Greetings, all:
The definitive guide on development of ROI in Training is entitled Running Training Like a Business: Delivering Unmistakable Value, authored by David van Adelsberg and Edward A. Trolley. ISBN 1-57675-059-0.
I have mentioned this book previously in this forum, and have found over the last few years that it answers the questions of ROI for Senior Management in companies in which I consult--and--answers the concerns of Training Directors who, for some reason, simply don't understand the perceptions between deliverables and tangibles.
When you decide to affix an ROI to Training, you first must create a mindspace where Transformation is a necessary and critical first part. Simply trying to offer a tangible XX% ROI always leads to fly-bys.
I've personally witnessed Boardroom arguments in which neither party taking adversarial positions wins, and the losers are the employees who--for whatever reason--don't get the necessary training to progress in their positions.
Sound familiar?
And yet, affix a relative value in this new and bold business environment we must.
When Trolley and van Adelsberg wrote this book (1999), the investment in Training and Development in the USA alone was estimated at $56Billion USD. Add in the rest of the world, advance it to 2005, and you have a worldwide expenditure on Training and Development at a staggering U$D 144 Billion. Who would not expect Senior Management to seek out ROI on such a staggering investment?
Better yet, and to the point, is there any industry that does not measure the benefit of training? I can think of only two--and those are fairly secure positions: meteorologists and economists; both of whom have a high negative performance rate. As a matter of fact, those are the only two positions which I can think of where you continue to get paid whether you make the correct decision or not. And in both, if you wait around long enough, your decisions and predictions will be proven correct.
Even the profession of Funeral Director/Undertaker requires ongoing training, and the larger organizations measure the ROI against the funds expended for training extensions.
Let me suggest that you consider van Adelsberg and Trolley's book as a text for determing the ROI which you will compute on your own training efforts.
All the best.
Alan Guinn, Managing Director
The Guinn Consultancy Group, Inc.