Tuesday, March 31, 2015

How to Significantly Reduce the “Cost” of Training

How to Significantly Reduce the “Cost” of Training

If you are looking for a quick way to decrease the cost of training – this is the place.

If you want to lessen the bottom line “cost” of training, you need to have a laser focus on providing measurable business value and impact. Why? Because the majority of training does not quantifiably impact the strategic priorities of the company. And therefore, can often be completely eliminated.

Sounds harsh, but our latest Q1 Training Measurement poll shows that 71% of respondents find training measurement either too difficult or too confusing while 72% of business executives, according to Bersin, want a specific business impact from their training investments.

Your goal as a learning professional – design learning solutions that have an impact on what matters most to the business. When training is designed to have a measurable business impact, you should move full steam ahead. When training’s impact on the business is ambiguous, think about eliminating or reducing it.

Executives do not nitpick over the cost of highly effective and important training; they nitpick over things that do not appear to matter. Here are the key steps to take to ensure that your training matters:

  1. Clearly define the business goal, problem or need with key stakeholders.

  2. Identify the 1-3 specific business metrics that you are trying to impact – i.e. revenue, margin, productivity, engagement, retention, loyalty.

  3. Determine the current and desired states for each metric and the business value of achieving the desired state – i.e. if we increase revenue by 20% we would create an additional $25m in profits; if we decrease attrition by 15% we would save $2.3m and meet 95% of project targets.

  4. Calculate if the value of achieving the desired target success metric is important enough to pursue compared to other strategic priorities.

  5. Decide if training should be part of the solution and what else you need to make the desired impact – i.e. strategic clarity, cultural alignment, process improvement, change management, technology upgrades, performance management, rewards and recognition, resources, coaching etc.

  6. Design, implement and measure a holistic solution that makes sense.
Often (over 50% of the time) you will learn that training is not the solution to your problem. When this happens, you spend ZERO on training and do not fall into the trap of wasting corporate money on irrelevant training. The other 50% of the time, you are developing learning solutions that impact the business and contribute to the overall health and future success of the organization.

That is value! Learn more at: http://www.lsaglobal.com/training-measurement/

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