MINI SERIES (4/11): Eleven reasons to make training and development work for your company


Reason #4: The Solution is Too Expensive

A training and development programme’s ROI might sometimes fail to recoup its high costs. It should be noted that a negative ROI is not always a sign of failure as there can be perceived value through intangibles and significant short-term behaviour change to overcome negative ROI. For example, sending new consultants on a Harvard programme rather than a local one might cost a lot more and produce an initial negative ROI, but it might also generate intangibles such as improved morale, better quality consulting and marketing opportunities where staff are consultants and need strong profiles and an edge over their competitors. In cases where a positive ROI is primary however, a negative ROI would clearly be all that is required to cancel the programme.

So what costs should be included in the analysis? Actual costs are traditionally included in an ROI Impact Study, but too often there is a tendency to use only direct costs or even to minimise them to a certain extent. The good news is that many effective learning solutions can be implemented with creative, inexpensive processes and still drive business results. Formal training doesn't have to be the only solution.

Adapted from the article “Eleven Reasons Why Training and Development Fails... and what you can do about it” by Drs Jack J. Phillips & Patti P. Phillips at the ROI Institute, the Business Evaluation Centre will be featuring a mini-series on this topic, sharing a new point each week. Make sure to catch the weekly update every Monday!


4 views

Recent Posts

See All

On the Move for 2020

We need more space for 2020 so we're ringing the changes with a brand new office and phone number. As of 1st February 2020 we'll be in Novena, at Goldhill Plaza on the 23rd floor. The nature of our wo

© 2014 - 2020 All Rights Reserved | Privacy Policy | Contact Us

 

The Business Evaluation Centre is wholly owned and operated by Knight Griffin Pte Ltd.

The PMI Registered Education Provider logo, PMI, PMP and PMBOK are registered marks of the Project Management Institute, Inc.

The ROI Methodology, ROI Institute and CRP are registered trademarks of the ROI Institute.