Post on 18-Nov-2014
description
David Hall
dhall@tmaworld.com
Training ROI made simple
© Transnational Management Associates Ltd. All Rights Reserved. 2
Making
Saving
Wasting
Why ROI?
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EVALUATION MODELS
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Cost & Effort Evaluation requirement
Most valuable, difficult, infrequently used
Level 5 – Return on Investment of Training
Level 4 – Business Impact
Level 3 – Behavior/ Application
Level 2 – Learning
Level 1 – Reaction Least valuable, easiest, most frequently used
The five levels of evaluation
© Transnational Management Associates Ltd. All Rights Reserved. 5
Kirkpatrick – 1959
Philips – 1970
Holton – 1996
Kaufman & Keller – 1994
Rackham (CIRO)– 1970
Cost & Effort Evaluation requirement
Most valuable, difficult, infrequently used
Level 5 – Return on Investment of Training
Level 4 – Business Impact
Level 3 – Behavior/ Application
Level 2 – Learning
Level 1 – Reaction Least valuable, easiest, most frequently used
The five levels of evaluation
© Transnational Management Associates Ltd. All Rights Reserved. 6
Patricia Pullman Phillips
“Reduction in training budgets are due, in part, to training‟s inability to demonstrate value to the organization”
“Some very real barriers do exist - additional, time, costs, skills & resources”
Practically, however, the ROI calculation alone is an imperfect measurement which must be used in conjunction with other performance measurement tools
“As a tool ROI does not enjoy widespread application”
© Transnational Management Associates Ltd. All Rights Reserved. 7
“What is our intent in collecting this data?”
“Not all training programmes are candidates for ROI”
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ROI Calculation
• Gross Benefit - Cost ROI % =
Total Cost
X 100
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ROI Calculation
ROI % = €50,000
X 100
= 1 x 100 = 100% ROI
€100,000-€50,000 Math is not the problem!
© Transnational Management Associates Ltd. All Rights Reserved. 10
1. Design & development
2. Promotion
3. Administration
4. Faculty
5. Materials
6. Facilities
7. Students
8. Evaluation
?. Unknown costs (specific to your organization)
Forecasting & measuring costs
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1. Labour saving
2. Increased productivity
3. Increased efficiency
4. Cost saving
5. Income generation
6. Unknown benefits (specific to your organization)
Forecasting & measuring benefits
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Variables?
Management
Lost productivity
Migration
Replacement cover
Change
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There is no ROI without…
DEPLOYMENT
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There is no ROI without…
IMPROVEMENT & DEPLOYMENT
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Improvement in capability
WILLINGNESS & ABILITY
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Ability
UNDERSTANDING & SKILL
© Transnational Management Associates Ltd. All Rights Reserved. 17
Willingness
CONFIDENCE & MOTIVATION
© Transnational Management Associates Ltd. All Rights Reserved. 18
Deployment
DO MORE
DO BETTER DO NEW
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How do we find out?
LEARNERS MANAGERS OTHERS
ASK
MEASURE
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What do measure?
CAPABILITY AUDIT
captures improvement
© Transnational Management Associates Ltd. All Rights Reserved. 21
What do we measure?
FREQUENCY
captures deployment of capability
before & after
© Transnational Management Associates Ltd. All Rights Reserved. 22
Reports Audits
Start questionnaire
The following short self assessment will record your current Willingness and Ability to perform in the 10 key skills areas of Impactful Presentations & also the frequency with which you currently apply those skills The questionnaire will take you approximately 5 minutes to complete.
Pre-training audit
Click on the tabs to learn more about Ability, Willingness and Frequency
Ability Willingness Frequency
Capability Audit
Decision Making
© Transnational Management Associates Ltd. All Rights Reserved. 23
Reports Audits
Start questionnaire
Pre-training audit
The level of a person‟s capability will be determined by a combination of their willingness & ability to perform the task or do the job.
When rating this assessment consider that Ability will be a combination of Understanding & Skill. You may have a high level of understanding of music but a low level of skill in playing the piano. Alternatively you may be very skilled at playing the piano and yet not understand about the structure of notes.
Understanding Skill
Capability Audit
Decision Making
Ability
© Transnational Management Associates Ltd. All Rights Reserved. 24
Reports Audits
Willingness in this context is a combination of Confidence & Motivation. You may be motivated to sell the company‟s new product because of the bonus you will earn but lack the confidence to pitch to a large new client. Alternatively you may be very confident to pitch but lack the motivation because the commission is very low
Confidence Motivation
Capability Audit
Decision Making Pre-training audit
Willingness
Start questionnaire
© Transnational Management Associates Ltd. All Rights Reserved. 25
Reports Audits
Start questionnaire
The value of any individual to an organisation is measured by their actions and the benefits those actions deliver. In completing this section of the self assessment, consider, honestly, how often you actually do the things listed to the left. It may be that you never take account of the effect your decision will have on others or that sometimes you do & sometimes you don‟t, or that you always consider every effect on everyone.
Never Sometimes Always
Capability Audit
Decision Making Pre-training audit
Frequency
© Transnational Management Associates Ltd. All Rights Reserved. 26
Reports Audits
Decision Making Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the frequency to which you use those skills in your job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
Low High
Low High
Low High
Low High
Low High
Capability Audit
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 27
Reports Audits
Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the frequency to which you use those skills in your job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 28
Reports Audits
Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the frequency to which you use those skills in your job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 29
Reports Audits
Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 30
Reports Audits
Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 31
Reports Audits
Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 32
Reports Audits
Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 33
Reports Audits
Manager Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
M: Needs to be more systematic and organized in gathering & managing data
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 34
Reports Audits
Learner & Manager REPORT Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the frequency to which you use those skills in your job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
L: I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info M: Needs to be more systematic and organized in gathering & managing data
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
Continue> Save & continue later
© Transnational Management Associates Ltd. All Rights Reserved. 35
Reports Audits
Learner & Manager Assessment .
Continue> Save & continue later
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Decision Making
© Transnational Management Associates Ltd. All Rights Reserved. 36
Scrap learning
“This concept is very troubling in learning today.
About 65 percent of training is not optimally
applied on the job”
(KnowledgeAdvisors, 2008)
© Transnational Management Associates Ltd. All Rights Reserved. 37
Scrap learning
“The core problem is that managers are not
properly preparing learners for training nor are
they supporting them afterward on the job”
© Transnational Management Associates Ltd. All Rights Reserved. 38
Scrap learning
“ The result is wasted (i.e., scrap) learning.
Scrap can be reduced through better manager
engagement”
© Transnational Management Associates Ltd. All Rights Reserved. 39
Scrap learning
“Managers who set expectations with employees
prior to learning and follow through afterward
with projects and measurable goals overcome the
scrap learning crisis.”
ESI International white paper 2011
© Transnational Management Associates Ltd. All Rights Reserved. 40
Motivation
© Transnational Management Associates Ltd. All Rights Reserved. 41
Key Responsibilities
Systems / Processes
Resources
Budgets
Results
People
Managing:
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Managing people
Managing Systems
Managing Resources
Managing Budgets
Managing Processes
Managing People
© Transnational Management Associates Ltd. All Rights Reserved. 43
Managing people
Guidance
Focus
Intention
Permission
LEARNER
© Transnational Management Associates Ltd. All Rights Reserved. 44
Managing people
Influence
Importance
Evidence
Effect- ROE
MANAGER
© Transnational Management Associates Ltd. All Rights Reserved. 45
Managing people
Commitment
Confidence
Motivation
Tuning
TRAINER
© Transnational Management Associates Ltd. All Rights Reserved. 46
The Learning Path
- Learning Path - Faculty & Learners - Foundation self study - Capability
DISCOVER
© Transnational Management Associates Ltd. All Rights Reserved. 47
Understanding
Skill
Confidence
Motivation
The Learning Path
DEVELOP
© Transnational Management Associates Ltd. All Rights Reserved. 48
The Learning Path
- Learning - Deployment Plan - Post Learning Capability Audit - Deployment Review - Deployment Report
DEPLOY
© Transnational Management Associates Ltd. All Rights Reserved. 50
Deployment plan
Performance Zones Target
What am I aiming for? Tactics
How do I get there?
Deployment When am I going to start
and finish this
Global Virtual Teams Start Finish
Cooperation We help each other
© Transnational Management Associates Ltd. All Rights Reserved. 51
Performance Zones Target
What am I aiming for? Tactics
How do I get there?
Deployment When am I going to start
and finish this
Global Virtual Teams AOK= all ok FP= Future Priority Start Finish
Cooperation We help each other
AOK
Convergence We pull in the same direction
FP
Coordination We work together
AOK
Capability We share what we have
Benefit from the experience of my colleagues in the XY community
Put out a blog for help before I start spending time on searching for my own unique solution
10/11/11 10/12/11 + ongoing
Communication We pay attention to each other
To improve my verbal communication with my colleagues in India
Prepare more for the call, slow down and ensure mutual understanding before we finish the call and put summary in email.
4/11/11 ongoing
Cultural Intelligence We play well together
Improve my understanding of the cultural differences between myself and my colleagues in India
Ask them. Get on a course Research
4/11/11 ASAP – Jan at the latest 4/11/11
Ongoing 11/11/11
© Transnational Management Associates Ltd. All Rights Reserved. 52
Deployment support
Manager
Learner
© Transnational Management Associates Ltd. All Rights Reserved. 53
Deployment data collection
Deployment Plans reviewed
Capability Audits – Frequency differentials
© Transnational Management Associates Ltd. All Rights Reserved. 54
Deployment review
MORE?
© Transnational Management Associates Ltd. All Rights Reserved. 55
Performance Zones Target
What am I aiming for? Tactics
How do I get there?
Deployment When am I going to start
and finish this
Global Virtual Teams AOK= all ok FP= Future Priority Start Finish
Cooperation We help each other
AOK
Convergence We pull in the same direction
FP
Coordination We work together
AOK
Capability We share what we have
Benefit from the experience of my colleagues in the XY community
Put out a blog for help before I start spending time on searching for my own unique solution
10/11/11 10/12/11 + ongoing
Communication We pay attention to each other
To improve my verbal communication with my colleagues in India
Prepare more for the call, slow down and ensure mutual understanding before we finish the call and put summary in email.
4/11/11 ongoing
Cultural Intelligence We play well together
Improve my understanding of the cultural differences between myself and my colleagues in India
Ask them. Get on a course Research
4/11/11 ASAP – Jan at the latest 4/11/11
Ongoing 11/11/11
© Transnational Management Associates Ltd. All Rights Reserved. 56
Performance Zones
Target What am I aiming
for?
Tactics How do I get there?
Deployment When am I going to start and
finish this (LP Date: 3/11/11)
Deployment Progress to date ( 3/12/12)
AOK= all ok FP= Future Priority
Start Finish None Some Most All
Cooperation We help each other
AOK
Convergence We pull in the same direction
FP
Coordination We work together
AOK
Capability We share what we have
Benefit from the experience of my colleagues in the XY community
Put out a blog for help before I start spending time on searching for my own unique solution
10/11/11 10/12/11 + ongoing ✓
Communication We pay attention to each other
To improve my verbal communication with my colleagues in India
Prepare more for the call, slow down and ensure mutual understanding before we finish the call and put summary in email.
4/11/11 ongoing
✓
Cultural Intelligence We play well together
Improve my understanding of the cultural differences between myself and my colleagues in India
Ask them. Get on a course Research
4/11/11 ASAP – Jan at the latest 4/11/11
Ongoing 11/11/11
✓ ✓
✓
Deployment review
© Transnational Management Associates Ltd. All Rights Reserved. 57
Capability Deployment
0 1 6 3
Befo
re
Never Sometimes Most Always
© Transnational Management Associates Ltd. All Rights Reserved. 58
Capability Deployment
0 1 6 3
5 4 1 0
Befo
re
Aft
er
Never Sometimes Most Always
© Transnational Management Associates Ltd. All Rights Reserved. 59
BETTER?
Deployment review
© Transnational Management Associates Ltd. All Rights Reserved. 60
Reports Audits
Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job.
-
Ability
Gather all relevant & available facts before making a decision
Willingness
Frequency
+ Additional Comments
Consult effectively with other people as appropriate
Ability
Willingness
Frequency
+ Additional Comments
Generate a list of options
Ability
Willingness
Frequency
+ Additional Comments
Take account of the consequences of the decision on others
Ability
Willingness
Frequency
+ Additional Comments
Use a range of tools & techniques to evaluate the pros and cons of
available options Ability
Willingness
Frequency
I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
Low High
Low High
Low High
Low High
Low High
Capability Audit
Continue> Save & continue later
Decision Making
© Transnational Management Associates Ltd. All Rights Reserved. 61
Cubit
Deployment C
apabili
ty
* *
* ROI
Qubit QBIT
TMA World ROI
© Transnational Management Associates Ltd. All Rights Reserved. 62
Quantifying the Business Impact of Training
Deployment
Ca
pa
bili
ty
* ROI
* *
© Transnational Management Associates Ltd. All Rights Reserved. 63
Level 5 – Return on Investment of Training
Level 4 – Business Impact
Level 3 – Behavior/ Application
Level 2 – Learning
Level 1 – Reaction
QBIT = 2-4
© Transnational Management Associates Ltd. All Rights Reserved. 64
Then
IF capabilities deployed…
Delegation 1. Distinguish between what is urgent, what is important & what is not
2. Set measurable objectives for priorities
3. Delegate efficiently & effectively
4. Set clear outcomes and performance indicators for delegatee
5. Provide a thorough brief to the delegatee appropriate to the desired outcome
6. Inform all relevant others that a task has been delegated
7. Monitor the actions & outcomes of delegatee
8. Evaluate & Review with the delegatee their actions and outcomes
9. Recognise & reward success
10.Train, Coach & support the delegatee where necessary
Q B I T
Improved delegation
More efficient use of management resources
Improved management capability
Management time saved
Reduction in errors
© Transnational Management Associates Ltd. All Rights Reserved. 65
Reputation
Pro
fit * BI
* *
Survive & thrive
Profit & Reputation
© Transnational Management Associates Ltd. All Rights Reserved. 66
Improved delegation =
More efficient use of management resources
Improved management capability
Management time saved
Reduction in errors
Profit & Reputation
Profit
Profit
Profit & Reputation
© Transnational Management Associates Ltd. All Rights Reserved. 67
The greatest waste of money…
NO DEPLOYMENT
© Transnational Management Associates Ltd. All Rights Reserved. 68
QBIT
Deployment
Ca
pa
bili
ty
* ROI
* *
Thank you
© Transnational Management Associates Ltd. All Rights Reserved. 69
Contact us at enquiries@tmaworld.com
or David directly at dhall@tmaworld.com
Get in touch!
Please visit our website
www.tmaworld.com
TMA World is a leader in developing talent for the global workplace.
Thank you for your participation
© Transnational Management Associates Ltd. All Rights Reserved. 70
TMA World is a leader in developing talent for the global workplace. Across 50 countries we apply a blend of experiential workshops and e-learning methodologies to enable individuals at all levels to lead and collaborate across distances and difference:
Develop leaders - who possess appropriate global mindsets and competencies
Engage global teams - to collaborate seamlessly and support international growth
Achieve consistency - across cultures, methodologies and management
Harmonize cross-border relationships - both internally and externally
Unify your people - to enable the free flow of ideas and skills globally
To find out more about how we can help you address your learning and development challenges, please contact us at enquiries@tmaworld.com or visit our website www.tmaworld.com
London New York San Francisco Hong Kong Singapore Bangalore Moscow
© Transnational Management Associates Ltd. All Rights Reserved. 71
TMA World Publications
Written by Terence Brake, President, TMA World-Americas
Where In The World Is My Team? Making a success of your virtual global workplace
„Where In The World Is My Team? Making a success of your virtual global workplace‟ addresses the issues of „Sanity, Survival and Success in Global Teams‟. Tools, theories and concepts are introduced to help businesspeople working internationally to understand and develop the competencies required to manage and lead global teams.
The Global Leader: Critical Factors For Creating The World Class Organization
Globalization may have become a cliché, but that doesn‟t make it any less real or any easier to achieve and sustain. Global competitiveness requires continuous attention to core capabilities. „The Global Leader‟ addresses one of the most critical capabilities needed for winning in this new business environment: a company‟s ability to develop global leaders throughout its organization.
Managing Globally
„Managing Globally‟ is a practical, self-help guide to help you develop key management skills for working with other cultures. Packed with essential tips and advice you will learn how to adapt to different working practices, from overcoming language barriers, making presentations and carrying out negotiations to working in global teams and managing conflict.
Manager's Handbook
A comprehensive guide to learning key management skills, understanding core business concepts, and planning a successful career, „Manager's Handbook‟ is both an introduction for new managers and an up-to-date reference for experienced managers and those working in new businesses.
THE FUTURE OF VIRTUAL TEAMWORK & COLLABORATION
The work revolution is here and now! This blog builds on the work of my new book - Where in the World is My Team? by discussing the latest thinking on virtual teamwork and collaboration. Enjoy!
http://virtualteamwork.blogspot.com