The Value of Learning

February 9, 2015

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“Your organization spends over 10% of the annual

budget on learning.

Because it is driving your business, it is important to

develop human talent and utilizing human capital.

Is every learning activity giving you the value the

learner desires and the organization deserves?

We know it isn’t.

Showing the value of learning is our core business.

To accelerate business impact, increase performance

and prove learning outcomes.

Helping you to make money, save money and avoid

cost using learning analytics”

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“Your organization spends over 10% of the annual

budget on learning.

Because it is driving your business, it is important to

develop human talent and utilizing human capital.

Is every learning activity giving you the value the

learner desires and the organization deserves?

We know it isn’t.

Showing the value of learning is our core business.

To accelerate business impact, increase performance

and prove learning outcomes.

Helping you to make money, save money and avoid

cost using learning analytics”

“If learning has value,

show the value,

otherwise it will be cost,

cost will be cut”

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Example: leadership program

2000 leaders

Two day program

Top Consultancy firm

Facilitators: Board Members, Iceman, …

Lodging

Preparation 8 men fulltime 3 months

Cost (or investment?)

2000 * 2 days = 4000 labor days

4000/200 = 200 Men Year * €100.000 euro = €2.000.000

€ 250.000

€ 75.000

€ 90.000

2 Men Year * € 75.000

€ 2.490.000

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Reflection: What is your investment today?

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Labor time (cost or opportunity cost) _ _ _ _

Investment of the day _ _ _ _

Cost of travel _ _ _ _

Lodging _ _ _ _

Other _ _ _ _

Total _ _ _ _

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Burning Questions?

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What does it take to convince my manager that investments in our people

are not only costs but above all profit?

How do you evaluate the effectiveness of a learning curriculum?

What specific data is required?

How can we relate the measurement making sure the efforts in all fields

contribute to the mission / strategy?

Is it possible to isolate the effects of my program from other factors?

Is it appropriate to do ROI for every program?

Who is using the ROI methodology?

How does ROI in human resources and learning initiatives relate to the ROI

used by the financial staff?

…

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The next 60 minutes …

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(very ) Brief introduction of ROINavigator

The Future of Learning

The ROI of a MD programof a car dealer

Forecasting Utilization

Side steps…

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Meeting the Scene

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• ROI Institute™ is a global organization

• The ROI Methodology™ is implemented in 5.000 organizations, 8.500 professionals attended the certification; 4.000 are Certified ROI Professional (CRP); 50.000 professionals have participated in two-day ROI workshops; 70 books published in 38 languages

• ROI Institute™ has 30 international partners with a global network of 5.000 members

• Phillips Analytics ™ has a benchmarking database over 10 million surveys, 450.000 learning reports and over 40 corporate annual Learning Analytics studies

• Phillips Analytics™ is a private Cloud (Software as a Service), connectable with all learning and HR systems

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The future of learning… is now

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Learning will increase.

The way of learning will develop permanently.

Learning & Performance will overlap.

The use of informal learning will increase.

Intangibles will be ‘evidence based’.

Learning leaders will have a business background.

Co-creation will dominate learning & development.

Learning will be core business.

If it cannot be measured, it cannot be improved.

The CFO will be more involved in learning & development.

Refer to ‘De Waarde van Leren’ (The Value of Learning) (2013) , page 92 cont. by R. de Rijk, K. Toes. P. Phillips, J. Phillips

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Designed Program

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Voorbeeld:Automotive

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Designed Program

13

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Reaction: 8,9Planned A: 78%

40% Increasedcompetencies

17% utilization

7,7 %increase sales

ROI: 9%

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Leadership and Business Impact

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Decrease in Absenteeism 2000 euro per leader € 4.000.000

Increase profit 3000 per leader € 6.000.000

Value: € 10.000.000

Isolation 40%

Program Benefits € 4.000.000

Cost € 2.490.000

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The ROI of a Leadership Program

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It’s that easy