Measuring up to the Unknown

During a recession or economic slow down of sorts or when a major technology initiative occurs, the first budget line item to get the cut is Training. What defines the return on investment look like to most companies? It requires some research and analysis to develop a need or context for the training initiative. It requires a financial review of the analysis to make sure that the metrics used to value the training and development is relevant to the overall business plan or strategy of the company. It is important that you determine the desired outcome and define the metrics to be used to determine its success or failure.

Choosing a baseline or starting point is a must and then a measurement system to note the progress must be established. Many times the tracking of data must be continued well past the end of the training and the data must be recorded for future viewing. Progress reports should be noted periodically to see if the outcome changes to any great degree as time passes. Focusing on the financial return on investment (ROI) has always been our priority in delivering the training to companies.

It is a fact that many companies cut out the budget line that can really have a positive impact on their situation. Marketing expenses including sales personnel, Training and Development expenses including T&D personnel, Advertising and Promotional materials, etc. are all “first to be cut” items. Make sure you assess the ROI before your finance department uses the eraser. Make sure you are not cutting off “your nose to spite your face. Training and Development is an integral component of great retention programs. So don’t make a snap decision to eliminate a training program without making sure your projected ROI is well defined.

Innovative Leadership uses a specific format to define the ROI to any company prior to the initiation of training and development in a company. We also provide a post-training instrument to confirm that our financial objectives have been satisfied. We feel every training and development company should provide just that! Performance is defined and determined by metrics. Remember, “if you can’t measure it, you can’t manage it” – Peter Drucker.