Using your annual report to align learning objectives with business goals

Learn how to identify business goals and understand the learning that is needed to support those goals.

Electives team

Published on

Jul 5, 2024

Insights from Ellen Raim, Founder of People MatterWe focus more on solving than preventing People problems.

Your organization's annual report can help you identify business goals and understand the learning that is needed to support those goals.

Examining the annual report allows you to see where the company is heading and tailor your training programs to support these directions. The resulting alignment makes your L&D efforts more relevant and impactful, and it fosters a stronger connection between the People function and executive leadership.

Creating alignment between learning objectives and business goals has several key advantages:

Enhanced buy-in: When learning objectives are explicitly linked to the company’s strategic goals, it is easier to secure buy-in from senior leaders. They can see the direct impact of training programs on business outcomes, making them more likely to support and invest in these initiatives.
Improved ROI: Aligning L&D with business objectives ensures that resources are focused on areas that drive significant value. This approach maximizes the return on investment by prioritizing training that addresses critical skills gaps and supports strategic priorities.
Greater accountability: Using the annual report as a foundation for L&D planning introduces a clear framework for measuring success. By setting measurable goals based on key performance indicators (KPIs) from the report, you can track progress and demonstrate the tangible impact of your learning programs on the organization’s performance.

Here’s a step-by-step guide to help you extract valuable information from your organization’s annual report:

1. Understand the annual report structure

Annual reports typically include sections such as the CEO’s letter, financial statements, management’s discussion and analysis (MD&A) and notes on the financial statements. Each section provides insights into different aspects of the business.

2. Analyze the CEO’s letter + strategic priorities

Pay close attention to the CEO's letter, as it outlines the company's vision, mission and strategic priorities, providing a clear roadmap of the organization's future direction.

Key focus areas: The CEO’s letter outlines the company’s vision, mission and strategic priorities. Pay attention to recurring themes, new initiatives and areas of emphasis.
Success metrics: Identify the key performance indicators (KPIs) mentioned. These metrics are critical for aligning learning objectives with business goals.

3. Review the financial statements

Examine revenue streams, profit margins and expense categories to understand where the company is growing or facing challenges.

Growth trends: Look at revenue streams, profit margins and expense categories. Understanding where the company is growing or facing challenges can highlight areas needing additional support.
Investment areas: Notice where capital is being allocated. Significant investments in technology, R&D or new markets often indicate areas where upskilling may be necessary.

4. Examine the MD&A section

Analyze operational performance, market conditions and future outlook to identify strengths, weaknesses, opportunities and threats.

Operational insights: This section provides detailed insights into operational performance, market conditions and future outlook. It often includes an abbreviated SWOT analysis.
Risk management: Identify any risks that the company is focusing on mitigating. Learning programs can help build competencies to manage these risks effectively.

5. Identify core competencies

Determine essential skills for achieving strategic goals, focusing on talent development, innovation, customer service and other competency-related areas.

Skills gaps: Determine which skills are essential for achieving strategic goals. Look for mentions of talent development, innovation, customer service and other competency-related areas.
Employee development needs: Notice any references to employee retention, leadership development or cultural initiatives. These insights can guide the creation of targeted learning programs.

6. Link business objectives to learning objectives

Align learning objectives with strategic goals, such as prioritizing cross-cultural training for market expansion or technology training for digital transformation.

Strategic alignment: Align your learning objectives with the strategic goals identified. For example, if expanding into new markets is a priority, focus on cross-cultural training and market-specific knowledge.
Skill development: If technology adoption is a crucial objective, prioritize training in innovation, new software, cybersecurity or data analytics.

7. Create an L&D roadmap

Prioritize learning programs directly supporting business objectives and set clear, measurable goals aligned with business outcomes.

Prioritize programs: Based on your analysis, prioritize learning programs directly supporting business objectives.
Set measurable goals: Define clear, measurable learning objectives that align with business outcomes. Use KPIs from the annual report to set targets for your L&D initiatives.