ROI and Business Alignment - Part 2

Dear Friends

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