Take a few moments to reflect on the value of the learning and development programs you organize, deliver, and support. In doing so, consider a few interesting points.
The Value Chain
Most would agree the value of learning is best expressed as levels of outcomes, often referred to as a value chain, which is a logic model, showing how value is delivered.
| Level | % Programs that Should be Evaluated at Each Level Annually* |
| 1. Reaction | 100% |
| 2. Learning | 90-100% |
| 3. Application | 30-40% |
| 4. Impact | 10-20% |
| 5. ROI | 5-10% |
*Best Practice, ROI Institute
Each level builds on the previous, and they are often fully integrated. One is necessary for the next.
The Reality of Where We Are
Showing the value of learning has been a perennial problem. Paula Ketter, former editor of TD Magazine, made this point in an article celebrating 70 years of the magazine. Ketter wrote, “As we examined magazine issues published in the 1940s, we saw some of the same topics discussed then that are relevant today. Proving training’s worth has been a constant pain point for industry professionals, and seven decades later, we are finally seeing training gaining steam in organizations. But there is still much to do.”1
ROI Institute collects data from webinar and conference participants through the statements listed below. Hundreds of individuals have participated in this true-false exercise, and a composite number of those indicating mostly true is shown.
| Statement | % Mostly True Responses |
| Learning is wasted (not used) after the program is conducted. | 78% |
| The learning outcome desired by executives is rarely measured in the organization. | 89% |
| Most learning providers do not have data that show they make a difference in the organization. | 81% |
| Most executives see learning as a cost and not an investment. | 93% |
As you can imagine, those responses make it difficult for executives to invest heavily in learning and development. At the same time, we know learning is needed, is critical for the organization’s success, and is an essential part of the growth of any organization.
What Executives Want
Much research has been reported about what executives want from the learning and development function. In most studies, the number one measure is the business connection—impact. Number two is ROI. That’s reasonable. If you were funding learning and development, you would also want it to connect to the business. The ROI is a reasonable request when spending large amounts of money. You would want to know the value of the investment. But how do you make it work?
Common Sense Challenges
The key is to be selective in the programs you evaluate at Levels 4 and 5, opting for those that are important, critical, expensive, and strategic. As the preceding percentages illustrate, the evaluation needs at each level taper off quickly. However, this still gives you some accountability around those important, expensive, and valuable programs that attract executive attention. Not being able to show the impact and ROI of a major program is a serious problem that requires serious evaluation capabilities. The ROI Methodology®, the most credible evaluation model available, is the most used evaluation system globally.
The Solution
You can learn how to implement this methodology by participating in ROI Certification®, a comprehensive learning course surrounding the ROI Methodology.
During the process, you will:
- Apply the ROI Methodology to a program in your own organization
- Get detailed, first-hand experience with every step
- Learn how to measure the contribution of a variety of performance improvement programs
- Learn how to calculate ROI
- Learn how to enhance program results and improve ROI
- Discover how to translate intangible benefits into monetary values
- Practice presenting results of an ROI study
This work product certification is met only after successfully conducting an ROI study. It’s not based on what you know but on what you have accomplished.
Are you ready to build serious evaluation capability?
We invite you to take a few moments to respond to a short survey. The survey should take you approximately five minutes to complete.
Reference:
- Ketter, Paula. “Celebrating 70 years of TD Magazine,” TD magazine, July 1, 2016.
