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THOUGHT PAPER




Why Training Programs don’t impact
       Business Objectives?

            Sandeep Kaul
              2/12/2013
THE HARSH TRUTH




   Training programs are
  designed with a business
 need in mind. However in
   reality, after the initial
       “wow” effect, the
 momentum goes away and
 next year we have another
 training program with the
same end objective in mind.




© WhiteLight Consulting Pvt Ltd 2013   1|P age
Training [ˈtreɪnɪŋ]

n the process of bringing a person, etc., to an agreed standard of proficiency,


This is the training definition as per dictionary.



The most important part of training is not training but doing training need analysis properly and
then executing it for maximum impact. We first need to determine if training is required in the first place
or is the business issue at hand part of a greater organizational issue. Training is like an antibiotic course. If
the training need analysis (TNA) is not done properly then:

      Either we use the wrong antibiotic for the wrong illness, Or
      We might have identified the issue (illness) correctly, but don’t complete the antibiotic course and
      next time the course dosage has be more to have the same desired effect.



What happens in reality (in the companies where training programs don’t
work)? Training consultant offers to do a training course. A quick TNA is done.
The HR team negotiates on the pricing. They mark a tick box in the annual
training plan.




© WhiteLight Consulting Pvt Ltd 2013                                                                 2|P age
What should actually these companies be doing? For companies, the objective should be how to impact
business outcomes (revenues, profitability, innovation, culture etc.). At the end of the day, training is an
investment and not a cost.

                                                                                What       does      the
                                                                                Trainer do? He looks
                                                                                at his short term
                                                                                objective of getting the
                                                                                training mandate. He
                                                                                gets        in       the
                                                                                transactional     mode.
                                                                                He does a “quick”
                                                                                Training          Needs
                                                                                analysis and shares
                                                                                the program outline.
                                                                                Negotiates on the
                                                                                program rates and
                                                                                signs up the mandate.
He is happy with his deal. This seems to be a win-win for the HR and trainer but actually is a loss-loss
for everyone including the company and the participants.




© WhiteLight Consulting Pvt Ltd 2013                                                            3|P age
Loss – Loss for Everyone

                                       Company: They don’t meet their business objectives. Revenues
                                       are stagnant, Attrition has worsened, morale is down.

                                             Trainer: He does one program only, when a better option
                                       for him would have been to “invest” time in a detailed Training
                                       Needs Analysis and provide the right solution, which could be a
                                       mix of training interventions and rejigging business
                                       objectives(applying “big filters”) or highlight people issues
                                       which are impeding achievement of the business objective.
                                             Participants: They attend a training session filled with
                                       anecdotes and exercises, which has a “wow” effect but no habit
                                       formation happens. They look at these training programs as
                                       company paid holidays to get away from regular work.
                                             HR Team: It gets alienated from the business team for
                                       delivering sometime which didn’t meet business objectives.




© WhiteLight Consulting Pvt Ltd 2013                                                      4|P age
Training Need Analysis as a Menu Card These companies don’t pay for the Training Need Analysis
exercise since as per them, if you go to the restaurant, you don’t pay for the Menu card ! But they miss the
point, that they choose the type of restaurant to go themselves. In the same sense, Training Needs Analysis
is the “Restaurant of Choice” and not the Menu Card. If you are getting an informed choice, you need to
pay for it.

How much time to spend on the Training Need Analysis? Business
and HR should spend atleast 10-15% of their time on Training Need
Analysis and preferably engage an external consultant to do the exercise.
The more detailed and customized the Training Need Analysis, the more
effective it will be. It is like going to a doctor for diagnosis. You always
look for the best doctor who can do the “right” diagnosis and not the
one who gives consultation (TNA) free and just charges for the
medicines (Training programs).

Benefits of Paid Training Need Analysis

   1. You can assess your training requirement objectively.
   2. Trainer will not tailor the training need analysis to push his programs/content
   3. Trainer will not use some standard tools/templates to do TNA, which are not suited for the issue at
      hand.
   4. Sometimes, the solution may lie in rejigging your internal people/processes and not doing more
      training.




© WhiteLight Consulting Pvt Ltd 2013                                                            5|P age
Practical Case Study: I know you must be thinking how you can apply these learnings to your workplace.
Your need practical examples. I will take a live case study for a company that we did recently.

Issue as per the Company: Let’s call them XYZ company. Sales were not happening in the Sales division
because attrition rate in Direct Sales Team was very high. The Direct Sales Team (DST) was supervised by
Key Account Managers (KAM).



What XYZ Company initially requested us

Help in hiring better quality sales executive team so that revenues go up.

What We did?

We did a Training Need Analysis for them which helped identify:

   1. What is the situation today in the company’s sales team?
   2. Where to make the impact?
   3. How to make the impact?

This approach was divided into three parts

   1. Discussion Note Where our understanding of the situation was presented to the company.
   2. Interviews with Business Head, HR, End users (Direct Sales Team)
   3. Training Need Analysis Session and Where do we need to make an impact (Specific areas)




© WhiteLight Consulting Pvt Ltd 2013                                                           6|P age
Discussion Note for XYZ
Particulars   Objectives         Remarks                                   Actionables
Business      Increase Sales                                                Sales increase will help achieve business targets
Impact                                                                      Improved productivity per DST employee will result in
Sought        Improve                                                         lower attrition.
              Productivity
              per DST
              employee

Root Cause    DST Attrition      Attrition can be reduced by (1)           90/180 day roadmap with achievement milestones. Milestones
                                 reworking the attributes sought in        to be based on 20% above XYZ average performance.
                                 new hires (2) line managers
                                 involvement in hiring process (3)
                                 making DST successful so that he
                                 earns a higher variable payout.
              DST Hiring         Hire local agencies to supplement the     What is required is to map the attributes of successful DST
              (with right        existing two national agencies.           employees and hire people with similar attributes.
              attributes)
                                 The key objective is to hire the “right Recommended Solution - One day workshop with the Top 5
                                 candidates”. This can be achieved by    DST employees to understand what makes them successful and
                                 defining the hiring profile for DST     shorten the hiring process (resume sourcing till onboarding).
                                 employees more clearly ( Attributes,    This would be more in nature of brainstorming workshop to co-
                                 etc) . Adding more agencies will only   evolve the desired attributes and streamline hiring process so
                                 add complexity in the system.           that it becomes scalable to achieve planned headcount budget
                                                                         (“Quality with Quantity”)
              Solution Selling   Focus on (1) Training DST to look for Structured training module by external training partner
                                 solutions (2) sharing with him supplemented by Group learning to be done by Star DST
                                 existing success stories to “Open their employees by asking them to develop a curriculum that
                                 mind” to solution selling e.g. using highlights their unique tactics, it provides a more scalable way
                                 smartphone as a wifi router (3) to disseminate their knowledge.
                                 Corporate Roadshows




© WhiteLight Consulting Pvt Ltd 2013                                                                                    7|P age
Particulars   Objectives                 Remarks                                          Actionables
Key           Pressure to       Modify the existing 2 day
Challenge     deliver Sales      induction to a 3 day program
              results fast !     which includes inputs on goal
                                 achievement and solution
                                 selling.                      Make two roadmaps

                                To be supplemented by a          Level 1 - First 90 days objective to raise the DST’s performance
                                 monthly one day training for     to XYZ average performance vis-à-vis the tracked metrics.
                                 the first 6 months. Could have
                                 separate sessions for high       Level 2 - At the end of 180 days, the DST should deliver 20%
                                 performing       and       low   above the average XYZ performance vis-à-vis the tracked
                                 performing DST employees.        metrics.

                                Change is a process and not an
                                 event hence we need to
                                 reinforce inputs till it gets
                                 ingrained in the DNA of DST
                                 team.




© WhiteLight Consulting Pvt Ltd 2013                                                                               8|P age
Training Checklist (Developed in consultation with XYZ Company)

Particulars                                            Actionable                                 Outcome
                            Prior to any training being delivered, the content, case studies and
                             exercises need to be vetted to ensure its relevance to workplace
Relevance                    outcomes.
                            Prepare the participant prior to their attendance at the sales
Pre-workshop                 training event to accelerate the traction of the new tools and
preparation                  learning.

                            The sales training event must engage the participant, delivering
Event Engagement             both insight and inspiration to transform behaviour.
                            The individual learning outcomes must be followed up on and
Post-sales training          coached to ensure integration of desired behaviors into the
execution                    workplace.

Accountability and          Fine-tune the learning effort, tweaking until complete behavioral
measurement                  change has been achieved.




© WhiteLight Consulting Pvt Ltd 2013                                                         9|P age
© WhiteLight Consulting Pvt Ltd 2013   10 | P a g e
Sales Cycle Breakdown


                                      B2B Industry                          Number of KAM's            Number of DST's
Sales Cycle                            Benchmark           XYZ Average     above XYZ Average          above XYZ Average
First Presentation                        100
Needs Analysis                             80
Formal Presentations                       52
Decision Pending                           44
Negotiations                               24
Implementations                            16




Where Do We Want The Impact ?

                         A             B            C               D           Scenario I       Scenario II     Scenario III
                                                                                                                Improve Average
                                   Number of
                  Individual sales           Individual sales    Total sales   +10% incr across   +20% mid-       Performers
Category                           people in
                 target INR 100000               revenue      revenue for team    the board     performers only productivity by
                                    category
                                                                                                                10% and Replace
Superstars       Over target (130%)    2          130000          260000          286000           260000           260000
Mid Performers   Near Target (85%)     4           85000          340000          374000           408000           374000
Poor Performers Below target (30%)     4           30000          120000          132000           120000           230000
                     DST Total        10          Revenue         720000          792000           788000           864000
                 Improvement over Base Scenario                                     10%              9%              20%




© WhiteLight Consulting Pvt Ltd 2013                                                                                              11 | P a g e
© WhiteLight Consulting Pvt Ltd 2013   12 | P a g e
Benefits of this approach




   1. We can diagnose the business issue more objectively. In some cases, there was not a training issue
      but other things which got fixed due to the detailed training need analysis.
   2. Identifying 2-3 business drivers that we want to focus on.
   3. Agree on a business outcome, which is what trainings are meant for!
   4. Agree on a road to business outcome, which is achievable instead of painting everything with the
      same brush.




© WhiteLight Consulting Pvt Ltd 2013                                                        13 | P a g e
WhiteLight Consulting Team




© WhiteLight Consulting Pvt Ltd 2013   14 | P a g e
© WhiteLight Consulting Pvt Ltd 2013   15 | P a g e
© WhiteLight Consulting Pvt Ltd 2013   16 | P a g e

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Why training programs dont give business outcomes

  • 1. THOUGHT PAPER Why Training Programs don’t impact Business Objectives? Sandeep Kaul 2/12/2013
  • 2. THE HARSH TRUTH Training programs are designed with a business need in mind. However in reality, after the initial “wow” effect, the momentum goes away and next year we have another training program with the same end objective in mind. © WhiteLight Consulting Pvt Ltd 2013 1|P age
  • 3. Training [ˈtreɪnɪŋ] n the process of bringing a person, etc., to an agreed standard of proficiency, This is the training definition as per dictionary. The most important part of training is not training but doing training need analysis properly and then executing it for maximum impact. We first need to determine if training is required in the first place or is the business issue at hand part of a greater organizational issue. Training is like an antibiotic course. If the training need analysis (TNA) is not done properly then: Either we use the wrong antibiotic for the wrong illness, Or We might have identified the issue (illness) correctly, but don’t complete the antibiotic course and next time the course dosage has be more to have the same desired effect. What happens in reality (in the companies where training programs don’t work)? Training consultant offers to do a training course. A quick TNA is done. The HR team negotiates on the pricing. They mark a tick box in the annual training plan. © WhiteLight Consulting Pvt Ltd 2013 2|P age
  • 4. What should actually these companies be doing? For companies, the objective should be how to impact business outcomes (revenues, profitability, innovation, culture etc.). At the end of the day, training is an investment and not a cost. What does the Trainer do? He looks at his short term objective of getting the training mandate. He gets in the transactional mode. He does a “quick” Training Needs analysis and shares the program outline. Negotiates on the program rates and signs up the mandate. He is happy with his deal. This seems to be a win-win for the HR and trainer but actually is a loss-loss for everyone including the company and the participants. © WhiteLight Consulting Pvt Ltd 2013 3|P age
  • 5. Loss – Loss for Everyone Company: They don’t meet their business objectives. Revenues are stagnant, Attrition has worsened, morale is down. Trainer: He does one program only, when a better option for him would have been to “invest” time in a detailed Training Needs Analysis and provide the right solution, which could be a mix of training interventions and rejigging business objectives(applying “big filters”) or highlight people issues which are impeding achievement of the business objective. Participants: They attend a training session filled with anecdotes and exercises, which has a “wow” effect but no habit formation happens. They look at these training programs as company paid holidays to get away from regular work. HR Team: It gets alienated from the business team for delivering sometime which didn’t meet business objectives. © WhiteLight Consulting Pvt Ltd 2013 4|P age
  • 6. Training Need Analysis as a Menu Card These companies don’t pay for the Training Need Analysis exercise since as per them, if you go to the restaurant, you don’t pay for the Menu card ! But they miss the point, that they choose the type of restaurant to go themselves. In the same sense, Training Needs Analysis is the “Restaurant of Choice” and not the Menu Card. If you are getting an informed choice, you need to pay for it. How much time to spend on the Training Need Analysis? Business and HR should spend atleast 10-15% of their time on Training Need Analysis and preferably engage an external consultant to do the exercise. The more detailed and customized the Training Need Analysis, the more effective it will be. It is like going to a doctor for diagnosis. You always look for the best doctor who can do the “right” diagnosis and not the one who gives consultation (TNA) free and just charges for the medicines (Training programs). Benefits of Paid Training Need Analysis 1. You can assess your training requirement objectively. 2. Trainer will not tailor the training need analysis to push his programs/content 3. Trainer will not use some standard tools/templates to do TNA, which are not suited for the issue at hand. 4. Sometimes, the solution may lie in rejigging your internal people/processes and not doing more training. © WhiteLight Consulting Pvt Ltd 2013 5|P age
  • 7. Practical Case Study: I know you must be thinking how you can apply these learnings to your workplace. Your need practical examples. I will take a live case study for a company that we did recently. Issue as per the Company: Let’s call them XYZ company. Sales were not happening in the Sales division because attrition rate in Direct Sales Team was very high. The Direct Sales Team (DST) was supervised by Key Account Managers (KAM). What XYZ Company initially requested us Help in hiring better quality sales executive team so that revenues go up. What We did? We did a Training Need Analysis for them which helped identify: 1. What is the situation today in the company’s sales team? 2. Where to make the impact? 3. How to make the impact? This approach was divided into three parts 1. Discussion Note Where our understanding of the situation was presented to the company. 2. Interviews with Business Head, HR, End users (Direct Sales Team) 3. Training Need Analysis Session and Where do we need to make an impact (Specific areas) © WhiteLight Consulting Pvt Ltd 2013 6|P age
  • 8. Discussion Note for XYZ Particulars Objectives Remarks Actionables Business Increase Sales  Sales increase will help achieve business targets Impact  Improved productivity per DST employee will result in Sought Improve lower attrition. Productivity per DST employee Root Cause DST Attrition Attrition can be reduced by (1) 90/180 day roadmap with achievement milestones. Milestones reworking the attributes sought in to be based on 20% above XYZ average performance. new hires (2) line managers involvement in hiring process (3) making DST successful so that he earns a higher variable payout. DST Hiring Hire local agencies to supplement the What is required is to map the attributes of successful DST (with right existing two national agencies. employees and hire people with similar attributes. attributes) The key objective is to hire the “right Recommended Solution - One day workshop with the Top 5 candidates”. This can be achieved by DST employees to understand what makes them successful and defining the hiring profile for DST shorten the hiring process (resume sourcing till onboarding). employees more clearly ( Attributes, This would be more in nature of brainstorming workshop to co- etc) . Adding more agencies will only evolve the desired attributes and streamline hiring process so add complexity in the system. that it becomes scalable to achieve planned headcount budget (“Quality with Quantity”) Solution Selling Focus on (1) Training DST to look for Structured training module by external training partner solutions (2) sharing with him supplemented by Group learning to be done by Star DST existing success stories to “Open their employees by asking them to develop a curriculum that mind” to solution selling e.g. using highlights their unique tactics, it provides a more scalable way smartphone as a wifi router (3) to disseminate their knowledge. Corporate Roadshows © WhiteLight Consulting Pvt Ltd 2013 7|P age
  • 9. Particulars Objectives Remarks Actionables Key Pressure to  Modify the existing 2 day Challenge deliver Sales induction to a 3 day program results fast ! which includes inputs on goal achievement and solution selling. Make two roadmaps  To be supplemented by a Level 1 - First 90 days objective to raise the DST’s performance monthly one day training for to XYZ average performance vis-à-vis the tracked metrics. the first 6 months. Could have separate sessions for high Level 2 - At the end of 180 days, the DST should deliver 20% performing and low above the average XYZ performance vis-à-vis the tracked performing DST employees. metrics.  Change is a process and not an event hence we need to reinforce inputs till it gets ingrained in the DNA of DST team. © WhiteLight Consulting Pvt Ltd 2013 8|P age
  • 10. Training Checklist (Developed in consultation with XYZ Company) Particulars Actionable Outcome  Prior to any training being delivered, the content, case studies and exercises need to be vetted to ensure its relevance to workplace Relevance outcomes.  Prepare the participant prior to their attendance at the sales Pre-workshop training event to accelerate the traction of the new tools and preparation learning.  The sales training event must engage the participant, delivering Event Engagement both insight and inspiration to transform behaviour.  The individual learning outcomes must be followed up on and Post-sales training coached to ensure integration of desired behaviors into the execution workplace. Accountability and  Fine-tune the learning effort, tweaking until complete behavioral measurement change has been achieved. © WhiteLight Consulting Pvt Ltd 2013 9|P age
  • 11. © WhiteLight Consulting Pvt Ltd 2013 10 | P a g e
  • 12. Sales Cycle Breakdown B2B Industry Number of KAM's Number of DST's Sales Cycle Benchmark XYZ Average above XYZ Average above XYZ Average First Presentation 100 Needs Analysis 80 Formal Presentations 52 Decision Pending 44 Negotiations 24 Implementations 16 Where Do We Want The Impact ? A B C D Scenario I Scenario II Scenario III Improve Average Number of Individual sales Individual sales Total sales +10% incr across +20% mid- Performers Category people in target INR 100000 revenue revenue for team the board performers only productivity by category 10% and Replace Superstars Over target (130%) 2 130000 260000 286000 260000 260000 Mid Performers Near Target (85%) 4 85000 340000 374000 408000 374000 Poor Performers Below target (30%) 4 30000 120000 132000 120000 230000 DST Total 10 Revenue 720000 792000 788000 864000 Improvement over Base Scenario 10% 9% 20% © WhiteLight Consulting Pvt Ltd 2013 11 | P a g e
  • 13. © WhiteLight Consulting Pvt Ltd 2013 12 | P a g e
  • 14. Benefits of this approach 1. We can diagnose the business issue more objectively. In some cases, there was not a training issue but other things which got fixed due to the detailed training need analysis. 2. Identifying 2-3 business drivers that we want to focus on. 3. Agree on a business outcome, which is what trainings are meant for! 4. Agree on a road to business outcome, which is achievable instead of painting everything with the same brush. © WhiteLight Consulting Pvt Ltd 2013 13 | P a g e
  • 15. WhiteLight Consulting Team © WhiteLight Consulting Pvt Ltd 2013 14 | P a g e
  • 16. © WhiteLight Consulting Pvt Ltd 2013 15 | P a g e
  • 17. © WhiteLight Consulting Pvt Ltd 2013 16 | P a g e