How much is a training program worth?

If we had to choose just one class, which one should it be?

Now, there’s a risk-free way to find out!

Training is an example of a business function that can be modeled

• The activity-based business model provides the Framework, setting & context for evaluating …– Strategic Initiatives

– Response to possible competitive moves

– Training Programs

• The basis for evaluating all these functions is to model how each function affects the execution of business activities. Then, the model will drive these effects all the way to the bottom line.

40%

20%

50%

70%

Product Knowledge

Competitive Knowledge

Sales Skills

People Skills

Course for Sales

Associates

Course Content

Instructor

95%

65%

80%

75%

Instructor Training

Skills

80%

85%

75%

65%

Employee

Employee Learning

Ability

Employee Skill

Retention

Job Satisfaction

Intelligence

Related Experience

80%

85%

20%

Employee Pre-existing

Skills

Course Contribution

Training

46%

44%

30%

15%

86%

64%

80%

85%

Relative Importance to Activity

Contribution to Activity Performance With/Without Training

76%

Expected Activity

Performance

Activity

57%

With Trainilng

Without Trainilng

Employee Skill

Retention

Job Satisfaction

Intelligence

Related Experience

80%

85%

20%

86%

64%

80%

85%

10%

25%

10%

25%

5%

15%

10%

8% / 8%

21.25% / 21.25%

2% / 2%

21.5% / 10%

3.2% / 1%

12% / 7.5%

8.5% / 7%

Product Knowledge

Competitive Knowledge

Sales Skills

People Skills

Employee

0

0.25

0.5

0.75

1

0 0.25 0.5 0.75 1

Probability of Selling Item

0

0.25

0.5

0.75

1

0 0.25 0.5 0.75 1

Probability of Selling Second Item

Customer Satisfaction

0

0.25

0.5

0.75

1

0 0.25 0.5 0.75 1

A well-constructed activity-based dynamic business simulation model is the sine qua non of business function evaluation.

There just isn’t any other way to answer a question like, “What is the value, singly or in combination, of (a) New hiring standards, (b) Energy saving proposal, (c) sales training class and (d) Acquisition of a new product line?”

I’m now happy to take any questions you may have.