Training ROI Made Simple

David Hall

[email protected]

Training ROI made simple

© Transnational Management Associates Ltd. All Rights Reserved. 2

Making

Saving

Wasting

Why ROI?


EVALUATION MODELS


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


Kirkpatrick – 1959

Philips – 1970

Holton – 1996

Kaufman & Keller – 1994

Rackham (CIRO)– 1970

Cost & Effort Evaluation requirement

Most valuable, difficult, infrequently used





Level 1 – Reaction Least valuable, easiest, most frequently used

The five levels of evaluation


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”


“What is our intent in collecting this data?”

“Not all training programmes are candidates for ROI”


ROI Calculation

• Gross Benefit - Cost ROI % =

Total Cost

X 100


ROI Calculation

ROI % = €50,000

X 100

= 1 x 100 = 100% ROI

€100,000-€50,000 Math is not the problem!


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


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


Variables?

Management

Lost productivity

Migration

Replacement cover

Change


There is no ROI without…

DEPLOYMENT


There is no ROI without…

IMPROVEMENT & DEPLOYMENT


Improvement in capability

WILLINGNESS & ABILITY


Ability

UNDERSTANDING & SKILL


Willingness

CONFIDENCE & MOTIVATION


Deployment

DO MORE

DO BETTER DO NEW


How do we find out?

LEARNERS MANAGERS OTHERS

ASK

MEASURE


What do measure?

CAPABILITY AUDIT

captures improvement


What do we measure?

FREQUENCY

captures deployment of capability

before & after


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


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


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


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


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


Generate a list of options

Ability

Willingness

Frequency


Take account of the consequences of the decision on others

Ability

Willingness

Frequency


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


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


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




Willingness

Frequency

Low High

Low High

Low High

Low High

Low High

Capability Audit

Decision Making



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


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




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



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


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




Willingness

Frequency


Low High

Low High

Low High

Low High

Low High

Capability Audit

Decision Making



Reports Audits


-

Ability


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




Willingness

Frequency


Low High

Low High

Low High

Low High

Low High

Capability Audit

Decision Making



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


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




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



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


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




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



Reports Audits

Learner & Manager Assessment .


-

Ability


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




Willingness

Frequency


Low High

Low High

Low High

Low High

Low High

Capability Audit

Decision Making


Scrap learning

“This concept is very troubling in learning today.

About 65 percent of training is not optimally

applied on the job”

(KnowledgeAdvisors, 2008)


Scrap learning

“The core problem is that managers are not

properly preparing learners for training nor are

they supporting them afterward on the job”


Scrap learning

“ The result is wasted (i.e., scrap) learning.

Scrap can be reduced through better manager

engagement”


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


Motivation


Key Responsibilities

Systems / Processes

Resources

Budgets

Results

People

Managing:


Managing people

Managing Systems

Managing Resources

Managing Budgets

Managing Processes

Managing People


Managing people

Guidance

Focus

Intention

Permission

LEARNER


Managing people

Influence

Importance

Evidence

Effect- ROE

MANAGER


Managing people

Commitment

Confidence

Motivation

Tuning

TRAINER


The Learning Path

- Learning Path - Faculty & Learners - Foundation self study - Capability

DISCOVER


Understanding

Skill

Confidence

Motivation

The Learning Path

DEVELOP


The Learning Path

- Learning - Deployment Plan - Post Learning Capability Audit - Deployment Review - Deployment Report

DEPLOY


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




How do I get there?


and finish this

Global Virtual Teams AOK= all ok FP= Future Priority Start Finish


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 support

Manager

Learner


Deployment data collection

Deployment Plans reviewed

Capability Audits – Frequency differentials


Deployment review

MORE?




How do I get there?


and finish this

Global Virtual Teams AOK= all ok FP= Future Priority Start Finish


AOK


FP


AOK




10/11/11 10/12/11 + ongoing




4/11/11 ongoing





Ongoing 11/11/11


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


AOK


FP


AOK




10/11/11 10/12/11 + ongoing ✓




4/11/11 ongoing

✓





Ongoing 11/11/11

✓ ✓

✓

Deployment review


Capability Deployment

0 1 6 3

Befo

re

Never Sometimes Most Always


Capability Deployment

0 1 6 3

5 4 1 0

Befo

re

Aft

er

Never Sometimes Most Always


BETTER?

Deployment review


Reports Audits


-

Ability


Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency



Ability

Willingness

Frequency




Willingness

Frequency


Low High

Low High

Low High

Low High

Low High

Capability Audit


Decision Making


Cubit

Deployment C

apabili

ty

* *

* ROI

Qubit QBIT

TMA World ROI


Quantifying the Business Impact of Training

Deployment

Ca

pa

bili

ty

* ROI

* *






Level 1 – Reaction

QBIT = 2-4


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


Reputation

Pro

fit * BI

* *

Survive & thrive

Profit & Reputation


Improved delegation =

More efficient use of management resources

Improved management capability

Management time saved

Reduction in errors

Profit & Reputation

Profit

Profit

Profit & Reputation


The greatest waste of money…

NO DEPLOYMENT


QBIT

Deployment

Ca

pa

bili

ty

* ROI

* *

Thank you


Contact us at [email protected]

or David directly at [email protected]

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

mailto:[email protected]




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 [email protected] or visit our website www.tmaworld.com

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Training ROI Made Simple

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