Redefine the Success of a Learning Organization

Patti P. Phillips, Ph.D., Chief Executive Officer ROI Institute, Inc.
Jack J. Phillips, Ph.D., Chairman, ROI Institute, Inc. 

Recently, we visited the director of learning in a prestigious organization, which had invested in a $75 million refurbishment of the corporate learning facility. The state-of-the-art learning space had break-out rooms for collaborative work teams and a variety of technology-enhanced learning processes. We asked our client, “How will you define success of your new center?” We were a little taken back by his response, which we will reveal later.

We live in turbulent times with many uncertainties. Unprecedented innovation and prosperity occur in some areas, but other areas struggle. Learning continues to consume a significant portion of the HR budget of organizations. Some of the top-tier organizations have learning budgets that approach one billion dollars. At the same time, academics and professionals who continue to research the transfer of learning tell us that over half of job-related learning is never used, even though the organization wants application to occur. Add to that, an executive desire to see learning connected to business, and this combination creates a mixture of forces that shape our measurement of a successful learning center. Here are the different ways to think about the success of a learning center:

As a first step, in the box to the left of value description, check the one (only one) that is the most important to you. As a second step, rank each of these statements, in the “Rank” column, including all that apply. Place a number one for the item that you would consider your most important measure of success of your corporate learning function, and continue numbering until the least important measure has the highest number next to it. In the next column, check the value categories that you are measuring now. For example, if you are counting the number of people, time at the center, and the costs, check the first item.

It is sometimes helpful to place labels on these value descriptions. The first label is often referred to as Level 0, Inputs. These data ensure you cycle many people through the system, efficiently. Level 1 is Reaction, ensuring that participants are reacting properly to the learning programs. Level 2 is Learning, where participants are acquiring knowledge and skills. Level 3 is Application, as individuals leave a learning center and take action, using the content. Obviously, this is where a learning center’s team feel that they lose control of the process. In reality, they have much influence on it. Finally, the next two levels are very important. Level 4 is Business Impact, connecting learning to business measures, and Level 5 is Return on Investment (ROI), which compares monetary benefits to costs.

In the next column, indicate how your executives would rank these data items in terms of what is valuable to them, one to six, with one being the most valuable and six, the least valuable. Executives place the most value in business impact and the least in reaction. In the next column indicate the percentage of programs measured annually now at each of the levels. The best practice profile is in the last column, representing the percentages of programs evaluated at each level each year. Usually the current versus best practice reveals very significant gaps.

Now, back to our opening story. Unfortunately, our client defined success as a facility completely full of people, using all the facilities and rooms (Level 0). Then we asked, “What do you think would be the CEO’s measure of success of this new center?” and he thought for a minute and said, “He would probably want to see something connected to the business.” Based on the evidence, that is probably true.

Maybe it is time to rethink how you describe the learning and development function. Maybe you should be more proactive in moving up the value chain. Just remember, when it comes to showing the value of your programs, hope is not a strategy, luck is not a factor, and doing nothing is not an option.