Will Your New Fiscal Year Planning Seal The Financial Leaks? Measuring The Financial Success Of Your Training.
As corporations step into planning their training, often there is a major oversight that happens. Their training plan is not built to effectively impact the profitability of the company. There may be an intention or assumption that the training would be valuable and good for the company. Sometimes that works out. But it’s better to plan for your training to have a measurable ROI.
There are so many wonderful training programs you could choose to put on your docket for the year. As a training & development specialist, you should feel great when you hear that:
Your sales training was a major hit. The attendees absolutely loved it!
Your team-building efforts are making wonderful progress
Your sales team met the sales target as a direct result of your new training initiatives
Any seasoned professional trainer will tell you that creating and delivering effective training initiatives is tough. So pat yourself on the back for a successful project. Your attendees were pumped, they raved about the quality of the education with a promise to implement the learnings immediately. This type of feedback is like gold.
A business exists for one reason: to provide a return to investors by ensuring that the business generates sustainable profits and free cash flow.
However, are you able to measure the impact of the training on profitability, ROI to investors and sustainable free cash flow?
The Key To Getting An ROI On Your Corporate Training
MEASURING THE FINANCIAL SUCCESS OF YOUR TRAINING
When planning your training programs, ensure that you are able to connect the financial impact of your training using a Cause & Effect approach.
Example: When creating a negotiating skills course for your salespeople,
Are they aware of the importance of product mix, contribution margins for both your organization AND the customer?
Do they understand how much volume must be sold to offset an increase to selling costs?
Do they know how much volume must be sold to offset a discount?
What might appear to be a successful training result in one part of the business could potentially have a devastating financial impact on other parts of the organization.
Message: Be careful about evaluating numbers in isolation.
If you’d like to know how to enhance your training so they connect to positive financial outcomes for the company, let’s talk! CLICK HERE to book your appointment.