Regardless of the level of sophistication in your L&D strategy, its alignment with your organisational goals, and the extent to which you nurture a suitable culture to drive such initiatives, in the end, it comes down to how well all of these initiatives provide an answer to the critical question your CEO would ask: “By how much have we increased revenue, and/or reduced cost as a result of your L&D initiatives?”
Report of a study conducted at the just concluded Learning & Development Leaders’ Conference organised by Workforce Group, indicates that difficulty in getting Executive buy-in ranked highest among the top ten challenges confronting L&D leaders in the discharge of their roles across respective industries.
Finance is the universal language of business and Learning and Development (L&D) professionals who have failed to realize this have paid direly for it.
This new information further reinforces the need and urgency for L&D leaders to develop key competencies in basic finance. The logic is simple, if you cannot speak the language of the business then you cannot sell your L&D initiatives convincingly to executive management, and if you cannot sell your initiatives, then you cannot secure their buy-in.
According to Obinnia Abajue, CEO, Hygeia HMO, a Co-Panelist at the L&D Leaders’ Conference 2018, every initiative must find itself on the income statement of the organisation. Not just on the income statement, but on the revenue side of the income statement. While it is not uncommon to have expenditure associated with L&D initiatives, the net effect of revenue and expenditure on every initiate must equals to a positive.
I believe that basic finance competencies hitherto referred to as non-core to the L&D function have become core to the design and delivery of learning initiatives that have measurable and visible impact on the organisation’s income statement.
“Every initiative must find itself on the income statement of the organisation.”
Obinnia Abajue, CEO, Hygeia HMO
Co-Panelist at the L&D Leaders’ Conference 2018
Join us in our coming series titled “Understanding basic finance terms for HR professionals”Basic understanding of financial models can help L&D professionals build convincing business cases for organisations to invest in cost-effective learning initiatives by leveraging platforms such as Peerless LMS – an effective e-learning platform that has a proven track record of driving down organisation-wide training budgets by as much as 45% across industries, Train-the-Trainer Programme which provides the dual benefits of reducing training cost, and developing a veritable pool of subject matter Trainers within the organisation, and Assessment Centre used in the evaluation and selection of Top Talent with desired competencies to drive organisational growth.