tag:blogger.com,1999:blog-2260386361173493099.post6016893919394655820..comments2023-05-29T08:41:58.911-07:00Comments on A Learning Quest: What's the ROI on ROI?Mattiashttp://www.blogger.com/profile/08296298298489848225noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-2260386361173493099.post-53652352179964346892012-02-02T05:18:48.742-08:002012-02-02T05:18:48.742-08:00I share the same experience. I have never really b...I share the same experience. I have never really been involved in conducting a proper ROI although I have worked in dozens and dozens of training projects. Having said that, some projects have been evaluated according to a set of KPI (Key Performance Indicators). I remember one project especially well since it measured rate of change. In this I got data which represented the behavior of abandoning the old, safe and familiar IT system tool for the new tool. I also remember the top management commenting some like "We don't really need a ROI - the fact that we manage to complete the migration in 2 months instead of two years is all I need to proclaim a total success".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2260386361173493099.post-79340527808650623572011-05-19T03:05:52.569-07:002011-05-19T03:05:52.569-07:00Hi David,
Thanks for dropping by and taking the t...Hi David,<br /><br />Thanks for dropping by and taking the time to comment.<br /><br />I absolutely agree with you that we should be able to show business value of the learning interventions. The problem with doing so is that there are so many factors that influence the business, learning is just one factor. The risk with showing ROI on a learning intervention is that you see learning as an isolated event instead of lokking at it as part of a context.<br /><br />I tink the business itself must be responsible for measuring the business. If sales have gone up and the co-workers have changed the ways of working according to our expectation, then that should be enough. There is no point in doiong a calculation like you propose since we know that the answer is really no the truth. There are just too many other factors that influence the business (world economics, competitor offers, weather, commercial drives, reduced price and so on). Sure you would show a great ROI figure but is it really worth anything?<br /><br />Say you were working with L&D for a jewelry retailer and you launched a new sales training right when the big recesion made sales drop like a stone. If you would then do a calculation of ROI I guess you could start looking for a new job.<br /><br />Of course this example is extreme, but I just wanted to show that doing the kind of calculation yoi suggest doesn't give the full picture.<br /><br />Maybe I am completely wrong about this, I am just trying to understand of ROI is of any importance at all, and if so how do you actually do it?<br /><br />Thanks again and I hope I wasn't too hard in ts comment .<br />/MattiasMattiashttps://www.blogger.com/profile/08296298298489848225noreply@blogger.comtag:blogger.com,1999:blog-2260386361173493099.post-71096679047951506532011-05-19T02:29:21.059-07:002011-05-19T02:29:21.059-07:00Hej Mattias,
I think ROI can be valid if it's...Hej Mattias,<br /><br />I think ROI can be valid if it's connected to the business objectives for the learning/performance intervention. Ie if the business goal is increased upselling then a reasonable expectation is that sales staff use techniques learnt to find other products of value to a custome, and that a quantifiable increase in income is achieved. Compare that to development and delivery costs and voila! ROI :)<br /><br />Most projects aren't like that though. Business and performance objectives may be soft (intangible) or missing altogether. In which case ROI is an artificial measure without meaning. <br /><br />I do think we should be able to demonstrate real business value in anything we do, but that that can take many forms. We should at least plan to be able to measure. If then the people that own the yardstick don't bother to measure - that's another matter.<br /><br />/DavidDavidhttps://www.blogger.com/profile/11326105553835907899noreply@blogger.comtag:blogger.com,1999:blog-2260386361173493099.post-15114247420010555682011-05-17T11:35:47.244-07:002011-05-17T11:35:47.244-07:00Hi Kelly,
Thanks for the reply. I agree with you ...Hi Kelly,<br /><br />Thanks for the reply. I agree with you in many ways. I also think that the reason why some people are asked for ROI is that they work in departments (often HR, if I dare say so) that sit far away from the actual business. So when they propose something the business reacts in a negative way simply because they don't feel it is connected to their needs. <br /><br />I strongly believe that by working in close co-operation with the business there is no need for them to ask for ROI.<br /><br />Once again, thans for the response!Mattiashttps://www.blogger.com/profile/08296298298489848225noreply@blogger.comtag:blogger.com,1999:blog-2260386361173493099.post-28693361639117097052011-05-17T09:28:53.389-07:002011-05-17T09:28:53.389-07:00I think individuals who are being asked to prove t...I think individuals who are being asked to prove the ROI on their activities are perhaps those that are in a failing organization and perhaps one that's grasping at straws to figure out how to improve their financial picture. <br /><br />A responsible manager should have enough contact with the work he or she manages that a measure of ROI is meaningless. It's also probably a huge compliment to your work that you are not asked to demonstrate the ROI of your work: Clearly, your colleagues experience and observe the impact of your work on an ongoing basis!Anonymousnoreply@blogger.com