IMO. However you and your clients measure Value Added (as well as Value Subtracted).

At the Worker, Workflow, Workplace and World (Societal) levels.

For if you don’t add value, and you subtract value, and you’ll eventually drive your unit, function, Enterprise bankrupt.

That’s why many L&D function are driven to look at ROI, or ROE, or RONA, etc., as they wish to get on THAT side of the Balance Sheet.

“What’s a Balance Sheet?” some may ask.

THAT’S an issue IMO too. Not understanding how Score Is Kept. THAT’S an issue to be remedied ASAP IMO.

L&D Is a Cost Center

Even Cost Centers vs Profit Centers are there to ADD VALUE. Otherwise they’d be cut and cut quickly. Gone.

T&D/ L&D/ LXD units are usually Cost Centers – and if they do not add enough value – that shows up elsewhere in a Profit Center – they should be cut – and their Product & Service Offerings – should be outsourced. Or the Cost Center will be rebuilt and repurposed to meet the Value Add Criteria.

L&D is not put into place because it feels good (too often). It’s not on the payroll and balance sheet because it’s simply expected, or honorable, or because leaders JUST LOVE LEARNING.

It’s not on the Organization Chart because it’s a necessary evil.

It’s there to Add Value in improving the performance of the other units and processes of the Enterprise – be they part of Cost Centers that roll-up eventually to some Profit Center.

The Critical Importance of Results

Let me Point you to something the late Geary A. Rummler wrote in 1969 … a 6 page PDF … and that I presented in a 2011 Blog Post – here.

And this from Rummler – that was in a handout I got in 1981…

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