Corporate Learning Strategies
Daniel R. Tobin, Ph.D
The Fallacy of ROI Calculations
If Not ROI, Then What?
This article is based on a presentation I have made to conference audiences on three continents. At the conclusion of each presentation, I am typically asked: "If you don't use ROI to measure the value of your programs, then what do you use?" Throughout my 25+ years in the training field, I have always used the same indicator of my success - when company management/leadership gets up and says: "We had a really good quarter or year, meeting (or exceeding) our business goals - and, by the way, we couldn't have done it without the efforts of the training group" - then I know that the training group has been successful.
Tobin's Law
This entire article can be summarized by what I immodestly call "Tobin's Law" -- If you start and end all of your learning efforts by focusing on your organization's goals, you will never be asked to do an ROI analysis to justify your budget.
