Measuring training ROI without inventing numbers
This is a very common question which Learning practitioners encounter from people and organizations who are custodians of the learning budgets.
Introduction
This is a very common question which Learning practitioners encounter from people and organizations who are custodians of the learning budgets.
A very vast subject to deal but a few ground level steps can help to align towards the point of brining in accountability of training
The starting point is to clearly distinguish training spend – Whether this is an expenditure or an investment?
It is worthwhile to consider training as an investment as it has impacts over longer periods of time usually traversing beyond the mere accounting year.
Like any other investment, the following questions need to be answered before we embark on a Learning intervention. This applies to both the seeker and provider to exactly arrive at what can be impacted and how it can be measured.
Organizations fail to establish the three above steps to arrive at a mature way to determine
Three stages in the Chain of Performance
1. Performance Readiness
a. Participants readiness to execute the targeted objective
b. Tasks in the work setting
2. Execution in the Work Setting
a. Management reinforcements
b. Corrective action to eliminate ineffective habits
3. Business Outcomes
a. Verifiable changes in the business outcomes
b. Organization records and credible sources
The measurement involves the following steps broadly
4 phases, 11 Steps, Detailed understanding and measurements, transparent manner in sharing data between the training partner and the organization and an immense amount of transparency.
Hence, a mere cursory question like “What is the ROI”? posed by the custodians on the training budgets is not enough and does not serve the purpose.
It is far more serious exercise and commitment from both the organization and the training partner