Evaluating Training ROI for Businesses

Last week, I helped a sales VP at a $850M+ company build a business case for a $50K sales training investment. His team was trending toward a $15.2M miss. Here's the exact framework we used to get it approved: STEP 1️⃣ Lead with the math problem, not the solution Don't walk in saying "we need training." Walk in saying: "Our org restructure and new quotas created a math problem. 50% of reps are under 20% to target, pipeline multiplier is 2x when we need 3.5x. We're trending towards 43% attainment despite showing 130% YOY growth." Numbers don't lie. Executives respond to math. STEP 2️⃣ Show what you've already tried "Here's what I've implemented: structured prospecting, improved joint sales planning, individual coaching, and a hiring pipeline." This proves you're leading, not making excuses. STEP 3️⃣ Zoom out to the bigger picture "Looking regionally, we're at $41.5M vs $150M target (27.7% attainment). Even our best territory is under 35%, with most averaging just 25%." Now it's an organizational issue, not just your team's problem. STEP 4️⃣ Present three scenarios Do nothing: 43% attainment Base case: 70% attainment with systematic approach Best case: 85%+ attainment with full implementation STEP 5️⃣ Make it easy to say yes Option 1: Pilot with one team ($25K) Option 2: Full organization ($50K) The secret? You're not asking for training. You're solving a business problem. The result? His RVP said "This makes complete sense. Let's move forward and get enablement involved with planning. Most sales leaders fail because they lead with solutions instead of quantifying the pain first. Bottom line: A $15.2M miss costs infinitely more than a $50K investment in systematic improvement. When you frame it as de-risking the business rather than asking for development budget, the conversation completely changes. Ready to build your own bulletproof business case? Here's what successful VPs do: 1. Run the math on your current trends 2. Document actions you've already taken 3. Present the strategic choice between hope and systems 4. Build your coalition before the big presentation The companies that consistently hit their numbers don't rely on heroics. They invest in systematic excellence. — Sales Leaders, want to be a world class sales manager and get your team crushing quota? Go here: https://lnkd.in/ghh8VCaf

📈 Unlocking the True Impact of L&D: Beyond Engagement Metrics 🚀 I am honored to once again be asked by the LinkedIn Talent Blog to weigh in on this important question. To truly measure the impact of learning and development (L&D), we need to go beyond traditional engagement metrics and look at tangible business outcomes. 🌟 Internal Mobility: Track how many employees advance to new roles or get promoted after participating in L&D programs. This shows that our initiatives are effectively preparing talent for future leadership. 📚 Upskilling in Action: Evaluate performance reviews, project outcomes, and the speed at which employees integrate their new knowledge into their work. Practical application is a strong indicator of training’s effectiveness. 🔄 Retention Rates: Compare retention between employees who engage in L&D and those who don’t. A higher retention rate among L&D participants suggests our programs are enhancing job satisfaction and loyalty. 💼 Business Performance: Link L&D to specific business performance indicators like sales growth, customer satisfaction, and innovation rates. Demonstrating a connection between employee development and these outcomes shows the direct value L&D brings to the organization. By focusing on these metrics, we can provide a comprehensive view of how L&D drives business success beyond just engagement. 🌟 🔗 Link to the blog along with insights from other incredible L&D thought leaders (list of thought leaders below): https://lnkd.in/efne_USa What other innovative ways have you found effective in measuring the impact of L&D in your organization? Share your thoughts below! 👇 Laura Hilgers Naphtali Bryant, M.A. Lori Niles-Hofmann Terri Horton, EdD, MBA, MA, SHRM-CP, PHR Christopher Lind

Your training budget is bleeding money. Here's why: You're measuring the wrong thing. Most manufacturers track: → Hours in training sessions → Certificates earned   → Courses completed → Knowledge tests passed But here's the brutal truth: Training is a COST until it's applied. I've seen teams ace Six Sigma exams, then go back to the same wasteful processes. I've watched operators get certified in TPM, then ignore equipment maintenance schedules. I've met managers who can recite lean principles but can't eliminate a single bottleneck. The problem isn't the training. The problem is the gap between learning and doing. The Real ROI Formula: Training Cost ÷ Measurable Floor Improvement = Actual ROI If the denominator is zero, your ROI is zero. No matter how much you spent. No matter how good the training was. Here's the system that actually works: STEP 1: Identify Your Losses First ↳ What's costing you money right now? ↳ Downtime? Defects? Delays? Waste? ↳ Quantify the pain before you buy the solution STEP 2: Map Skills to Losses ↳ Which skills would directly impact these losses? ↳ Root cause analysis for quality issues? ↳ Preventive maintenance for downtime? ↳ Value stream mapping for delays? STEP 3: Assess Current Capabilities ↳ Who has these skills already? ↳ Where are the gaps in your workforce? ↳ Don't train everyone in everything STEP 4: Train with a Target ↳ Before any training: "We will apply this to solve X problem" ↳ Set a specific improvement goal ↳ Timeline for implementation STEP 5: Apply Immediately ↳ The window between learning and doing should be days, not months ↳ Start with a pilot project ↳ Measure the impact STEP 6: Scale What Works ↳ If it worked on one line, expand it ↳ If it didn't work, understand why ↳ Refine and try again The shocking reality: Most training fails not because of poor content. It fails because of poor application. Your operators know what to do. They just don't do what they know. The question isn't: "What should we learn next?" The question is: "What have we learned that we're not using yet?" That podcast on lean you listened to last week? Apply one concept today. That Six Sigma training from last month? Start a small improvement project tomorrow. Because untapped knowledge isn't potential. It's waste. What's one thing your team learned recently that they haven't applied yet?

My number one priority these days is adding and helping others add AI training and skills. While I think the tech advances are a tornado of jockeying for position, there's a clear need that won't change, and that's the need for workers to add AI Skills. That's why I co-founded 𝗔𝗹𝗹 𝗧𝗵𝗶𝗻𝗴𝘀 𝗔𝗜 (𝗳𝗼𝗿𝗺𝗲𝗿𝗹𝘆 𝗔𝗹𝗹 𝗧𝗵𝗶𝗻𝗴𝘀 𝗢𝗽𝗲𝗻 𝗔𝗜) and 𝗧𝗵𝗲 𝗔𝗿𝘁𝗶𝗳𝗶𝗰𝗶𝗮𝗹𝗹𝘆 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝘁 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲 𝗡𝗲𝘁𝘄𝗼𝗿𝗸, to provide knowledge workers the information and training they need to stay relevant. I am leading a workshop on Prompt Engineering tomorrow to help folks upskill as I see crazy demand for these skills. I already have over 600 users signed up to come to learn how to use AI better for business. (Link in comments if you want to join, it's free). Today my business partner Todd Lewis shared this article from IT Pro points to studies from 𝗪𝗿𝗶𝗸𝗲 and 𝗣𝗹𝘂𝗿𝗮𝗹𝘀𝗶𝗴𝗵𝘁 on how this is playing out. It totally reinforces my beliefs. There's a noticeable gap between perceptions of AI’s role: ⦿ Business Leaders believe AI assists with 32% of workloads. Overestimates the actual usage. ⦿ Knowledge Workers estimate AI involvement at only 14%. Showing there's a lot of opportunity. ⦿ Despite this gap, where AI is applied, 79% of workers report improved productivity. Upskilling the workforce is recognized as the most effective efficiency measure by knowledge workers. 🔹 AI Adoption vs. Workforce Readiness • 92% of companies accelerated AI projects last year, yet 90% of executives lack clarity on their team's actual AI capabilities (Pluralsight).    🔹 Skills Gaps and Productivity • 84% of business leaders cite a lack of AI skills as their biggest roadblock, causing project delays in 75% of organizations (Pluralsight). • Only about half of all workplace tasks are deemed high-impact, highlighting significant inefficiencies (Wrike).    🔹 Impact of Inefficiency • Organizations lose approximately $15,138 per employee annually due to unnecessary tasks and meetings (Wrike). • Efficiency measures reportedly increased revenues by up to 26%, yet only 9% of businesses primarily track these financial outcomes (Wrike). • Businesses report average savings of $3,046 per employee annually through efficiency measures. (Wrike)    🔹 Upskilling as a Strategic Priority: • Over 50% of companies are actively investing in AI skills training to bridge gaps and mitigate employee concerns over job displacement (Pluralsight). • Workers rank upskilling as the most effective strategy for improving workplace efficiency, satisfaction, and productivity (Wrike).    Check out the article and you can follow the links to both reports, both are good reads. https://lnkd.in/eAeDAqfG

Most leadership programs end with feedback forms. If your CEO asked for the 💰 money slide, Would you have anything to show? Here’s the reality: attendance isn’t impact. Smiles and surveys don’t prove ROI. Here’s where ROI starts: ☑️ Start with business strategy, not just learning objectives. ↳ Programs should be designed to accelerate organizational priorities, not just learning hours. ☑️ Embed development into the work itself so growth shows up in real time. ↳ Impact should be measured in project delivery, cost savings, quality of execution, and leaders’ ability to grow and guide their teams. ☑️ Prepare leaders for responsibilities beyond their current role. ↳ Growth is proven when leaders step up successfully into bigger challenges, not when they sit in classrooms. ☑️ Measure outcomes with real metrics, not fluff. ↳ Track improvements in retention, promotion readiness, decision speed, or customer satisfaction. ↳ If you can’t measure it, you can’t prove ROI. ☑️ Reinforce learning through coaching and accountability until new habits stick. ↳ Sustained behavior change is the only way leadership investments translate into long-term ROI. This is when the impact becomes clear. You see sharper judgment, stronger execution, ready successors, and market-ready teams. That’s the money slide boards and executives are looking for. As the article pointed out, too many organizations still approach leadership development with yesterday’s playbook. In business, the “money slide” is the single slide in a presentation that proves value, the ROI that executives are really looking for. Too often, instead of proving value, organizations fall back on the old playbook: 📚 more courses, 🕒 more hours, 📊 more frameworks. But impact doesn’t come from volume. It comes from alignment, design, and outcomes. Here’s my take: the future of leadership development won’t be judged by how much training content is delivered. It will be judged by how much capability is created and how quickly that capability moves the business forward. That’s the shift executives are hungry to see. ♻️ Repost if you’re investing in people, not just tech. Follow Janet Perez for Real Talk on AI + Future of Work

𝗠𝗲𝗮𝘀𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝗢𝗜 𝗼𝗳 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝘀 📊 Many organizations struggle to quantify the impact of their Learning and Development (L&D) initiatives. Without clear metrics, it becomes difficult to justify investments in L&D programs, leading to potential underfunding or deprioritization. Without a clear understanding of the ROI, L&D programs may face budget cuts or be viewed as non-essential. This could result in a less skilled workforce, lower employee engagement, and decreased organizational competitiveness. To address these issues, implement robust measurement tools and Key Performance Indicators (KPIs) to demonstrate the tangible benefits of L&D. Here's a step-by-step plan to get you started: 1️⃣ Define Clear Objectives: Start by establishing what success looks like for your L&D programs. Are you aiming to improve employee performance, increase retention, or drive innovation? Clear objectives provide a baseline for measurement. 2️⃣ Select Relevant KPIs: Choose KPIs that align with your objectives. These could include employee productivity metrics, retention rates, completion rates for training programs, and employee satisfaction scores. Having the right KPIs ensures you’re measuring what matters. 3️⃣ Utilize Pre- and Post-Training Assessments: Conduct assessments before and after training sessions to gauge the improvement in skills and knowledge. This comparison can highlight the immediate impact of your training programs. 4️⃣ Leverage Data Analytics: Use data analytics tools to track and analyze the performance of your L&D initiatives. Platforms like Learning Management Systems (LMS) can provide insights into learner engagement, progress, and outcomes. 5️⃣ Gather Feedback: Collect feedback from participants to understand their experiences and perceived value of the training. Surveys and interviews can provide qualitative data that complements quantitative metrics. 6️⃣ Monitor Long-Term Impact: Assess the long-term benefits of L&D by tracking career progression, employee performance reviews, and business outcomes attributed to training programs. This helps in understanding the sustained impact of your initiatives. 7️⃣ Report and Communicate Findings: Regularly report your findings to stakeholders. Use visual aids like charts and graphs to make the data easily understandable. Clear communication of the ROI helps in securing ongoing support and funding for L&D. Implementing these strategies will not only help you measure the ROI of your L&D programs but also demonstrate their value to the organization. Have you successfully quantified the impact of your L&D initiatives? Share your experiences and insights in the comments below! ⬇️ #innovation #humanresources #onboarding #trainings #projectmanagement #videomarketing

When times are tough it's tempting to reduce your training spend. But it's a false economy and the exact wrong move. It's easy to sort a spreadsheet in descending order to suggest cuts. But today's tactic can eliminate tomorrow's strategic advantage. ✅ Companies with strong training programs experience 24% higher profits. So while being wise with the dollars is a smart play, reducing training inputs now reduces your desired future outcome. Unless your plan is to actually built around less profit ? ✅ 51% reported to Devlin Peck that training gives them more confidence to execute their duties. So cutting training means your teams will be less confident, more nervous and less effective. At the exact time you need them to dig deep and perform at an even higher level. ✅ 76% of millennials indicate that professional development is essential for a strong company culture. So while your finance teams look for obvious targets on a spreadsheet, your culture and actual resources, your people, are the ones harmed by reductions to training. And you risk losing people from the group likely to be your future leaders. ✅ There is a 16% increase in customer satisfaction with companies that are using learning technology. So while you fight and scrap for every last customer in tough times, by pulling back on training spend you undercut the exact user group you care about the most. For sure, look for ways to effectively deliver training in a more cost effective way. Review your training costs to look for opportunities to improve. But this isn't the time to slash training budgets and staff. This is the time to strategically to pull ahead of your competitors and carve out an advantage they can't replicate. This is the time to double-down on quality training and development. Otherwise you risk a tactical decision today that unravels your future tomorrows. Who in your network needs to hear this message?

Did you know that 92% of learning leaders struggle to demonstrate the business impact of their training programs? After a decade of understanding learning analytics solutions at Continu, I've discovered a concerning pattern: Most organizations are investing millions in L&D while measuring almost nothing that matters to executive leadership. The problem isn't a lack of data. Most modern LMSs capture thousands of data points from every learning interaction. The real challenge is transforming that data into meaningful business insights. Completion rates and satisfaction scores might look good in quarterly reports, but they fail to answer the fundamental question: "How did this learning program impact our business outcomes?" Effective measurement requires establishing a clear line of sight between learning activities and business metrics that matter. Start by defining your desired business outcomes before designing your learning program. Is it reducing customer churn? Increasing sales conversion? Decreasing safety incidents? Then build measurement frameworks that track progress against these specific objectives. The most successful organizations we work with have combined traditional learning metrics with business impact metrics. They measure reduced time-to-proficiency in dollar amounts. They quantify the relationship between training completions and error reduction. They correlate leadership development with retention improvements. Modern learning platforms with robust analytics capabilities make this possible at scale. With advanced BI integrations and AI-powered analysis, you can now automatically detect correlations between learning activities and performance outcomes that would have taken months to uncover manually. What business metric would most powerfully demonstrate your learning program's value to your executive team? And what's stopping you from measuring it today? #LearningAnalytics #BusinessImpact #TrainingROI #DataDrivenLearning

5,800 course completions in 30 days 🥳 Amazing! But... What does that even mean? Did anyone actually learn anything? As an instructional designer, part of your role SHOULD be measuring impact. Did the learning solution you built matter? Did it help someone do their job better, quicker, with more efficiency, empathy, and enthusiasm? In this L&D world, there's endless talk about measuring success. Some say it's impossible... It's not. Enter the Impact Quadrant. With measureable data + time, you CAN track the success of your initiatives. But you've got to have a process in place to do it. Here are some ideas: 1. Quick Wins (Short-Term + Quantitative) → “Immediate Data Wins” How to track: ➡️ Course completion rates ➡️ Pre/post-test scores ➡️ Training attendance records ➡️ Immediate survey ratings (e.g., “Was this training helpful?”) 📣 Why it matters: Provides fast, measurable proof that the initiative is working. 2. Big Wins (Long-Term + Quantitative) → “Sustained Success” How to track: ➡️ Retention rates of trained employees via follow-up knowledge checks ➡️ Compliance scores over time ➡️ Reduction in errors/incidents ➡️ Job performance metrics (e.g., productivity increase, customer satisfaction) 📣 Why it matters: Demonstrates lasting impact with hard data. 3. Early Signals (Short-Term + Qualitative) → “Small Signs of Change” How to track: ➡️ Learner feedback (open-ended survey responses) ➡️ Documented manager observations ➡️ Engagement levels in discussions or forums ➡️ Behavioral changes noticed soon after training 📣 Why it matters: Captures immediate, anecdotal evidence of success. 4. Cultural Shift (Long-Term + Qualitative) → “Lasting Change” Tracking Methods: ➡️ Long-term learner sentiment surveys ➡️ Leadership feedback on workplace culture shifts ➡️ Self-reported confidence and behavior changes ➡️ Adoption of continuous learning mindset (e.g., employees seeking more training) 📣 Why it matters: Proves deep, lasting change that numbers alone can’t capture. If you’re only tracking one type of impact, you’re leaving insights—and results—on the table. The best instructional design hits all four quadrants: quick wins, sustained success, early signals, and lasting change. Which ones are you measuring? #PerformanceImprovement #InstructionalDesign #Data #Science #DataScience #LearningandDevelopment