Learning Analyzed Via The ROI Pyramid Of Learning And Performance

Written by:

Thomas Schipperen

Reviewed by :

Date created

June 1, 2021

Last updated:

June 20, 2024

|

5 min read

L&D Strategy

Table of content

Key takeaways

• The ROI Pyramid of Learning and Performance is a tool used to forecast and evaluate investments in Human Resources, starting with addressing a strategic challenge.

• The process involves analyzing data-driven measurements and evaluations after implementing a learning program, focusing on employee satisfaction, learning outcomes, behavior changes, organizational impact, and ROI.

• The concept of the ROI Pyramid originated in the US in the mid-1900s and has been promoted by the ROI Institute since the 1990s, with a branch in the Netherlands.

• The ROI Pyramid guides impactful learning programs, essential in our blog series for learning and performance insights.

It’s time to build the ROI Pyramid of Learning and Performance. Thought construction is somewhat unusual. You start at the top, then descend to the lower regions, and then work your way up again. And all in two minutes of reading time. Let’s go!

Do you have a problem?

The ROI Pyramid is used to forecast and evaluate investments in Human Resources, for example L&D. Its strength lies in the fact that it views an investment as a way to fix a strategic challenge. Therefore, the starting point begins addressing the problem to be solved. You will analyze, from top to bottom, your answer to these questions per disc:

5. Is the problem worth exploring?

4. What do you want to achieve as an organization?

3. What behavior must employees display to achieve this goal?

2. What knowledge, skills or attitude must be learned for this?

1. How is this relevant to the daily practice of employees?

Data, data, data!

The second phase is measurement and evaluation. This takes place after the investment, for example the implementation of a learning program. Now, we work with the same questions, but this time, bottom-up, and (pay attention for a moment) data-driven.

1. How satisfied are employees?

2. What have employees learned?

3. What concrete behavior do employees demonstrate in practice?

4. What has it achieved for the organization?

5. Was it worth the investment?

Do you want to know more about learning and performance?

We (unfortunately) did not invent this pyramid ourselves. Its foundation started in the US during the mid-1900s and has been preached by the ROI Institute through research, coaching and consultancy since the 1990s. There is also a branch in the Netherlands, so be sure to check their website if you are interested! Though in our blog series about an impactful learning program, this concept works as our building plan, so you will hear about it often. Do you have any questions after reading this blog, or would you like to chat with someone who is also working on this? Let us know below!