At the completion of this unit, students will be able to: At the completion of this unit, students will be able to

At the completion of this unit, students will be able to:

• At the completion of this unit, students will be able to:

• Discuss the importance of determining ROI in training environments.
• Identify stakeholders and develop questions to determine their views and needs.
• Write training goals and observable objectives based on stakeholders’ needs.

Describe the importance of the assessment of learning for ROI.

• Describe the importance of the assessment of learning for ROI.
• Recognize the differences between short-term and long-term assessment.
• Identify items that belong on a training budget sheet to determine ROI.
• Calculate expenses and ROI.
• Write a report on training that includes all relevant data.

Rooted in manufacturing.

• Rooted in manufacturing.

• Advanced to banking, health care, non-profit, public and education sectors.

• Part of quality and efficiency methodologies.

Quantify the effectiveness of training.

• Quantify the effectiveness of training.
• Manage the training budget.
• Provide evidence to management and other stakeholders.
• Build trust and respect for ourselves and our unit.
• Earn the ears of senior management.
• Identify areas for improvement.
• Provide data requested by senior management.
• Keep our jobs.

Benefit/Cost Ratio

• Benefit/Cost Ratio

• ROI (%)

1. Reaction and Planned Action

• 1. Reaction and Planned Action

• 2. Learning

• 3. Application and Implementation

• 4. Business Impact

• 5. Return on Investment

Who are they?

• Who are they?

• Anyone who pays for, participates in, benefits from, or has decision-making responsibility for HRD and training.

• What should they know?

• The need for training.
• The results from training.
• The costs of training.

Needs assessment: identifies gaps between what is and what should be in the organization.

• Needs assessment: identifies gaps between what is and what should be in the organization.

• Task analysis: investigates the specific skill(s), knowledge or attitudes and at which point there is a breakdown in use or performance. If the analysis uncovers a lack of knowledge, skills or attitude, then training is required. If it reveals faulty equipment, poor work conditions or lack of incentive, then another solution is needed.

Organizational Goals

• Organizational Goals

• These goals are typically targeted toward the organizational level and include such things as productivity, net income, inventory and cash cycles, and customer satisfaction.

• Learning Goals

• These goals typically focus on the individuals in the organization and their performance, knowledge and skills.

Easy as A, B, C, D

• Easy as A, B, C, D

• Audience: Who?
• Behavior: What do “they” do?
• Condition: What is the setting and method of evaluation?
• Degree: Measurement to be met.

Verbs to Use:

• Verbs to Use:

• Discuss
• Explain
• Demonstrate
• Identify
• List
• Perform
• Compare/Contrast
• Score (on an assessment)

Course objectives: What is it that the learners will be able to do upon course completion?

• Course objectives: What is it that the learners will be able to do upon course completion?

• Application objectives: What goals do the HRD/training practitioner have for the application of the skills gained in training?

• Impact objectives: What effect will accomplishing the application objectives have on the organization?

Course objective: Learners will be able to make 15 entries in a customer database in 15 minutes with no more than 1 error.

• Course objective: Learners will be able to make 15 entries in a customer database in 15 minutes with no more than 1 error.

• Application objective: Learners will be able to reduce the data entry error rate by 50 percent over the next 6 months.

• Impact objective: Employee time spent correcting database errors is reduced by 25 percent from last year’s rate.

Alignment between assessment and objective is paramount.

• Alignment between assessment and objective is paramount.

• Easy to do with well-written objectives.

• Cognitive, psychomotor and affective domains are assessed in different ways.

• Cognitive: written and oral tests; discussion; compare/contrast exercises.
• Psychomotor: demonstration; performance.
• Affective: longitudinal observation and/or discussion.

• Be sure to use the right type of assessment for each objective of the learning event.

Quantifying ROI means accounting for all the costs of the program.

• Quantifying ROI means accounting for all the costs of the program.

• Fixed costs: independent of the number of participants.
• Variable costs: Dependent on the number of participants.

• There are costs at every step – make sure to account for them all.

Outputs are product-driven and include data that are not performance-based but rather outcomes of changes in performance or investment in equipment.

• Outputs are product-driven and include data that are not performance-based but rather outcomes of changes in performance or investment in equipment.

• Examples include:

• Units built.
• Time it takes to build the units.
• Income from sale of units.

Change in:

• Change in:

• Attitude, work climate, leadership, teamwork.

• We desire these changes because they ultimately effect productivity.

• Allow time for change in attitude or behavior, then measure these changes and report qualitatively.
• Allow time for change in productivity, then measure for data and report quantitatively.

Benefit/Cost Ratio

• Benefit/Cost Ratio

• ROI (%)

• Phillips – See Figure 2-2 in text.

Data entry clerks’ average wage: $9.50/hr.

• Data entry clerks’ average wage: $9.50/hr.

• Five hours per week were spent correcting errors before training.

• 20 percent less time correcting errors saves one hour each week.

• 40 clerks.

• BCR = .076 for one week. What about 13 weeks? 26 weeks?

Data entry clerks’ average wage: $9.50/hr.

• Data entry clerks’ average wage: $9.50/hr.

• 20 percent less time correcting errors saves one hour each week.

• 40 clerks.

• When clerks use their skills for 26 weeks, ROI% is almost 100%!!

What?

• What?

• New information that needs to be recorded?

• Who?

• When?

• How?

Access to learners after training:

• Access to learners after training:

• Do you have access to learners to follow up on application and use of the knowledge and skills developed during the training?

• Isolating training effects:

• Consider what else may have occurred at the same time as the training that may have made a difference.

Justify the training budget.

• Justify the training budget.
• Quantify effectiveness of training.
• Provide evidence to management and other stakeholders.
• Build trust and respect for ourselves and our unit.
• Earn the ears of senior management.
• Identify areas for improvement.
• Respond to management directive.
• Keep our jobs.

Customer

• Customer

• Employee

• Supervisor

• Subordinate

• President

• Board of Directors

• Stockholders

Needs to be:

• Needs to be:

• Timely, targeted and unbiased.

• The purpose is to:

• Illustrate success.
• Secure approval.
• Gain acknowledgement/agreement on solutions.
• Build credibility.
• Enhance marketing.

Who needs to know?

• Who needs to know?

• What do they need to know?

• How will you inform them?
• Presentation.
• Briefing paper.
• Detailed report.
• Letter.

• When and where?

• Who will present?

• Feedback?

Executive summary.

• Executive summary.

• Title of training.

• Goals and objectives.
• Who participated, when/where, length.

• Assessment and outcomes.

• Evaluation.

• Budget.

• Recommendations.

Know your audience:

• Know your audience:

• Who, existing and desired skills, knowledge and attitude (audience analysis).

• Expectations of/from organization:

• Goals and objectives, stakeholders.

• Assessment and evaluation:

• Budget, data collection.

• Reporting.

Take action on the data collected.

• Take action on the data collected.

• Use it to enhance your training and

• therefore your organization.