
A request to measure the success of learning and development at the business impact and ROI levels usually creates much frustration among the L&D community. Most professionals do not know how to do this. Others are concerned that their programs may not be connected to the business, and measuring the success at impact and ROI may cause some negative perceptions of their particular initiatives. Still, others think the process of connecting learning to the business is too difficult and too time-consuming. However, these are not valid assumptions. Reality Four realities are occurring in today’s learning and development environment, globally. 1. Most top executives want learning and development to be aligned with the business. Business measures exist in corporations, government agencies, NGOs, and even nonprofits. Business measures include output, quality, cost, and time. Sponsors of programs want to see L&D connected to these important measures.
2. The concept of ROI is familiar to most people. We use ROI in almost every purchasing decision we make. We compare the benefits we are receiving to the cost of the product or service. If we think the benefits will outweigh the costs, we buy; if not, we don’t. The finance and accounting fields provide a process to calculate the ROI. Centuries ago, governments created a concept called benefit-cost analysis, which includes the same data as the ROI calculation. Thus, benefit-cost ratio (BCR) and ROI are not new. What is new, is the frequency that ROI is being requested, and sometimes even required, by those who fund programs that are expensive, strategic, and important. 3. Connecting learning and development to the business is not that difficult. This can be accomplished without complex mathematics or confusing financial calculations. There are simple, logical processes that can be followed for any project or program that you want to evaluate at that level. The challenge is that many L&D professionals do not know how to do this. The ROI Learning Center addresses this challenge. 4. Thousands of L&D professionals are routinely doing this. By connecting L&D to business measures, they enjoy better budgets, productive business partnerships, and improved stakeholder support. Also, they have proof that L&D makes a difference in their organization, a difference that executives can understand, appreciate, and accept. Our Goal The ROI Learning Center provides tools, templates, and case studies to help prepare you for success in today's environment. Our goal is to take the mystery out of the ROI process. Using the methodology will better position you to find success in today's environment and help your organization thrive in today’s new reality. Start at Level 1 and explore each level at your own pace. Each of the five levels will bring you closer to calculating the ROI of your program or project. There is also a calculator to help you calculate ROI when you have the appropriate data. We think you will find the ROI Learning Center helpful. Thanks to Training Magazine Network for offering this resource to its network members. As always, please share your feedback about the ROI Learning Center so we can make it a more effective resource for you. Enjoy the journey, Patti and Jack Phillips ![]()
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