROI. Verne also points out that Steve Job’s top priority during his last two years was building Apple University.
At M5, Eric and the other skeptics came around. Every minute in the band room was returned, plus interest, with additional energy and engagement from staff. And for every person we had skilled up that left the company, we hired two talented replacements attracted by our learning culture and promoted three from within, avoiding recruiting altogether. Not to mention the benefits of improving teamwork and reinforcing our learning culture.
Learning is moving rapidly up the priority list both for companies and individuals. I love it. It makes work more fun. It energizes and accelerates people and organizations.
Besides, our species had better start getting better faster or else robots will surpass us, ushering in "The Singularity" ...
Besides, our species had better start getting better faster or else robots will surpass us, ushering in "The Singularity" ...
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