roi of training 01

8/8/2019 ROI Of Training 01

1/24

Measuring ROI of Training


2/24

Not everything that can be counted counts, andnot everything that counts can be counted

Albert Einstein


3/24

Best Practice in Terms of ROI

Training magazines 2003 top 100

companies found that linking training

to specific business metrics requires

evaluation before, during, and after

training initiatives;

Many of the Top 100 companies

ranked by Training magazine tie

training initiatives directly to

retention efforts;

Also use other metrics sales;

production etc;

ROI used as basis for continued

improvement of training function;

Forecast ROI.


4/24

The Case for ROI ?

Accenture

Allstate Insurance

Apple Computer

AT&T

Bristol-Myers Squibb

British TelecomCaremark

Comcast

Coors Brewing Co.

Deloitte & Touch

Delta AirlinesDHL Worldwide Express

Federal Express

General Motors

US Department of

Defense

US Department of Labor

US National Security

Agency

US Department of

Veteran Affairs

US General Accountability

Office

US Office of PersonnelManagement

NASA


5/24

The Value Hierarchy

Paradigm Shift


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ROI -Delivery on theValue Promise


7/24

The promise is in the way

we determine

training needs


8/24


9/24

Moving from input (activity) tooutput (results) based training


10/24

A Quick Diagnostic


11/24


12/24

Question we develop and implement

training that

Absolutely Un True= 1 ; Absolutely True = 5

Link needs to business solutions 1 2 3 4 5

Based on assessment of current vs. desired

performance

1 2 3 4 5

Isolate application and business impact

objectives

1 2 3 4 5

Ensures communication of expectations to

stakeholders and participants

1 2 3 4 5

Ensures the work environment supports

reinforcement of implementation and

application

1 2 3 4 5

Builds partnerships with managers 1 2 3 4 5

Measures at more than reaction and

learning level

1 2 3 4 5

Communicates the results to all stakeholders 1 2 3 4 5


13/24

How Does Your Organization Score

8-15

cti

ity ase

ittle ocus on esults

2

-31

Significant rogress

o esults ase

16-23

o

erate s ift

Or S ift in

ertain

reas

32-

ully Integrate

esults

ase

Syste

W ic In i i ual reas Do You Nee to ress?


14/24

Activity Results

No established business need Business case

Little relation to performance Focus on improving

performance/change behavior

No/little focus on

objectives/competencies

Demonstrating competence over time

No/Little focus on preparing the

environment

Prepare environment to ensure

transfer and reinforcement

No/Little focus on measuring impactand value

System geared to preparing andproving the case

Mainly input focused Sound balance between input and

output


15/24

We need to move towards a results

based approach

But what should we put in place?


16/24

What Should Be In Place?

Evaluation approach

Intervention planningframework

Data gathering approach

Isolation framework

Calculation framework

Lead project


17/24

Evaluation Approach

1. Reaction,

Satisfaction

2. Learning

3. Transfer/application

4. Business Impact

5. Return on

Investment

. Intangibles


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Element Description

Reaction Happiness with learning interventions

Learning Changes in knowledge, skills and attitudes

Transfer/application Changes in on the job behaviors over time

(competence)

Business Impact Changes in impact variables

ROI Intervention benefits in relation to cost

Intangibles Intervention benefits in relation to policy

and/or strategic direction and related factors

Evaluation Approach


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Evaluation Approach

Customer Focus Data

Availability

Value of Case

(relative)

Intangibles

ROI

Business Impact

Application and

implementation

Learning

Reaction

Element Assessment

Complexity

Limited/Low

Wide/High

Consumer

Client

Readily

Research

Limited/Low

Wide/Complex

Administrator

Business Partner


20/24

Intervention Planning Framework

Reaction

Evaluation

eneral nee

LearningOutcomes

Learning

Material

Achieve ?

Assess

More


21/24

Intervention

Planning

Framework

TO BE


22/24

Data Gathering Approach

Process Framework

Reporting

Synthesize

Coherence

Presentation

Data Analysis

Data Processing

Data Consolidation and Storage

How What Where

Data Collection

How What Where


23/24

Isolation Framework

External Factors

Management

Attention

Incentives

Systems/Procedures

Changes

Learning

Program

TOTAL

IMPROVEMENT

AFTER

PROGRAM

EFFECT OF

LEARNING ON

IMPROVEMENT


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Calculation

Benefit/Cost

Ratio =

BenefitsROI =

Program Benefits

Program Costs

Net Program Benefit

Program CostsX 100

1

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