Issue #5: It's not what you know, it's what you can prove!
Showing Return on Investment is becoming a critical factor for L&D teams to show their worth within a business, but how can they do this effectively?
Editors Foreword
Here’s a little welcome message to the fifth issue of LD MENA.
Featured Article - Understanding the ROI of Learning and Development: A Comprehensive Guide
In today's competitive business landscape, demonstrating the value of Learning and Development initiatives is crucial for securing ongoing investment and support from stakeholders. However, many L&D departments struggle to effectively show their return on investment (ROI). This article will explore the reasons behind this challenge, its negative consequences, strategies for displaying ROI, insights into the V Model by the ROI Institute Canada, and practical tips for implementing these strategies.
Why L&D Departments Often Fail to Show ROI
L&D departments frequently encounter several obstacles that hinder their ability to demonstrate ROI effectively:
Lack of Clear Objectives: Many L&D programs are initiated without specific, measurable objectives. Without clear goals, it becomes challenging to assess the impact of training on business outcomes.
Insufficient Data Collection: A common pitfall is the failure to collect relevant data before, during, and after training initiatives. This lack of data makes it difficult to isolate the effects of training from other influencing factors.
Underestimating Intangible Benefits: While monetary returns are essential, many L&D teams overlook intangible benefits such as employee engagement, morale, and retention. These factors can significantly contribute to an organisation's overall success but are harder to quantify.
Inadequate Communication: L&D departments often fail to communicate their successes and impacts effectively. Without proper storytelling around data and outcomes, stakeholders may not recognise the value of training initiatives.
Negative Consequences of Failing to Show ROI
The inability to demonstrate ROI can lead to several negative consequences for L&D departments:
Reduced Funding: Organisations may cut budgets for L&D programs if they cannot see a clear return on their investment. This can stifle innovation and limit employee development opportunities.
Decreased Credibility: Continuous failure to prove ROI can damage the credibility of the L&D department within the organisation. This may result in a lack of trust from senior leadership and other departments.
Missed Opportunities for Improvement: Without proper evaluation and measurement, organisations may miss valuable insights that could enhance training programs and overall employee performance.
How L&D Departments Can Display ROI
To effectively demonstrate ROI, L&D departments should adopt a structured approach that includes:
Setting Clear Objectives: Establish specific, measurable goals aligned with business outcomes before launching any training program. This ensures that all stakeholders understand what success looks like.
Implementing Robust Data Collection Methods: Utilise surveys, assessments, and performance metrics at various stages of training to gather comprehensive data on participant reactions, learning outcomes, application of skills, and overall impact.
Using Established Models for Evaluation: Implement recognised frameworks such as the Phillips ROI Model or the Kirkpatrick Model to systematically evaluate training effectiveness at multiple levels.
Insights into Using the V Model by the ROI Institute Canada
The V Model developed by the ROI Institute Canada provides a comprehensive framework for evaluating L&D programs through a structured approach. The model emphasises:
Initial Analysis: Define why a program is necessary by identifying business needs and potential payoffs. Questions such as "Is this program worth doing?" guide this analysis.
Setting Objectives: Collaborate with stakeholders to determine clear objectives that align with organisational goals.
Data Collection: Collect data at each level of evaluation:
Level 1: Reaction – Gather participant feedback on training relevance.
Level 2: Learning – Assess knowledge acquisition through tests or quizzes.
Level 3: Application – Evaluate how participants apply learned skills on the job.
Level 4: Impact – Measure changes in organisational metrics (e.g., productivity, revenue).
Level 5: ROI – Calculate ROI using the formula:
ROI=(Benefits from Investment−Cost of Investment) divided by Cost of Investment, then multiply by 100
By following these steps in the V Model, L&D departments can create a clear narrative around their contributions to organisational success.
Tips for Starting to Show ROI
To begin demonstrating ROI effectively within your organisation:
Engage Stakeholders Early: Involve key stakeholders in discussions about training needs and objectives from the outset. Their input will help shape relevant programs that align with business goals.
Develop a Data Collection Plan: Create a detailed plan outlining how you will collect data at each evaluation level. Ensure that you have tools in place for gathering quantitative and qualitative data.
Communicate Results Regularly: Share findings with stakeholders through reports or presentations that highlight both quantitative results (e.g., cost savings) and qualitative impacts (e.g., improved employee morale).
Iterate Based on Feedback: Use feedback from evaluations to refine future training programs continuously. This iterative process will help improve effectiveness over time and demonstrate a commitment to continuous improvement.
Final thoughts
Demonstrating the ROI of Learning and Development initiatives is essential for securing ongoing support and funding within organisations. By understanding common pitfalls, leveraging established evaluation models like the V Model from the ROI Institute Canada, and implementing effective data collection strategies, L&D departments can showcase their value more convincingly. Ultimately, this not only enhances credibility but also contributes significantly to organisational success through improved employee performance and engagement.
- John Hinchliffe
Editor & Founder, LD MENA
Upcoming Event - Dubai L&D Christmas Yacht Party
IT'S OFFICIAL! The next L&D Meetup is being taken to the sea! 🌊
For me, one thing I really miss about England is the fun of a Christmas Party, and so with that in mind, I wanted to bring that here and give it a Dubai twist. So, I am happy to announce that in December, the next Dubai L&D event will be a Christmas Yacht Party!
This will be a limited-capacity event, so please complete the form below to log your interest (please note that this event is for L&D/HR Practitioners only). Details will then be sent in the future to register your attendance on a first-come, first-served basis.
Guest Article - Beyond the Basics: How to Truly Support Your Top Talent (Ana Toroman)
For this issue of LD MENA, we are delighted to start our guest article contributor section.
We are pleased to get the thoughts of L&D and Talent Development Manager Ana Toroman, who looks into how we support high performers within our organisations to enable them to maximise their impact.
L&D Insights, Tools and Resources
From Doubt To Success: A Road Map For Learning And Development Professionals Facing Imposter Syndrome
Everyone feels like an imposter from time to time. Learn what to do when your L&D journey leaves you feeling this way.
Moving to Resources, Not Courses
This podcast may be a few years old, but it’s one that I recommend to every L&D professional I speak with. It helps us really explore the sweet spot where we can help people get stuff done by creating learning resources that speak to their challenges and questions.
Job Interview Tips
With so many L&D peers looking for jobs in the MENA region currently, I thought it would be best to provide a helpful resource to assist you with your job search and interview prep.
Free AI Literacy Course - Limited spaces available
The excellent Stella Lee has announced the launch of her ‘Introduction to AI Literacy’ online course, created in collaboration with Athabasca University, which presently has limited FREE spaces on a first-come, first-serve basis (so sign up now!).
What business problem are you trying to solve?
If the biggest question on your mind right now is which Vendor has the best AI, then this post is a much-needed reminder of where you need to reprioritise your thinking when it comes to your L&D initiatives.
LD MENA Exclusive Offers
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inrehearsal - An ever-growing library of powerful, standalone video content, translated into 20 languages, showcasing industry-leading experts and real learning in action. Are you an org looking to expand your learning content library? Get free trial access to inrehearsal here to check it out:
M.E. and L&D
In each issue, we delve into the inspiring journeys of trailblazers in the L&D sector across the MENA region, uncovering their unique insights, their origin stories and innovative approaches that have helped them in their careers to hopefully inspire your own journey.
We are thankful to have the incredibly insightful Stuti Airi for this issue.
As an Organizational Development Psychologist with a niche in all things OD and L&D, Stuti specializes in Training Needs Analysis, employee engagement, leadership development, and succession planning. With five years of experience, she focuses on honing future talent, fostering psychological well-being at work, and driving performance excellence.
Fuel this newsletter
Hey there, wonderful reader! We're brewing up something special for the next issue of our newsletter, and we could use a little boost. Would you consider buying us a cup of coffee to keep the ideas percolating? Your support helps us bring you the freshest content, and every sip fuels our creativity. Thanks-a-latte for your generosity! ☕😊
Thanks for joining us for this issue of LD MENA!
- John Hinchliffe