How to Prove Impact & ROI of Learning

Part 1 - Prelude, The Learning Measurement Maze

A lot learning teams are stuck in a maze. I call this the learning measurement maze, and it's a detriment to a lot of amazing learning teams.

They can't prove how their programs are impactful to the business, nor how they are impacting ROI.

Want proof? 90 percent of CEOs believe that learning is a business solution, but only 8 percent report that training is impacting the business (Chief Learning Officer)

Leaders want clear evidence of how learning programs are growing their business and improving bottom line.

Getting there, however, is hard for a lot of teams who are stuck in a learning measurement maze like the one below.

Learning teams are trying anything to prove ROI of training. The issue, however, is that they are not applying a framework effectively.

In this article, I will share a tool box on how to use learning theory to prove impact and ROI of learning. Do not skip step 4 below, as this is where you can prove causation between learning and key business metrics you are improving.

Part 2: What is training effectiveness?

Training effectiveness measures the impact of training on the trainee’s knowledge, skills, performance, and the company’s ROI. The training’s goals and objectives should be determined before training occurs, allowing these to be clearly and accurately measured.

Why measure it?

1. To determine if the training benefits employees.

2. To see the effect on business performance and determine the training’s ROI.

3. To uncover issues in the training process and improve it.

Best practices for measuring training effectiveness

The following five best practices will make sure you will be able to assess training effectiveness:

1. Have a reasonable number of KPIs. Be selective when making your choice. The more measures you include, the more information you’ll have to work with. But don’t overwhelm yourself with too many.
2. Identify your KPIs before the development phase of your training. Knowing what you want to measure first will enable you to select the most suitable measuring effectiveness method. You may want to consult with key stakeholders first to know which metrics are most important to them.?
3. Plan your data collection schedule in the design phase of your training. Know when you want to measure effectiveness and how you will do this, and build it into your training timeline to ensure you stay organised and manage stakeholder expectations.

Part 3: The Toolbox - Kirkpatrick’s Four-level Training Evaluation Model

- Level 1: Reaction – The first step is to evaluate the learners’ reactions and responses to the training.

- Level 2: Learning – The second step is to measure the knowledge and skills learned during the training.?

- Level 3: Behaviour – Step three assesses the behavioural change (if any and to what extent) due to the training.?

- Level 4: Impact – The final step is to measure the training’s impact on business goals and results.?

Level 1: Reaction

The goal here is to get a good grasp of how satisfied your participants are with your training. In the process, you also notice recurring themes or patterns and potential areas for improvement.?

KPIs: Participation or completion rates/Net promoter score

How do you measure this?

1. Qualitative data: Survey questions for training effectiveness, with open-ended questions.?

Example:

• What topic/section did you find the most valuable?
• Would you recommend this training program to colleagues?

2. Quantitative data: Surveys and/or questionnaires using a scale method.?

Example:

• On a scale of 1-10, how valuable did you find this training?
• How likely would you be to recommend this training program to a colleague???

Level 2: Learning

The learning stage’s goal is to ensure your training has met its intended objectives, identify the skills that your training can develop within learners, and note any knowledge and/or skills that have been learned as a result.

KPIs: Acquired knowledge/skills Transfer of training into daily performance

How do you measure this?

Test learners in the key areas you want to evaluate before the training commences and after. This will bring clarity to what the training has specifically contributed to your learner.?

1. Qualitative data: Pre- and post-interviews with employees. Questions might include:?

Examples:

• How confident are you in your ability to perform in your job since your training?
• What did you learn from your training to help you perform at a higher level in your role??

A peer review would be another way to measure at this level. The trainers or other participants could do this.?

2. Quantitative data: This could include tests and examinations after the training (paper or digital ones) or assessments of learning projects.

Level 3: Behaviour

The behaviour stage’s goal is to see whether or not the employee’s behaviour has changed due to the training received and to what degree. In particular, how has the training influenced their performance and general attitude??

KPIs: Employee engagement/Higher morale

How do you measure this?

Behaviour change is most commonly measured through observations and reviews, pre- and post-training.?

1. Qualitative data: This would include open-ended questions from observers such as:?

• How have you put what you learned in training to use in your job?
• How confident would you be teaching your acquired knowledge and skills to someone else?
• Do you feel like your behaviour is different now than it was before the training??

2. Quantitative data: This may include third-party observation and text mining or analysis from email conversations or personal development plans.?

In this stage, the work environment the trainee returns to plays a large role in whether they can apply their newly acquired skills. If the management and culture don’t support the new behaviour, it will likely revert and be lost.?

Level 4: Results

The final stage’s goal is to evaluate how effective the training program has been in driving results in your business. In this stage, it’s common to measure results like productivity, efficiency, and customer satisfaction.

How do you measure this?

1. Qualitative data: This may include interviews or focus groups.?

For example, customers might be brought in for a focus group and asked about their customer experience and how this has changed over time.?

Managers may be interviewed to determine whether they feel their employees are noticeably more productive or producing higher quality work since the training.?

2. Quantitative data: This includes surveys to measure the perceptions of customers and stakeholders, comparing data on employee turnover and retention rate, and analysing sales and profits before and after the training.??

Part 4 - Final Thoughts:

Become an effective storyteller with data - learning data is great but your ability to provide causation and subsequently translate this into the language of your sponsor and your execs is vital. If they don't constantly see your value, your influence diminishes.

By utilising level 4 effectively, training teams can do the following:

?? L&D can prove how they are impacting key KPIs like attrition, productivity or talent retention (or any other KPI they are tasked to improve).

??Enablement can prove how their programs are impacting bottom line and improving conversion and attainment (demonstrate how enablement improves to bottom line)

??Customer education teams can prove how they are improving NPS, churn or net revenue retention (how CEd is improving customer revenue KPIs)

?? What’s the result? You increase the 8% number from the prelude. Leaders see the ROI from learning teams, leading to increased influence, resources and ultimately budgets.