Learning and Performance Management Converge to Form an Emerging Best Practice

by TMT Editor

Written by Sean Conrad, senior product analyst at Halogen Software, the following article looks at the convergence of learning management and performance management as a coordinated, emerging best practice. Readers may reach Sean by e-mailing sconrad@halogensoftware.com.

Linking Together Learning and Talent Management in the High Performance Workplace
by Sean Conrad, Senior Product Analyst, Halogen Software

Traditionally, learning management systems (LMS) have been used primarily in large enterprises where the HR and learning teams often work in isolation from one another. However, recent research in talent management points to the union of learning and performance management as a growing best practice, leading to a new set of functionality requirements for learning management systems.

Research for Bersin & Associates’ 2008 Corporate Learning Factbook identified that more than 25 percent of corporate learning and development (L&D) managers rate integration with performance management as one of their top two priorities. In theory, all L&D programs, interventions, activities and resources should support the performance management process. As IDC states, “The majority of intersection and integration points among the various talent functions pass through performance management.” However, accomplishing that and further demonstrating it can be a challenge.

Traditional learning management software was developed as a standalone solution. It focused on improving the efficiency and operational effectiveness of the training organization; it provided tools for trainers and content developers to more easily build, administer and deliver training programs and for employees to more easily access these. But it lacked a key function – the ability to support a development process between manager and employee that helps employees improve their personal performance in conjunction with organizational goals.

As a result, stand-alone LMS offerings didn’t meet expectations. This was due in large part to the lack of integration with other HR functions. In addition to being time consuming to administer, LMS offerings required a significant duplication of data and effort. Further, one of the biggest issues with traditional LMS systems is that improvements in performance from training could not be measured. In fact, Bersin & Associates found product satisfaction to be low -- an average of 6 out of 10 -- based on a survey of over 500 LMS users.

Why integrate performance management with learning?
An integrated learning and performance management process enables organizations to align enterprise-wide learning programs with corporate and individual goals and reap greater benefits from the L&D investments. L&D managers and executives can identify key goals throughout the organization, and any large development, competency or performance gaps.

After looking at the best practices of over 750 corporations, Bersin & Associates discovered that aligning training with organizational goals as well as individual development goals is a leading talent management best practice that drives business impact. The power of an integrated LMS is that it enables learning managers and HR leaders to use the same system to link and track employee performance and learning, thus gaining actionable intelligence about their learning investments.

An effective LMS seamlessly integrates learning activities into the performance management and succession planning processes -- making it easy for HR, employees and managers to access information; identify and assign development plans; even register for learning activities and track progress on achievement – all from a single user interface. They can also identify skill gaps and measure the success of learning programs in terms of improved individual and corporate performance.

Using integration to drive a high-performance workforce
Research shows that employees perform much better when they have a clear picture of the development needs and opportunities for their jobs. When they realize that they are not proficient at a task or process, most people want to improve. Busy managers often don't have in depth knowledge of the innate skills and competencies needed for success, and rarely know all the developmental activities available in their own organizations.

With an integrated performance management and learning system, the L&D organization can publish all internal and externally available programs, and align them directly to specific competencies and job descriptions. Employees and managers can then easily find “the right training” at “the right time”, without guessing. This gives employees the power to plan and implement their own career and performance growth – which ultimately improves morale, retention and succession rates.

Filling the leadership pipeline
Succession planning is a key part of most organizations’ talent management strategy as they face increased pressure when it comes to attracting and retaining highly skilled workers. Management and senior-level positions require many critical skills, including deep knowledge of the organization, strong skills in people management, and higher-level skills in planning, administration and financial analysis. An integrated LMS and performance management program can help to identify and develop key talent and ensure organizations are using the best practices driven talent pool model of succession planning.

Often organizations promote employees to higher-level positions based on a “gut feel” of management potential, or recent project-based successes. Some of these promoted employees succeed and some do not – a costly exercise in trial and error. With the integration of performance management and learning management, a robust assessment and integrated development planning process can clearly identify and develop employees based on longer-term performance and big-picture organizational goals. For example, employees who are slated for promotion can attend well-designed development programs. The result is a much higher level of performance and success in the mid-level manager population, and a rich pool to draw from for executive-level succession.

Making an integrated platform a reality
For the HR department who is championing an integrated performance and learning management approach, it’s important to secure executive buy-in by focusing the discussion on strategy – communicating the business benefits. This includes aligning talent management investments with corporate priorities and demonstrating how managing talent from a holistic view will ultimately improve competencies and performance across the organization and drive corporate results.

When seeking a technology partner, HR needs to carefully define the solution features required to meet the organization’s needs. They should identify the key needs and clearly outline what benefits are expected from the technology. Their plan should include evaluation criteria and a comprehensive project/implementation plan. Too often implementations fail not because of faulty software, but because organizations haven’t thought through the steps to successfully manage executives, management and employees through the process (and effect a culture change.)

Summary: Performance and learning belong together
In the current climate, it is imperative for organizations to link the performance management and learning processes together. Unfortunately, these software markets have grown up separately. LMS vendors have focused on automating the administrative aspects of training and e-learning, while performance management vendors have concentrated on automating the process of employee assessment and evaluation. Each has its own complex requirements. Today, however, by linking these systems together, there is greater potential for organizations to drive even higher levels of performance, better use their training resources, and achieve new levels of employee engagement.