Understanding the Hidden Value of Learning and Development [REPORT]

• 2 min read

Understanding these four L&D business models can bring you closer to creating L&D business value

This is an excerpt from our recently released paper, New Value Creation with Four L&D Business Models. The paper, which is authored by Jos Arets, co-founder of the 70:20:10 Institute, explores why the Institute believes that traditional models of L&D are failing and how to achieve new successes by re-defining L&D business models to prove L&D business value. Here’s a brief snapshot from the book, but you can download the complete report here.

The 70:20:10 Institute’s new book makes a distinction between four L&D business models to redefine the future of L&D. (Arets, J. et. al. in press).

The book draws horizontal and vertical axes for L&D as a function of the organization. The horizontal axis represents the continuum between HRD (human resource development) and the core business, and the vertical one the continuum between strategy and operations.

The two axes create four quadrants (see the diagram below):

  • Learning-focused L&D business models.
    • Order Taker.
    • Learning Enabler.
  • Business-focused L&D business models. 
    • Performance Enabler.
    • Value Creator.

Organizations increasingly assess the different components of their primary processes based on business models, including determining measurable added value. This is a logical process and applies at organizational and department level. The L&D department is no exception. L&D is expected to show the value it creates for the organization, in the same way other department are required to demonstrate value.

The four L&D business models described here support the transition from learning to business value. To stay current and relevant in an ever-changing world it seems to be appropriate for L&D to undertake a deep change to move from learning to business paradigm, moving from the left to the right in our business model framework for L&D.

We do not intend to express value judgments about each of these four models. Their most important function is to act as elements in a framework to help engage dialogue, so that each L&D department can determine the difference between current and desired models, including the barriers, and the potential in its own context.

Want the complete story? Download “New Value Creation with Four L&D Business Models” today for a complete breakdown of the L&D business models and start to get value out of your L&D program.

For a better understanding of the value of learning and development, download your copy of the white paper today.