Aligning Learning & Development with Business Strategy for Demonstrable Metrics between Business ROI and Learning & Development
Austin Kenny, VP of Global Sales at EmpowerTheUser, recently took time out to have a dinner with Dan Lovely, Chief Learning Officer at AIG. Over a lively and entertaining dinner the discussion covered a variety of issues that CLO's face but primarily focussed on the subject of tying L&D projects to clearly defined strategic business initiatives.
In Dan's own words: “I was fortunate enough to have dinner with Austin Kenny of Empower The User (ETU) the other night. ETU specializes in the development of simulations. He was explaining to me that in some cases when they partner with a L&D team to develop a company specific business simulation, the L&D team does not know the business well enough to work with them to build it. As the simulation development continues, they end up teaching the L&D team how to understand their own business. Maybe this unto itself is a powerful reason to partner with ETU. In any case, we need to ensure that our L&D teams do in fact understand the business.”
We are very grateful to Dan, and his kind words but we also feel that, as with any expenditure, measuring the impact of learning and development on ROI is critical to all organizations big and small. Dr. J. Phillips and Dr. P Phillips outline in a recent research paper that a record amount of requests for accountability for leadership development are being made, including showing impact and ROI for major programs.(1)
“The success of training can be argued via its return on investment.
The companies identified in Great Places to Work had
65 percent less voluntary turnover than industry peers.”
Using EmpowerTheUser’s platform for building simulations at scale, learners are placed in realistic, immersive and business relevant scenarios. Leveraging ETU’s proprietary branching patterns and extensive behavioral analytics features learners make complex decisions using a combination of soft skills, procedural skills and relevant knowledge. This enables the gathering of granular data on behaviors which organizations can directly correlate to specific business critical decisions. Every individual user decision made is automatically tracked, measured, analyzed and correlated in real time to key skills and behaviors identified as critical to the business. This data can then be used to inform future allocation of resources, reinforce proven methodologies, correct suboptimal behaviors and skills. ETU’s data provides the clearly demonstrable metrics necessary to drive and inform strategic business decisions.
1. “Measuring the success of leadership development: A step-by-step Guide for measuring Impact and Calculating ROI, ETD Press, 2015, ISBN: 9781562869427