This article is designed to highlight the importance of ROI (Return On Investment) based training to managers and HR professionals and to help readers understand just what a difference ROI based training could make to your business.
Allow me to set the scene. You’ve identified that a number of people in your team could benefit from having better presentation skills. You look at a few brochures or perhaps you ask a training department for recommendations. You select a course and arrange for your staff to attend. They spend two days on the course and come back to the office with lots of enthusiasm and confirm to you that the course was highly enjoyable. You are pleased that they enjoyed the course and feel comfortable that they now all possess great presentation skills.
Problem solved, the team has been trained and this can only be good news for the business or is it?
The above scenario outlines the typical approach that a large number of managers and organisations adopt when it comes to training. Identify need, send staff on course, assume everything is now fixed – yet it rarely is. Managers expect to see an immediate impact as a result of the training and if it isn’t forthcoming they may come to the conclusion that the training was a waste of time (this does not bode well for the future training opportunities of their staff).
This existing approach to training is a largely “hit or miss” strategy in terms of bottom line impact on the business and in the current economic environment in which we find ourselves this is not something any sane manager would wish to experience. Let me also share with you some statistics that will make you seriously evaluate the effectiveness of your approaches to training:
1. Research has shown that without reinforcement as much as 70% of what you learn today can be forgotten within 24 hours
2. It is widely thought that 80% of what is taught on a training programme will be forgotten within a week of attending a course
3. It has been said that on average we remember:
- 20% of what we read
- 30% of what we hear
- 40% of what we see
- 50% of what we say
- 60% of what we do
- 90% of what we see, hear, say and do
4. Most people who attend a training course do not look at or review their course notes or materials when they return to the office
We you look at the above statistics it is mind-numbing to think that if you have invested $10,000 in a training programme in your organisation, as much as $ 8000
could be completely wasted within a week of the delegates finishing the course!
But let’s not focus on the negative. The good news is that with a fresh perspecitve and a different approach you can dramatically enhance the success of your training ventures and:
- get a better return from your training initiatives
- make your training budgets go further
- guarantee that the training you undertake will make a difference to the business
- ensure your staff makes the most of their training programmes
By adopting an ROI based training approach you can easily achieve all the above and much more besides.
THE COMPONENTS OF ROI BASED TRAINING
ROI based training is not a new concept, but very few training providers actually adhere to its approach. The reason for this is simple – it takes more effort to see it through and some training providers are simply not that customer focused.
ROI approaches to training are something that has always been part of IIR’s product creation strategy. The principles of ROI based training permeate through all the training solutions we create for our clients.
The following components are key to making ROI based training work:
- Training Needs Analysis (TNA)
- Management Commitment
- Programme Research & Development
- Establishment of Performance Benchmarks
- Programme Implementation
- Programme Evaluation
- Reinforcement Framework
1. TRAINING NEEDS ANALYSIS
Before embarking on any training venture, you must establish a business needs justification. Why are you training the staff? What is the catalyst for the training? How do you expect it to payoff? Etc. These are all questions that must be asked prior to a TNA. The objective of the TNA is to assess the “real” learning needs. This must be done at two levels:
- Training requirements from the perspective of the manager or sponsor
- Training requirements in reality from the perspective of the group to be trained
All too often training is delivered from the perspective what the manager thinks the trainees should have, not necessarily what the trainees know they actually need from an operational perspective.
A thorough TNA will help integrate the needs of both parties to ensure that the expectations are met at all levels.
The TNA will help all groups get clarification on what the operational training needs are and discuss the best way to achieve them. It also give the trainer the opportunity to gain a far greater understanding of the business and the conditions and challenges in which the potential trainees are working.
2. MANAGEMENT COMMITMENT – YOUR ROLE IN EFFECTIVE TRAINING
The best results from training programmes are often achieved when managers provide a supportive framework in which delegates can implement what they have learned during their training. By actively displaying a high level of commitment to the training process you will send very strong messages to your staff:
- you are committed to their professional development
- the training is very important to the businesses overall
- you want them to act upon and implement what they have learned
- you will expect to changes in the way they work based upon the skills they learn
3. PROGRAMME RESEARCH AND DEVELOPMENT
Once a detailed TNA has been conducted the results will then start to formulate the core components of the training programme to be delivered. Flexibility is key at this stage, in my experience the first draft of the course programme is rarely 100% spot on. So be flexible and expect to formulate at least 2 or 3 drafts of the suggested programme before you are happy with the content.
At this stage it is also essential to start thinking about the delivery methodologies and emphasis in terms of content of the programme.
- What percentage of the programme will be traditional “chalk & talk” style training?
- How much time will be spent on business focused case-studies?
- How can business reality be emphasised in the programme?
- How much time is available for one-to-one coaching?
By asking the above questions, you can get very clear on where the priorities of the training must be focused.
4. ESTABLISHMENT OF PERFORMANCE BENCHMARKS
A crucial and exciting part of the training process is deciding exactly what you want to see and achieve in the business as a result of your training. It is impossible to hit a target you can not see, so the establishments of clear goals and performance benchmarks are critical to success. Here are just some of the questions you should consider before the training begins:
- What differences do you want to see in your business from an:
- Operational perspective
- Behavioural perspective
- Organisational perspective - What benchmarks will you put in place to measure results / effectiveness
- What changes will you expect your staff to make as a result of the training
- What time lines will you attach to achieving your required goals / benchmarks
5. PROGRAMME IMPLEMENTATION
This is where everything comes together, the action takes place and the delegates receive their training. The benefits of preparation and TNA will be apparent straight away. The fact that the training will be focused on their actual business and environment will immediately help the delegates to understand the benefits of the training and get their buy-in to the process. To emphasise the business benefits the use of active learning sessions will add a component of reality to the training; this can be achieved in a variety of ways:
- Business focused case-studies based upon actual scenarios encountered within the organisation.
- Interactive role play sessions linked to the learning objectives of the programme
- Group and individual presentations on selected topic areas, designed to highlight the key learning objectives
- Team / motivational challenges
6. PROGRAMME EVALUATION
Evaluation of training can be a tricky area, but with an ROI based approach you have already decided what improvements you want to see in the business and by when. What needs to be done at this stage is an analysis of how well the training actually met the needs of the trainees:
- Did the training address all the stated objectives?
- Did the training provide the skills-based training that the delegates were expecting?
- Did the training provide the appropriate synergy between theory and practical applications?
The objective of this particular piece of evaluation should focus on finding out what could be done to improve the training and make it even better when the next group goes through the process. Focusing on the negative points will rarely make a difference, but learning what to do differently next time will invariably have a better impact.
7. REINFORCEMENT FRAMEWORK
Your staff will need some form of structured reinforcement if they are to gain the maximum benefit from the training. There are a variety of options that you could choose to introduce that will increase retention:
- Request that attendees review their notes and materials within 48 hours of completing the training. It is also recommended that they review to their materials at least once each week in a four-week period after completing the training. This process need not take more the 30 minutes or so to review, and will greatly increase their retention of the key learning points from the training.
- One of the best ways to confirm that learning has taken place is teaching someone else what you have learned. In this scenario, a “buddy” system could be introduced whereby by the delegates can coach one another in the core skills
- Group presentations to management on the key learning points from the training really help to focus one’s attention on retention
- Provide additional supplement materials or workshops to refresh and reinforce the training message
- Develop short “audio” reinforcement packages that delegates can listen to in the car or in short sessions at convenient times
ROI BASED METHODOLOGIES ARE THE WAY FORWARD IN THE CURRENT CLIMATE
The above processes should provide a quick introduction to the benefits and merits of an ROI based training approach. If you are committed to achieving training excellence inspite of tight budgets and the usual challenges that we face, I’m sure that you will see a significant and profound increase in the success and effectiveness of your training ventures.
This article has really only scratched the surface in terms of what ROI based training is and how it can be tailored to each organisation. If you would like to discuss the subject in more depth, or would like to discuss how IIR could help you implement an ROI based training methodology for your training programmes, please contact David Stuckey at the following email address:
david.stuckey@iirme.com