Dear Friends
This blog is in continuation with my earlier blog titled 'ROI and Business Alignment - Part 1'.
This blog is in continuation with my earlier blog titled 'ROI and Business Alignment - Part 1'.
FINDINGS
Out of the 50 companies studied, no company does business
alignment. Table 3 depicts the percentage of companies reaching the ROI levels.
Hence the training does not contribute to the bottom line. Essentially, the requirement of business
alignment for a project makes little difference for some, because previously
these types of projects may not have been connected to the business. In the PSUs
studied, the mandate is to fill in the compulsory training man days. Without
question, the HR and training function, which includes a variety of activities,
does contribute to organization success; difficulty lies in selecting the right
combination of measures and the best approach to develop an adequate impact
analysis.
Table 3: Companies and ROI levels Reached
|
Companies
|
Business Alignment
|
Reaction Level
|
Learning
Level
|
Application
|
Impact
|
|
Pvt. Companies, MNCs
|
NIL
|
90%
|
70%
|
2%
|
NIL
|
|
Public Sector
Undertaking
|
NIL
|
70%
|
20%
|
NIL
|
NIL
|
ENABLERS TO ROI
IMPLEMENTATION
- To justify training.
- Need to make HR and training a profit center.
- HR is convinced that ROI can bring dramatic results.
- To capture correct data.
- To make employees accountable.
- Evaluate training program as a part of key result area and performance evaluation.
- Failure to see long-term payoff of evaluation.
BARRIERS TO ROI IMPLEMENTATION
- Lack of business alignment to training.
- Lack of ROI skills.
- Lack of dedicated staff.
- Lack of management conviction in the ROI process.
- Lack of trust of management in HR and training professionals.
- Lack of flexibility once the training calendar is freezed.
- ROI is not mandated by the management.
- Lack of HR involvement.
- Budget constraints to implement ROI.
- Lack of standards.
- Training evaluation, not a part of corporate culture
LIMITATIONS &
FURTHER SCOPE
The companies under study belong to Mumbai region only. The study
is undertaken by interviewing HR and training people. Further research is
possible for ROI implementation for other departments. Study can be undertaken
for process and software implementation. Case studies can be published with
reference to Indian companies on training and business alignment and
implementation of ROI process.
Do write to me on wagle.sonali@gmail.com
With Gratitude
Dr. Sonali Wagle
www.exponentialadvisory.co.in
