Why I’m prepared to be unpopular and talk about ROI?
ROI is all about the journey and critics who dismiss it is as being irrelevant have missed the point. My recent video on LinkedIn shares why I’m prepared to be unpopular and talk about ROI.
In this post, I’m asking you to consider if now is the right time for YOU to invest in ROI.
If you’d like to be involved in a conversation about ROI and much, much more, join Patti Phillips, PhD, for a webinar this Thursday, May 9th at 9am AEST, on the Business Case for Learning.
It is essential in today’s business environment to demonstrate an impact from training initiatives.
Yet the ROI Institute® surveyed CEOs from several Fortune 500 companies and found that just 8% of respondents reported their business currently measured training impact, even though 96% said it was their number one priority.
A 2016 CLO study suggested that the measurement landscape was beginning to change for the better, yet they found a focus remains on happy sheets and knowledge quizzes, with less than 50% measuring retention. And I would argue what we really want to be assessing is the impact that retention can bring.
It’s time for learning professionals to step up and embrace measurement and ROI so that they can establish the impact learning has on wider business outcomes.
It’s clear that ROI remains a challenge for many. But for learning teams wanting to robustly demonstrate and share the value they contribute to an organisation, measurement of ROI is key.
Of course, the level of commitment to learning measurement will depend on a number of factors.
How do you know if it’s time to invest in ROI?
Well, firstly it will really depend on how strategically important the initiative is. I stand firm with Jack and Patti Phillips of the ROI Institute® in that seeking to measure ROI of every program is inappropriate, but for strategic initiatives it can be very beneficial. The ROI Institute® recommends when setting evaluation targets that only 5-10% of initiatives should be measured to ROI level.
Secondly, I’d ask you to consider whether you are trying to measure the ROI or create the ROI. It’s important to understand that you need different strategies for the two different angles. To create the ROI you need a transfer methodology and to measure the ROI, an evaluation strategy is best.
Thirdly, of course, if internal stakeholders are asking for it, then what’s stopping you? Get on that ROI train!
And lastly, you’ll know it’s time to invest in ROI when you’re excited and you want to shout about your learning results from the rooftops! Then get clear on the results you want to demonstrate to the business and get measuring.
The ROI Institute® are leaders in the field of evaluation, having written 50 books on the subject. While many think of the ROI Institute® as being only about ROI, it is much more than that. If you’re thinking that you don’t need ROI, but you’d like to know the level of impact you’re having, the ROI framework can guide you through the five levels of measurement and evaluation. The Phillips’ business alignment model emphasises the importance of tying evaluation to objectives. For evaluation to be truly effective, we must start with the end in mind. Only when we set the objectives at the start can we effectively evaluate against those objectives at the end.
Join us on May 8/9 for a webinar with Patti Phillips, PhD, from the ROI Institute:
The Business Case for Learning. Discover the eight steps to building the case for investing in people and techniques to seamlessly integrate measurement, evaluation and analytics into your programs, projects and practices.