Showing Value Beyond Formal ROI

Gmoney 3uest Blogger: Brandi M. Jerde

As training students, we have learned about Kirkpatrick and Phillips and their methodologies for measuring ROI.  Yet, I was surprised to learn from my fellow students how few organizations actually measure ROI for their training.  I was even more surprised that according to Phillips in his book, Return on Investment (ROI) Basics, “In a recent study of best practice organizations using the ROI methodology, it was uncovered that those organizations who successfully implemented the process evaluated 5% to 10% of their programs to Level 5, ROI” (p30). This has led me to wonder how we are demonstrating our value of our training programs.

In my training area, we contract suppliers to teach the vast majority of our curriculum.  For those few courses we deliver via our internal staff, we are delivering supplier developed content.  The value we present to our senior leaders is twofold:

  1. How much money we save by having contracted suppliers to deliver the training on-site verses our employees going off-site?
  2. How much we save by using internal instructors versus an external supplier?

But is this really demonstrating our team’s value?  Are we effectively demonstrating the value of the actual training?  Or are we really only demonstrating how much money we save with the suppliers?

Regardless if you are using the methodologies of Kirkpatrick, Phillips, or something unique to your organization, showing your training organization’s value is increasing important in today’s environment.  How does your organization show value outside the use of a formal ROI?

About Meade Peers McCoy

I am driven to learn, about the world and the people in it, learn to do new things, learn to see things in a new way.
This entry was posted in Evaluation, Guest Student Post, Instructional Design, Training. Bookmark the permalink.

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