Closing the Training ROI Gap
The Training ROI Gap
Training can be experienced as a burden or something expensive that needs to be done to check a box to mitigate some liability or comply with some mandate. Additionally, training is typically not designed to specifically target operational improvements and use metrics to do so. Furthermore, trainers often attempt measurement through completion ratios and attendance hours or by providing a quiz or practical exercise at the end of a training evolution. Although helpful, these metrics and tests do not fully support the business case for corporate training and development efforts.
Other industries distribute training via organizational-wide email blasts that ask employees to read about (or review a slide deck) a memo, policy, or procedure. Employees are then asked to provide a signed attestation affirming that they understood the memo, policy, or procedure and know what to do moving forward. Although these efforts capture participation, they do not capture learning, knowledge transfer, or actions that are beneficial for the business case.
Solutions to the training return on investment challenges lie in structuring business and training efforts that inform each other through data-driven design. Aligning business and training data is essential because executives are appropriately reluctant to allocate organizational resources to training efforts that do not directly impact an organization’s ROI. Training should be intentional, and its intentionality is ensured through data-driven design, stakeholder engagement, learning transfer to business operations, and measurable training ROI. Training value should trickle up.
The following ten recommendations provide an overview of what effective corporate and government training programs accomplish to help close the training ROI Gap.
Ten Recommendations to Help Close Training ROI Gaps
1. Identify “The Before Metrics” - Assess existing business goals and metrics to identify areas for training needs. These metrics can come from productivity ratios, financial ratios, efficiency ratios, Net Promoter Scores (NPS), customer satisfaction scores (CSAT), or whatever area is essential for the organization. The purpose here is to identify baseline metrics the training personnel can use to determine how effective their training intervention was.
2. Engage Stakeholders for Input Regarding Needs –The information obtained during needs assessments often points to different causes for less-than-optimal performance or barriers to participation that were otherwise unknown. Engaging stakeholders will help facilitate participation and buy-in and provide valuable insights about the target audience, organizational barriers, or micro cultural nuances.
3. Assess Organizational Capacity for Learning– Training evolutions can disrupt everyday operational routines and tie up resources. Capacity for the purposes of this discussion deals with time, resources, and the capabilities of an organization to learn and incorporate new skills or behaviors. If internal experts are utilized, they will be pulled away from otherwise important work. Additionally, if the organization uses outside experts, increased expenses and time might be required to ensure the training is contextually and culturally appropriate for the client organization. Lastly, if the training is effective, the organization must ensure it can sustain the increases in performance levels.
4. Design Data-driven and Measurable Training – The ideal way to measure progress is to know where an effort started and where it ended. Data-driven training design involves using business and training data in the training design process to ensure alignment with targeted business metrics, training materials, learner resources, job aids, real-world case-based activities, adult learning methodologies, and assessments—more on these assessments in #7.
5. Identity "During Training Metrics"– Training should be enjoyable, promote thought, challenge learners, and provide immediately impactful skills or knowledge. These training experiences can be measured through surveys or reaction sheets. Check out Kirkpatrick and Kirkpatrick’s book on the Four Levels of Learning Evaluation for additional details.
6. Ensure Applied Accountability Systems are in Place – Training can be a great experience paired with rich learning, and it is vital to remember that training is intended to change behavior. Employees and managers alike must ensure they adhere to the new expectations for performance. Management plays a critical role in ensuring everyone is accountable for the new way of doing things. If the training was designed appropriately and the operational change is not realized, there is likely an accountability problem, not a training problem.
7. Measure Learning Through Post-Training Assessments – Post-training assessments might include knowledge checks, quizzes, or coaching sessions to retain the training. These should occur shortly after the training sessions and serve as a reinforcement for training and knowledge checks for procedural (know-how) and declarative (know what) knowledge. These can be quizzes, scenario-based discussions, or lunch-and-learns.
8. Observe and Reward Behavior Changes – This is the first operational indicator that training had an operational impact. These behavior changes are apparent when employees take actions distinct from the old way of doing things. For example, activities may look like employees using new approaches on sales calls, reductions in kickbacks, increases in first-time approvals, increased efficiencies, or increased energy. The goal here is to reinforce the new behavior and communicate its value.
9. Assess “The After Metrics” and Transfer– This recommendation involves comparing current business metrics with the metrics assessed in Recommendation #1. Again, there should be a positive result. If not, there is more work to do in training design, accountability, or both to ensure learning and education transfer to operations. Effective data-driven training design will enable organizations to measure and assess training ROI.
10. Establish Career Progression and Continuity– Coaching and mentorship are invaluable and help significantly to pass on institutional knowledge, behaviors, and culture. In addition, leaders should remain focused on identifying and developing future leaders who are fully equipped to replace them when the time comes.
Wrap-up
The purpose of training is to change behavior. Data is critical for understanding training needs and measuring training efficacy. Transferring new knowledge or new behaviors to the job site requires accountability on the personal and management levels. There may be a training or accountability challenge if metrics are not improving after training. Appropriately structured and effective data-driven training design, accountability, and leadership will improve ROI for the training program and the organization. Lastly, mentorship and coaching are invaluable for the next generation of leaders to be fully equipped when their time comes.
To learn more about performance improvement solutions that can help you, please visit www.sinclairperformance.com, or schedule a discovery call here.
About the Author: Dr. Jared Sinclair is the Founder of the Sinclair Performance Institute®, where he helps businesses remove the guesswork of high(er) performance, expand capacity, improve performance, and facilitate growth.
