How to justify your L&D budget and add value without measuring ROI. By changing focus from measuring ROI to managing the drivers of successful L&D programs

1. How to justify your L&D budget
and add value without measuring ROI
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Stop measuring ROI and start managing
the drivers of successful L&D programmes
In order for investment in L&D to offer good ROI
people trained need 4 drivers which need to be managed
By changing focus from measuring ROI to managing the drivers of successful L&D programmes
The Problem
HerbJohn Anne Pete Cath
NEED
WANT
ACCESS
APPLICATION
BecauseJohn neither
wants, needs nor can apply
the training the company
gets no ROI on their L&D
investment in him
Anne doesn't want the
training she is given so is
unlikely to take it seriously
and therefore unlikely to
apply it in her work.
Although Pete needs and
wants the training he
doesn't get the chance to
apply the training .
The only person that
shows a good ROI on
investment is Cath. Thats
because she is the only
person trained who needs,
wants, has access to and
can apply it.
Herb doesn't get access
to training because we
haven’t identified him.
Although no money is
spent on him we could
have got a great return
on money we would
have spent.
By applying good information and managing L&D spend
in terms of employees drivers we can make a real difference
The Solution
ROI
Great
ROI
Good
ROI
Bad
ROI
Poor
ROI
Missed
Opportunity
HerbJohn Anne Pete Cath
NEED
WANT
ACCESS
APPLICATION
ROI
By understanding that
John would be a poor
candidate for training and
not sending him on training
the business makes no
investment in him. Instead
the money for training is
spent on Herb.
By incentivising Anne so
that she wants training or
putting her on training that
she does want as well as
ensuring that she applies
her training the return on
investment on her goes
from poor to good
Ensuring that Pete gets the
opportunity to apply his
training the ROI on it
moves from good to great
The only person that
shows a good ROI on
investment is Cath. Thats
because she is the only
person trained who needs,
wants, has access to and
can apply it.
By spending the money
we would have onJohn
and rather spending it on
Herb we change a missed
opportunity into a situation
that delivers great ROI
Poor
ROI
BEFORE AFTERBEFORE AFTER BEFORE AFTER BEFORE AFTER AFTER
Great
ROI
Poor
ROI
Great
ROI
BEFORE
Poor
ROI
Poor
ROINo
investment
Bad
ROI
Bad
ROI
Great
ROI
Good
ROI
Good
ROI
Great
ROI
Great
ROI
Great
ROI
Lack of information leads to an over investment in access
to the detriment of needs, wants and application and
resultant loss of value
WHY? Loss
of value
Over Investment
in access
Lack
of information
Why we usually realize so little value from our L&D spend because ACCESS to training is given to employees we
BELIEVE access to training without taking into account whether they NEED, WANT or can APPLY that training.
Access
Does the employee have
access to relevant training?
Want
Does the employee
want to do the training?
Need
Does the employee
need the training?
??
Application
Does the employee get the
chance use their new
knowledge in their work?