Conclusions

Conclusions and Recommendations

Training, inappropriately selected, may or may not yield valued organizational and personal performance results. It is a "crap shoot" with low probabilities of success. Key to acquiring effective results from training is front-end analysis that allows organizations to determine whether training is necessary or sufficient to achieve desired results.

Training, appropriately selected, can lead to astounding performance results. Training, well selected, designed and supported, increases the ability of people to perform. It raises the value of the human capital an organization possesses and this benefits both organization and individual performer. As stated earlier, human capital in the knowledge economy is true wealth. It has greater potential to generate productivity and profits than physical capital.

The training ROI model presented in this paper is a tool. It guides decision makers and instructional designers to do the right things with respect to training. It also generates meaningful figures that clearly demonstrate the value of the training effort. What it uncovers also guides decision makers in future training ventures.

The case application at the Bank illustrates a number of valuable lessons for training:

• Where a need for training is identified and the training is well designed and implemented, the results are demonstrably beneficial to the organization.
• Training ROI´s are often dramatic with ratios often exceeding 10:1.
• Even applied to a partially completed training initiative, the model can help monitor early results.
• Despite careful planning of training projects, the dynamic context of organizational environments can drastically affect results. The Bank did not foresee major shifts in structure and personnel that would impact training outcomes.
• The model offers a valuable tool to training managers. It answers the questions: "How do I calculate training ROI?" and "What do I measure?"

Based on the content of this paper and in particular the training ROI model, the authors recommend that:

• Other organizations critically examine their training activities and in the light of the suggestions made here, conduct front-end analyses and training ROI studies.
• Organizations try out the part of the model dealing with intangible improvement. This presents the greatest challenge and would be extremely worthwhile to test and document.
• Organizations, in general, document their front-end analyses and applications of the training ROI model. The research and professional literatures contain too few systematically documented examples.
• Through experimenting with the model, improve upon it and make it easier to apply in varied organizational contexts.