Pardon me, may I see your ROI?

For all of the billions (with a 'b') of dollars spent on training every year you would think that companies would be hell-bent on measuring the impact of their training.  Not!  Go figure.

Conventional thinking is that training must be measured at 4 levels.  These levels are progressively more important to every company.

1.  How do they feel? (affective) If they don't feel good about their training the likelihood of applying it is poor. 

Typical method of measurement: "Smile Sheets" distributed directly after the training is completed.  Smile Sheet scores are typically positive.  If they're not you have a serious problem with your training and/or instructors.

2.  What do they know? (cognitive) What knowledge have they acquired? 

Typical method of measurement: we've all been received this method of testing ad nauseum during our school days.  True/False.  Multiple choice. Essays, etc.  Sure, students need to know new things in order to form new behaviors.

But here is where it really starts getting good!

3.  Observed behavior on-the-job. (psychomotor) Now that they are trained, what are they doing differently day to day?

Typical method of measurement: Annual or Quarterly Performance Reviews, random and subjective observation by the barista's supervisor, peers and customers.

4.  Organization performance. As a result of the training is the organization performing better?

Typical method of measurement:  Existing reports such as sales reports, customer satisfaction, monthly P/L, product sales mix (i.e. whole bean vs. beverage).

This brings me to beginning. Ha!  You thought I about to end.  Before you initiate ANY training I'd advise you to get clear about what you want to accomplish at the 3rd and 4th levels AND how you intend to measure your success (or failure).

I hope you are now better equipped to make good decisions about how to spend your training dollars.  Summary: Define your goal - Determine how you will measure results - Execute the training - Measure your ROI.

Also, be sure to ask potential training contractors how they will the measure the ROI of their project.

**All credit for the 4 levels of measurement go to James Kirkpatrick.

Take care!

About Author

For over 30 years Mr. Evanson has built training and business systems for fast growth, multi-location businesses. Current and past clients include Westin Hotels & Resorts, Starbucks Coffee, Cinnabon, Premera Blue Cross, Car Toys and Tommy Bahama.

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