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Training ROI - What Really Predicts Success?

 

Feb 3

Written by: Chris Osborn
2/3/2011 11:12 AM  

It’s impossible to watch any news this week without being informed about the winter storm that hit the country. However, even in the midst of this big storm, Punxsutawney Phil made his annual prediction about the onset of spring. This year – Phil is telling us spring is near! The whole event is a quaint custom, but we don’t take the predictions seriously – and for good reason.

The challenge of e-learning metrics today was summed up by Tom Peters, who said in an interview with ASTD, “I’m 100% in favor of measurement and I’m 100% terrified of it because most of the time we measure the wrong thing.”

I’ve been thinking a lot lately about predictions and measurements, and the celebration around Punxsutawney Phil made me look a little more closely at just what sort of effective predictors we can identify around training initiatives. As I see it, there are three key pieces of information you need to make reasonable predictions of the success of training efforts.

  • ROI measured beyond simple cost comparisons

  • Measureable business outcomes you are looking to influence.

  • Learning objectives designed to exert the influence on outcomes you desire

Effective ROI measurements for training are more refined today than ever before, and you can find countless free ROI calculators on the web. Most of the calculators focus on the hard costs associated with training expenses like travel time, materials, facilities, etc. Truthfully, it’s fairly easy to figure out what you spend on training. What’s hard to calculate and measure is what you GET from these expenditures.  What the numerous online calculators fail to help you do is link the training expenses to actual business results or the actual effectiveness of the training program.

For instance, if you are trying to improve customer service, ROI and the measurement of the effectiveness of the program, it will depend upon your ability to pull meaningful metrics from your current customer service efforts. Do you have rankings, questionnaires, renewal rates or other measurements that illustrate business value? If you have such metrics, can you create benchmarks for pre and post training measurement and comparison? If so, you’ve got the beginnings of some meaningful ROI calculations for your customer service training efforts that go beyond a simple costs savings measurement. Furthermore, you’ve laid the foundation for understanding whether your training efforts are effectively performing to meet your learning objectives, which lead directly to making some reasonable predictions for the possible success of your training efforts.

So beyond the pure expenses associated with training, here are a few things you might try to capture as you look to make reasonable predictions of success.

  • Business driven metrics tied directly to your expressed learning objectives.

  • Benchmark data from BOTH before and after training – again tied to your learning objectives.

  • Survey information about how useful the training participants found the training material and lessons learned.

Depending upon the objectives of your training program, there are probably many other important pieces of information you’ll want and need to evaluate. If you're trying to predict the success of your training efforts, it's very important to be able to understand and explain to stakeholders the ROI measured beyond a simple calculation of costs for one program compared to costs for an alternative. You must be able to look at the actual business outcomes you are trying to influence. Which means that you must be able to measure current performance against benchmarks you believe actually indicate success. With this information in hand, you are much more prepared to offer reasonable, professional predictions of the success of your proposed training efforts, because you've been able to make the link between current performance, business outcomes and learning objectives and content designed to improve the performance you are measuring.

 

 

 

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