Leveraging Learning Analytics Technology at Caterpillar
Company Overview: Caterpillar, Inc. is a manufacturer of earth moving equipment. Caterpillar employs over 80,000 people around the world. They have 277 locations and nearly 100,000 dealer employees.
Description of Learning Program:Caterpillar University was formed in 2001 as a result of a desire by management to create a continual learning organization. The mission is to improve the performance of Caterpillar employees, dealers, suppliers, and customers. A wide variety of learning deliveries are used such as knowledge sharing, e-learning, coaching, facilitation, classroom training, and competency management.
Measurement Approach: Caterpillar University emphasizes measurement to forecast learning demand and validate delivered learning results. Caterpillar partnered with KnowledgeAdvisors to create an integrated solution. An integration between the Caterpillar Learning Management System (LMS) and Metrics that Matter® (MTM), KnowledgeAdvisors learning analytics technology was built to make the process scaleable. The integration allows for the automated exchange of registration details between the LMS and MTM on a daily basis. This allows for less administrative burden to Caterpillar saving time and cost.
Measurement Obstacles: Caterpillar has a finite set of learning and development resources to dedicate to measurement yet it has massive amounts of learners to train. The need for automation and standardized templates was critical. Caterpillar worked with KnowledgeAdvisors to automate and standardize the process, to the extent it could be.
Measurement Successes: Caterpillar’s success factors include a dedicated ‘champion’ within the organization to fully understand the measurement process and the analytical capabilities of MTM. Additionally the measurement process was institutionalized throughout Caterpillar. The ‘champion’ works with learning leaders in each line of business to help manage change, establish standards, and review performance and activity metrics on a regular basis. Each learning leader has been provided with direct, self-sufficient online access and is encouraged to review their metrics.
A Comparative Performance Report is run that visibly shows course performance. It can quickly pinpoint what offerings had high or low impact which drives future investment decisions.
A Quick Question Report allows Caterpillar to drill into tactical detail data point by data point. This helps manage day-to-day operational quality.
A Variance Report is run by key measurement objective. This produces a color coded output to quickly pinpoint the objectives that exceeded a benchmark and those that did not.
A customized report provided by KnowledgeAdvisors known as the Learning Quality Index (LQI) calculates a value score for every program, monthly and year to date. This is reviewed by an executive team as part of Caterpillar’s Vital Factor Reporting.
Caterpillar also places heavy emphasis on ROI. ROI calculations are forecasted for each major product or service offered by Caterpillar University. Based on analysis, the financial benefits of learning show there is greater than a 60% ROI on the learning investment. Showcasing these numbers is important because learning must compete against other investments with ROI’s.
Caterpillar continues to evolve its process. Data is being collected and several languages and more linkage between systems are planned.