Spotlighting the impact of leadership development programs is crucial for organizations seeking to invest in their future. These programs must be clearly designed to grow and nurture the skills of potential leaders, in alignment with clear measures of their effectiveness, so that organizations might fully realize their investment’s value. The challenge lies in identifying tangible, measurable outcomes that reflect true leadership growth.
C-suite leaders, especially chief financial officers, don’t make decisions based on anecdotal evidence of success that learning and development (L&D) and human resources (HR) staff often bring to the bargaining table. They want hard data that the professional development expenditures will make a difference for the business.
As Lora Kyle, head of global talent development for Chegg explains, “Performance and management data refers to the information collected during the employee performance cycle and it is crucial for making informed decisions about talent management, succession planning, training programs and career development. This data enables HR to design effective and targeted programs that enhance skill sets in alignment with the organization’s strategic direction.”
According to Kyle, “The data will allow you to run a strategic gap analysis through the following steps; first review and understand the companies’ strategic goals and identify the people skills needed to get the organization there. Then review the collective performance reviews based on skills.”
As Kyle points out, clearly identifying this gap then ensures that the programs you create will work to close it strategically. This analysis will ensure that your employees are upskilled or reskilled to directly impact the company’s strategic objectives positively.
Define Success Metrics With Key Stakeholders
Before you kick off any project, program, or perk for employees, ask yourself as well as all the key stakeholders, what success looks like and more importantly, how do you define it? When the program ends and that door closes, how will you be successful? Asking these key questions before you roll out any program will allow for clear metrics to be generated at the very beginning.
Gather Data via Employee Engagement Surveys and Analysis of Retention Rates
Running an employee engagement survey and utilizing that data is critical because it focuses on your company’s culture, the creation of a positive work environment, and fostering a sense of belonging. HR data distilled from engagement surveys are direct feedback mechanisms, which can offer insights into what motivates employees and what drives them to stay at your company. By using this data, you can develop training initiatives that improve engagement directly driving the organization’s productivity, effectiveness and culture.
Employee retention data refers to the longevity and tenure of employees. You can gather turnover rates to identify trends within teams or the organization as a whole. Utilizing this data will allow you to develop initiatives that specifically target the retention your organization needs, directly impacting the organization’s efficiency and stability.
Deploy the Kirkpatrick Model
When creating metrics to evaluate the effectiveness of training programs, it can be helpful to deploy The Kirkpatrick Model. Developed in the 1950s, it consists of four levels: Reaction, Learning, Behavior and Results. It is a holistic approach, integrating all four levels to provide a comprehensive evaluation of training effectiveness. Organizations use this model not only to assess but also to improve training programs, ensuring they are aligned with strategic objectives and contribute real value. Each level builds on the previous one, moving from immediate reactions to long-term results, emphasizing the importance of creating training programs that are engaging, informative, applicable in real-world settings and aligned with the organization’s strategic goals.
These four levels include:
1. Reaction: This level assesses how participants respond to the L&D program or training. It measures their initial impressions, engagement and perceived relevance of the content. You collect this data in two ways:
First, gather participant data, calculated by dividing who attended by who was invited to attend to generate a percentage. This is your attendance metrics and can benchmark interest in the program as well as answer questions like, “Was this the best date/time for this training” or “Did the content appear relevant for those invited, and were specific teams, levels, etc. inclined to attend?”
Second, you should collect a net promoter score (NPS) for every training program. NPS is a metric that measures loyalty, satisfaction and enthusiasm, and it’s a valuable tool for assessing the effectiveness of learning programs, as it enables organizations to improve their training initiatives, boost employee engagement and drive positive business outcomes. NPS is also a global standard, so it can let you compare your performance with other organizations in your industry.
To produce an NPS in your course, ask the question, “I would recommend this program to my colleague” in your post-course survey. The answer scale should be 1-10. Promoters rate a score of 9-10, Passives rate 7-8, and Detractors rate between 1-6. Take the percent of Promoters divided by the Percent of Detractors. The score will be generated as a negative 100 to positive 100. Any score less than zero means this program needs to be further evaluated and possibly redesigned for improvement, 1-30 is a good training, 31-70 is a great training, and 71-100 is an excellent training. Begin to gather NPS per course and have goals around having good, great or excellent training across the board.
2. Learning: At this stage, the evaluation focuses on what participants have learned from the training. It measures the increase in knowledge, skills, confidence, or change in attitudes from before to after the training. Assessments can be sent through simulations, role-playing, or self-assessments to evaluate changes in knowledge and skills.
3. Behavior: This level examines if and how participants apply what they learned during training in their workplace, assessing changes in behavior and the implementation of new skills in the organization. Measuring behavior can be challenging because it is not done at a macro-level, but more within a role or team, and it often involves observations, interviews or self-reporting mechanisms over time.
4. Results: The final level ties to the business objectives, strategic results and the goals for the training — essentially, the outcomes an organization has determined are good indicators of success (i.e., the “so what” for the CFOs and the C-suite). These outcomes can include financial metrics, work quality improvements, increased productivity, reduced costs, higher customer satisfaction and other key performance indicators (KPIs). Results are the ultimate indicator of program effectiveness in contributing to organizational goals. This level demonstrates the return on investment (ROI) of the training, justifying the expenses involved and guiding future training investments.
As we navigate the complexities of the modern workplace, leveraging robust metrics not only enables us to quantify the effectiveness of our learning programs, but also guides strategic decision-making, ensuring alignment with organizational goals and objectives. Embracing a data-driven approach to L&D not only enhances organizational performance but also empowers individuals to reach their full potential, driving sustainable success in the dynamic world of work.
