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key ROI: How Learning & Development programmes add value

Enhanced Employee Value

   bullet More staff engagement
   bullet Retention-lower staff turnover
   bullet Higher productivity
   bullet Increased motivation
   bullet More job satisfaction

Enhanced Customer Value

   bullet Customer loyalty
   bullet Larger market share
   bullet Better profits

Enhanced Shareholder Value

   bullet Improved operating income
   bullet Stronger cash-flow
   bullet Improved profitablility
   bullet Greater tangible and intangible value

Key Business Measure Applied to Learning

Criteria Implication for Business Implications for Learning
Cost What will it cost to operate the business successfully, and how can those costs be better managed?
Savings her translate directly to the bottom line in higher profits...
What will it cost to aquire or develop
learning programmes and deliver them to all who need them?  How much will it cost
to take employees out of producative roles
and put them in a learning mode?...The
pressure for cost control is more intesnse than ever.
Quality How are the company's offerings
meeting customer expectations? Improvemnts in quality is also clearly related to bottom-line results through increased customer loyalty and market share growth, among other measures.
Is learning taking place and more important, is this learning being translated into higher performance?  These questions are requiring answers that go beyond "What did people learn?"...
Service How well does the business respond to customer needs?  Customer satisfaction with and access to services can be a key differentiater in the marketplace. With an increasing dispersed, mobile and diversified workforce, and a more global business operation, learning now must be available 24/7. With loosely coupled organisational structures and rapid change in the business environment driving decisions and innovation to lower levels of the company, learning will have to be more tailored to each individual.
Speed How fast the company can change its strategy to meet new challenges, how quickly the business can bring a new product to market, or how fast the firm can respond to customer needs are examples of key meassurements of speed.  The digital economy exacerbates the need for speed. How fast can learning respond to changes in the business?  If employees expect learning programmes to reflect up-to-the-minute accuracy, relevance and completeness, and if that information is constantly changing, how will learning providers respond?  How can learning be effective, scalable, and responsive at "Internet speed"?

These are the criteria to evaluate learning, and the criteria for which e-learning will be justified.  Today, no business can afford to have high-quality learning programs that take too long to deploy, aren't available at the moment of need, or cost so much to deliver that they become unaffordable.  If learning is to have any value in a business, it must be successful along all four criteria.  There is simply no way for this to happen unless technology - e-learning technology - is part of the mix, along with more traditional forms of learning.

From "Key Business Measures Applied to Learning" (pp212-213) Marc J Rosenberg, "E-Learning-for delivering Knowledge in the Digital Age", 2001, McGraw Hill, New York. (2001)

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