The Value of Learning Analytics

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

With 31 percent of IQPC survey respondents indicating their organizations invest less than $50,000 in annual budget to spend on learning analytics, it’s no wonder we cannot move the needle on learning and development’s contribution to the business. Sure, we’ve made strides over the decades. But the fact remains, when a problem or opportunity exists, learning programs are randomly thrown at it as if they were strands of spaghetti being removed from a pot of boiling water and tossed at the cabinet door to see if they are done.

Learning and development is a value creator.

Learning and development is not a quick fix nor a mere treatment for a symptom. It is a value creating process. Unfortunately, it is not always perceived as such. Blame for this lack of understanding can be shared across the organization. Supervisors want their problem solved and they view training as the answer. Learning professionals fail to ask enough questions to get to the heart of the matter and pick the wrong solution. Suppliers of solutions want to sell their products, deliver them, and hope no one asks for the ROI.

But another culprit is learning analytics – or rather, how organization leaders view and use analytics.

Analytics is more than metrics and reports.

Depending on who you ask, the definition of learning analytics ranges anywhere from reporting learning activity to predicting outcomes to demonstrating the ROI. Those investing in ubiquitous learning environments enjoy the inherent data collection and analysis that come with these technologies. Course managers can more easily than ever determine who is interacting within the learning environment; the time they spend interacting; and with whom and how long they connect with their colleagues. However, two questions come to mind:

• Do the data from analytics answer relevant questions?
• Does anyone act on the answers to those questions?

The value of analytics stems from actions based on insights.

Lack of metrics is not a concern when it comes to learning analytics. Lack of meaningful metrics is the concern. More importantly, if actions are not taken as a result of the data, learning analytics will not add value. This results in low-to-no funding for the analytics practice. According to a recent study by Tom Davenport, while HR as a whole is likely the most analytics-driven function in an organization, research also shows that the area needing the most improvement is acting on data.

Analytics enables us to

• Identify the problems and opportunities organizations face.
• Place monetary value on those problems and opportunities.
• Identify feasible solutions given the context in which the organization is operating.
• Predict the outcomes of solutions.
• Prescribe solutions based on need.
• Describe the impact and ROI of solutions.
• Capture worker capabilities — not just those developed through in-house learning and experiences; but those developed externally as well.
• Match workforce capability with project needs, eliminating functional boundaries that limit organization agility.
• Change the questions being asked about learning programs and inform the responses in such a way that they are meaningful to the audience.
• Improve programs, projects, and processes.
• Design learning programs that create value.

The questions we have for you are: Given all that learning analytics enables you to do, are you and your leaders doing it and to what end? Does your analytics practice focus on metrics and reports or does it inform actionable insight? Is anyone taking action on that insight?