ROTI – Return on Training
Investment
Research indicates that the 'transfer
of learning' from management and executive training programmes to the workplace
hovers in the pitiful range of 10-30%. Even so, the amount of resources in time
and money invested in such training continues to grow.
This begs the question : are orgaisations addressing the issue of Return on Training Investment (ROTI) adequately ? If not, why not ? Why are training investments not assessed for accountability and returns, as other investments ?
This question is particularly timely for organisations in India. The market for management and executive training in India is primed for explosive growth, propelled by the arrival of top-ranked institutions such as Harvard, Duke, and Wharton.
Indian organisations will soon be blitzed with marketing efforts from these top-ranked providers of executive training, and we can expect to see increasing numbers of Indian managers and executives receiving premium-priced training from these and other institutes.
The key question : Will organisations attempt to address the issue of ROTI from these programmes ? Most probably, they will not, offering the stock argument that ROTI is a complex and nebulous idea, and that they don't have the capability to do so. This argument has only limited merit; even if organisations don't have the capability to measure ROTI comprehensively, some of the steps involved could be assessed, providing insights into the value of training programmes.
ROTI: Steps Involved
It is important to recognise that the
end goal of a typical training programme is not simply learning, but rather,
the application of learning in the workplace. To understand why some managers
successfully "act" on their learning after attending a programme and
why others don't, organisations must appreciate that a training programme is
part of a process, rather than a discrete event.
This process includes at least two
steps before the training programme :
Recognition (recognition of the need
for training), Matching (matching the right managers to the right programme),
and at least three steps after the training programme: Application (application
of the learning in the workplace), Impact (assessment of the impact made by the
application of the learning), and Return (measurement of RoI based on impact to
the organisation, taking into consideration all relevant costs).
Thanks & Regards,
Vishal Thakkar
Director
Brianna Knowledge Resources Pvt Ltd
Handphone: +91 932 000 7891
Board Line: +91 22 3910 99 99 Extn: 025
Fax: +91 22 3910 99 97
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