There is a lot of rhetoric about how to effectively validate learning effectiveness, and yes, much of it is rhetoric and misleading advice. No one disputes that learning must be effective and accountable; however, don’t confuse these two distinct requirements. To communicate learning effectiveness to business leaders, you must clearly define your initiative’s validity relative to how it aligns with Kirkpatrick’s Level 3 and 4 expectations.
“Validity” begins with how business leaders allocate available resources for proposed initiatives. Managers are under tremendous pressure to achieve specific business objectives by leveraging scarce financial and human resources. They base decisions on how well each initiative utilizes available resources to achieve these objectives. Simply put, leaders validate each initiative’s effectiveness in relation to how well they achieve business objectives.
The first myth about learning effectiveness is that learning professionals must financially prove the results for their initiatives. This is inaccurate. Business leaders generally view training in one of three ways:
- As a necessary requirement. Leaders treat the majority of training as an expense and don’t usually measure its effectiveness (such as onboarding).
- As part of a major effort. In this instance leaders view training as a component of a major business initiative (such as a new product launch).
- As a tangible capital investment. This is a significant tangible learning investment required for the long-term return it presents to the organization (such as an LMS or e-learning technology).
Making your case
Here’s a typical example of how business leaders financially measure training. You propose a multiyear blended learning initiative involving an e-learning component. Business leaders measure the tangible components (e-learning technology, LMS) as the investment, measuring the long-term return through a financial calculation (such as net present value, payback, or the like). But they financially measure the actual training activity only as a business expense.
With this in mind, those responsible for learning activities must present a clear business case that addresses why a leader should accept, let alone implement, a specific initiative. This is where it gets a little messy. Learning professionals are inundated with the financial management term return-on-investment. But ROI falls short when trying to properly evaluate training and further undermines learning credibility with formally educated business leaders.
First, building an effective business case for any learning initiative requires management support. Make sure you differentiate between what business leaders refer to as training expense and a learning initiative. Don’t waste your time attempting to validate typical training expenses. Validate only when training is a component of a major business initiative or is a significant tangible investment.
Next, identify performance expectations. For learning professionals this is Level 3 and 4, where business leaders refer to performance management. Honestly, business leaders don’t care how you improve employee performance (L3), only that performance improves to achieve specific business objectives (L4).
Finally, building a credible business case for learning initiatives requires understanding how your leadership measures the initiative’s financial accountability. Here’s a hint: They don’t use ROI. Business leaders clearly differentiate investments and expenses—and training is an expense, not an investment. Leaders conduct ROI only on tangible investments contributing to long-term growth. Many learning experts argue that learning is an investment because it contributes to long-term growth. According to accounting guidelines, this statement is false since learning outcomes are intangible. Plus, it is difficult to prove learning’s long-term contribution to growth.
Before using any type of evaluation methodology, think about how business leaders will perceive your proposal. Business leaders are regularly pitched many business initiatives and must make well-supported decisions that aim to achieve organizational objectives. Incorrectly applying management accounting measures without a proper business case reduces your chances of success and further undermines your credibility.
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