2022 planning session: building the roi case for your

2022 Planning Session: Building the ROI case for your leadership programs

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2022 Planning Session: Building the ROI case for your leadership programs

Keegan Walden, Torch Co-Founder & COO

WEBINAR

Growth Journey

ProgramFit

Coach Mentor

This webinar will be a success if participants deepen their understanding of:

INTRODUCTION

How to measure the ROI of their programs1

How to present the ROI in a convincing way to senior leadership

2

Qualitative

Then

ParticipantTestimonials

Data

Quantitative

NowMEASURING ROI OF L&D PROGRAMS MEASURING ROI OF L&D PROGRAMS

ROI is about measuring how people grow over time

BUILDING THE ROI CASE FOR YOUR LEADERSHIP PROGRAMS

8 years old 5 years old

But measuring professional growth is abstract and complex


Behavior changes

Mindset changes

Capacity changes

Skill improvement

Greater employee retention

Greater likelihood of promotion

Better performance reviews

More team engagement

Personal level Organization levelSMALL CHANGES BIG RESULTS

The Kirkpatrick Model

Level 4

Business Results

Level 3

Behavior

Level 2

Learning

Level 1

Reaction

Is this growth improving the business in a measurable way?

Are they implementing the skills and changing their behavior accordingly?

Are participants acquiring the skills to change for the better?

Do participants like the program?


Changes become more difficult to measure and more impactful

What you need to demonstrate


Proving the ROI of your program

PROOF POINT #1

There was a positive reaction

Reaction

PROOF POINT #2

They learned something

PROOF POINT #4

The program lead to tangible business outcomes

PROOF POINT #3

Their behavior changed for the better

Learning Behavior Business Results

+ + +=

Do people like the program?

LEVEL 1: REACTION

Reaction

Learning

Behavior

Business Results

“My coach was incredibly good at finding my hidden weaknesses as a leader and worked with me to develop a multi-session plan to actively address my challenges. Not only was she an incredible listener and empathetic, but her no nonsense approach was directly actionable. The result was, I left every session a better people leader and more confident in my abilities to improve.”

LEVEL 1: REACTION

● Most execs won’t find convincing

● May say these are outliers

● Need to prove clear and impactful benefit

The problem with using testimonials alone

Measure reaction quantitativelywith items and Likert scales

LEVEL 1: REACTION

1

Strongly disagree Disagree

Neither agree nor disagree Agree

Strongly agree

2 3 4 5

For example

LEVEL 1: REACTION

Items and Likert Scales

“I’m an effective manager; This program helped me grow as a leader”

1

Disagree

Neither agree nor disagree Agree

Strongly agree

2 3 4 5

Strongly disagree

Net Promoter Score

“I would recommend this program to others interested in becoming a better manager”

1 2 3 4 5 6 7 8 9 10

Stronglydisagree

Strongly agree

Other important elements to consider when building surveys

LEVEL 1: REACTION

Survey fatigue is real

Be thoughtful about how frequently you ask participants for feedback1Before Coaching Check-in

TIMELINE BY MONTH

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

After 1st Session Check-in Early

Check-in

Mid-pointCheck-in

6 Months After Coaching Check-in

12 Months After Coaching Check-in

Other important elements to consider when building surveys

LEVEL 1: REACTION

Numbers carry a bit more weight than words

Self-reports are limited in helping you prove the value of your programs2

Are people acquiring the skills to change for the better?

LEVEL 2: LEARNING

Reaction

Learning

Behavior

Business Results

I think I’m a really perceptive leader.

I’ve seen a huge increase in her perceptiveness over the past 3-months.

PERCEPTIVENESSPERCEPTIVENESS

SELF-ASSESSMENT COLLEAGUE

Measure learning with software

LEVEL 2: LEARNING

ManagerCustom goalNavigating difficultconversations

PeerCustom goalGiving and receivingfeedback

Direct ReportCustom goalInfluence without Authority

Are peopleimplementing the skills and changing their behavior accordingly?

LEVEL 3: BEHAVIOR

Reaction

Learning

Behavior

Business Results

Measure behavior change with 360s

LEVEL 3: BEHAVIOR

A

360B

360

Duration of program 6-12 months

Is this growth improving the business in a measurable way?

LEVEL 4: BUSINESS RESULTS

Reaction

Learning

Behavior

Business Results

The challenges of today


The Great Resignation: Microsoft Predicts 41% Attrition

July, 2021 Source

The Great Resignation: How employers drove workers to quit

July, 2021 Source

The 'Great Resignation' Is Really the 'Great Discontent'

July, 2021 Source

‘The Great Resignation’: June’s US jobs report hides unusual trend

July, 2021 Source

As The Pandemic Recedes, Millions Of Workers Are Saying 'I Quit'

June, 2021 Source

https://www.forbes.com/sites/lucianapaulise/2021/07/21/the-great-resignation-microsoft-predicts-41-attrition/?sh=371026652d4d

https://www.bbc.com/worklife/article/20210629-the-great-resignation-how-employers-drove-workers-to-quit

https://www.gallup.com/workplace/351545/great-resignation-really-great-discontent.aspx

https://www.theguardian.com/business/2021/jul/03/us-jobs-report-june-trend

https://www.npr.org/2021/06/24/1007914455/as-the-pandemic-recedes-millions-of-workers-are-saying-i-quit

The cost to replace an employee is 50% to 200% of their salarySource: Gallup



Likelihood of promotion after participating in

the program

3x - 5x

Likelihood of exceptional

performance on next review

+76%

Teams reporting higher engagement after participating

in program

+15%

Likelihood of retaining key

talent year over year

+41%

Promotion Performance Engagement Retention

L&D program metrics that prove measurable business growth


So, how do you show that your programs achieve these outcomes?

Intervention Follow up period

Your Program Outcomes (6-12 months)

TIME

Measure Measure

Reaction

Learning

Behavior Business Results

Promotion - Performance - Engagement - RetentionWho has been retained, promoted, etc.?


To measure program effectiveness, set up a control group

Intervention GroupPeople who went through your program

Control GroupPeople who didn’t go through your program


Be sure your control group is similar in sex, race, level, etc.



Let’s walk through an example:

New Director Program


Your Program Details:

PurposeTo prepare managers to make the transition to director

Number of participants 100

Duration 6-months

Follow up Period 12-months




What you do:

Run the program

Measure reaction, learning, and behavior change

Follow participants for 12-months: Track who leaves, who is promoted, look at performance reviews, look at engagement in teams

Follow control group for 12-months: Track who leaves, who is promoted, look at performance reviews, look at engagement in teams

✔

✔

✔

✔




But you make a mistake!

You forget to make your control group the same as your program group

Intervention Group

100 Managers

Control Group

100 ICs≠

Amazing job, you did it!




“Wait, how do you know your program

did all this?”



“Wait, how do you know your program

did all this?”Oh, no 😳

This is the number one question that senior L&D leaders face when trying to establish the value of their programs.

“How do I know it’s the program, and not just the people?”

LEVEL 4 > BUSINESS RESULTS


It’s all about random assignment



Randomizer


Great! But what can I do to support the leaders in my control group?


CHALLENGE: You don’t want to lose half of your leaders to a control group. You want to support all of them.


You can use a waitlist control group

Cohort: 1

TIME

Randomizer

Group: AInterventionA

Group: BInterventionB

Group: AInterventionA

Group: BInterventionB

Cohort: 2

Group: BInterventionB Group: B

InterventionB


Randomizer

The challenges of random assignmentCHALLENGE A: You need twice as many people as will participate in your first cohort.

CHALLENGE B: You have to exclude people who:

● Are going through other interventions that could have effects similar to your program

● Just achieved a promotion, etc.

x2


What to do when random assignment isn’t an option

Intervention Group Alternate Control Group

Change to:

People who haven’t gone

through an L&D program of ANY

kind


Let’s look more closely at retention

TIME

Pro

du

ctiv

ity

Employee A DECIDES TO LEAVE

Employee BFIRST DAY

Employee BIS UP TO SPEED

Employee A LAST DAY

B

A

A B

The good news for L&D leaders running programs that boost retention: You’re saving your company $50K-200K each time you can retain an employee that would otherwise leave.

Torch’s data show that coaching and mentoring led programs running on our platform boost annual retention up to 30 percentage points.



An example:

Calculating your ROI

Your Program Details:

Cost per departing employee* $50k

Amount that program was found to boost retention** +15%

Amount saved per 100 leaders who go through your program

$750,000**Torch’s data show that coaching and mentoring led programs running on our platform boost annual retention from up to a 30 percentage points

*The cost to replace an employee is 50% to 200% of their salary (Source: Gallup)


How do you select the right employees for your programs?

Employee#1

Growth Mindset

Poor Fit

Motivation

Readinessfor Change

Personality

Employee#2

Growth Mindset

Moderate Fit

Motivation

Readinessfor Change

Personality

Employee#3

Growth Mindset

Great Fit

Motivation

Readinessfor Change

Personality

Employee#4

Growth Mindset

Great Fit

Motivation

Readinessfor Change

Personality

Employee#5

Growth Mindset

Poor Fit

Motivation

Readinessfor Change

Personality

Self Efficacy

Self Efficacy

Self Efficacy

Self Efficacy

Self Efficacy


Managers disagree on talent

30%

Agreement on potential of a colleague

Manager 1 Manager 2


Managers disagree on talent

Disagree on potential70% of the time

Agree on potential30% of the time


Subjective assessment is susceptible to bias

● Confirmation Bias

● Affect Heuristic● Halo Effect● Horn Effect● Affinity Bias● Beauty Bias● Conformity Bias

● Racial Bias● Gender Bias

Are your L&D programs equitable?

Programs running on our platform

increase the likelihood of a promotion by up to 3 to 5 times.



Bias leads to racial inequity

13%

There should be 67 Black CEOs of Fortune 500 Companies

US Populationby

Racial Group


Bias leads to racial inequity

There are three.

René Jones

M&T Bank

Roger Ferguson, Jr.

TIAA

Marvin Ellison

Lowe’s

ASSESSMENT DOMAINS


A better way: Science-based, objective assessment

Growth Mindset

Motivation

Readinessfor Change

Personality

Self Efficacy

Coaching

Mentoring

DigitalLearning

Candidates identified and sorted into best program(s) for their development needs

Creates equal representation for underrepresented minority candidates

1,000+ Candidates

Let’s review

What we’ve covered


The value of data in the L&D revolution that is underway

What to measure in order to demonstrate positive reactions, learning, and behavior change

What metrics to track after a program ends and how to translate them into hard dollars

How to manage data from various platforms

✔

✔

✔


Use data from multiple platforms to

demonstrate ROI.

Integrate, don’t rip and replace

YOUR LEARNING PARTNER

Head of Behavioral Science Insights at Torch

● Works with the behavioral science team to uncover insights about behavior change,

professional growth and leadership development

● Previously, worked as a journalist and applied behavioral scientist at places like Behavioral

Scientist magazine, the Atlantic, Slate and ideas42

● Passionate about: translating science so people

can actually understand and use it to improve their work and lives.

Elizabeth Weingarten

How Torch Can Help You

84Net Promoter Score

We partner with you every step of the way


AlignedEnsure experiences are consistent and aligned to your organization’s initiatives, competencies, and cultural values. MeasurableProve ROI with products and assessments that move beyond self-reported data to measure true behavior change.

x

AccessibleDemocratize coaching, mentoring, and group learning across your organization so all employees can participate.

x

x

Program ExecutionDedicated program management, participant experience management, and issue resolution, drastically reducing the administrative burden for customers

Measurement & InsightsData & reporting to show the impact of your investment, with advanced analysis by Torch’s Behavioral Science and CX teams

Strategy & PlanningDemocratize coaching, mentoring, and group learning so all employees can participate

Partnership EvolutionContinuous optimization of partnership and program strategy based on your needs, participant feedback, and business outcomes

96%Match Success Rate

4.8/5Coachee Satisfaction

“[Torch’s] amazing staff make for a highly collaborative experience, providing tools and support, as well as analytics that help us tell the story of how our people are learning and growing together. It's inspiring.”

- John Hardy, D&I Manager, Best Buy


Torch fuels professional growth and success through the power of trusted relationships● Founded in 2017

● Led by executive coaching & psychology experts

● 200+ global customers from F100 to startups, including

Genentech, Reddit, American Express and Allstate● Backed by YCombinator, Norwest,

Initialized and Obvious

Case Study: Coaching for top performers

CHALLENGE: Retain High Potentials

X Company needed to create a premium experience for their top performers that would recognize their

performance, invest in their growth, and ultimately retain them, especially during the tumult of the Great

Resignation.

SOLUTION: 1 Size Fits 1 Approach

X Company created a Key Talent Program, a six- month

experience that blends group training with personalized

development for their top talent.

The first three months of this program consist of training and events and the last 3 months consist of 1:1 leadership

coaching through Torch.

NPS

120 85Coach Rating

4.6/5

“My coach was very thoughtful in providing recommendations and thoughts around how I can reach my goals and what we'd work on to get there. I did not feel judged or undermined when responding to her questions and felt like she was receptive to my feelings as well.”

- COACHING PARTICIPANT, REDDIT

Participants


Retention Alternate Control Group

Up to 88% of Torch coaching participants were still working for X company 1-2 years after coaching versus 58% of managers who did not work with a coach.

Direct reports of managers who worked with a Torch coach were significantly more engaged than the reports of managers who did not work with a Torch coach.

Increased Retention Increased Engagement

Now, go out into the world and prove the ROI of your L&D programs!

Torch is an integrated platform for Learning and Development leaders to deliver, manage, and measure employee growth at scale.

Our customers include LinkedIn, American Express, Twitch,

Genentech, and Allstate. Torch is backed by Obvious Investors, Y Combinator, Initialized Capital, Norwest

Ventures Partners, and Refinery Ventures.

We’re here to help

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