ROI of Trainings


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ROI calculation for trainings, effectiveness and evaluations for training programs with impact on the ROI, facts and figures for an incresase in ROI by trainings

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ROI of Trainings

  1. 1. Training as an Effective Measure to Increase ROI Example: „Intercultural Communication Trainings“
  2. 2. Case Study: Intercultural Communication TrainingsCurrent Situation:o A large number of IT projects fail, because of missing intercultural skillso The potential of multicultural IT projects cannot be exploited at a percentage larger than 50%Benefit of intercultural Seminars:Participants learn how to,o …recognise and structure intercultural differences and experienceso …overcome challenges in intercultural contexts
  3. 3. Why Trainings in Intercultural Communication?Improvement of communication skillsin an international context:According to studies, 70% of all errorsin IT Projects are based on failure incommunication.
  4. 4. Intercultural Trainings lead to…..• … decrease of LossesCaused by interculturalmisunderstandings
  5. 5. Intercultural Trainings lead to…..…faster success in projectexecution due to improvedcollaboration
  6. 6. Intercultural Trainings lead to…..…..better team spirit in projectteams and higher chances to build a„High Performance Team“
  7. 7. Intercultural Trainings lead also to….. • ….. A significant competitive edge • …...more effective communication • ……decrease of misunderstandings and its costs • ……improved mutual understanding
  8. 8. How Effects of Trainings can be Measured in Numbers?• Isolation of training effects in a control group• Monitoring of visible results• Estimation and statements of the participants• Estimation of the project team leader („Supervisor Assessments“)->Conversion of data in solid numbers and results
  9. 9. 4- level Model of Training Evaluation ROI Level 2 Level 3 Level 4 Level 1 Return on Learning Behavior Business Invest ofReaction Change Results Trainings Nach Donald Kirkpatrick
  10. 10. „Intercultural CommunicationTrainings“ – Impacts on the Business Which results are achieved in the context of intercultural communication? • Higher level of cultural awareness, understanding of the functions, what means „culture“? • Negotiation skills in an intercultural context, focus on Sales Presentations • Awareness of the meaning of time in different cultures • Ability of effective virtual communication/video conferences
  11. 11. Examples for Seminar Content on „Intercultural Communication“ o Negotiations in an intercultural environment o Practicing of different communication styles o Presenting in the context of another culture, e.g. Sales Presentations o The meaning of time in different cultures o Practices for virtual communication o Support of adaption of agility (e.g. Scrum)
  12. 12. Evaluation of Trainings- Guidelines- o Compare with a seperated control group o Concede sufficient time for visible results in behavior change o Implement measures before and after the program o Evaluation questionnaires: Questioning of the participants, supervisors, co- workers, etc.
  13. 13. Performance Indicators and Measurable Improvements (after the Training): Hard Facts Soft Facts  Duration of the project  Effective communication  % of Unproductive  Employee satisfaction working time  Quality in decision  Customer satisfaction making  Need of extension of  Lower stress level project time  Error in the project  Higher level of agility  Number of units with re- working
  14. 14. Significant Cost Cuttings due to.. o Shorter project duration Projects can be realised within an -> average of 2 months quicker o Significant reduction of ineffective communication o Improvements of communication in video conferences -> Costs for travel and face-to-face meetings can be lowered -> Effective Working in Offshore Situations
  15. 15. ROI- Calculation for Trainings on the Topic of „InterculturalCommunication“ in IT Offshoring Projects Project Time –with and without Trainings in months 6 5 4 3 2 1 0 2007 ohne 2012 mit Training Training
  16. 16. Calculation of ROI for TrainingsROI = Total Benefits – Total Costs x 100 = Total CostsFigures:100.000 € Cost cuttings by shorter project duration25.000 € Expenses for inhouse seminars „Intercultural Communciation“ROI = 100.000 – 25.000 x 100 = 300% 25.000
  17. 17. Immaterial Effects of Seminars („Intangibles“)Some effects of Trainings are „intangibles“ and cannotbe measured in numbers• Z.B. increased self esteem and motivation of the employees• increased employee satisfaction• increased communication skills• improved Customer Service Skills• ability, to work and communicate in a functioning team structure• Agility, agile and motivation with a high level of motivation
  18. 18. Thank you for your attention!Should you have further questions, please don´t hestiate to contact us!MBO ConsultingSonja UhlManager Trainings &