Why are Chief Learning Officers obsessed with ROI and what are they doing about it?

Submitted by networkadmin on 20 January 2020 - 12:00am

The challenge of demonstrating the business value and ROI of L&D teams is a persistent issue for many companies. Despite the potential for learning to make a significant contribution to the business, it can be difficult to convince CEOs and other senior leaders of its value. As Charles Jennings, Co-Founder of 70:20:10 Institute, remarks in this video, although the topic has been on the CLO agenda for as long as he can remember, “many CLOs haven’t cracked it”.

In this blog, we will explore the key questions that CLOs are asking when it comes to demonstrating the business value and ROI of their L&D teams. We will also outline some of the solutions organisations have tried so far to evaluate their effectiveness. By doing so, we will provide insights and recommendations to help organisations better understand and communicate the value of their L&D efforts.

CLOs and ROI

How do L&D teams go about demonstrating ROI?

It’s true that demonstrating ROI has been a challenge for many L&D teams for years, a simple Google search will return thousands of results on the subject going back years. One approach that some L&D leaders are taking is to bring more data skills into their teams. This includes using analytics tools to curate and analyse data related to training programs, as well as using learning data reporting and visualisation tools to communicate results. By doing so, L&D teams can better demonstrate their value to the organisation and help identify areas where learning programs can be improved and optimized to maximise impact.

Why do CLOs find demonstrating ROI difficult?

Before every iVentiv event, we ask you to tell us what areas you are focusing on and what questions you want to ask your fellow participants. “People/Data Insights, Measurement & ROI” was the fourth most popular category overall in the last 12 months, across all regions, but especially among Global Heads of Learning; 32% of respondents in L&D cited the category as a key priority, compared to 17% in Executive Development and 10% in Talent Management.

The primary barrier, as one Global Head of Leadership put it in their response, is obtaining high-quality “objective data”, inputting it into useful metrics for analysis, and creating innovative solutions, going “beyond happy sheets and completion rates”, which learning leaders feel are no longer satisfactory.

As Charles Jennings, Co-Founder of 70:20:10 Institute states, the “continued focus by L&D leaders on the challenge of demonstrating ROI and business value highlights L&D’s increasing visibility to executive boards.” CEOs have changing expectations, Charles explains, and for L&D to show measurable value is no longer an optional extra.

“It also highlights” Charles says, “the changing expectations of CEOs and their leadership teams. More than ever, senior managers expect L&D to contribute measurable value rather than simply being a cost centre.” The need for learning to demonstrate, in Charles’ words, “measurable value-add” means that they need “high-quality data” beyond simple “activity measures” like course completion rates.

Is measuring ROI the same as delivering it?

Many L&D teams have put their focus on learning in the flow of work, and the use of LXP’s that facilitate learning over training, with the aim of better demonstrating the function’s value to the organisation.

However, measuring and demonstrating ROI through analytics platforms is one thing, delivering the ROI is another. To put it bluntly, it might be the case that once learning teams start focusing on measurements and analytics, L&D leaders may realise that they are in fact not really delivering the ROI that they promise. To find and create real ROI, Fuse Universal offers a useful list of demonstrable examples of L&D’s impact on ROI, on how it can influence the bottom line of any business:

The uplifts in business performance that engaged, continual learning can bring, particularly in relation to the frequency in which learners return
Cost savings that the consolidation of learning platforms offers, across employee resource, computing power, and infrastructure
Reduced onboarding time to enable employees to hit the ground running, and start driving profitability for the company as soon as possible
Higher staff retention rates offer serious cost savings on the expensive hiring and training process
Improved internal communication, saving costs, and gaining employees 20% (as they measure it) of their time back, a whole working day per week, to drive profitability

To dive into questions around ROI, analytics, and more, join an iVentiv Executive Knowledge Exchange and connect with like-minded leaders to discuss common challenges. Every session is free for global Heads of Learning and gives you a chance to take away new insights, learn from others, and build relationships.

Read more about ROI and the other top priorities for decision-makers in Learning, Leadership and Talent in the iVentiv Pulse 2023 Report.

Thumbnail:

Feature on Homepage:

News category:

Learning & Development

ROI and Data

More Insights

The Power of Data and AI in Learning and Development with Roche, STMicroelectronics, HEC Paris and the L&D Challenges Podcast

Data-driven decision-making, personalisation, and measuring impact to enhance learner engagement were hot topics at iVentiv’s Learning Futures Basel event in October of this year.

Adam Lacey, Co-Founder of Assemble You and Host of the L&D Challenges Podcast took the time to join us for those discussions, and got into the thick it with key thought-leaders in his most recent podcast episode: How Roche and STMicroelectronics are Harnessing the Power of Data and AI in L&D.

Sam Zalcman, Global Head of Learning & Development at STMicroelectronics, Priyakumar Nair, Global Head of Learning Services at Roche, and Professor Peter Fisher, Associate Professor of Marketing & Academic Director of Creative Destruction Labs’ AI stream at HEC Paris made up this episode’s panel of distinguished leaders, and the discussions illuminated cutting-edge strategies in L&D and their implications for organisational transformation.

Join us as we listen in on a podcast that provides a wealth of insights for C-suite executives in multinational organisations, focusing on how L&D leaders are leveraging data, AI, and cultural shifts to address modern challenges.

The Future of Learning, Leadership, and AI: with HEC Paris, Akkodis, Reckitt and The Learning Hack Podcast

In a dynamic and transformative era, the Learning & Development sector is grappling with profound questions about innovation, technology, and leadership. The Learning Hack Podcast, hosted by John Helmer, offers rich insights into these themes through candid conversations with global leaders.

In a recent episode inspired by conversations at iVentiv’s Learning Futures Basel Executive Knowledge Exchange, three thought leaders — Anne-Valérie Corboz (Dean, HEC Paris), Jane Underwood (Global Head of Learning, Reckitt), and Sarah Otley (SVP, Global Head of Akkodis Academy) — came together to share their perspectives on navigating the future of L&D, with discussions covering the evolving nature of leadership, the role of generative AI in L&D, and the enduring challenges of aligning learning strategies with business goals.

The advent of generative AI has sparked widespread discussions across industries, but for Learning and Development, its potential remains a double-edged sword.

On the one hand, for many leaders, AI promises to revolutionise the way learning is designed and delivered. On the other, it risks reinforcing old habits and hindering meaningful change.

In a recent episode of The Learning Hack Podcast, hosted by John Helmer, guest Charles Jennings— iVentiv Advisory Board member, regular iVentiv Event Chair, pioneer in L&D transformation, and Co-Founder of the 70:20:10 framework—offered deep insights into these challenges.

This blog unpacks the key themes from their conversation and asks how can L&D leaders avoid complacency? How can they leverage AI responsibly? How can they refocus on performance improvement over outdated methodologies?

In an age of constant change, Zurich Insurance has embraced a skills-based approach as a core strategy to future-proof its workforce and drive business success.

In an interview with iVentiv, Adrian Stäubli, Group Head of Skills Development Solutions at Zurich Insurance, highlighted Zurich’s commitment to identifying, developing, and deploying skills across its global workforce.

This model isn’t just a tool— to Adrian it’s a "secret ingredient" that touches every aspect of employee development, from career progression to job design, setting Zurich apart as a truly agile and resilient organisation.

Watch our interview now to see how Adrian has embraced skills, and how it’s transforming Zurich’s employee experience.

The power of partnership: how iVentiv and HEC Paris drive Executive Development together

In the ever-evolving world of executive education and corporate learning, partnerships are key to success. iVentiv has nurtured a long-standing relationship with HEC Paris, a prestigious European business school that was founded in 1888, since 2010 and has become a leading institution in Executive Development. Through this collaboration, HEC Paris has not only elevated its presence within the corporate learning community but has also provided valuable insights and support to iVentiv’s events worldwide.

Join us as we dive into the partnership between iVentiv and HEC Paris, how it's bloomed over the years, and where it will go next.

Change Ecosystems, Rapid Reskilling, and Leaders of the Future with Majid Al Futtaim

In this insightful interview, Jay Moore, former Chief Learning Officer at GE, and Jo O'Driscoll-Kearney, Global Head of Learning & Leadership Development at Majid Al Futtaim, delve into the strategies that organisations can adopt to stay competitive in a rapidly changing world.

In a conversation with iVentiv's Hannah Hoey ahead of Learning Futures Dubai Jo and Jay discuss how to create ecosystems that continuously re-qualify employees, the role of marketing in Learning & Development, and the importance of fostering a growth-oriented culture.

Watch and read more here.

Mindfulness as a Core Executive Leadership Skill, with Matthias Birk

In today's fast-paced business environment, the importance of mindfulness in leadership cannot be overstated. As leaders navigate the complexities of decision-making and relationship-building, mindfulness serves as a crucial tool for maintaining focus, fostering empathy, and enhancing executive presence. In this blog, we explore the insights of Matthias Birk, Global Director of Partner Development at White & Case, on how mindfulness can transform leadership. With decades of experience in leadership development, Matthias shares practical strategies for integrating mindfulness into daily routines, its impact on organisational culture, and the vital role of community in sustaining these practices.

Join us as we delve into the power of mindfulness to elevate leadership effectiveness and create more compassionate, connected workplaces.

Tech, Talent and Transformation with Expedia and Microsoft

In today's rapidly evolving tech landscape, companies like Expedia and Microsoft are harnessing the power of new technologies to drive learning, talent, and business objectives. Leveraging AI, including generative AI and tools like Microsoft's Copilot, these companies personalise learning experiences, enhance performance management, and streamline operations. Led by iVentiv's Hannah Hoey, we interviewed Liz Moran (VP of Global Talent Management, Expedia), Manasi Joshi (Senior Director, Learning & Development, Expedia), and Brian Murphy (Senior Director, Employee Skilling, Microsoft), to talk about new and emerging tech, transformation, and the power of learning and talent partnerships.

Watch now to learn how new tech is transforming corporate learning, improving operational efficiency, and supporting Talent Management to meet business objectives.

What are the Top Priorities for Chief Learning and Talent Officers in the First Half of 2024?

iVentiv has spent the first six months of 2024 asking Global Heads of Learning, Talent, and Leadership to share the top priorities and challenges for their function right now. At the end of 2023, the most popular area highlighted by respondents was Leadership and Executive Development. So far in 2024, more than 300 C-suite executives, all leading L&D and Talent functions for Global organisations, have responded. We can now reveal the results of the 2024 surveys so far.

In this blog, we explore the top priorities, with some preliminary exploration of what the figures tell us about the work of L&D teams across the world right now.

AI and the Future of L&D with Trish Uhl, Senior AI Specialist, Keynote, Advisor, and author of Learning AI

In our recent interview with Trish Uhl, Senior AI Specialist, we explored the transformative potential of AI within the Learning & Development (L&D) functions of organisations.

Trish, an expert in AI and technology, shared her insights on how AI is reshaping professional development and learning processes. Trish's insights underscore the urgent need for L&D to catch up with technological advancements and leverage AI tools to remain relevant in a rapidly evolving digital landscape. The future of AI in L&D promises exciting possibilities, provided human creativity and critical thinking remain at the forefront of this transformation.