How to justify your learning and development budget

How to justify your L&D budget and add value without measuring ROI www.youlabonline.com Contact Peopletree Talent Analytics, get a free Youlab trial and start managing the key drivers to getting great ROI on your L&D spend Youlab is a product of Peopletree Talent Analytics. Visit us at www.peopletreegroup.com 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 Herb John Anne Pete Cath NEED WANT ACCESS APPLICATION Because John 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 Herb John 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 on John and rather spending it on Herb we change a missed opportunity into a situation that delivers great ROI Poor BEFORE AFTER BEFORE AFTER BEFORE AFTER BEFORE AFTER AFTER Great ROI Poor ROI Great ROI BEFORE Poor ROI No investment Bad ROI Great ROI ROI Good ROI Great ROI 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?

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Transcript of How to justify your learning and development budget

Page 1: How to justify your learning and development budget

How to justify your L&D budget and add value without measuring ROI

www.youlabonline.com

Contact Peopletree Talent Analytics, get a free Youlab trial and start managing the key drivers to getting great ROI on your L&D spend

Youlab is a product of Peopletree Talent Analytics. Visit us at www.peopletreegroup.com

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

Because John 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 spendin terms of employees drivers we can make a real difference

The Solution

ROI

GreatROI

GoodROI

BadROI

PoorROI

MissedOpportunity

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 on John and rather spending it on Herb we change a missed opportunity into a situation that delivers great ROI

PoorROI

BEFORE AFTERBEFORE AFTER BEFORE AFTER BEFORE AFTER AFTER

GreatROI

PoorROI

GreatROI

BEFORE

PoorROIPoorROINo

investment

BadROIBadROI

GreatROI

GoodROI

GreatROI

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 valueOver Investment

in accessLack

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?

NeedDoes the employee need the training?

Application Does the employee get the

chance use their new knowledge in their work?