Training effectiveness

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Corporations spend huge sums on training but is the cost effective and justified?

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  • Thank you for the opportunity to speak to you this morning. The concepts we are discussing with you this morning are the outputs from our Six Sigma Black Belt project Completed at St Petersburg College during the time period of January to May 2009.
  • Who Am I? The nature of the role of human capital within your organizations has changed as the nature of the workplace has changed
  • Every year no matter what the nature of the economic times, American Corporations spend vast amounts of funds on training and development of the employees.
  • We are operating in a chaotic workplace Four mindsets, one goal Three of the generations have a very specific view of what they want out of the training opportunities
  • We would all agree that there are two types of training
  • Management is reviewing our training efforts Concerned with whether or not we are getting our monies worth for the time spent
  • Need to confirm the reason behind the training Skill versus Will
  • We are all familiar with the traditional methods for rating our training opportunities This slide and the next list the more common tools we reviewed during the project
  • The first step in the project was reviewing the root causes for problems in our training efforts Efforts were reviewed from the perspective of How we delivered the training (Process/Method) Course Materials People involved Use of technology and layout of the training space
  • To determine our scope of the research we utilized social media to a large extent to find resources to assist with the final outputs
  • We posted a simple question to the social media world
  • We were seeking very precise data from 5 perspectives
  • In the view of the Training Root Cause Analysis we looked at four potential root causes of training roadblocks. In the final analysis we were primarily concerned with three out of the four The use of machines to deliver the training did not necessarily have a major impact on the outputs
  • These 25 respondents represented 6 organizations Represented various industries Represented various sized organizations We are thankful for the assistance of AAA South First American Title KLA-Tencor Lazy Days RV Superstore Marriott Corporation PSCU Financial Services
  • We also analyzed data from the 2005 ASTD Benchmark Forum on Training Evaluation levels
  • We looked to see if there was a better way to evaluate training going forward that maybe did not rely on the Kilpatrick or Phillips tools
  • The DuPont Attribute Model is concerned with different aspects of the training efforts
  • The model looks at the outcomes of the training programs
  • We were concerned with 5 Macro views of the training programs
  • In addition we were concerned 9 other areas coming out of the training programs
  • We began the process with a look at three segments of outputs The future state of your organization following training The actual performance improvement following training The impact of the training on the organization We also looked at a ROI calculation
  • It is our belief that determining the effectiveness of your training comes from the influences of the corporate goals, the training results and the training impacts
  • Our goal was to create a management tool that would develop a series of metrics to determine our initial question
  • The goal from this tool was to achieve critical metrics regarding your training programs The results were demonstrated in a Kaplan-Norton Balanced Score Card Model
  • The Balanced Score Card model showed the integration of all the parties to the training efforts within the organization
  • Let’s begin our look at the Model with the starting point – the organizational training goals The training is evaluated on the basis of the improvement areas from the view of the current state, the future state and the business priority Each is rated on a scale of 1-10 with 10 being a must have
  • In the second stage of the tool we broke the higher level improvement areas down into finer detail We began with a look at whether the training positively impacted the corporate improvement area The second area was to establish an estimate whether management expected to see the results of the training in 3,6 or 23 months following the conclusion of the training Using the same 1-10 scale the management is asked to determine whether the training area was effective in meeting the corporate goal
  • We are not saying that ROI is unimportant It is a critical aspect of whether training is worth the expenditure We based our responses on the basis of a 75% confidence level that management was right in their initial assessment
  • Created a dashboard for showing our results Carried over from the first two worksheets it shows what the corporate training goal was and how close we came to achieving the goal In our example it showed we had a way to go to achieve the outcome we sought, using the data we inputed into the tool
  • The final worksheet becomes a record of the training offered Provides management with a visual perspective on What course were offered Where the training was given The platform used to deliver the training The number of hours provided The number of FTE’s involved Total instructional hours delivered
  • Based on our research and analysis utilizing the six sigma methodology we derived four conclusion regarding our question as to whether our training programs were successful and effective. If our training is effective then the cost is in fact justified
  • Training effectiveness

    1. 1. Training Effectiveness: Is the Cost Justified? A Six Sigma Black Belt Project Daniel Bloom SCRP Managing Consultant Daniel Bloom & Associates, Inc. Human Capital Consultants Daniel Bloom and Associates, Inc. 1
    2. 2. Evolutionary Nature of Workplace Industrial Age Information Age Daniel Bloom and Associates, Inc. CompetitivenessCompetitiveness InnovationInnovation Human CapitalHuman Capital Expense Non-Owned Assets From Presentation by Russ Moen of Express Personnel HR Tampa Monthly Meeting Collabo ration Collabo ration 05/06/2009 2
    3. 3. Premise #1Premise #1 In fiscal year 2008, AmericanIn fiscal year 2008, American corporations spent $56,200,000,000 oncorporations spent $56,200,000,000 on providing training to their employeesproviding training to their employees -- Workforce Management WebsiteWorkforce Management Website Daniel Bloom and Associates, Inc.05/06/2009 3
    4. 4. Premise #2Premise #2 In today’s competitive talent market, the primary goal for many FTE’s is to enhance their portfolio of career skills that they can bring to their current or future employer. Especially true with late Boomers, Gen X, Gen Y Daniel Bloom and Associates, Inc.05/06/2009 4
    5. 5. Premise #3Premise #3 Two types of “Training” being offered Hard Skills or Training – Designed to increase an Employee’s ability to complete a process Soft Skills Training or Education – Designed to increase an Employee’s Career Portfolio and enable them to become more engaged employees. Daniel Bloom and Associates, Inc.05/06/2009 5
    6. 6. Management PerspectiveManagement Perspective Equally Critical Issue is whether: “We are conducting this training for “X” amount of hours per year. Are we getting our monies worth for the time and funds invested to produce the training?” Daniel Bloom and Associates, Inc.05/06/2009 6
    7. 7. Premise #4Premise #4 Equally Critical Issue is in which scenario training is being requested: “Mr. Manager are you asking for this training due to a skill problem or a will problem?” Will problem is a management issue and carries no ROI Will problem is NOT a training issue Daniel Bloom and Associates, Inc.05/06/2009 7
    8. 8. Traditional Assessments Evaluation MethodsEvaluation Methods Kirkpatrick ModelKirkpatrick Model Phillips ROI ModelPhillips ROI Model Total Cost of OwnershipTotal Cost of Ownership Simple Return on InvestmentSimple Return on Investment DuPont Equation Attribute ModelDuPont Equation Attribute Model 05/06/2009 Daniel Bloom and Associates, Inc. 8
    9. 9. Traditional Assessments Evaluation MethodsEvaluation Methods Success Case ModelSuccess Case Model Kolb’s Learning StylesKolb’s Learning Styles People Performance Model (Performance vs. Potential)People Performance Model (Performance vs. Potential) Joahri Window (Known vs. Unknown)Joahri Window (Known vs. Unknown) Participatory Training Evaluation ModelParticipatory Training Evaluation Model Solomon Four ModelSolomon Four Model 05/06/2009 Daniel Bloom and Associates, Inc. 9
    10. 10. Training Root Causes 05/06/2009 Daniel Bloom and Associates, Inc. 10
    11. 11. Proposed Question Using the power of the World Wide Web via LinkedIn and Yahoo we posed the following question to approximately 100,000 individuals worldwide 05/06/2009 Daniel Bloom and Associates, Inc. 11
    12. 12. Proposed Question  “I am currently working on completing my training for a six-sigma black belt. Part of that process is to complete a major project. The project that has been agreed on with the instructor is one devoted to Training Effectiveness and how to evaluate it. The end result will be a report and a dashboard that will graphically portray the various ROI methods and provide the user with the capability to see how they are doing across several methods. We intend to talk to some companies to gather their training data to be entered into the matrices. We are also considering including a Training Balanced Scorecard. We are open to input or for companies that might like to participate.” 05/06/2009 Daniel Bloom and Associates, Inc. 12
    13. 13. Data Points Critical Data Points  Each participating organizations was asked to provide data points which were central to the ability of the project to draw its conclusions about the effectiveness of the offered training:  Sales Revenue  Total Number of Training Hours  Total Number of FTE and PTE’s Trained  Type of Training  Results from Training Evaluations 05/06/2009 Daniel Bloom and Associates, Inc. 13
    14. 14. Measure Critical Data Points  Three Segments of the Ishikawa Cause and Effect Diagram are of Concern  Process /Methods  Type of Training  Feedback  Materials (Feedback Format)  People 05/06/2009 Daniel Bloom and Associates, Inc. 14
    15. 15. Analyze Data EvaluationData Evaluation Internet Project Description PostingInternet Project Description Posting  100,000 individuals received the postings100,000 individuals received the postings  25 respondents (.03 percent response)25 respondents (.03 percent response)  General consensus isGeneral consensus is  ““We just give the training, we never evaluate it”We just give the training, we never evaluate it” 05/06/2009 Daniel Bloom and Associates, Inc. 15
    16. 16. Analyze ASTD BENCHMARK FORUM 2005 REPORTASTD BENCHMARK FORUM 2005 REPORT  Average Percentage of Training Program Evaluation LevelsAverage Percentage of Training Program Evaluation Levels  91.3% Evaluated Reaction Responses (Happy Smile91.3% Evaluated Reaction Responses (Happy Smile Sheets)Sheets)  53.9% Evaluated Learning Responses (Did the FTE Learn53.9% Evaluated Learning Responses (Did the FTE Learn from the training)from the training)  22.9% Evaluated Learning Transfer Levels22.9% Evaluated Learning Transfer Levels  7.6% Evaluated the Impact Levels7.6% Evaluated the Impact Levels  3.2% Evaluated the projected Return on Investment3.2% Evaluated the projected Return on Investment  2.1% Evaluated the actual Return on Investment2.1% Evaluated the actual Return on Investment 05/06/2009 Daniel Bloom and Associates, Inc. 16
    17. 17. Training Return on Investment Based on Tool implemented by DuPont Corporation Assessed on what you want out of the training for the long run. 05/06/2009 Daniel Bloom and Associates, Inc. 17
    18. 18. Improve Model asks corporations to assess training from a different perspective  Aligns training to the expected outcomes  Outcomes based on alignment with the corporate goals  Outcomes based on the anticipated goals of the training 05/06/2009 Daniel Bloom and Associates, Inc. 18
    19. 19. Improve Model asks corporations to assess training from a different perspective  Outcomes ranked in the order of importance  Based on a similar assessment used to introduce a new employee benefit by the DuPont Corporation  Form modified for use with a training program 05/06/2009 Daniel Bloom and Associates, Inc. 19
    20. 20. Improve Outcomes were looked at from some Training Criteria Areas  Performance Levels  Increased Peer Pressure  Employee Motivation  Performance Assessment  Focused Process Improvement 05/06/2009 Daniel Bloom and Associates, Inc. 20
    21. 21. Improve Outcomes also looked at some additional Training Criteria Areas  Bottom Line Impact  Corporate Values  Competitive Advantage  Employee Loyalty  Compensation Benefits 05/06/2009 Daniel Bloom and Associates, Inc. 21
    22. 22. Improve Outcomes also looked at some additional Training Criteria Areas  Building Trust  Relationship Building  Networking Benefits  Follow-up Coaching 05/06/2009 Daniel Bloom and Associates, Inc. 22
    23. 23. Improve DuPont Attribute Training Evaluation Model  Final Step is to evaluate your training from three views  Each is done from a monetary perspective  Views  Corporate Goal for Training  Actual Performance Results  Training Impact ( Corporate Goal – Actual Performance)  Return on Investment Calculation  Training Impact – Training Cost = Return on Investment 05/06/2009 Daniel Bloom and Associates, Inc. 23
    24. 24. Improve ROI of TrainingROI of Training Daniel Bloom and Associates, Inc.05/06/2009 24
    25. 25. Control 05/06/2009 Daniel Bloom and Associates, Inc. 25 Goal: To develop a Standard Training Model which will achieve critical metrics within the business organization Purpose of the Training FTE Involvement at the highest level possible Management Buy-In to the Training Results
    26. 26. Control 05/06/2009 Daniel Bloom and Associates, Inc. 26 Goal: To develop a Standard Training Model which will achieve critical metrics within the business organization Increased Client/FTE Engagement Levels Direct increase in revenue stream attributed to the training outcome Can be shown in a Kaplan-Norton Balanced Scorecard Model
    27. 27. 05/06/2009 Daniel Bloom and Associates, Inc. 27
    28. 28. Training Effectiveness Model - Goals 05/06/2009 Daniel Bloom and Associates, Inc. 28
    29. 29. Training Effectiveness Model – Effectiveness Rating 05/06/2009 Daniel Bloom and Associates, Inc. 29
    30. 30. Training Effectiveness Tool Return on Investment 05/06/2009 Daniel Bloom and Associates, Inc. 30
    31. 31. Training Effectiveness Tool Improvement Dashboard 05/06/2009 Daniel Bloom and Associates, Inc. 31
    32. 32. Training Effectiveness Tool Course Record 05/06/2009 Daniel Bloom and Associates, Inc. 32
    33. 33. Conclusions Majority of Corporations globally are not carrying evaluations out to the point of being able to determine the economic impact of their training on the bottom line Majority of corporations globally confine their evaluations to basically determining the FTE reaction to the presented training Corporations need to find a new method to accurately evaluate the training impact that is faster, better and cheaper The DuPont Attribute Training Model can be the solution 05/06/2009 Daniel Bloom and Associates, Inc. 33
    34. 34. Questions ?Questions ? Daniel Bloom and Associates, Inc. Daniel Bloom and Associates, Inc.05/06/2009 34
    35. 35. Have Further Questions : Daniel Bloom SPHR,SSBB,SCRP CEO, Managing Consultant Daniel Bloom & Associates, Inc. PO Box 1233 Largo, FL 33779 (727) 581-6216 dan@dbaiconsulting.com http://www.dbaiconsulting.com 35 Find us on

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