Many Don’t See L&D as Valuable: We Can Change That

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Here’s the uncomfortable truth: Most businesses still don’t see learning and development as strategically, financially, or operationally valuable.

Here’s the uncomfortable truth: Most businesses still don’t see learning and development as strategically, financially, or operationally valuable.

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This shows up in budget cuts, leaders purchasing their own systems and tools, and being referred to as “the training team” instead of a partner. And the data backs it up. According to research from Bersin , only 27 percent of companies believe L&D is building the right skills. Likewise, RedThread reports in “Hope Isn’t a Plan: Building a Progressive L&D Strategy” that just 33 percent say their learning strategy truly aligns with business strategy.

This shows up in budget cuts, leaders purchasing their own systems and tools, and being referred to as “the training team” instead of a partner. And the data backs it up. According to research from Bersin, only 27 percent of companies believe L&D is building the right skills. Likewise, RedThread reports in “Hope Isn’t a Plan: Building a Progressive L&D Strategy” that just 33 percent say their learning strategy truly aligns with business strategy.

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Before we can change how others perceive L&D, we have to change how we talk about ourselves.

Before we can change how others perceive L&D, we have to change how we talk about ourselves.

The Credibility Gap

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The reality is we’re still measured by activity instead of impact. Completion rates, satisfaction surveys, and hours of learning. Those are the numbers that fill our dashboards. Leaders care about solved problems, not the number of people who clicked through a course.

The reality is we’re still measured by activity instead of impact. Completion rates, satisfaction surveys, and hours of learning. Those are the numbers that fill our dashboards. Leaders care about solved problems, not the number of people who clicked through a course.

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Their questions sound more like this: Are sales teams meeting their quotas more quickly? Are managers making better calls? Are we closing skills gaps in roles that matter most?

Their questions sound more like this: Are sales teams meeting their quotas more quickly? Are managers making better calls? Are we closing skills gaps in roles that matter most?

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The gap between what we measure and what the business values is where our credibility slips. RedThread reports that L&D’s participation in organizational strategy forums has fallen by about 50 percent over the past two years. When we’re pulled in late, or not at all, it’s no wonder we’re seen as order-takers instead of strategists, and the systems we use only reinforce this perception.

The gap between what we measure and what the business values is where our credibility slips. RedThread reports that L&D’s participation in organizational strategy forums has fallen by about 50 percent over the past two years. When we’re pulled in late, or not at all, it’s no wonder we’re seen as order-takers instead of strategists, and the systems we use only reinforce this perception.

Legacy Tools, Yesterday’s Playbook

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Most systems were built for compliance rather than performance, and content often reflects yesterday’s priorities. Teams spend so much time running operations that there is little space left to drive change.

Most systems were built for compliance rather than performance, and content often reflects yesterday’s priorities. Teams spend so much time running operations that there is little space left to drive change.

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Companies invest nearly $400 billion a year in corporate learning. Yet Bersin finds that only a quarter of those programs are judged effective. The issue is that the infrastructure, measures, and mindsets were built for another era.

Companies invest nearly $400 billion a year in corporate learning. Yet Bersin finds that only a quarter of those programs are judged effective. The issue is that the infrastructure, measures, and mindsets were built for another era.

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The technology gap makes it worse. Microsoft’s research notes that only 10 percent of companies say their L&D teams are proficient in generative AI, and just 4 percent have started redesigning processes around it. This is about strategic positioning. This study highlights firms where people and AI create new business models together. If L&D is not fluent in these tools, we lose the ability to guide capability building at the speed the business needs. The risk is exclusion from the conversations that matter.

The technology gap makes it worse. Microsoft’s research notes that only 10 percent of companies say their L&D teams are proficient in generative AI, and just 4 percent have started redesigning processes around it. This is about strategic positioning. This study highlights firms where people and AI create new business models together. If L&D is not fluent in these tools, we lose the ability to guide capability building at the speed the business needs. The risk is exclusion from the conversations that matter.

What the Next Era Demands

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Our field is waking up to the shift. Donald Taylor’s Global Sentiment Survey shows AI dominating the conversation, with an equally strong push to prove value. Leaders know the days of tracking completions are over.

Our field is waking up to the shift. Donald Taylor’s Global Sentiment Survey shows AI dominating the conversation, with an equally strong push to prove value. Leaders know the days of tracking completions are over.

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Across Bersin, RedThread, and BCG , the message is consistent. Companies win by learning faster than competitors.

Across Bersin, RedThread, and BCG, the message is consistent. Companies win by learning faster than competitors.

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We have to operate as strategists, not service providers, who design systems that solve business problems. Build ecosystems, not catalogs. Utilize governance that aligns initiatives with business priorities. Measure outcomes in the language the C suite understands and values: revenue, risk, retention, and performance.

We have to operate as strategists, not service providers, who design systems that solve business problems. Build ecosystems, not catalogs. Utilize governance that aligns initiatives with business priorities. Measure outcomes in the language the C suite understands and values: revenue, risk, retention, and performance.

Changing the Story

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We can’t deliver value from the sidelines. When L&D sits apart from the teams we serve, we are designing on assumptions instead of reality. When we are pulled in after the fact, it reinforces the view that we’re a cost center, not a growth driver.

We can’t deliver value from the sidelines. When L&D sits apart from the teams we serve, we are designing on assumptions instead of reality. When we are pulled in after the fact, it reinforces the view that we’re a cost center, not a growth driver.

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Where L&D is treated as a strategic partner, results are clear. Employees grow faster. Engagement rises. Organizations adapt more quickly. Financial results follow. These companies are not spending more. They invest differently. They redefine L&D from a content provider to a capability builder, from a cost center to a business enabler.

Where L&D is treated as a strategic partner, results are clear. Employees grow faster. Engagement rises. Organizations adapt more quickly. Financial results follow. These companies are not spending more. They invest differently. They redefine L&D from a content provider to a capability builder, from a cost center to a business enabler.

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Getting there requires a shift in how we operate. Here are four ways to position L&D as a driver of business performance.

Getting there requires a shift in how we operate. Here are four ways to position L&D as a driver of business performance.

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1. Put Strategy Before Structure

1. Put Strategy Before Structure

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Start by asking three questions: What business outcomes are we trying to drive? Which capabilities matter most? How can learning accelerate those capabilities? Define the strategy first, then build the structure around it. That may mean rethinking roles, merging operations and analytics, or stopping programs that no longer serve the business. Map next year’s required capabilities before you touch staffing models or budgets.

Start by asking three questions: What business outcomes are we trying to drive? Which capabilities matter most? How can learning accelerate those capabilities? Define the strategy first, then build the structure around it. That may mean rethinking roles, merging operations and analytics, or stopping programs that no longer serve the business. Map next year’s required capabilities before you touch staffing models or budgets.

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2. Embed L&D in Business Operations

2. Embed L&D in Business Operations

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Closeness creates clarity. The more embedded learning and development (L&D) is in business operations, the more insight we have into real problems, and the more relevant our solutions become. Embedding occurs when an L&D partner is integrated within a business unit, when reporting lines are aligned with both HR and operations, when budgets originate from the business itself, and when programs are co-designed with leaders rather than delivered to them.

Closeness creates clarity. The more embedded learning and development (L&D) is in business operations, the more insight we have into real problems, and the more relevant our solutions become. Embedding occurs when an L&D partner is integrated within a business unit, when reporting lines are aligned with both HR and operations, when budgets originate from the business itself, and when programs are co-designed with leaders rather than delivered to them.

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3. Align on L&D’s Role

3. Align on L&D’s Role

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If leaders view L&D as merely compliance or fluff, we must reset the narrative. Align executives on L&D’s role in business transformation. Help managers use learning as a performance tool. Demonstrate to employees how development aligns with career growth. Establish a shared understanding of the distinction between capability building and program delivery. Use business reviews to show impact in operational terms. Alignment builds credibility, shared ownership, and a stronger voice in decision making.

If leaders view L&D as merely compliance or fluff, we must reset the narrative. Align executives on L&D’s role in business transformation. Help managers use learning as a performance tool. Demonstrate to employees how development aligns with career growth. Establish a shared understanding of the distinction between capability building and program delivery. Use business reviews to show impact in operational terms. Alignment builds credibility, shared ownership, and a stronger voice in decision making.

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4. Modernize How We Work

4. Modernize How We Work

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Outdated systems keep us stuck. We need tech stacks built for agility, personalization, and measurement. Replace stagnant learning platforms with modern learning ecosystems designed to easily scale and integrate into an AI-enabled workforce. Automate workflows to free up team capacity. Use real-time data to guide decisions. Develop L&D professionals in design thinking, emerging tech, and consultative skills. If your stack looks like six disconnected systems rather than a coherent ecosystem, you are not alone. Fit for purpose and integration are where speed comes from.

Outdated systems keep us stuck. We need tech stacks built for agility, personalization, and measurement. Replace stagnant learning platforms with modern learning ecosystems designed to easily scale and integrate into an AI-enabled workforce. Automate workflows to free up team capacity. Use real-time data to guide decisions. Develop L&D professionals in design thinking, emerging tech, and consultative skills. If your stack looks like six disconnected systems rather than a coherent ecosystem, you are not alone. Fit for purpose and integration are where speed comes from.

The Choice Is Ours

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The credibility gap is a signal, not a verdict. When L&D leads through strategic alignment, operational embedding, and modern capabilities, we transform how the organization perceives us and its performance.

The credibility gap is a signal, not a verdict. When L&D leads through strategic alignment, operational embedding, and modern capabilities, we transform how the organization perceives us and its performance.

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The money is already being spent. The need is clear. Without this shift, L&D will be sidelined while others take the lead on developing the workforce.

The money is already being spent. The need is clear. Without this shift, L&D will be sidelined while others take the lead on developing the workforce.

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The choice is ours: Keep managing “ training ” or help the business build the capabilities it needs to succeed in any market.

The choice is ours: Keep managing “training” or help the business build the capabilities it needs to succeed in any market.