Measuring the ROI of Data Literacy Programs

WebinarDecember 2021

In a survey of more than 4,500 organizations, UiPath found that more than 83% of workers across industries that training in data science, analytics, and machine learning would help them become more effective in their role.

Now more than ever, the L&D function has never been more important for driving organizational change and driving business impact.

However, how do you go about measuring this impact and proving the ROI of learning and development programs for data skills?

In this webinar, we’ll uncover the importance of L&D programs on data science and analytics in an increasingly digitized world, discuss practical steps and frameworks L&D teams can adopt today to measure the ROI of L&D programs on data science and analytics, and present how to leverage assessments and data to measure skill progression on L&D programs.

Finally, we’ll cap it off with a spotlight on how DataCamp’s data science team designed Signal Skill Assessments and Skill Matrices to measure data skill progression within teams and organizations.

Main Takeaways:

Understand the importance of data training in an increasingly digitized world
Practical steps and frameworks for measuring ROI on L&D programs for data skills
How to leverage assessments and data to measure skill progression on L&D programs for data skills

Summary

Assessing the return on investment (ROI) of data literacy programs is essential as organizations increasingly rely on data-driven decision-making. With the quick pace of digital transformation, the need for employees at all levels to develop data skills is growing. Despite significant investments in data science and AI, only a small percentage of companies report transformative outcomes, often due to cultural and skill-related barriers. Data literacy is emerging as a vital skill, similar to computer literacy decades ago. Organizations are encouraged to implement comprehensive upskilling programs designed for different learner personas, ranging from non-technical staff to advanced data scientists. The challenge is in effectively measuring the success and ROI of such programs. The Kirkpatrick Model of Evaluation offers a framework, assessing reaction, learning, behavior change, and results. This model emphasizes the importance of continuous assessment and adaptation of learning strategies. Peter Moores highlighted the role of adaptive testing in skill assessments, which can help track and personalize learning experiences. Ultimately, organizations must understand the long-term strategic value of data literacy to remain competitive.

Key Takeaways:

Data literacy is vital for organizational competitiveness in the digital age.
The Kirkpatrick Model provides a framework to evaluate the effectiveness of data literacy programs.
Data literacy requires a long-term strategic approach, not simply one-time training sessions.
Adaptive testing can personalize learning and help track skill progression effectively.
Cultural and skill gaps can hinder the realization of data-driven transformations.

Deep Dives

The Data Literacy Mandate

The quick pace of digital transformation has brought data literacy to the forefront of essential skills for modern professionals. As organizations generate vast amounts of data, the ability to interpret and leverage this data is vital for maintaining competitiveness. Data literacy is not only about understanding data but involves a mindset shift towards data-driven decision-making across all levels of a business. This transformation parallels past technological shifts, such as the advent of computer literacy. Today, data literacy is the successor skill, transforming organizations and industries by enabling them to extract actionable insights from data. The challenge is in overcoming cultural resistance and skill deficiencies that prevent the realization of data-driven transformations. According to a survey by New Vantage Partners, while 99% of organizations are investing in data science and AI, only 29% report tangible value creation, with cultural and skill barriers cited as primary obstacles.

The Challenge of Measuring Effectiveness

Measuring the effectiveness of data literacy programs poses a unique challenge. Unlike traditional skill sets, data literacy is a comprehensive mindset shift requiring ongoing development and reinforcement. The Kirkpatrick Model of Evaluation offers a structured approach to assess the impact of these programs through different levels: reaction, learning, behavior change, and results. Reaction can be gauged through surveys and feedback loops, while learning is measured via continuous assessments and project completions. Behavioral change, a vital indicator of program success, involves applying newly acquired skills in real-world scenarios. For instance, Bloomberg measures behavioral change by tracking the increase in data-driven activities post-training. Finally, determining the ROI of data literacy programs is complex due to their long-term nature, but aligning training objectives with business goals can provide meaningful insights into value creation and cost savings.

Adaptive Testing in Skill Assessments

Adaptive testing plays a vital role in skill assessments, offering a personalized learning experience that adjusts to the learner's proficiency level. Peter Moores explained that these tests dynamically change based on the user's responses, providing challenges designed for their current skill level. This approach ensures that learners are neither overwhelmed by difficult questions nor disengaged by overly simple ones. The adaptive nature of these tests allows for more accurate skill measurement across a wide range of proficiency levels. Results from these assessments can help identify areas for improvement and guide the development of personalized learning paths. Additionally, the data gathered from adaptive tests informs the continuous improvement of the assessment tools themselves, ensuring they remain valid and reliable indicators of a learner's capabilities. This methodology supports organizations in tracking skill progression and aligning learning initiatives with strategic objectives.

Overcoming Barriers to Data Literacy

Organizations face significant barriers in cultivating a data-literate workforce, primarily stemming from cultural resistance and skill gaps. Many employees still rely on instinct rather than data-driven decision-making, as evidenced by a survey conducted by Accenture and Click, which found that 48% of employees prefer intuition over data. Overcoming these barriers requires a strategic, long-term approach to upskilling. It's vital for organizations to communicate the value of data literacy as a supplement to existing expertise rather than a replacement. Experienced employees, who may be resistant to change, should be encouraged to view data skills as tools that enhance their existing capabilities. This perspective can promote greater acceptance and motivation. Furthermore, creating inclusive data literacy programs that accommodate varying skill levels ensures that all employees can engage with data relevant to their roles. By addressing these challenges, organizations can unlock the full potential of their data investments.