# Training Best Practices/LMS On A Shoestring

Bose' Best Practice Profile

## Title:

LMS On A Shoestring

## Description:

Over the past few years it was a great honor to have been recognized for the ability to launch a very effective e-learning capability on a shoe string budget (Corporate e-learning champion, 2002 and Top Training 100, 2003 & 2006). Initially this was based on providing access to over 160 modules via our Intranet and obtaining incredible usage rates. There was something for everyone, including required technical training, leadership development, wellness training, environmental health and safety training, and certification training.
This is a story about the implementation of a successful on-line learning initiative in two companies. Due to the success of the on-line learning initiative (“E-Learning on a Shoestring”, e-learning magazine, published 10/17/02; See also Bozarth,J., 2005, E-Learning Solutions on a Shoestring, John Wiley & Sons/Pfeiffer), we needed a more sophisticated approach to managing this system. The solution would have to be a Learning Management System (LMS). However, similar to the challenge of developing on-line materials, the costs for LMS systems resulted in sticker shock. We had to resort to a solution similar to what we did with on-line learning. We had to install a LMS on a shoestring budget. What we stumbled on was a very effective approach that cost us less than $30,000 to develop and introduce.
In both cases, our continued success with our on-line learning initiatives led to new challenges. Now that our employees were actively using on-line learning in a blended approach, we were confronted with methods to track and report on training usage in addition to other opportunities that surfaced. These included:
1. More effective tracking and reporting of training activity
2. Ability to assign modules to individuals, groups, or company
3. Ability to provide on-line testing
4. Ability to associate required training modules with annual certifications
5. Ability to create pre-requisite training
6. Ability to capture on-line and instructor-based training
7. Ability to provide managers with access to training activity for their direct reports
8. Ability to link to our training records in our HR system
We realized that this would require investigating learning management systems (LMS). Panic set in similar to when we were initially investigating the options available to launch on-line learning capability. We realized that there were a number of options available, but that most carried a considerable price tag. Due to the continued economic times, budgets were tight and expenditures were closely scrutinized. Based on our ability to launch an effective on-line learning capability we however, did not let our initial panic to hold us back.
Upon investigating option after option, a small note in one of the training magazines caught our eye. Included in the title, were the words, “Fixed Price License - No User Fee LMS”. What was the catch? The initial reaction based on skepticism of so called “fixed fee” and a license fee less than $15,000 for unlimited users. We’d seen other opportunities in the past which had failed miserably. I decided that it was worth investigating. It involved the opportunity to download a 30 day test of the product which would allow us to “kick the tires”. There was the opportunity to add-on other modules such as 360 Degree if we ever needed. Anyway, we signed the agreement for testing and received a web address to download the software.
We successfully installed the LMS, and to our surprise, it worked! We had a few technical questions, and we were very pleased with the company’s response time and fixes, even though they had gained nothing financially from us at this point. We were able to provide access to our existing modules and track activity. This intrigued us to the point of investigating what other options were available, and most importantly, at what cost!
To our surprise, we learned that we could set up functionality similar to other LMS systems costing in some cases hundreds of thousands, for approximately $30,000. This included customized reports along with the capability to interface to employee data on our HR system. With the respect and credibility we had developed, due to our success in providing necessary training in a just-in-time format, we were able to convince management to pursue this choice.
From date of contract to going live, we were up and running in only 30 days. We were able to update our employee training records through the middleware piece that was installed by the vendor. We set it up to update employee training records every 30 days. We downloaded the employee records from SAP where we stored our employee records, and updated our employee list in the LMS system. The middleware piece would allow us to update SAP records as well, although we did not see the need for this option.
Shortly after a successful installation, I found myself in the situation of a company in the throws of making changes and moving production off shore. During this transition, I found a new home with Bose Corporation at their manufacturing facility in Columbia, SC. The plant needed to make significant changes to their existing training operations. This challenge, along with the support that was evident from senior management and the value the company maintained towards training, made this a welcome and exciting opportunity.
It was only a few months into making changes, that I realized the need to install a similar LMS system. On-line learning once again proved to be a valuable addition to improving the overall knowledge and skills of our workforce. It wasn’t long before I turned to Acadia HCS to once again provide us with a solution. They once again provided me with the exact level of service I had found at my last company.
Acadia HCS provided their newest LCMS solution. It was an .NET based framework (the latest Microsoft technology) that included all of the functionality I was accustomed to in their previous version, along with a number of new enhancements. Their price once again made this the most cost-effective solution on the market. Even though Bose was investigating a potential global solution to tracking training activity for the years to come, Acadia's LMS provided us with an excellent interim solution, along with the possibility that this could become the global solution.
Once again, the installation including comprehensive testing, took only 30 days before we went live. A few bugs did appear with their latest version, but we were delighted with the quick turnaround time and service from the vendor.
So what exactly did the LMS system provide us and what was our experience with this? This is broken down into the following topics:
1. Launch On-Line Training
2. Training Management
3. Certifications
4. On-line testing
5. Technical Training
6. New Hire Orientation
7. Supervisor Technical Development
8. Leadership Development

## Launch On-Line Training

The very basic functionality was providing the capability to provide easy access to on-line learning modules and the ability to register for instructor-led classes. The LMS was installed so that anyone with access to the Intranet could access the on-line learning modules via the LMS. Since our modules included audio, we recommended that employees use headsets so not to interfere with their neighbors in adjoining cubicles or offices. We purchased several headsets, Bose Tri-Ports of course, and loaned these out to employees as needed.
We also set up our existing computer lab to provide access to employees who did not have access to their own PC. We established open lab time in order to provide all employees with 24/7 access to these modules. Our plant operated on a 24/7 schedule which poses a unique challenge to training. There was no “off” time for those employees operating on a 24/7 schedule. Attempting to offer classes before or after a 12 hour schedule was unrealistic and too demanding on the employees. Therefore training needed to be on-line for the most part.
One of the nice features is that each employee is provided with their unique log in and account. They were able to see their own training transcript along with modules that they were required to take. The ability to set up required modules to individuals, groups, departments or the entire plant was an important feature (covered in more detail in the Certification section).
The LMS provided the capability to set up open registration (anyone can access a module), or restricted use. Restrictions could be placed on modules by either requiring a user to request access to the module or linking specified modules to specific individuals, groups, or organizations. This was not an issue until we launch our leadership development series where it would be appropriate that only select audiences view specific modules.

## Training Management

The administration of training activity is a nightmare for many companies. The ability to provide up-to-date and accurate training records was critical not only for internal purposes, but for external auditors. These included company’s that we provided product to, who often conducted audits including the training department to ensure that employees were trained and certified in their current positions. In addition we were audited for ISO, QS and other regulatory agencies, who checked our records for thoroughness and accuracy.
We moved our training administrative function from a manually based system, using a number of Excel spreadsheets and databases, to a centralized database using the LMS. The spreadsheets were laden with errors which compromised our credibility. It was also very time consuming, forcing the role of a full time training coordinator to keep up with the tracking and reporting requirements.
The LMS provided us with the capability to track all on-line training activity, on-line testing (pre and post tests), completed and incomplete training activity and individual employee transcripts. It also provided self-service ability for employees to register for instructor led classes and instructor capability to track attendance and scores for test activity within the ILT classes. Reports were presented in a number of formats allowing the option of additional analysis using Excel. Within minutes we were now able to determine usage per training module, average test scores and who did not complete the required training initiatives.
The result was that we reduced the administrative workload by a minimum of 50%. This allowed us to shift the roles and responsibilities of the administrator to a more active training support and instructor role. Eventually we calculated that as we learned more of the features and capabilities of the LMS, our administrative requirements were reduced by 75%! This allowed us to offer more training activity and particularly floor support that was highly valued by our internal customers (manufacturing).
Another highlight was our ability to produce reports on demand for management, external customers and auditors. Employees were also able to view their own training transcripts. Managers could view the training activity of their direct reports. This impressed the auditors who quickly realized that we had our administrative side of the house in order.
Financially, we were able to justify the purchase of the LMS based on the reduced administrative requirements alone. We made simple and conservative estimates with respect to the time it currently took to enter in a training record vs. this being automated with the LMS. The icing on the cake came from the savings it took to prepare training reports. Since the data was easily transferred to our Intranet and managers had ready access to their direct report’s transcripts, requests for training related information was reduced to a minimum, also saving a considerable amount of administrative time and costs.
This also translated into opportunity costs which is the amount of time we could now transfer towards other needed training initiatives. The current administrator began to assume greater roles in conducting re-certifications and ultimately the development and delivery of training materials. She was excited about the opportunity to more directly support the training team. Her role now included the development of certification modules, tests, checklists and conducting the actual certifications. This was well received by the other instructors who no longer had to interrupt their other training initiatives with re-certification requests.

## Certifications

It is my belief that annual certifications for all key positions is a must. All positions are prone to discovering short cuts and voids. Our certifications are rigorous and comprehensive, ensuring to us and management that the employees know the proper procedures and could demonstrate to us that they were able to perform their job to expected levels. For those that were unable to demonstrate this to us, a restricted certification was issued. There were 3 levels of restricted certification depending on the score the employee received. This basically meant that an employee required varying degrees of supervision during the next 90 days. They had one more attempt to pass their certification by the end of this 90 day period. Otherwise, they were no longer permitted to operate in this position.
We revised our certification process to a monthly format. Each month a specified job function needed to be re-certified (e.g. soldering, assembly, machine operator). This helped to organize approximately 18 different annual certifications. Certifications included taking on-line refresher modules, hands-on classes and/or checklists that required the employee to demonstrate the required skills of the position. The on-line modules covered the procedures, step-by-step overview of how to perform key tasks, along with information relating to issues that developed in these roles over the past 12 months. The employees were required to take and pass a knowledge test for each module.
Each on-line module was 15-30 minutes in length. They included still pictures and video segments along with audio. The pictures and video showed the step-by-step and the audio share commentary on what was taking place and any specific notes. Most certifications included a single module that the employee was required to view and pass the post test prior to being judged with the hands-on checklist. In some cases we used the annual certification as an opportunity for up-training. We realized that we had a captive audience that gave us the chance to refer to new procedures, new equipment, steps in the process, etc. In some cases the certification included several modules.
A key benefit to the certification process was eliminating the excuse that training was the problem. Once the employees were certified we were able to convince supervision and management, that the majority of the issues experience on the line were now performance issues vs. training issues. In these cases, employees were directed to review the module once again in order to remind them of what is expected of them. This helped to establish respect for the training department.
Critical to the certification process was the ability to track and report on certification status. The number one request by our external customers was with regards to employee certification status and what was involved with specific certifications. Our LMS included the capability to incorporating certifications. Certifications could be set up to include required module(s) and classes. Once all of the requirements were complete, the employee’s transcript revealed that they held a current certification. We were also able to set up each certification with an expiration date, helping to inform us and the employees when it was time to re-certify.
We were finally in a position to answer the key question of who did not complete the certification requirements. This also provided us with the means to provide management with these reports. Reports were sent out at the end of each month with the list of employees who did not complete that month’s requirements. This served as a powerful tool since managers did not want their department to be well represented on these reports!
Here is an example of how well this new process worked along with some of the savings we accrued as a result of using the new LMS. A new requirement this year was that all plant employees needed to take and pass electro-static discharge (ESD) certification. This included a 30-minute module on the impact ESD can have on the production process, and specific issues that were identified in the plant. Prior to this plant-wide requirement, only employees involved in the production process had to have this certification.
Prior to this method of delivering the ESD certification, employees were required to take a required module in the training department since there was no means to access this module at any other location. The test was then administered manually via paper and had to be corrected by the administrator. If the employee passed, they received a stamp that was placed on their badge and then their name was entered into the ESD certification log. In other cases, classes had to be set up to coordinate multiple employees needing to take the class at specified times. Instructors had to schedule classrooms and their own time for these sessions.
The new process allowed employees to take the module at any time during the designated month. This way they could take this module at their convenience or during down time on a line. This minimized the impact of employees having to be scheduled by their supervisor, having to be covered during production time, or being rushed in order to return to their position.
The ROI in this example was calculated based on approximately 15 minutes of training staff time per employee. This included the time it took to schedule the employee, set them up, administer and correct the test, stamp their badge and enter the training record. Multiply this times 800 employees with a conservative burden rate of $15/hour and the result is $3,000 savings. This did not include the savings related to no longer needing to schedule classes and instructor time. Once again, the savings were associated with 200 more hours of time we could now focus on other training initiatives. So even though this is a relatively small amount, it did not take long to demonstrate to management the ROI we were actually accruing from the purchase of the LMS.
Another benefit was the ease of reporting from the LMS. At the end of each month, we produced a list from the LMS of only those who had completed all of the certification requirements and held a current certification. These lists of names were posted on the Intranet and were accessible by everyone. Quality auditors used these lists during their frequent line audits to ensure that operators had the required certification for their current position. This also eliminated the need to place a stamp on the employee’s badge which everyone was happy about due to the issues that arose with this error prone process.

## On-line testing

Along with each module we created a knowledge based post test using the functionality of the LMS called the Test Builder. These included primarily multiple choice, matching and true/false questions. The LMS provided us with the functionality of pre-tests, although we do not currently use this. Our plans are to in the near future since it will provide a measurement for increase in learning.
The inclusion of the tests helped to ensure that employees viewed the modules in their entirety. This also provided us with a measure to the employee’s overall knowledge for each module. This was useful Level II data to report on. Over time our plans are to measure the change in scores to reflect to some degree the increase in knowledge levels. However, changing module content and test questions minimized the true comparison of this data over time.
We decided to use the feedback capability to provide employees with instant feedback whether they were right or wrong, along with what the correct answer is. This presented a challenge in and of itself, since this meant that employees could learn the correct answer, and by repeating the test, improve their score. Employees also were quick to find ways to “cheat” the system. Even though our pools of questions and randomization feature meant that each employee received different test questions, employees wrote down the responses and used this information to ensure they passed on their 2nd and 3rd attempts. However, it was our decision to stick to this method believing that employees still learned simply by writing the responses down.
To further support this philosophy, it was communicated to every employee that they were responsible for the content of the module. If they were caught not following proper procedure of the information in the module, they would be held accountable and this would result in a performance issue. This was reinforced by the supervision who were also required to view each certification module that related to their production area.

## Technical training

The methodology of tell me, show me, let me, assess me was used to develop all of our technical training materials. Our predicament was that we were always limited in what we could provide based on available training resources to demand. There were always new machine platforms arriving to the plant, new applications, or changes being made to procedures, etc.
The solution came with using a blended approach incorporating on-line learning, OJT and hands-on classroom sessions where necessary. The on-line modules reviewed the theory of the equipment or process, along with a visually guided step-by-step instruction. In effect, the modules covered the Tell Me, Show Me and knowledge portion of the assessment for the training session.
The instructors, who were in many cases the subject matter experts, were able to develop an on-line module in approximately one week. This was increasing our availability of training modules at a rapid pace. In other cases, the instructors met with the SME’s and typical turnaround was approximately 2 weeks per module. The LMS was key to providing a single means of access to these modules. We used the feature of adding comments to the log in page to introduce employees to new modules.
The most significant benefits came from the increased quantity and availability of technical training and in quick manner from inception to delivery. A list of employees requiring the training was obtained and then set up in the LMS as required to take the specified module. At any time we were able to provide completed training reports within minutes of the supervisor’s request. This served as a strong reinforcement to ensuring that required training was indeed completed.
After only a few months, we had over 60 modules available on-line. This was with a staff of 3 technical instructors and an administrator. This averaged out to be approximately 2 modules per instructor per week. The ability to create content within Acadia's latest creation, called the Content Authoring/Management System, was a breeze. Our learning time was less than a day and since the interface is similar to PowerPoint, we were developing courses online to our server within 24 hours. Since CA/MS is a management tool as well, we could store all of our images (or objects) in the repository. This made development and reusing course lessons a cinch.

## New Hire Orientation

Orientation training initially consisted of 2 days of instructor-led training relating to HR paperwork, Safety training, and other required training. Over time the trend required orientation sessions for 1-5 new hires at a time. It quickly became a real challenge to schedule and consume several Bose employees time for these very small sessions.
Our approach was to utilize the new on-line learning capability to streamline the orientation process. All of the training that took place used PowerPoint based presentations. We then met with the presenters (Subject matter experts) and created the script that they would have presented during the session. Using the existing format to orientation, we only had time to cover a few topics. What we quickly realized was that by using the on-line format, we could cover more topics that we agreed were important for new hires to review.
The orientation format was revised so that only Day 1 required HR staff to review paperwork, procedures, etc. During Day 2 they were oriented to the new LMS and were told that they needed to review all of the modules listed in the Orientation catalog. This now consisted of 8 modules covering a wide variety of required training materials (e.g. safety) and orientation training about our manufacturing process. New hires were required to take these modules and pass the post test. They were also provided a tour of our manufacturing center.
What we learned from this process were several key benefits. First of all employees really enjoyed the modules, stating that they learned a lot, and also enjoyed the ability to take these at their own pace. They were able to take breaks as needed. We noticed that everyone was learning at their own pace. Traditionally these lecture oriented modules when delivered in the instructor-led format resulted in putting people to sleep.
In addition we noticed that by the time we conducted the tour, they were more knowledgeable based on the materials they reviewed in the modules. They were now exposed to materials that we did not have time for in the previous format (e.g. manufacturing overview module). We were also able to ensure that before they left for the day that they had completed all of the required training and verify that they passed all of the post tests. All of this information was tracked in the LMS thereby reducing additional administrative demands.
The instructors were also freed up to perform other required training development, floor support or training. Overall we realized that this new format for orientation using on-line learning was much more effective than the previous method.

## Supervisor technical development

One of the biggest challenges going forward is ensuring that supervisors have the required technical knowledge for all of the equipment and processes on their line. This was necessary in part to ensure that the employees were performing their functions to expectation and not using shortcuts or avoiding steps entirely. Supervisors are extremely limited for time, and the idea of attending multiple day sessions to learn each position was not probable.
On-line learning and the LMS provided the perfect alternative. To date the largest volume of on-line modules relates to the technical process. Therefore it provides supervisors and others with a perfect means to acquaint themselves with the wide variety of equipment and processes on their lines. In addition, they are able to review these modules at various times during the day during a very hectic schedule.
The reality of training in a 24/7 environment also supports that a majority to training take place in a self-paced format. The challenge of scheduling classes across shifts and more importantly changing demands on those you would want to participate in these sessions, makes this new format a viable alternative.
However, we also realize that on-line learning alone can not be the sole solution. Due to the technical nature of the material, there would undoubtedly be unanswered questions along with needed information unique to a particular process or line. This is where we realized that the appropriate compliment from our technical trainers is what we refer to as floor support. This provides 1:1 training time with supervisors and employees on materials taught using the on-line system. Most importantly it was out on the floor that we could help to assess the overall performance of their employees and provide development suggestions to the supervisors. It was during this interaction that we realized that the supervisors had the chance to learn more detail about a particular machine or step in the process.
This process of enhancing the technical knowledge of supervisors also spread to other support staff such as line engineers, technicians, etc. In effect we realized that we were creating a knowledge repository of modules relating to specific areas of the manufacturing process that were now available to anyone in the plant.
Overall, the ability to provide on-line learning to supervisors and support staff was the perfect tool to enhance their technical knowledge of their process. This also freed up our instructor time to provide floor support which is the perfect compliment to create a blended learning format without the need for a classroom.

## Leadership Development

Frankly, it was easy to find the fit for technical and orientation training on the LMS. You simply stripped off the knowledge or lecture discussions from what would have been presented in the classroom to an on-line format with audio. What was realized through this process is that the same steps can be used for traditional leadership development curriculum.
While with my previous employer, we offered a wide variety of courses that are typically associated with leadership development (e.g. coaching, feedback, time management, etc.). These courses lasted anywhere from 4 – 8 hours. The first symptom we were experiencing was the attendance was continually dropping off. During our needs assessment it was realized that employees simply did not have the time to invest in the classroom. They wanted to, and understood the benefit, their reality however was that they all had too much on their plates.
We responded by brainstorming ways to deal with this reality and the continuing need for leadership development. The solution once again came from our experience with on-line learning thus far. This was to strip off the knowledge aspect of our leadership classes and place this material on-line. What remained was the simulations, case studies, role plays, etc.
This process was beta tested with a few popular classes. Once again we used only PowerPoint along with appropriate clip art, video segments, audio and animation sequence to create a visually pleasing presentation. However, our challenge was to keep the presentation to no longer than 45 minutes. This we continually found was the maximum window that an employee would be able to devote to self-paced learning. The ideal length of the module was 20-30 minutes. We then offered what we called “follow-up” sessions which were only 2 hours in length. These included a brief review of the on-line material with the remainder of the time devoted to hands-on activities.
Where there was typically discussion about a topic, we included short video segments of one or more employee’s responses or comments. Included were scenarios with possible responses where an employee received audio feedback based on the selection they made. Actual scenarios were also included to tie the material back to their work environment.
The response was overwhelmingly positive. Our attendance rates skyrocketed and actually surpassed earlier record levels when these classes were presented only using instructor-led format. We typically held the sessions in the middle of the week and first thing in the morning.
What we discovered as other benefits from this new blended format are as follows:
* more employees were now involved in taking leadership training
* employees coming into the follow-up sessions did retain the knowledge from the module which allowed us to focus effectively on the hands-on activities.
* employees were using the on-line materials as refresher updates and found this a lot more effective than referring back to manuals, participant guides, etc.
* our observation of activities was that their abilities to demonstrate the new skill sets from the classroom activities, equaled and surpassed the earlier instructor-led only sessions.
* our instructors now had time to deliver more sessions and participate in other training and OD related activities
* these sessions often resulted in more specific OD type interventions to follow-up and support the material covered (e.g. assist an organization to improve their performance management process after their manager attended this training).
* we had greater job security

## Summary

In all, we were able to achieve all of our corporate learning initiatives on a slim budget. To date, we have developed over 80 web-based courses with only 3 instructors (not developers) in less than three months. Of course, much of this material previously existed as a PowerPoint file; however, the CAMS product made the transition to moving courses and developing new courses a breeze.
The final statement that needs to be made is this. Keep it simple. Choose the best tools, not the most expensive. Without a doubt, the Brandon-Hall Report “15 Low Cost Learning Management Systems” is a must.
In many cases I would have liked to have had more time to assess more specific ROI for this investment. However, time did not permit. But, it is without question that there was significant ROI and that this was the right approach to take. Our method is all based on the KISS approach to training. Hire subject matter experts and turn them on to the ability to capture their expertise into a new and exciting on-line format. Install a basic LMS without going broke to enjoy the advantages and benefits referred to in this article. Then, and only then, determine whether the investment is needed to further enhance your multimedia design capability. At this point, I am hesitant to make this next step due to the resources it would involve to get there. The bottom line is that this approach has worked extremely well in both cases and at very minimal expense. Management has recognized these results which has only served to make my job easier and more secure. Not bad for only $30K.

## Technologies Used

The company uses Acadia HCS. Web site: Acadia HCS Home Page.
Those on even tighter budgets may find simpler, less expensive answers via an exploration of any number of free ,online technologies. The architecture offered by free online communities, such as Yahoo Groups or MSN Groups, provide a repository for file and graphic storage, polling features, group email, etc. An entire course catalog could easily be hosted here.
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