Linking Learning to the Business

Introductory Note: In today’s economic climate, organizations want to ensure that their tuition programs are run efficiently and cost effectively and, in short, expect to gain more business value from their tuition benefit. EdLink views tuition assistance as an investment in human capital and works with corporations to gain more strategic value from this benefit, helping them to make the critical link from the tuition benefit to the company’s talent management and growth strategies.

We therefore are very excited to include this article from Patti and Jack Phillips, of the ROI Institute, about the overall importance of linking learning to the business. This article was written specifically for this issue of EdLink’s TAPwire, and we are grateful to the esteemed authors.

Business alignment is a critical issue in the learning and development, and performance improvement fields. If business alignment is not achieved, a flawed project or program can result, creating inefficiencies and other problems. This article describes how you can ensure your programs and projects are aligned with your business.

The Basis for Alignment
Most professionals in learning and development field understand the concept of evaluation levels. Our research shows that almost 90% of learning and development professionals, for example, are using this concept which is based in part on Kirkpatrick’s definitions of the levels and our refinement of the definitions of those levels, with the addition of the fifth level, ROI.

As a refresher, these levels are described in Table 1.

Table 1. Levels of Evaluation

Understanding this framework is an important step toward achieving alignment between programs and the business. The theory on which the framework is based suggests that in order for a program to be successful to the highest level, those involved (Level 0, Inputs) must first view the content or project as relevant (Level 1, Reaction) acquire the requisite knowledge, skill, and/or information (Level 2, Learning), and apply the knowledge, skill, and/or information (Level 3, Application). As a consequence, targeted business measures will improve (Level 4, Impact). This improvement is connected to the program through a process to isolate the effects of the program. To move to ROI, the business measures that have improved are converted to monetary value and compared to the cost of the program.

This logical progression of results has served the learning community for decades. The concept of ROI has served the business and government community for centuries. Today, the five-level framework of results is the most often applied approach to capturing and reporting training and performance improvement results.

These levels do not only support the evaluation process, however. They serve three purposes. They support us as we 1) identify stakeholder needs; 2) develop program objectives; and 3) evaluate our programs to ensure desired results have occurred. These three purposes represent the stages of business alignment.

Three Stage of Business Alignment
There are three stages with much occur to obtain business alignment, as shown in Figure 1 (Phillips, 1994).

1. Clarify needs for the program or project
2. Develop program objectives, including the business impact objectives
3. Evaluate to connect business improvement to the program

Clarify Needs for the Program or Project
Alignment occurs initially when stakeholders’ needs are identified. Stakeholders needs begin with potential payoff of opportunities or problems occurring in the organization. These payoff opportunities represent an organization’s opportunity to make money, save money, and/or avoid costs. Some payoff opportunities are obvious, others are not. Obvious payoff opportunities may include:

• Excessive turnover of critical talent
• Low market share in a market with few players
• Inadequate customer service
• Excessive grievances

Opportunities in which the payoff is not so obvious may include:

• Improve leadership competencies for all managers
• Establish a project management office
• Become a great place to work
• Create a wellness and fitness center

Through the analysis process, five additional levels of needs are identified. These include the business needs, performance needs, learning needs, preference needs, and input needs. As each lower level of need is met, the achievement of the higher level need become plausible. Preference needs and input needs represent the solutions with which the stakeholder needs at the higher levels will be met.

Table 2. Achieving Business Alignment

Develop Objectives
The second stage of business alignment is through the development of objectives. Program objectives correspond to stakeholder needs. Developing powerful program objectives at multiple levels positions the program for success. They describe to designers and developers the intent of the program, giving them direction as to what components to include. They provide facilitators direction as they assist participants in preparing to change behavior, apply knowledge, and drive business outcomes.

Powerful program objectives representing stakeholder needs communicate to participants what to expect from a program, and why it is important. By developing higher levels of objectives, business objectives remain in constant focus, reminding participants of the ultimate intent of the program. Developing objectives that reflect stakeholder needs communicate to stakeholders that the program owner understands what is important to organization success. Program objectives also set the stage for program evaluation, ensuring the right measures are taken and that results important to stakeholders are developed. Developing powerful objectives that reflect stakeholder needs is an imperative if you are interested in aligning your programs with the business.

Evaluate the Program
The third stage of business alignment occurs during the program evaluation period. Reaction data (Level 1) describe the reaction to the program from the participant perspective. These data include process data as well as content data – describing the relevance an importance of the content to participants and their jobs. Learning data (Level 2), describe success with achievement of learning objectives. These data provide an indication that participants are ready and able to change performance or apply new knowledge and skill. Data at Levels 1 and 2 are collected during program implementation. It is at this time that these data are most useful as they allow owners to make immediate adjustments to their programs.

While these levels of evaluation are important, the data collected post-program describe ultimate program success. Application data (Level 3) are collected and analyzed to determine the extent to which performance has changed in comparison to what was expected. Business alignment, however, is confirmed at the business impact level (Level 4). It is at this level of evaluation that a clear connection between the program and the business improvement can be made through the use of techniques to isolate the effects of a program. A positive return on investment (ROI, Level 5) communicates to stakeholders that not only was the program successful in meeting business needs, but that these benefits to the organization exceed the costs.

Steps to Get Started
To try your hand at aligning your programs to the business, follow these steps.

1. Look for opportunities for payoff (Level 5 Payoff Need)
   Take a good look at your organization. Is there an opportunity to make money, save money, and/or avoid costs?


2. Identify the key business measures that need to improve (Level 4 Business Need).
   Once you know the opportunity(ies), identify the specific business measures that need to improve in order to take advantage of the opportunity.


3. Identify behaviors or processes that need to improve (Level 3 Performance Need).
   Given the business measures that need improvement, identify the behaviors or processes that need to change in order to improve those business measures.


4. Identify knowledge, skill, and/or information gaps (Level 2 Learning Needs)
   Only after you’ve identified the specific behaviors or processes that need to change do you look for knowledge, skill, and/or information gaps. By filling these gaps, you should have positioned your people to do what they need to do in order to improve the business measures.


5. Select the solution(s) (Level 1 Preference Needs)
   Given the business measures, performance needs, and learning needs, how best can you deliver the knowledge, skill, and/or information?


6. Plan your program or project (Level 0 Inputs Needs)
   Identify the people who need to participate. Identify the resources, technologies, and tools. Keep in the value of the potential payoff as you plan your program. By considering the potential payoff and the portion of that payoff opportunity you are likely to affect, you can manage the costs of your program.


7. Develop program objectives.
   With clarity around your needs, it is now time to position your program for success. Develop powerful program objectives that reflect all levels of need.


8. Communicate you objectives.
   Objectives without communication are, well, useless. Communicate the program objectives to designers, developers, project managers, and facilitators. Their understanding of the specific objectives, including the business impact and ROI objectives, will help them design and deliver a solution well positioned to meet stakeholder needs.


9. Plan your evaluation study.
   By spending time upfront clarifying needs and developing powerful objectives, evaluation planning (and ultimately execution) is much easier than when evaluation is applied as an afterthought.


10. Implement your program
    With clarity of direction and a program designed for results, you are ready to set sail toward alignment.

Achieving business alignment requires that you follow a logical approach. The most logical approach is the concept of evaluation levels. By beginning with evaluation in mind, you ask the right questions in the upfront analysis. By getting clear on stakeholder needs, including those higher levels of need, you can develop powerful objectives that position your program for success. With clear objectives and early planning, evaluation becomes systemic versus an afterthought. Clear, relevant stakeholder needs along with powerful program objectives, and an evaluation plan linked to those objectives, are your road map to achieving business alignment.

The Authors:
For the past two decades, Jack and Patti Phillips have been teaching professionals in this field to link their programs to business and evaluate those programs, including calculating the ROI. A major part of these workshops include exercises, discussion, and content about business alignment. Jack Phillips wrote the first book in the United States on training evaluation, Handbook of Training Evaluation and Measurement Methods, (Houston, TX, Gulf Publishing, 1983) now going into its 4th edition (Woburn, MA, Butterworth-Heineman, 2008). Patti Phillips’ book, The Bottomline on ROI (Atlanta, GA, CEP Press, 2002), won the 2003 ISPI Award of Excellence. Together, the two have authored or edited more than 30 books in the measurement and evaluation field. The ROI Methodology, created by the authors, is the most documented and used system in the world. The books on this methodology have been translated into 30 languages, and the process has been implemented in 50 countries. Both authors routinely consult with major organizations, as well as conduct workshops and speak at major conferences. ROI Institute (www.roiinstitute.net) regularly conducts research with organizations to explore needs, issues, and best practices.