Learning and development (L&D) has long been deemed a “cost center” for businesses. After all, the time employees spend learning is time they’re not spending performing the job they were hired to do.
While impactful training does take time and resources, it’s essential in equipping employees with the skills they need to improve their performance and advance business outcomes. It also helps businesses stay competitive in the market.
Thus, it’s perhaps not surprising that L&D’s reputation is evolving from that of a “cost center” to that of a “strategic business driver,” as was reflected in Training Industry’s 2024 Trends Report. This is particularly true when it comes to employee engagement and retention: LinkedIn Learning research found that 90% of organizations are concerned about employee retention, and providing learning opportunities is their No. 1 retention strategy.
That said, many stakeholders still believe that training professionals lack a keen understanding of business processes and priorities, says Dr. Amy DuVernet, CPTM, Training Industry’s director of training and development. Developing business acumen helps training professionals become trusted partners and “gain a seat at the table” by gaining knowledge and understanding of business operations.
Here, we’ll outline 10 tips for building business acumen as a learning leader, as outlined in the Certified Professional in Training Management (CPTM™) program’s curriculum. But first, let’s consider what “business acumen” means as it pertains to L&D.
Business Acumen, Defined
According to Dr. Kristal Walker, CPTM, senior vice president of human resources at Sweetwater, business acumen is having “a thorough understanding of the business,” including how each department functions and impacts the top and bottom line of the business. It also includes the ability to gauge how individual roles impact the business overall, which offers a 360-degree lens into how the business functions.
DuVernet agrees that business acumen requires an understanding of how a business operates and works to achieve its goals. She adds that business acumen is specific to each organization’s unique operations, goals and industry.
For example, a chief learning officer working for a global technology company would need to build their knowledge not only about their organization’s business goals and departmental functions, but also about the technology industry more broadly and the specific markets in which it operates across the globe, in order to build business acumen.
Why You Aren’t Earning “Trusted Partner” Status
Melaine Mahabir, CPTM, CKM, knowledge management associate at Guardian General Insurance, says there are a few common reasons why training professionals fail to achieve “trusted partner status” in their organizations, including:
- Delivering the training you want to deliver, not the training the business needs: All training needs to be strategically aligned to business goals or else it’s wasting valuable time and resources.
- Not measuring impact or measuring the wrong things: Measuring training impact is paramount in positioning the L&D function as a strategic business driver. Make sure to measure the right things by outlining success metrics and key performance indicators (KPIs) before delivering a program.
- Ignoring valuable feedback: L&D leaders need to be able to listen to feedback (from stakeholders, from their peers and from learners) on their initiatives and make adjustments accordingly.
Business acumen can help you avoid the above pitfalls and build your credibility as a trusted partner.
Consider these tips to get started building business acumen:
- Understand your company’s “domain.”
It’s critical to understand your company’s business and the market in which it operates. This includes speaking the language of the business (i.e., the terminology, concepts and priorities that are specific to your business and field) when communicating with stakeholders, rather than speaking the language of L&D.
- Understand your company’s mission and goals.
It’s also important to have a deep understanding of your organization’s mission and goals. This shows that you understand your organization’s “why.” Dr. Walker encourages learning leaders to work for organizations whose personal values align with those of their organization’s to avoid feelings of misalignment.
- Align your training organization’s goals with your company’s goals.
According to Training Industry research, strategic alignment — the ability to align training initiatives with key business goals — is the most important process capability of great training organizations. Thus, aligning your training function’s goals with broader business goals is essential in positioning yourself as a trusted partner.
However, it can be difficult to balance competing business priorities, Walker says, especially in fast-paced environments. Having frequent conversations with stakeholders can keep you up to date on the business’s most pressing challenges so that you can direct your efforts accordingly.
- Understand the impact your training organization has on the company’s goals and report its performance to key stakeholders.
Measuring and reporting training impact helps showcase L&D’s value to stakeholders. When reporting training impact to stakeholders, use data visualization techniques to ensure effective data communication and comprehension. Effective visualization can help you “paint a picture” of training’s impact on the business, leading to a more beneficial presentation.
- Be fiscally responsible and budget conscious.
Learning leaders need to be budget conscious to make the most of their limited training dollars.
“Sometimes, we look at finances and get overwhelmed by the numbers,” says DuVernet. “But working within a training budget and allocating your resources strategically can help you make responsible decisions.”
If you’re struggling to understand financial documents, meet with your finance department to go over them and bridge any knowledge gaps.
- Develop training solutions supported by data and objective reasoning.
All training programs should be data driven and developed through objective reasoning. Working with subject matter experts (SMEs) can help ensure your content is accurate and reflective of current best practices.
When training solutions are backed by data and unbiased, factual information, it builds credibility and trust.
- Develop talent within the training organization, as well as within the company.
Training managers are responsible not only for developing the workforce, but also for developing their own training team members.
Investing in your training team’s development ensures that every team member has the skills they need to deliver great training that drives business results.
- Use technology effectively.
Perhaps now more than ever, the ability to select and manage learning technologies is critical for training professionals. In addition, understanding how to use artificial intelligence (AI) to support L&D processes will set you up for success in the future.
If you’re considering purchasing a new learning technology, make sure to do your due diligence to ensure it will meet your business’ unique needs by asking detailed questions, scheduling demos and inquiring about free trial periods.
- Be a performance improvement consultant.
Use your consultative skills to build training and development programs that will meet the business’ needs, produce the intended results and improve business performance. Emotional intelligence (EQ) and active listening are essential skills for communicating and working with stakeholders effectively, says Mahabir.
To position yourself as a performance improvement consultant, DuVernet says being proactive is key: “Don’t wait for your stakeholders to share what their needs or concerns are.” Schedule regular meetings with your stakeholders to ask them about their current challenges and goals, and what they’re hoping to accomplish in the next quarter or year. Then, proactively recommend different solutions or programs that would help to drive outcomes toward those goals, DuVernet suggests.
- Be a student of your profession.
Make it a point to learn about your job role as a learning leader and how you contribute to not only the training organization’s success, but also to the organization’s. Some ways to be a student of your profession include: reading industry journals or publications to stay up to date on the latest news and research, listening to L&D podcasts or watching webinars, and engaging in professional development opportunities, like taking a course, workshop or even earning a credential.
Conclusion
Whether you’re a new training manager or a seasoned executive, business acumen is essential in establishing yourself as a trusted partner. By following the tips outlined in this article, you’ll be well positioned to move away from being seen as an “order-taker” and toward achieving “trusted partner” status in your organization.
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