Manual Management Control: Pinpoint Sales Management Skill Development Training Series

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Although level 4, evaluating results and effectiveness, is the most desired result from training, it's usually the most difficult to accomplish. Evaluating effectiveness often involves the use of key performance measures -- measures you can see, e.

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This is where following sound principles of performance management is of great benefit. Typically, evaluators look for validity, accuracy and reliability in their evaluations. However, these goals may require more time, people and money than the organization has. Evaluators are also looking for evaluation approaches that are practical and relevant. Training and development activities can be evaluated before, during and after the activities. Consider the following very basic suggestions:.

This section was written by Leigh Dudley. The section mentions HRD -- activities of human resource development -- but the guidelines are as applicable to training and development.

management control pinpoint sales management skill development training series Manual

The calculation of ROI in [training and development] or HRD begins with the basic model, where sequential steps simplify a potentially complicated process. The step-by-step approach keeps the process manageable so that users can tackle one issue at a time.

The model also emphasizes that this is a logical process that flows from one step to another. ROI calculation to another provides consistency, understanding, and credibility. Each step of the model is briefly described below. Although the ROI analysis is or should be planned early in the training and development cycle, the actual ROI calculation begins with data collection. The HRD staff should collect both hard data representing output, quality, cost, and time and soft data including work habits, work climate, and attitudes.

Collect Level 4 data using a variety of the methods as follows:.

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The important challenge in this step is to select the data collection method or methods that are appropriate for both the setting and the specific program and the time and budget constraints. Isolating the effects of training is an often overlooked issue in evaluations. In this step of the ROI process, explore specific techniques to determine the amount of output performance directly related to the program. This step is essential because many factors influence performance data after training. The specific techniques of this step will pinpoint the amount of improvement directly related to the program, increasing the accuracy and credibility of the ROI calculation.

Collectively, the following techniques provide a comprehensive set of tools to tackle the important and critical issue of isolating the effects of training. Customers sometimes provide input on the extent to which training has influenced their decision to use a product or service.

Although this approach has limited applications, it can be quite useful in customer service and sales training. A number of techniques are available to convert data to monetary values; the selection depends on the type of data and the situation. Converting data to monetary value is very important in the ROI model and is absolutely necessary to determine the monetary benefits from a training program.

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The process is challenging, particularly with the conversion of soft data, but can be methodically accomplished using one or more of the above techniques. Tabulating the costs involves monitoring or developing all of the related costs of the program targeted for the ROI calculation.

get link Include the following items among the cost components. In addition, specific cost related to the needs assessment and evaluation should be included, if appropriate. The conservative approach is to include all of these costs so that the total is fully loaded. Calculate the ROI using the program benefits and costs.

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The BCR is the program benefits divided by costs:. Use the same basic formula in evaluating other investments where the ROI is traditionally reported as earnings divided by investment.

  1. Evaluating Training and Results (ROI of Training).
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The ROI from some training programs is high. For example, in sales training, supervisory training, and managerial training, the ROI can be quite large, frequently over percent, while ROI value for technical and operator training may be lower. In addition to the articles on this current page, also see the following blogs that have posts related to this topic. Go to main Training and Development page.

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