How to Significantly Decrease the Cost of Training
Like Any Business Process, You Should Look to Decrease the Cost of Training
If you are looking for a quick way to significantly 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.
Is Your Training and Development Impacting the People AND the Business?
Why? Because the majority of corporate training does not quantifiably impact the strategic priorities of the company. And therefore, can often be completely eliminated or at least reduced.
Why Many Training Initiatives Can Be Eliminated
It sounds harsh, but:
- We measured over 800 training projects, and only 1-in-5 participants changed their behavior and performance from training alone.
- Our latest Training Measurement poll shows that 71% of respondents find training measurement either too difficult or too confusing to know if their training is making a difference.
- Only 10% of respondents to a recent McKinsey survey said their companies’ frontline manager training is effective in preparing managers to lead.
- 72% of business executives, according to Bersin, want a specific business impact from their training investments.
The Purpose of Learning and Development
Your goal as a learning professional – design learning solutions that have an impact on what matters most to the people and to the business. When training is designed to have a measurable impact, you should move full steam ahead. When training’s impact on the people or the business is ambiguous, think about eliminating or reducing it.
Six Key Steps to Make Your Training More Effective
Executives do not nitpick over the cost of highly effective and important training; they nitpick over things that do not appear to matter compared to other priorities. Here are the key steps to take to ensure that your training matters:
1. Define the Business Need
The first step to decrease the cost of training is to clearly define the business goal, problem or need with key stakeholders.
2. Identify Success Metrics
Identify the critical few (1-3) specific business metrics that you are trying to impact – i.e. revenue, margin, productivity, engagement, retention, loyalty.
3. Calculate The Business Value
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 $5m in profits; if we decrease attrition by 15% we would save $2.3m and meet 95% of project targets.
4. Compare the Value
Calculate if the value of achieving the desired target success metric is important enough to pursue compared to other strategic priorities.
5. Design the Approach
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. Deliver the Solution
Assess, design, implement and measure a holistic solution that makes sense.
The Bottom Line
We estimate over 50% of the time that training alone is not the solution to your business or people 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 people and the business while contributing to the overall health and future success of the organization.
To learn more about more effective corporate training, download the Top 10 Warning Signs Your Training Function May Be in Trouble
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