Training ROI

Return on Investment in Training and Performance Improvement Programs, by Jack J. Phillips

The major tenants of the ROI model are the following:

  1. Measurable Objectives
  2. Isolating the training effects
  3. Converting Data to Monetary Benefits
  4. Program Costs
  5. Calculating the return
  6. Identify the intangible measures
  7. Communicate the results
  8. Implementation

When these can be addressed and incorporated into the 6Ds, training stands a much better chance of success.  Ideally, a well-crafted training plan will not only take into account all aspects of design but will be strongly influenced by the ROI model itself.  If training fails to take these 8 tenants into consideration, training will eventually run into a brick wall constructed by management.  Regardless of how refined all stages of the 6Ds are, if they do not address the importance of an ROI, management will not continue to fund future training programs.  Therefore, it is critical all training incorporate an ROI process during the training design and development phase.  Of course, this also has to be taken into account during the analysis phase in order to discover how to construct the ROI model.