Do you find excuse to implement ROI process for your training evaluations

Today a Sr. Candidate came for interview for a training profile.

Our client was looking for a person who can guide them and implement the ROI process.
He seemed good and knowledgeable and knew all the models that existed for ROI.

When asked to rate his skill level in implementation of ROI in his existing company, he said I never got time to implement ROI.

The question here is having conceptual knowledge of ROI that we learn at an MBA level and practical application of the same are too very different things. It’s a proven fact that having knowledge does not guarantee the application of the concept, let alone be measuring impact.

Chart below represents 100 HR and training professionals interviewed on the reasons for lack of training evaluation. Y-axis represents percentage and X-axis, the reasons identified for not implementing the training evaluation process.

33% professionals identified No time as a reason followed by lack of management support on 19% .

ROI is the most simple and easy to adopt process, yet training managers are avoiding it because of misconceptions about its application. If ROI is made part of the training process, then everything else follows. Time can be saved in areas such as training need identification, quantified objective setting, accountability of trainers, and questionnaire designing to collect the correct data.

ROI is the backbone of any training or HR intervention. And remember, no ROI is as good as the training has not taken place. Prove it, or leave it!!! 

ROI - Begin with the end in mind

Famously said by Steven Covey "Begin with the end in mind". Very true... the first step towards implementing the ROI process is to begin with what exactly are we looking forward to from our interventions and training. Do we have clarity? If yes, have we set quantified objectives?

For sometime  now I get calls from HR professionals to understand how soft skills training initiatives can be measured. For people who find it challenging to set quantified objectives, I suggest, you first start with setting quantified objectives for a sales training program. Organisations invest heavily in a Sales training program - be it training or coaching. All industries including IT, Pharma, Retail, Consulting, Finance and every company irrespective of the industry invest in sales training.

Below is a case study to set objectives for a sales training program. The case is based on Phillips methodology of ROI process.

Objective Setting for ROI – Sales Training Programme

Traditional Objectives for a Sales Training Programme

After participating in the programme, participants should be able to

• Increase revenue by 25 % 
• Lead from the front
• Be flexible with different leadership styles

Revised Objectives as per ROI Process

Levels    Objectives

1                     Reaction level

s  Obtain a positive reaction towards the programme

s  Relevance of the programme

s  Action plan

2                     Learning level

s  Thoroughly understand the sales process

s  Steps used for cold calling

s  Methods used to close a deal

s  5 methods of handling objections

3                     Application

s  Conduct 25 cold calls daily

s  Convert the 25 cold calls into appointments

s  One appointment scheduled per day

s  One follow up appointment scheduled per day

s  Complete action plan

4                     Business Impact

s  One deal of minimum Rs. 50,000 to be closed per week

s  Customer satisfaction index to rise by 20%

s  Generation of repeat business for Rs. 1,00,000 per client

s  Retention of key sales personnel

5                     ROI

     s ROI  - 30 % increase in revenue 

The above case study represents the ROI objective setting for a sales training program. The method used for isolating techniques is estimation and control group. One can also use nominal group technique if need be as a isolation technique.

Once the above is implemented it becomes easy to implement the same in a coaching, leadership, emotional intelligence, conflict management, management development programs and so on.

I suggest you can try setting objectives for software implementation, coaching, building trust and  leadership. Its easier said than done...My experience.

Challenge yourself and the trainers. Only thing you as a HR should remember and do everything under the sun to add value which is valued....

Can HR be a PROFIT CENTER?

Hi!

Here goes the popular statement in the corporate world that 'HR is a cost center'.  I am sure most of the HR professionals would agree to it. Atleast my research says that.

Recently a VP HR mentioned, But HR is a cost center, isn't it?

The word BUT gave me a feeling that HR professionals have more or less convinced themselves  that indeed, HR is a cost center.

How many of us have passionately felt that HR is a profit center?

Yes you heard me right HR is a profit center unless we provide the same with factual Data.

During my recent visit to US to meet the Jack Phillips team, I realised that in US, HR professionals are THE HR Professionals and command credibility. Unlike here where HR people are more of coordinators rather than Strategic decision makers.

The answer is simple - we ourselves are to be blamed. I remember in my earlier organsiation my boss used to frequently mention the job of a HR is to cut cost. I failed to understand if cost needs to be cut then hire auditors why HR personnel.

Like the Legendary CEO of GE Jack Welch  was named Neutron Jack as he believed in Cut cost and grow. Cutting cost was not the essence, the essence was to not only cut cost but grow. And grow exponentially. Its history, A truly task oriented yet a peoples person, Welch took GE to new heights.

HR people need to have that deep earning towards results.

Below is an excerpts from my research interview with a VP HR from a Multinational company

Me:  Do you do training in your company
VP HR:  Yes we do and we invest around 30 lakhs per year in training technical as well as behavioural.

Me: Oh that is nice. How do you know that the training has impacted.
VP HR: We definitely take the Kirkpatrick's model. We do take the reactions post training to understand how the training was, the trainer's knowledge. 

Me: But that is only the reaction level in the Kirkpatrick's model. How does the reaction measure the impact for which the training was conducted.
VP HR: We can see the impact.

ME: How do you measure it?
VP HR: We donot measure it. Infact there is no need to measure it. It is visbile.

ME: That is nice. But how do you prove to the management that the training was justified.
VP HR: QUIET

VP HR: I get what you are saying.
ME: Absolutely no data means no impact. Unless you are able to support your impact claims with data it doesnot make sense.
Look at finance and sales professionals why can they claim that they are the drivers of the company.

VP HR: I know because the numbers speak for themselves.
ME: Now you got the point. So to claim an impact HR professionals need to back up any process or training implementation with numbers.

So my friends, post this interview the VP HR realised the value of data and the need to make HR a profit center.


Currently we have two models of ROI running successfully the first Kirkpatrick's Model and the second Phillips Model. However, there is a significant difference in both of them. My favourite is the Philips model as it is more practical to implement

It is extremely vital to prove HR as a profit center. So next time you are implementing a process or an intervention or a training, begin with the end in mind.

Ask the question to yourself How can I quantify the results? Don't just be satisfied with reaction and learning level.

For that setting quantified objectives is the key...

If you have any queries you can mail us on contactus@exponentialadvisory.co.in

Till then think how you can make HR a profit center...