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Measure Scrap, Show Value with Impact Ratings

August 2, 2020
Aug 2, 2020 7:00 PM

Years ago, customer satisfaction surveys were lengthy and had low response rates.  Then, Net Promoter Score (NPS) came along and reduced these to a single question that is used across businesses today.  In L&D, there is also the need to create a focused series of questions that result in a set of scores to help show alignment to the business while also continuously improving.  

For over a year and a half, Performitiv has conducted monthly meetings with over 50 learning leaders from world-class learning organizations.  The goal of these meetings was to derive a series of questions that could help L&D, similar to how NPS helped customer service.

The result is a concept complimentary of NPS but specific to learning.  A single question could be used to assist L&D operations.  The question may be "How likely would you be to recommend your organization invest in learning like this again?"  It has similarities of NPS but is adapted to learning, where the phrase around investing in learning has been causally linked to downstream impact.  

Likewise, there should be an NPS question specific to program outcomes to convey to business executives.  For example, in sales programs, that question may be "As a direct result of this learning I will be able to significantly sell more."  Or for Leadership it could be "As a direct result of this learning I will be a significantly better leader."  These can also be asked a short-time later on-the-job or to a manager.  Further, the data can be viewed alongside operational results like sales data or leader turnover to see if there is a correlation, therefore providing evidence of learning's contribution or connection to the business results.  

Once you have the questions, you can use the NPS formula to calculate Net Impact Ratings.  Like NPS, Net Impact is the Percent High Impact less Percent Low Impact.  Further, the Percent High Impact are those learners where there was value creation, whilst the Percent Low Impact represent the wasted or scrap learning.

If L&D then calculated the Net Impact, High Impact and Low Impact scores and stack ranks them by areas like program or demographic, it can be a very powerful way of understanding which investments generated significant value and which investments were scrap learning.  

If you'd like more details on Impact Ratings, contact us.  We'd be happy to share specific questions, calculations and reporting tools to do this.  

Thank you,

The Performitiv Team