Maximizing ROI

For Highest ROI, Stay Above ‘The Line’
Findings #2 and 3 give clear guidance about how to achieve higher job competence and, thereby, the highest return on our learning investments. The point in the ROI graph below at which the curves for the declining value of formal learning methods and and the increasing value of informal learning methods intersect identifies a key ‘learning maturity’ milestone. This is the point at which the return on further investments in formal learning diminishes and further investements in informal learning methods really makes sense. At this theoretical cross-over point, a worker has developed his or her foundation knowledge and skills and possesses the cognitive framework needed to effectively assimilate and apply new knowledge independently. Drawing a horizontal line through this point shows where investments in learning will bring the highest return. The highest returns will be obtained from investments made above the line, with below the line investments being made selectively.


Highest Return on Investment


Target Formal Learning for Less Competent Workers.
Investments in formal learning methods should be targeted primarily for less competent, presumably newer, workers. These would include investments in instructor-led training, e-learning courseware, etc. This approach will provide these workers with needed foundation knowledge and skills. Additional investments in formal learning beyond the point of learning maturity should be made selectively, since more competent workers will, generally, not benefit proportionately from these methods.

Target Informal Learning for More Competent Workers.
Investments made to facilitate informal learning should be targeted primarily for more competent, presumably more experienced, workers. Competent workers will benefit disproportionately from investments made to build the social and technical knowledge-transfer infrastructure of an organization. Supporting the establishment and operation of strategically focused communities of practice and expert knowledge repositories will help more competent workers build on their existing capabilities to acquire the knowledge updates needed in a rapidly changing world. Conversely, investments made below the line for informal learning for less competent workers should be limited to methods that are specifically appropriate for them, like new-hire mentoring programs.

Summary
So, which school of thought is right--those who think that all learning must be instructionally designed or those who believe that facilitating informal learning is the only viable approach? Both are right and both are wrong because both approaches are vitally needed. We just need to make sure we use the most appropriate methods available to provide people with the learning resources they require based on their level of learning maturity. And, happily, helping people learn in the ways that are most useful to them will also support the business outcomes we desire and give us the highest returns on our learning investments.

p.s. I added a missing graph and made a few minor corrections to the previous post.