ROI Training - metric approach

Calculating ROI / IRR on training and development
	9.00-10.30		11.00-12.00	12.00-1.00		2.00-3.20		4.00-5.00
First day	Training evaluation – Kirkpatrick 4 level		Guidelines for evaluation of performance	Accumulate training  costs and benefits		ROI templates and calculations		Group work – computing the ROI case
Second day	Training Inputs and output analysis		Pitfalls in ROI  – measuring real efficiency	Projecting the net cash flows of training benefits		Group work - Computing IRR and NPV		Close Summary and action plans
	© ABM Consult

     11 steps to training need analysis

1. Identify the Critical performance gaps through benchmarking.
• Use the financial statements
• Use the ROE/ROA chart
• Profitable business model
2. Root cause depth analysis on the gaps
• component ratio analysis
3. Identify the true performance problems, issues and opportunities.
4. Identify the non-performers as individuals or groups.
5. Identify performance solutions and change required
• Non-training solutions
• Training solutions
6. Through best practices, conduct competency profiling of each non-performer.
7. Identify competency gaps within the non-performers.
8. Consider the costs of alternative training and coaching solutions.
9. Record before and after training performance outcome.
10. Estimate the gains and benefits as the outcome of training.
11. Compute the ROI of training to justify the training.