How Do You Track the ROI of Training? Share Your Insights and Experiences

simmy2009
Dear Members,

I'm attaching a document titled "Tracking ROI of Training." Readers' input is invited for the said document.
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dvphanindra
Thank you for sharing the document. You requested inputs; this report is from 2005. At this point, the headings are relevant, but not the data. Upon reflection, I have to agree that the methods companies use to measure training effectiveness are still quite basic, at least in India. As a knowledge management professional, I am keen to understand the impact on business, as clients are hesitant to invest further in training. Please provide an update.
les2allan
The Bersin report is quite dated; however, the figures they give on the percentage of organizations that measure learning and impact are consistent with other reports that I have seen.

Yes, we can do more to improve on the 11% of organizations that measure business impact and the 14% that measure job impact. I do question the stated reasons for not measuring impact and training: lack of tools and and lack of formal processes and methodologies. Kirkpatrick's four level model has been with us now for over forty years and we have had numerous books, survey forms and calculators for a number of years as well.

I think the answer lies more in the lack of resolve of training professionals to get on with the job. In Bersin's study, nearly two thirds of respondents were waiting for more direction from management. We need to take the lead and learn what it takes to measure learning and business impact. The buck stops with us.

Les Allan
Author: Training Evaluation Toolkit
www.businessperform.com
dvphanindra
As long as training is considered as an appendix, we have to live with it. I hope training comes into the mainstream of management along with measuring and impact study. Please guide us on how to forward the proposal in our area. I would like to make it a part of our training proposals.
les2allan
Dvphanindra, I think the trick is to *not* make a big announcement or submit a proposal. Start off simple and easy and then work your way up to more complex evaluations.

If you are not already doing Kirkpatrick Level 1 evalutions, start there. That starts to get participants and managers used to evaluation. With this evaluation, ask participants how they will use their new knowledge and skills back on the job.

Next, implement some simple assessments to evaluate how well people are learning the skills (Kirkpatrick Level 2). Doing this reinforces the message that training is for a purpose. There is no point doing an ROI study if you can't be sure that people have learned.

Next, start on a Level 3 evalaution using survey forms to see how much people are changing their behavior back on the job. You can survey participants and their managers. This is a critical stage as it reinforces to managers that training is designed and run to have an impact on organizational behavior. You can use this level to do a simple ROI by asking people to quantify the impact of the changed behavior on the organization. How much time was saved, how much was rework minimized, how much less materials were used, and so on? Then you can convert these estimates into monetary values.

See how you can springboard a Level 3 evalaution into a Level 4 (Results) evaluation and even into an ROI evaluation? Start slowly and surely and advance one step and a time. Needless to say, your programs should have a robust Training Needs Analysis lying behind it. Without a clear idea on what the organizational objectives are, in measurable terms, your ROI study will be a waste of time. I say a lot more in my book, Training Evaluation Toolkit. You can download the introductory chapter for free at http://www.businessperform.com/Train...lkit-Intro.pdf

I wish you the best with your evaluation.

Les Allan
Author: Training Evaluation Toolkit
www.businessperform.com
preetib76
Hello Les,
I conduct leadership training. However, I am finding it quiet challenging to reach the ROI step.
I am unsure why I cannot download this book online. I am unable to get the print copy in India. Can I get the E Book and not wait for the delivery?
Would you be kind to guide me as to how I can start with the ROI module?
Thank you
Preeti
les2allan
Hello Preeti,

Yes, you can download my book "Training Evaluation Toolkit" online as soon as payment is confirmed. If you are having trouble downloading, contact us via http://www.businessperform.com/html/contact_us.html and let us know where you are getting stuck. Thank you for your interest.

Les Allan
Director
Business Performance Pty Ltd
www.businessperform.com
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