Doing Nothing is a Decision

By Patti P. Phillips, Ph.D., and Jack J. Phillips, Ph.D.

Last year, we were working with a CLO and the L&D team to build more business connections to learning and development. They were making the decision to measure their key programs all the way to the impact and a few to the ROI level. Also, they were changing the way in which they initiate programs, making sure they start with why with very clear business measures before they move forward with them. These efforts are fundamental and necessary in todayโ€™s environment. Those individuals who provide funds for our programs and support our programs would expect nothing less than a clear connection to the business. Yet, we had an interesting conversation with this group. Someone on the team said, โ€˜We should have done this year ago.โ€ Others said, โ€œAt least five years ago, we should have done this.โ€ They were almost debating when they should have started implementing impact and ROI evaluations when the CLO stepped up and said, โ€œYes, it would have been better to start this long ago, but we didnโ€™t. Thereโ€™s nothing like doing it now.โ€

The reality is we have known how to connect learning to business measures for a long time. Yet, there was complacency. Many teams have said, โ€œNo one is making us do this, there is no request for this, and there is no pressure for doing thisโ€”so why should we do it?

The challenge of a good leader is to look ahead and prevent negative or adverse situations. Currently, the big criticism in the USA is that our leaders did not prepare well for the COVID-19 pandemic. But, some argue that even better leaders work hard to prevent the crisis, and if there is a crisis, they are fully prepared to address it so that it does not become a devasting situation.

There is no doubt that this pandemic is forcing many organizations to rethink and reduce budgets. With the recession that is going to be with this country for some time, some are predicting that unemployment will still be at 9 percent in 18 months. The economic forecast is bleak.

We have been a part of budget-cutting and cost reductions in the last two recessions, and we know the drill. Most of you have seen this before. Executives cut the parts of the budget that they think are not absolutely necessary, or at least not necessary at this time. Typical targets are topics like leadership, culture, change management, all the soft skills programs because they donโ€™t have a clear picture of the value of those programs. Soon, we will see many examples of where huge cuts have been made in these areas. In some cases, we will see a complete abandonment of soft skills.

We know that one well-respected organization, that should still have a bright future, is debating whether or not the talent management function should be completely eliminated. This is a horrible idea and we could blame this action on ill-advised leaders or leaders who donโ€™t fully understand the value of investing in people. We can blame them, but that gets us nowhere.

As the cartoon character Pogo once said, โ€œWe have met the enemy, and he is us.โ€ Maybe we should have provided the business value of our programs to these executives, even if they didnโ€™t ask for it. This would implant an image that soft skills drive business value. Maybe executives would think twice before cutting the soft skills budget.

Yes, we should have made that decision some years ago, but we did not. And yes, thereโ€™s nothing like doing it now. Here are seven actions you can take right now to help protect you and your team from these awful budget cuts that are undoubtedly coming, if not already here:

  1. Measure the impact and perhaps ROI of a major L&D program now. Think about a program that has been recently conducted. Now is the time to collect data for Level 3 (Application) and Level 4 (Impact), and maybe even Level 5 (ROI). This is not the ideal scenario because you didn’t necessarily plan for the L&D program to deliver the business results, but you may be surprised at the success. If itโ€™s not successful, you will know what to change to make it successful. The No. 1 type of project for human capital analytics teams is measuring ROI.
  2. Ensure that virtual L&D programs are effective. With so many HR programs now shifting to virtual delivery, we need to ensure that they are working, particularly at Level 3 (Application), Level 4 (Impact), and maybe even Level 5 (ROI). Unfortunately, there is a problem with many virtual programs breaking down at levels three and fourโ€”not delivering application and impact.
  3. Update your measurement and evaluation strategy. If your evaluation or analytics haven’t focused on connecting to the business for major L&D programs, then it’s time to make a change. Adjust your strategy. Make a plan now of what you can do differently with your programs going forward.
  4. Design future L&D programs to deliver results. Important new programs should start with why, and the โ€œwhyโ€ is a business measure. And the proposed HR program must be the right solution to drive business measures. SMART objectives are needed, not only for reaction and learning but for application and impact as well. This provides the focus you will need to deliver results.
  5. Capture more executive-friendly reaction measures. Reaction to L&D programs is always captured. Executives are more interested in measures such as relevance, importance, intent to use, and recommendation to others. Steer away from happiness measures that may not get them excited.
  6. Be prepared to forecast the impact and ROI of a major L&D initiative. The only way a new program may be approved and implemented in the post-pandemic era might be to provide a forecast in advance. This will be the new normal for many and you have to be prepared to do it.
  7. Share the joy of delivering and measuring business results. The effort to connect L&D to the business is not solely the responsibility of the analytics team. The entire teamโ€”from analysts, designers, developers, facilitators, participants, and the managers of the participantsโ€”everyone on the team has a role in this critical process.

These are doable processes now. More detail is provided in our new book, Proving the Value of Soft Skills, which will be published in July. If you need any assistance or support from ROI Institute, please let us know.