How to justify your learning and development budget
1
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
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
GoodROI
GreatROI
GreatROI
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?
