Guerilla ROI
- 1. Guerilla ROI: AreThere New Ways to Look at Evaluation? 10/26/12 Copyright Edge Interactive 1
- 2. About Mark Training Background CLO Magazine Parker, CO Family Parker Brothers 10/26/12 Copyright Edge Interactive 2
- 3. Over 20 yearsof training experience to the company having been a Management Consultant, Entrepreneur, Curriculum Coordination, Training Manager, and Instructor. Participated in a number of national advisory committees directing the effective use of technology and architected a number of nationally recognized information automation projects. BA in Learning Theory from University of Massachusetts and an MBA from Boston University.
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- 8. Agenda A BriefHistory of Training The Evolution of Training Evaluation The New Business Environment Introducing Guerilla ROI How Training Organizations are Building Their Project Portfolios 10/26/12 Copyright Edge Interactive 8
- 9. A Brief Historyof Training 10/26/12 Copyright Edge Interactive 9
- 10. “There is noother workplace issue where so much money is spent with as little accountability as training.” Brandon Hall, Respected thinker in training industry 10/26/12 Copyright Edge Interactive 10
- 11. Total Training Expenditure $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 5,000 10,000 20,000 40,000 80,000 Employees Source 2006 ASTD Industry Study 10/26/12 Copyright Edge Interactive 11
- 12. e·val·u·ate (ĭ-vāl'yōō-āt') PronunciationKey To ascertain or fix the value or worth of. To examine and judge carefully; appraise. Mathematics To calculate the numerical value of; express numerically. 10/26/12 Copyright Edge Interactive 12
- 13. Measurability of Results Sales Production Marketing Application IT Infrastructure Development 10/26/12 Copyright Edge Interactive 13
- 14. Dr. Donald Kirkpatrick Level 1: Reaction Level 2: Learning Level 3: Transfer Level 4: Results 10/26/12 Copyright Edge Interactive 14
- 15. Jack J. Phillips,Ph.D. Level 5: ROI What is the actual financial business value of an initiative in relation to it’s cost? 10/26/12 Copyright Edge Interactive 15
- 16. Robert O. Brinkerhoff,Ph.D. The Success Case Method (SCM) Less Analytical Based on finding the case that best meets the training goals 10/26/12 Copyright Edge Interactive 16
- 17. Historic Role ofEvaluation Sophisticated, respected, and mature discipline Introduced new level of accountability to the business of training and performance Has adapted to the imperfections of business by blending science with spontaneity of the business environment Learner focused, not business focused 10/26/12 Copyright Edge Interactive 17
- 18. The New BusinessEnvironment Pace of business is increasing with less tolerance for wasted time or resources. New products and processes are being introduced at an accelerated rate Business has become increasingly competitive Everyone must do more with less 10/26/12 Copyright Edge Interactive 18
- 19. The New CorporateTraining Environment Training organizations receive more requests for training projects than they have resources to complete. The training organization is resource constrained and must develop processes to ensure they are completing the highest impact projects Traditional evaluation criteria are often inconsistent with the pace, goals, and needs of modern business 10/26/12 Copyright Edge Interactive 19
- 20. What Is NeededFrom Training? Responsive Pragmatic Focused Leverages Resources 10/26/12 Copyright Edge Interactive 20
- 21. Introducing Guerrilla ROI Focus is on the development of a high impact portfolio of learning projects that provide maximum business impact. Key criteria is selecting projects that are closely aligned with strategic corporate goals. Looking forward and placing value on learning projects based on we expect them to accomplish Developing evaluation criteria that indicate when business objectives are met 10/26/12 Copyright Edge Interactive 21
- 22. Project Intake andPortfolio Management: Develop criteria to determine what training projects are accepted Consistent methodology for declining projects Alternatives to get unaccepted projects completed 10/26/12 Copyright Edge Interactive 22
- 23. If No ProjectIntake Process Overwork Quality suffers 10/26/12 Copyright Edge Interactive 23
- 24. Project Evaluation Criteria 1. Mandated projects such as compliance training. i.e. Sarbanes-Oxley. 2. The project supports a larger project such as a large strategic IT project 3. Projects in response to immediate problems not identified previously. Examples of this might be shortcomings in sales, rapid declines in customer satisfaction, or increases in product rework and callbacks. 4. Projects in close support of corporate business objectives, and cascaded down to an actionable level. 5. Projects generated in response to needs in the corporate culture. Examples of this might be leadership or management training. 10/26/12 Copyright Edge Interactive 24
- 25. Project Evaluation Criteria What key people think may be the most important factor “I feel like my career is based on people I don’t know talking about things I never did.” anonymous IBMer 10/26/12 Copyright Edge Interactive 25
- 26. Determining Capacity How much portfolio management does your organization really have to do? How do you determine your resource requirements and capacity for new projects What percent of projects are firm at the beginning of the year What percent of your resource will those projects consume? What percent of workload is spontaneous projects coming in throughout the year? 10/26/12 Copyright Edge Interactive 26
- 27. How Do YouDecide? Many companies have implemented learning councils to determine the prioritization of training projects. Councils are generally comprised of representatives from critical functions and business units within the company. Using the council approach provides a balanced decision process and fairly represents the interests of the stakeholders within the company. 10/26/12 Copyright Edge Interactive 27
- 28. How Do YouDecide? In some cases, the Chief Learning Officer or leader of the centralized training organization will negotiate directly with stakeholders regarding their project requests. 10/26/12 Copyright Edge Interactive 28
- 29. How Do YouDecide? In a decentralized training structure, the training function usually resides within key business unit and exists to support the business unit’s business goals and objectives. 10/26/12 Copyright Edge Interactive 29
- 30. Things Guerilla ROIDoesn’t Worry About The overall corporate strategy is well thought out and sound The larger corporate strategy has been parsed into specific, representative, and actionable business objectives that are effectively communicated to Executive Vice Presidents, Vice Presidents, Directors, Managers, and individual employees Proposed training projects have objectives and outcomes that give employees the knowledge, skills, and beliefs to effectively accomplish these goals The training department is competent both designing, developing, and delivering training programs that accomplish these goals All employees (VPs, Directors, mangers, individuals) are motivated and competent 10/26/12 Copyright Edge Interactive 30
- 31. CH2M Hill Established in 1946, CH2M HILL is an employee- owned, $4.5 billion global leader in the full-service engineering industry. CH2M HILL Enterprise Learning Steering Committee (ELSC). The ELSC is comprised of representatives of each of our twelve business groups, as well as regional operations and other functional areas within the company. 10/26/12 Copyright Edge Interactive 31
- 32. CH2M Hill First and most important is alignment with and support of the company’s business objectives. Other criteria we look at are: the potential impact of each program, audience size, as well as the breadth and sustainability of the training. CH2M HILL's learning program operates in both a centralized and decentralized manner. 10/26/12 Copyright Edge Interactive 32
- 33. Annual Learning Program& Needs Assessment Process PHASE 3: PHASE 4: DESIGN, PHASE 2: REVIEW AND DELIVERY, OTHER INPUTS FUNDING PROCESS EVALUATION PHASE 1: SURVEY INPUTS Strategic Individual Review Process: Inputs: Inputs: • Business Operations Review Course Design, • Business • 360° • F&A Review • Recommendation Revisions Delivery and Strategies Assessments Staffing • Tactical • CDF Survey • Business Planning Guidelines Evaluation Process: Managers Initiatives Results Written • IDP Goals • Course Project Plans/ Budgets Reviewed/ HR Revised/ Approved Managers • Courses Delivered/ Initial Evaluations Needs Assessment Recommended Completed Course Online Assessment Results/ Funding Level Owners Surve Data Analysis Learning Investment Reviewed/Revised • Follow-Up Evaluation y Recommendation and Approved Completed/Reviewed with Course Owners Functional • ROI Report Written Managers and Distributed Business Inputs: Regional • Functional Directors Course Identification and Business • HR Delivery Directors Funding Process: Managers • BG Ops Directors • Functional Director Review and Course Identification/Prioritization Meetings • Course Owners Identified and Notified/Budget Templates Distributed 10/26/12 Copyright Edge Interactive 33
- 34. Training Cycle Define Business Outcomes Document Purpose Results Benefit Design Complete Key Partners Training Experience Impact on Business Field Driven Gather Information Lessons learned Identify Challenges & Applicability Opportunities Experiential Deploy Active Implement for Support Application Active coaching Drive Follow Adult learning for employee comprehension Through Classroom Highlight E-Learning Successes Completion Rates Mgr Lead Identify Issues Market Early Success Engaged leadership Field Training Support 10/26/12 Copyright Edge Interactive 34
Editor's Notes
- #2 10/26/12 Copyright Edge Interactive Thank-you for coming My original intent was to present to a small group of close business associates Now I’m presenting to a larger group of what I hope will become close associates What I am presenting is a syntheses industry trends, research, and my own industry experience. My goal is to create a process and set of methodologies that will assist corporate learning organizations in supporting business goals Put down watch Humour IBM had no computer science majors at Boston Latin career days Two year training period Break audience preoccupation Interactions early, question, exercise or interaction every five to six minutes Short introduction that matches subject Write your own introduction Have a strong opening statement or humor Clear and concise objectives Tell them what you can say, tell them, tell them what you said Get audience involved early Build report before program Limit questions Don't finish with a question and answer session Control questions, page 31 Summarize presentation at finish Limit visuals talk more Make sure all visuals are readable from audience Put down watch Humour Lead into Starbucks Transition to experience
- #3 10/26/12 Copyright Edge Interactive The Evolution of Training Evaluation The introduction of evaluation has served corporate learning well. Its application has added a business rigor to corporate learning that did not previously exist, and has forced us to look at our industry in a new way. The training industry has not always had this level of accountability. In fact, several years ago, I saw this quote. “ There is no other workplace issue where so much money is spent with as little accountability as training.” Brandon Hall, Respected thinker in training industry Accurate measurement of training impact can be elusive, time consuming, expensive, and often produces results that lack credibility. Nonetheless, the existing evaluation methodologies have served our industry well. However, we must ask if there are other methodologies to evaluate training and performance initiatives that might serve our fast-paced business environment even better? I believe there is and we will call it Guerilla ROI.
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- #9 10/26/12 Copyright Edge Interactive The Evolution of Training Evaluation The introduction of evaluation has served corporate learning well. Its application has added a business rigor to corporate learning that did not previously exist, and has forced us to look at our industry in a new way. The training industry has not always had this level of accountability. In fact, several years ago, I saw this quote. “ There is no other workplace issue where so much money is spent with as little accountability as training.” Brandon Hall, Respected thinker in training industry Accurate measurement of training impact can be elusive, time consuming, expensive, and often produces results that lack credibility. Nonetheless, the existing evaluation methodologies have served our industry well. However, we must ask if there are other methodologies to evaluate training and performance initiatives that might serve our fast-paced business environment even better? I believe there is and we will call it Guerilla ROI.
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- #11 10/26/12 Copyright Edge Interactive The Evolution of Training Evaluation The introduction of evaluation has served corporate learning well. Its application has added a business rigor to corporate learning that did not previously exist, and has forced us to look at our industry in a new way. The training industry has not always had this level of accountability. In fact, several years ago, I saw this quote. “ There is no other workplace issue where so much money is spent with as little accountability as training.” Brandon Hall, Respected thinker in training industry Accurate measurement of training impact can be elusive, time consuming, expensive, and often produces results that lack credibility. Nonetheless, the existing evaluation methodologies have served our industry well. However, we must ask if there are other methodologies to evaluate training and performance initiatives that might serve our fast-paced business environment even better? I believe there is and we will call it Guerilla ROI.
- #12 10/26/12 Copyright Edge Interactive Based on $500 per year per employee Pick $10,000,000 Transition to IT, Marketing graph
- #13 10/26/12 Copyright Edge Interactive As the economic climate improves and businesses transition from a bottom-line focus to a top-line focus businesses must respond quickly to new opportunities and changes in the business landscape. In this ultra competitive economy, businesses are introducing products, services, and processes at an accelerating rate. Windows of business opportunity open quickly and often the competitive advantage a company has in a new market is short. Businesses must respond quickly and effectively to opportunity. Successful businesses must rapidly respond to new business opportunities and continuously search for ways to maximize the impact of resources. The good news about business today Business today has a higher tolerance for the imperfections and efforts that may not result in complete success. Often an initiative is started and then restarted based on the information gained by taking action. It is a time when redo’s are OK. It is a time when imperfect action is better thought of than the perfect solution that is never implemented. The bad news about business today The investment industry that all publicly held businesses answer to is not tolerant of even short term sacrifices for long-term gain. Timing of results is incredibly important. We do not work in a world where managers will typically invest this quarter’s resources for another quarters gain
- #14 10/26/12 Copyright Edge Interactive Could draw the same chart for Leadership
- #15 10/26/12 Copyright Edge Interactive Kirkpatrick Reaction Learning Transfer Results Kirkpatrick’s Level 1: Reaction may be the most important Philips ROI Control groups
- #16 10/26/12 Copyright Edge Interactive Analogy of airline maintenance depot
- #17 10/26/12 Copyright Edge Interactive Analogy of airline maintenance depot
- #18 10/26/12 Copyright Edge Interactive The Evolution of Training Evaluation The introduction of evaluation has served corporate learning well. Its application has added a business rigor to corporate learning that did not previously exist, and has forced us to look at our industry in a new way. The training industry has not always had this level of accountability. In fact, several years ago, I saw this quote. “ There is no other workplace issue where so much money is spent with as little accountability as training.” Brandon Hall, Respected thinker in training industry Accurate measurement of training impact can be elusive, time consuming, expensive, and often produces results that lack credibility. Nonetheless, the existing evaluation methodologies have served our industry well. However, we must ask if there are other methodologies to evaluate training and performance initiatives that might serve our fast-paced business environment even better? I believe there is and we will call it Guerilla ROI.
- #19 10/26/12 Copyright Edge Interactive Transition to brief history of training
- #20 10/26/12 Copyright Edge Interactive So Why is Guerrilla ROI Important in Today’s Business Environment. Factor Number 1: Almost without exception, training organizations receive more requests for training projects than they have resources to complete. Factor Number 2: The Learning and Performance Organization is resource constrained and must develop processes to ensure they are completing the highest impact projects Factor Number 3: Traditional evaluation criteria are often inconsistent with the goals and culture of modern business Factor Number 4: Business today needs credible criteria to evaluate the business impact of training initiatives that is quick, accurate, a priory, and reflects the goals as well as culture of the company Factor Number 5: Business success is not an exact science. I believe it is like the voyages of the early explorers. You need to have a legitimate goal, a good ship, a capable captain, a competent crew, and clearly defined measures of success. With these things in place, in spite of the uncertainties of sea travel and its unforeseen events, you can still get as close to your goal as possible.
- #21 10/26/12 Copyright Edge Interactive Introducing Guerrilla ROI We always have this visual image of a scruffy looking person with a beard in fatigues when we think of the term “Guerilla”. In fact, the term guerrilla has been used a number of times recently to describe warfare, marketing tactics, music, social movements, and even gardening. For purposes here, we will assume guerilla activity has the following characteristics: Quick : Guerrilla activity is typically a quick action with a clearly defined objective geared towards winning a small tactical victory that supports long term objectives Pragmatic : Guerilla activity focuses on the practical and actionable tasks to achieve larger goals Focused : Guerrilla activity is typically focused on a very well defined and immediate objective that will produce results in a reasonable amount of time Conserves Resources : Guerrilla activity wisely and conservatively uses the resources that it has available to it. It does not spend more resource to achieve an objective than the objective provides
- #22 10/26/12 Copyright Edge Interactive This faster pace of business influences all business functions and especially workforce learning and performance. Every business function must maximize their resources to produce the highest impact possible. Learning and performance is no different. Learning organizations have reduced resources and must manage a larger number of training projects requests. In addition, these projects are completed in shorter and shorter periods to retain competitive advantage. Learning leaders must implement criteria to select the highest impact projects based on the business value they will provide to develop a high impact project portfolio. This ensures projects completed by learning and performance provides the highest business impact. In this process, we must think outside the box and ask ourselves tough questions: Are there better ways to build our project portfolios that are more consistent with the pace and priorities of our current business environment? Can we look forward and place value on our learning projects not based on what they did but what we expect them to accomplish? Can we make decisions based on information other than quantitative criteria and still make prudent business decisions? This article will look at alternatives to traditional evaluation methodologies that can serve our businesses more effectively in a growth-oriented business climate.
- #23 10/26/12 Copyright Edge Interactive Questions to ask ourselves Does your organization receive more requests for training projects than you have resources to complete? Are you able to decline projects? Where does the funding for training originate? Does it originate in your department or the client? When evaluating whether to do a training project or not, what criteria do you use? i.e. Positive ROI evaluation Project solves an immediate, critical, and identified business problem like high rework, error rates, poor customer satisfaction Project supports a strategic business objective The training project is in support of a larger project such as a big IT project The position and influence of the person asking for the project Other Who are the key decision makers in the process? The position and influence of the person asking for the project. Who are the key stakeholders in the project? The visibility of the project and opportunity for the training department to build it’s presense.
- #24 10/26/12 Copyright Edge Interactive Building Our High Impact Project Portfolio In my experience, the criteria in developing the High Impact Project Portfolio are in this priority order. Mandated projects such as compliance training. i.e. Sarbanes-Oxley. The project supports a larger project such as a large strategic IT project Projects in response to immediate problems not identified previously. Examples of this might be shortcomings in sales, rapid declines in customer satisfaction, or increases in product rework and callbacks. Projects in close support of corporate business objectives, and cascaded down to an actionable level. Projects generated in response to needs in the corporate culture. Examples of this might be leadership or management training. If we look at list, we do not see evaluation criteria such as an extremely high ROI. Why is this? Many industry experts are observing that the decision criteria used by top-level executives is often not quantitative or financial in nature. Often it revolves around achieving established business objectives. We live in a business world that says: “ Here are the overall strategic objectives of our company (or Business Unit, Business Function, Division, Department, Individual). Use your resources to support the achievement of those goals. I will check in on you in 60 days.” In many cases, the goals of the company and their associated financial justifications have already been determined. What we are looking for is a way to determine the highest business impact projects available to us from the larger pool of candidate projects. What is left is to find ways to select the projects that best support the achievement of these objectives.
- #25 10/26/12 Copyright Edge Interactive Transition to aggregate project portfolio
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- #27 10/26/12 Copyright Edge Interactive Determining available capacity A key element in this process is determining your organization’s capacity. There are numerous methodologies, techniques, and metrics to determine your ability to take on new projects. How much evaluation does your organization really have to do? How do you determine your resource requirements and capacity for new projects What percent of projects are firm at the beginning of the year What percent of your resource will those projects consume What percent of workload is spontaneous projects coming in throughout the year? When we have to decline a project, we are actually telling the project sponsor one of two responses. The first potential response is “The project does not have enough business value to warrant our resources. We will not be doing the project. Do you have the funding to do the project yourself?” the second potential response is “We are very busy right now, would be possible to delay your project until later in the year?”
- #28 10/26/12 Copyright Edge Interactive Who Should Decide? The individuals and governance used by companies to make project selection varies from company to company with company size, organization, funding sources, and type of training content key factors. Here are some examples: Many companies have implemented learning councils to determine the prioritization of training projects. Councils are generally comprised of representatives from critical functions and business units within the company. Using the council approach provides a balanced decision process and fairly represents the interests of the stakeholders within the company. In some cases, the Chief Learning Officer or leader of the centralized training organization will negotiate directly with stakeholders regarding their project requests. In a decentralized training structure, the training function usually resides within key business unit and exists to support the business unit’s business goals and objectives. In deciding on projects, decision makers face a number of challenges. Foremost of these is informing project sponsors that their project did not make the cut. Often these projects are just scheduled into an undefined future development timeslot to avoid confrontation. If the project sponsor has funding, the project may be pushed back to the requesting organization for completion.
- #29 10/26/12 Copyright Edge Interactive Who Should Decide? The individuals and governance used by companies to make project selection varies from company to company with company size, organization, funding sources, and type of training content key factors. Here are some examples: Many companies have implemented learning councils to determine the prioritization of training projects. Councils are generally comprised of representatives from critical functions and business units within the company. Using the council approach provides a balanced decision process and fairly represents the interests of the stakeholders within the company. In some cases, the Chief Learning Officer or leader of the centralized training organization will negotiate directly with stakeholders regarding their project requests. In a decentralized training structure, the training function usually resides within key business unit and exists to support the business unit’s business goals and objectives. In deciding on projects, decision makers face a number of challenges. Foremost of these is informing project sponsors that their project did not make the cut. Often these projects are just scheduled into an undefined future development timeslot to avoid confrontation. If the project sponsor has funding, the project may be pushed back to the requesting organization for completion.
- #30 10/26/12 Copyright Edge Interactive Who Should Decide? The individuals and governance used by companies to make project selection varies from company to company with company size, organization, funding sources, and type of training content key factors. Here are some examples: Many companies have implemented learning councils to determine the prioritization of training projects. Councils are generally comprised of representatives from critical functions and business units within the company. Using the council approach provides a balanced decision process and fairly represents the interests of the stakeholders within the company. In some cases, the Chief Learning Officer or leader of the centralized training organization will negotiate directly with stakeholders regarding their project requests. In a decentralized training structure, the training function usually resides within key business unit and exists to support the business unit’s business goals and objectives. In deciding on projects, decision makers face a number of challenges. Foremost of these is informing project sponsors that their project did not make the cut. Often these projects are just scheduled into an undefined future development timeslot to avoid confrontation. If the project sponsor has funding, the project may be pushed back to the requesting organization for completion.
- #31 10/26/12 Copyright Edge Interactive Things Guerilla ROI Doesn’t Worry About In another phase of my professional career, I used to spend a lot of time with Dr. Donald Kirkpatrick. As you know, Dr. Kirkpatrick is the father of evaluation, as we know it today. Nevertheless, even Dr. Kirkpatrick had a subjective side and one time told me: “If a company has good motivated employees with well designed and delivered training programs….some thing good has to happen.” I have outlined some of the underlying assumptions of this statement below. The overall corporate strategy is well thought out and sound The larger corporate strategy has been parsed into specific, representative, and actionable business objectives that are effectively communicated to Executive Vice Presidents, Vice Presidents, Directors, Managers, and individual employees Proposed training projects have objectives and outcomes that give employees the knowledge, skills, and beliefs to effectively accomplish these goals The training department is competent both designing, developing, and delivering training programs that accomplish these goals All employees (VPs, Directors, mangers, individuals) are motivated and competent In summary, this means that when we select projects using Guerilla ROI, we will assume these things will happen, as they should. We just need to select the best projects.
- #32 10/26/12 Copyright Edge Interactive Things Guerilla ROI Doesn’t Worry About In another phase of my professional career, I used to spend a lot of time with Dr. Donald Kirkpatrick. As you know, Dr. Kirkpatrick is the father of evaluation, as we know it today. Nevertheless, even Dr. Kirkpatrick had a subjective side and one time told me: “If a company has good motivated employees with well designed and delivered training programs….some thing good has to happen.” I have outlined some of the underlying assumptions of this statement below. The overall corporate strategy is well thought out and sound The larger corporate strategy has been parsed into specific, representative, and actionable business objectives that are effectively communicated to Executive Vice Presidents, Vice Presidents, Directors, Managers, and individual employees Proposed training projects have objectives and outcomes that give employees the knowledge, skills, and beliefs to effectively accomplish these goals The training department is competent both designing, developing, and delivering training programs that accomplish these goals All employees (VPs, Directors, mangers, individuals) are motivated and competent In summary, this means that when we select projects using Guerilla ROI, we will assume these things will happen, as they should. We just need to select the best projects.
- #33 10/26/12 Copyright Edge Interactive Things Guerilla ROI Doesn’t Worry About In another phase of my professional career, I used to spend a lot of time with Dr. Donald Kirkpatrick. As you know, Dr. Kirkpatrick is the father of evaluation, as we know it today. Nevertheless, even Dr. Kirkpatrick had a subjective side and one time told me: “If a company has good motivated employees with well designed and delivered training programs….some thing good has to happen.” I have outlined some of the underlying assumptions of this statement below. The overall corporate strategy is well thought out and sound The larger corporate strategy has been parsed into specific, representative, and actionable business objectives that are effectively communicated to Executive Vice Presidents, Vice Presidents, Directors, Managers, and individual employees Proposed training projects have objectives and outcomes that give employees the knowledge, skills, and beliefs to effectively accomplish these goals The training department is competent both designing, developing, and delivering training programs that accomplish these goals All employees (VPs, Directors, mangers, individuals) are motivated and competent In summary, this means that when we select projects using Guerilla ROI, we will assume these things will happen, as they should. We just need to select the best projects.
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