There are key steps Learning Managers must incorporate to assure success. They are:
1. Create awareness for ROI in the organisation
For a successful implementation,it is important to create awareness and carry all stakeholders along, this forms part of the cultural change process.
2. Build ROI Capacity and Expertise within the organisation
To ensure sustainability, it is important to build the internal capacity of the L&D team on ROI competence. There are 9 skill areas for building competence in implementing ROI and these are:
o Planning for calculation
o Collecting evaluation data
o Isolating the effects of training
o Converting data to monetary value
o Monitoring programme costs
o Data analysis and ROI calculation
o Implementing the ROI process
o Providing internal consulting on ROI
o Teaching others the ROI process
3. Allocate resources for ROI Measurement
Implementing ROI has to be deliberate and not accidental. It involves serious planning and dedication of resources. Typically, organisations allocate 3–5% of the training budget, as well as a significant amount of time, and implementation of ROI measurement.
4. Start with a pilot
The implementation of ROI is a delicate process, therefore, it is advisable to pick one learning programme e.g. a training course as a pilot to test the implementation methodology. This ensures the L&D team is not spread thin and no step is missed along the way.
5. Communicate ROI results to the entire organisation
Communicating the results is important, even if it were a negative ROI, to reinforce a paradigm shift in the organisation and lock buy-in. What is more important is that people are carried along and know the outcome of the process.
6. Flesh up plans for future training programmes with a view to calculating ROI
ROI implementation is a process improvement tool meant to improve design of learning programmes with a focus on the business outcomes. Upon successful implementation of the ROI methodology, the ROI process should be infused into the L&D Standard Operating Procedures (SOP); by so doing we will have better designed programmes that will achieve better business results.
Measuring ROI may very well be the lifeline many L&D departments need. The extent to which organisations are willing to fund learning, and the regard in which it is held will depend on the extent to which L&D professionals can convincingly demonstrate that learning initiatives deliver on management’s expectations for improved performance.
At Workforce Group, we partner with leading organisations to develop the framework and tools for measuring ROI and we handhold them through the implementation process. Our unique approach enables our clients build internal ROI competencies through co-creation and practical application of the framework.
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