Training expenditure is a metric still used by many human resources and training professionals, as well as some market evaluators, to measure the value that enterprises place on education and training. However, it is known that training expenditure per person is not an indicator of:
- Access to training for employees.
- The quality of the training.
- The effectiveness of knowledge transfer and skill building.
- The volume of training available.
- Efficiency and effectiveness of training.
- Training’s support of specific business goals.
- The return on investment and the impact on the business.
Therefore, I argue that training expenditure should no longer be used for providing a value comparison without looking at other effectiveness metrics. Between 1999 and 2002, organizations that adopted e-learning and moved toward a more just-in-time learning environment significantly enhanced their learning capabilities. In addition, they achieved savings that translate into similar or less spending per employee while providing their workforce with more training to support business goals.
I have distinguished four different “adoption stages” of e-learning: clappers, experimenters, developers and leaders. The transition from one stage to another is not necessarily a given, and some organizations might stay in one stage for a long time, depending on how strategic learning is in their organization and on the competitive pressures in their industry.
Companies in the clappers stage have accepted e-learning as part of the new learning reality and have launched a couple of e-learning programs. However, the learning strategy is still focused on classroom training delivery, and there is not necessarily enthusiasm to change this. Some organizations might decide to become more aggressive in e-learning over time and move to the “experimenters” stage.
Companies that have made e-learning part of their overall learning strategy and have explored the best applications of e-learning within their organization are in the experimenters stage. In this stage, e-learning is often blended with classroom training. The main goal is to provide additional skill-development opportunities in specific learning categories.
Companies in the developers stage have made e-learning an integral part of their overall learning strategy, which has resulted in significant cost savings. They use e-learning to support specific business goals, have launched large numbers of e-learning programs and have implemented a learning technology infrastructure.
There are only a few companies in the leaders stage, where e-learning is the delivery mechanism of choice for knowledge transfer and skill building. All classroom programs are blended with e-learning courseware. Many learning strategies and models are incorporated into the blended learning design strategy, including the use of facilitators and coaches to guide and support learners through an entire learning program. Additionally, a well-planned and sophisticated learning technology infrastructure has been implemented on an enterprise-wide basis, all learning is aligned with business goals, and learning measurement processes are used to monitor the learning function’s performance.
The E-Learning Adoption Continuum (see Figure 1, below) presents criteria for each phase of adoption. In the clappers phase, spending is still the key metric for the overall value proposition of learning. As you move into the experimenters, developers and leaders phases of adoption, spending levels do not equal the value proposition. Other drivers become more important indicators of overall learning impact on the organization.
Figure 1: E-Learning Adoption Continuum
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Spending Used as the Only Metric |
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Spending Not Used as a Metric |
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Characteristics of E-Learning |
�E-Learning Adoption Stages |
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| Clappers | Experimenters | Developers | Leaders | |
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Existence of E-Learning Capabilities |
-Few self-paced e-learning programs. -Some virtual classroom sessions. -No LMS, but Web sites and links. -Limited learning measurement. |
-Self-paced and virtual classroom programs are incorporated into existing curricula. -Multiple LMSs in place. -Limited learning measurement is available. |
-Extended portfolio of e-learning solutions and capabilities. -One LMS implemented across the enterprise. -Learning measurement in place for a number of programs in different areas. |
Full-blown scope of e-learning solutions and capabilities in place, including: � -Learning catalog with self-paced courses, simulations, games, online assessments and virtual classroom offerings. -One leading LMS that supports and integrated multiple human capital processes. -Integrated learning technologies, e.g., knowledge management, content management, performance management, etc. -Conated measurement and reporting. |
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E-Learning Value Proposition |
-Classroom training is still primary delivery mechanism. -E-learning is �add-on� solution. -E-learning requires additional investments. -E-learning not a strategic part of overall learning strategy. |
-E-learning is mostly blended with a classroom program. -Investments in e-learning must be budget-neutral. -E-learning is a component of the learning strategy. |
-E-learning is offered in different ways: self-paced and blended with classroom. -Learning function achieves significant cost savings. -E-learning is a sustainable part of the learning strategy. |
-Situational learning approach includes: self-paced e-learning, blends of e-learning with classroom, blends of e-learning with multiple e-learning solutions and online facilitated learning programs. -Complete curricula for different roles, functions, divisions. -Content available in multiple languages. -Learning function achieves significant cost savings and business impact. -Learning aligned with business goals, driven by business leaders. |
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Estimated percentage of required curriculum in e-learning format |
0 to 5 percent (no replacement of classroom hours) |
6 to 10 percent (some classroom hours replaced by e-learning modules) |
11 to 39 percent (replacement of classroom hours and extension of curricula) |
40+ percent (classroom only used for learning critical competencies best learned in face-to-face setting, rest of curriculum is e-learning) |
Nick van Dam is Deloitte’s global chief learning officer for the consulting practice. He is author of “The E-Learning Fieldbook,” published by McGraw-Hill (www.elearningfieldbook.com). For more information, e-mail Nick at nvandam@clomedia.com.
