Home > Topics > Return on Investment >

The Human Capital Return On Investment

A paper from Global Learning Alliance and Knowledge Advisors

Part 10 - The Balanced Score Card

As discussed, ROI is really value to your stakeholder and can mean different things for different stakeholders. Merely positioning a financial metric to a training manager won't solve their measurement needs. They need feedback on instructor performance, courseware quality etc. Hence the need for an ROI scorecard that has a balanced set of metrics that provides indicators on all 5 levels of learning, not just a financial ROI.

What should these measures be? Our suggestion is to have a small set of measure that is comprised of data gathered in a consistent manner on a continual basis. If done, a scorecard with such metrics can be generated in a real time manner for any learning event or combination of events you choose.

Below are the key performance components that comprise the scorecard.

• Level 1 - Satisfaction
• Level 2 - Learning Effectiveness
• Level 3 - Job Impact
• Time to Job Impact
• Barriers to Use
• Post Training Support
• Level 4 Business Results
• Job Performance Change
• Business Drivers Impacted By Training
• Level 5 Return on Investment

Metrics that Matter™

The above scorecard is a critical component to the reporting capabilities of KnowledgeAdvisors Metrics that Matter™ technology. Metrics that Matter™ is a webbased learning evaluation system that allows organizations to cost-effectively measure training impact and improve performance.

The Metrics that Matter™ proprietary technology has been adopted by several industry leaders and is becoming the standard in corporate learning measurement. Through Metrics that Matter™, we help our clients:

• Easily implement and administer technology-based measurement solutions
• Maximize their Return on Investment (ROI)
• Gain the knowledge required to improve and monitor performance of learning programs on an ongoing basis
• Obtain valuable learner satisfaction and job impact data
• Reduce learning related expenditures
• Compare performance to internal and external benchmarks

The benefits of Metrics that Matter™ are numerous including the following:

Measure and Improve Job Impact

Metrics that Matter™ allows you to streamline the learning evaluation process, measure training performance, and ultimately, improve job impact.

Drive Superior Business Results

By having access to real-time learning and performance data, Metrics that Matter™ provides organizations with the ability to increase performance and drive superior business results.

Improve Return on Learning Investment

Because organizations they can't manage what they don't measure, it is important to establish the right performance measures for all key investments. Learning is without a doubt one of the most important investments any company will make.

The global economy and the rapid advancement of technology have made today's workforce more mobile than ever before. Increased competition in a worldwide marketplace forced companies to tighten their belts and find ways to value engineer everything, including learning. To that end, today's world-class learning organizations are finding innovative ways to design and deliver training better, faster and cheaper. These organizations are then monitoring the effects of these changes through comprehensive measurement systems, and Metrics that Matter™ helps these organizations improve their Return on Learning Investment.

Industry Benchmark Comparisons

Leveraging Metrics that Matter™, our proprietary measurement technology, we capture data on a wide array of learning interventions and provide extensive reporting capabilities to clients using our normative database of learning performance data.

After collecting data, we provide value-added consultative services by helping our clients leverage the Metrics that Matter™ technology and benchmarks to improve the performance of their learning operations.

Increase Shareholder Value

Metrics that Matter™ and KnowledgeAdvisors' learning methodology helps organizations increase their shareholder value. By leveraging market leading models such as the Phillips ROI Process, KnowledgeAdvisors provides thought leadership in the corporate learning industry.

Accelerate Adoption of E-Learning Programs

Metrics that Matter™ captures learning performance data on many different learning modalities. Because learning evaluation data is captured from online learning events in addition to traditional instructor-led learning interventions, KnowledgeAdvisors captures valuable data that helps corporations successfully adopt and implement e-learning solutions.

Accountability on Training Dollars

Many corporate learning professionals have difficulties measuring their performance and demonstrating value to senior management. Increasingly, corporate learning professionals are being asked to justify budgets. Metrics that Matter™ helps solve this problem by providing measurement data for all training dollars spent and helps training professionals determine what initiatives are working to drive better business results.

Actionable Intelligence

Metrics that Matter™ provides organizations with actionable intelligence. The data that is provided to organizations, and the comprehensive ways in which we display this data provides organizations with the ability to quickly gauge how effective learning is, and makes decisions accordingly.

Part 9 < Back to Top > Part 11   

© 2004 Global Learning Alliance and Knowledge Advisors. Reproduced with permission. Any opinions or views contained in this article are solely those of the author and do not necessarily represent those of Training Reference.

Books for training professionals

• Bookshop home page
• Training evaluation books
• Training Needs Analysis (TNA) books

Source suppliers

Visit the Training Reference Directory to view supplier details for a wide range of courses, products and services. Related categories for this section include:

• Evaluation services
• Testing/assessment software

Sponsored links

Back to top