Measuring impact and ROI in online education needs to be more rigorous

To support and fund virtual learning in the new era, programmes must deliver real business results. Especially in times of budget downturns and downsizing, the measurability factor becomes absolutely essential. Below are some insights that can help you review the current situation and ensure measurable impact and return on investment in online education.

Illustration

Education providers lack or do not collect data on the impact and effectiveness of programmes

Education without practical application will have no impact. Unfortunately, many L&D experts do not even measure past and subsequent status at this level and are thus unable to demonstrate any change or corresponding impact on business. Do not consider online training a one-off item. Measure the level of knowledge or skills before and after the programme and monitor the impact on practice based on predetermined criteria.

Many executives see learning as a cost, not an investment

Once managers consider development to be a cost, it happens that, especially in uncertain times, they remove it from necessary items. Wrong! The learning budget can be reduced, reduced again, suspended, minimised or controlled. If managers see learning as an investment, they can protect, support and even improve it during a downturn. The challenge for development specialists is to show executives that learning brings a positive return on investment. The best way to achieve this is to measure the ROI of the programme following an economic model. This will remove the doubt that learning is an investment.

Use the value chain for your online education programme

It is important to understand how success is achieved through online education. How do you deliver more productivity, improve service quality, innovate or communicate better with customers? If a lack of knowledge or skills is an obstacle to success, then the implementation of these processes will support it. When learning is initially linked to business metrics, it is transformed into a suitable solution that is designed to have an impact.

You can effectively measure the success of an educational programme through a value chain:

Level

Metrics

Typical measures

0 – Input

Input parameters of programmes, which include indicators such as time spent, costs, scope, etc.

Programme type

Number of programmes

Number of participants

Time spent

Cost

1 – Reaction and planned action

Responses to programmes that include the value perceived by participants and planned actions that drive success

Relevance

Importance

Usefulness

Suitability

Intended to use things in practice

Motivation

Recommendations

2 – Learning

Knowledge and success. Focus on concepts and ways to use the knowledge and skills to support success

Skills

Knowledge

Skills

Competences

Trust

3 – Applications and implementations

Application and use of knowledge in practice

Behaviour

Range of use

Completion of tasks

Frequency of use

Successfulness

Use barriers

Use activators

Engagement

4 - Impact

Impact of the educational programme

Productivity

Profit

Quality

Innovation

Efficiency

Retention

Customer satisfaction

5 – ROI

Comparison of impact with financial aspects

Cost-benefit ratio

ROI (%)

Payback period

Studies show that many virtual training programmes fall apart precisely when measured at the level of business impacts and the application of knowledge in practice. But executives want and need to see the business links to learning, whether learning is provided in person or at a distance. Don't underestimate the preparation process; otherwise, the training or the course itself is only the tip of the iceberg.

 

-bb-

Article source Chief Learning Officer - a U.S. magazine and website focused on L&D
Read more articles from Chief Learning Officer