Encyclopedia of Leadership

14.3

NEEDS ANALYSIS: MEASURINGRETURN

ON TRAININGINVESTMENTS

Inspired by Donald Kirkpatrick, Robert Mager, and Trisha Wilcox.

A leader’s success in developing people is a key competitive advantage in knowledge-based

work environments. Yet training is costly: Participants’ time away from work, course design,

and travel all cost money, not to mention your time as a coach to ensure that employees’ new

knowledge and skills are being used effectively on the job. In addition, investments in train-

ing are all too often poorly selected and ineffective. This tool will help you measure training

ROI (return on investment).

You can measure the success of a training event on four levels, from the most commonly

used but least helpful measure (participant reaction) through to the most complex but most

helpful measure (actual results).

Post-learning-event measures are rarely helpful without pre-event measures. The needs

analysis and return on investment process shown here is based on the four levels of measure-

ment already outlined.

434 SECTION 14 TOOLS FORLEARNING

The four levels of

measurement

1. Reaction


2. Learning


3. Performance


4. Results

What is measured and its value

as a measurement

Measures how a participant feels about

a training event.

Least helpful, but easiest to measure.

Measures how much the participant

learned during the training event.

Most helpful in technical training,

when there is one best way to do the

job.

Measures how well participants are

using their learning on the job.

Most helpful when training is skill-

based and there is one best way to do

the job.

Measures return on investment for a

training event.

The most definitive measure, yet least

used, as measurement is complex and

costly.

Typical measuring process

Ask participants to complete a training

course evaluation form.

Ask: “How do you feel about what you

learned at the training event?”

Standardized testing. Pre- and post-

learning-event measures are required.

Usually measured by observing on-the-

job performance. Pre- and post-learn-

ing-event measures are required.

Often it’s impossible to directly con-

nect the acquisition of new knowledge

and skills in a given learning event to

bottom-line business goals.