Achieving Positive ROI on Training Investments

Group training has been used extensively by leadingsomeone in your organization can facilitate learning
organizations for decades. However, justifying the usegroups.
of training by empirically proving that it results in4. Follow-up coaching and facilitated peer coaching are
operational improvements is quite arduous, and directlyavailable to assist participants in handling the resistance
measuring the financial performance resulting fromthey are likely to encounter when implementing new
improved “soft” skills is at best an educatedskills
guess. The truth is that training can be profoundly5. Shorter, modularized training sessions can be
effective, and return dramatic return on investment, asdelivered over a period of time to reinforce skills and
long as certain guidelines are followed.assist participants in real-time integration.
For organizations that are primarily driven by metrics,6. A variety of training approaches can be used,
360-degree feedback inventories, performanceincluding teleconferencing, simultaneous intranet
learning satisfaction evaluation systems and Balancedbroadcast, videotape, and billboard learning.
Scorecard techniques will each provide some tellingAs a case study, one of our favorite clients conducted
evidence, either for, or against, the effectiveness ofan employee opinion survey. The same questions
training in an organization. The results of thesewere asked of 150 key employees in 2003, when they
evaluations should be focused on team productivitybegan using RLSI extensively and exclusively for
and reaching financial targets. Complicating the matter,training and executive coaching, and again in 2007. The
however, is that it may take 12 months or more tosurvey covered three levels of the organization: the
accurately measure the results of “soft” skillsleadership team, managers, and staff members.
training; the acquisition of which cultivates team morale,The results reflected dramatic improvements in a
engagement and retention.number of vital areas. For instance, staff members
With or without a formal ROI measurement system, itnoted significant improvement from 2003 to 2007 in
is essential for an organization to identify its skill gaps,the following areas: my superior cares about me, I am
and the appropriate audience in order to maximize thegrowing professionally and acquiring new skills in my
investment in training. Beginning with key performancejob, I am provided consistent ongoing mentoring and
indicators, such as customer retention, it is thencoaching by my manager, my manager responds to
possible to reduce these indicators to individualour staff concerns, my manager is a good role model,
activities and competency requirements for eachand I believe in our strategic plan. In addition, managers
indicator. For example, reducing customer loss andsaw dramatic improvement in the area of believing in
dealing with angry customers would be relevantthe strategic plan, and that employees were now
activities and competency requirements for customerhelping each other succeed. Further, the leadership
retention.team agreed that there was marked improvement
All training initiatives should start with a needs analysisfrom 2003 to 2007 in the fact that they were
and specific goals regarding what is going to change inpersonally growing professionally and acquiring new
the organization as a result of training. The training canskills in their jobs, and that staff members were driving
then be aligned with an ongoing skills audit. This auditresults. In addition, in 2007 all members of the
acts as a measure of the success of the training. It isleadership team responded that they support the
then possible to translate these skills into tangibleorganizational decisions made by the leadership team,
metrics, which can be measured financially.which emphasizes a dramatic improvement in
Next, participants need to know what the purpose ofcollaboration from 2003. Lastly, all three levels of the
the training is and buy into the expectations for theirorganization agreed that there was discernible
performance. They, further, need to be heldimprovement in staff driving results, goals and budgets
accountable for measurable changes and supported inbeing realistic to achieve, and most importantly, that the
implementing the changes in their teams. According tocurrent training programs are meeting their needs.
a 2007 study of the transfer of training skills, actualAccording to a 2007 survey by the Journal of
utilization of skills is positively influenced by the numberManagement Development, managers are most
of managers receiving the training, multiple layers ofconcerned with managing employee conflict,
management receiving the training, and ongoingaddressing employee performance and attitude, and
“coaching” of each other on the training skills,finding employees who don’t present these
back on the job. On the other hand, utilization of skillsproblems. All of these “soft” management skills
learned through training is negatively influenced by fearare difficult to numerically translate into financial metrics,
of breaking cultural norms. In other words, participantsyet directly influence operational performance of
will not utilize the training skills you have invested in ifleaders and their teams, which, in turn, radically effects
those skills challenge the prevailing culture and if theoverall organizational financial performance. The
participants are not sufficiently supported.importance of people-management skills for leaders
As experts in talent selection and enhancement,cannot be overstated, even while we refine ways to
Roselle Leadership Strategies, Inc. (RLSI) understandsmeasure improvements in these competencies and tie
the subtle factors influencing successful training results.them directly to the bottom line.
Partnering with our clients, we build-in success throughWorks Cited
the following strategies:1. Rowden, R.W. (2005). Exploring Methods to Evaluate
1. Our training includes sufficient practice of the skillsthe Return on Investment from Training. Business
during the training so that participants have confidenceForum.
applying them back on the job.2. The Measure of All Things Soft (2007, July 17).
2. Substantial discussion of how specific skills fit theTraining & Coaching Today.
organization is included. Follow-up facilitation is offered3. Gilpin-Jackson, Yabome & Bushe, Gervase
to learning groups within the organization to continue(2007). Leadership Development Training Transfer: A
applying the skills to real-life situations.Case Study of Post-Training Determinants. Journal of
3. A train-the-trainer format is available so that you orManagement Development. Vol.