Summary of CIPD Research into Practice report
Reports on a research project which explored how organisations are measuring and reporting on the contribution of learning to strategic value. The work was carried out by a University of Portsmouth Business School team led by Dr Valerie Anderson. Please visit our Bookstore for further details of the report and to find out how to order.
The report highlights the need to build on, and move beyond, traditional approaches to training evaluation, and offers a new model of value and evaluation. It argues that learning practitioners should move away from a ‘one-size-fits-all’ approach to evaluation. It is the value expectations of stakeholders that should inform the choice of measures used to report on the contribution that learning makes to the organisation.
It draws on data gathered from learning, training and development (LTD) practitioners and senior operational managers in 12 organisations:
- Canon UK and Ireland
- Christian Aid
- Clifford Chance
- Dublin City Council
- The Football Association
- Glasgow Housing Association
- The Innovation Group plc
- Lyreco UK Ltd
- National Audit Office
- Schaeffler (UK) Ltd
- Tesco,com
- VT plc
The research shows how key organisational stakeholders expect learning to add value. Such value is delivered through contributing to infrastructure effectiveness and through the achievement of strategic differentiation. The research also demonstrates that, while some direct correlation of the LTD contribution and the ‘bottom line’ is possible, learning also contributes to longer-term and less tangible organisational outcomes.
Traditional approaches to training evaluation advocate a series of levels to assess the effects of individual learning and training activities. These levels take into account learners’ reactions to the learning experience, the learning achievements of participants, changes in their job behaviour and the organisational effect of specific learning interventions. There is abundant evidence, however, that applying traditional evaluation approaches to strategic learning processes may be problematic. In particular, traditional approaches to evaluation set out to prove the merit of specific learning interventions and to demonstrate their cost-effective delivery. Such proof, however, while identifying that the trainer has done good work, does not necessarily assess the extent of the alignment of the training intervention with the organisation’s strategic priorities. The developing role of the LTD professional and the requirement for a more strategic contribution requires a new approach to value and evaluation.
The research shows that most organisations still have some way to go with the development of appropriate measures. However, the following four factors influence the way that learning is valued:
- senior management trust in the learning contribution
- organisational requirement for learning value metrics
- the strategic significance of short-term capability requirements
- the strategic significance of long-term capability requirements.
. This report explores the alignment of learning processes with organisational priorities. Strategic priorities change over time and learning activities are funded through a variety of different budgets. Therefore, constructive dialogue with organisational stakeholders is essential. Alignment, like strategic evaluation, is both an outcome and a process.
Both the challenges and opportunities for measuring and reporting on the value of learning are considered. Qualitative as well as quantitative assessments of the value of learning are needed and four main approaches to measuring and reporting on value are identified:
- learning function efficiency measures
- key performance indicators and benchmark measures
- return on investment measures
- return on expectation measures.
The research identifies two important trends. First, measures of performance against key performance indicators and benchmarks are frequently used to assess the strategic value of learning. Second, very few organisations find return on investment metrics to be appropriate as a strategic measure of the value of learning. Instead, return on expectation measures, which make use of both ‘hard’ numerical and ‘soft’ qualitative information, are more effective. It is this second trend, the move from return on investment to return on expectation, that offers the most exciting opportunity for the LTD professionals of the future to demonstrate their value to the organisation.
ANDERSON, V., (2007) The Value of Learning: From return on investment to return on expectation. ‘Research into practice’ report. London: CIPD.