An LMS such as Cornerstone LMS can generate a large amount of data. This data needs to be analyzed in terms of qualities or goals that are achieved or key characteristics exhibited.
These are rightly called key performance indicators. There is a set of standard KPIs or Key Performance Indicators, which are-
This KPI concerns itself with the utilization of the content created. The content was utilized by whom and in what quantity.
2. Completion percentage-
The next KPI concerns itself with the proportion of the course completed by various users in different sessions.
The users of the LMS rate the software as successful or as useful, engaging, or interesting.
4. Time spent-
The amount of time that was spent on the various sections and activities of the LMS.
Few points to be kept in mind before formulating the KPI are-
- ROI= Cost vs Value
The comparison of the cost of the LMS to the value received by the user results in the return of investment. The cost in itself can be broken down into the cost of the deliverance of training, the cost of LMS, and its development cost. Plus it also includes the time cost of the trainees and the final value achieved by using the LMS.
The value of the LMS in question is dependent on the goals set initially. It can be employee retention, smoother onboarding, hiring process, increase in compliance, etc.
For compliance programs, you could measure successful audits for skill-building and performance metrics, and for soft skills, the engagement surveys are the best bet.
- Application of skills
Next comes the application of skills which is very important to track. Absorption and application of the concepts can be tracked and evaluated by the end of the session tests. This helps to evaluate not only the performance of the trainees but also of the trainers and training program.
- Time of learning
The next point of evaluation can be the time taken by the trainees to go through the said training. If the maximum learners are completing the lesson in less than the stipulated time, that does not necessarily indicate the talent of the class but can be due to oversimplification and the concept needs to be tweaked to reach the level of the course required.
- Training system consideration
The whole of the training system needs to be evaluated for its effectiveness. But the problem is that the LMSs still remain a part of the training program rather than every training happening through them. This brings forth the problem that LMS KPIs can be measured and in turn evaluated, which is not possible in the case of the rest of the training program. The multiple parallel systems of training pose a problem of definitive evaluation and in turn, raises questions regarding the effectiveness of the whole training program.
- Profit as a bottom line of performance
Although employee retention or engagement and how much fun and interesting the session is, at the end of the day the company needs performance in the form of numbers. In today’s sales-driven environment, the organization might want to know the exact value in the form of numbers which is added due to the LMS. Customer satisfaction, increased efficiency, increase in orders, etc. might be the final driving qualities needed from the LMS and the KPIs are actually built around them to be able to measure the bottom line of performance and evaluate it.
Thus, the Formulation of KPIs is as much instinct as it is science. It needs to be given proper thought and consideration. You can an LMS that lets you easily build KPIs around the required qualities and outcomes.