Training Industry Quarterly - Spring 2008 - (Page 18)

recognized and rewarded for the improvements they made (see Table 2). The real reason why the blended experience resulted in a greater ROI was because it was significantly better at building this manager support and follow-up right into the training design itself. When you put this greater post-training climate together with a cost that is nearly half of the instructor-led option, you can understand what caused the ROI to be 75% to 100% greater than the other two delivery options. Based on this research, American Express established that the key criteria for a high transfer climate includes having a manager who clearly communicates endorsement and support for the training; who sets goals and expectations before the employee initiates the learning event; who follows up with the participant oneon-one after the event to discuss what was learned; and who recognizes and rewards the improved leadership behavior. High Transfer Climate of time and resources. Through such analysis, we were able to tease out the most important predictors of ROI and make some great adjustments to our delivery strategy. Any company doing a similar study would be able to quantify how much its own internal factors might affect an ultimate ROI. The immediate manager’s decision and ability to drive ongoing one-onone discussions around application on the job, communicate endorsement and support for the training, and properly recognize and reward a participant for behavior change will ultimately predict the effects and ROI of the training program. With leaders at all levels of an organization able to critically impact Fast Facts The American Express study shows the benefits of strong management throughout the organization. In the AmEx study, 72% of learners in the “high improvement” group were having one-onone conversations with their immediate managers. Only 17% of the “no improvement” group were having those conversations with managers. The expectation of being rewarded drives more than twice as much success among the high improvers versus the “no improvement” group. Manager clearly communicates endorsement and support for the training – sets goals and expectations before learner initiates learning event Manager follows up with participant after the event to discuss what was learned and how to apply Manager recognizes and rewards improved leadership behavior So What? These findings clearly indicate that the blended approach to training can yield a significantly greater ROI than classroom or Web-based training. Most importantly, we found the true impact of a training program will best be predicted by the work climate each participant returns to after the event. The only reason the blended was more effective was because it had the immediate managers’ support built right into the design. It included components like leader-led kick-off and wrap-up sessions, a high degree of overt support for the training, and very effective follow-up conversation starters built right into to the program content. This led to the high climate, which led to higher improvement in leader competencies, greater impact on business and vastly greater ROI. We found it is the immediate managers of each of these participants who can quite literally make or break any training investment. Instead of concentrating a tremendous amount of time and money on acquiring the greatest course content and delivering it at the most elaborate retreats, organizations should first make a much smaller investment to ensure the climate is right and all the immediate managers of their participants are ready to spend some time with their direct report trainees. Here is where you will receive your greatest returns and drive your highest possible ROI. This research also underscores the crucial need for a new Level 6 analysis to understand why the training has such incredible impact for some, while in other cases it appears to be a simple waste 18 the effects of training programs, the importance of understanding and creating a high transfer climate should swiftly move to the forefront of any training initiative or strategy. As clearly evidenced in this particular research, the right leader with the right approach will truly work wonders to maximize any training investments. Dr. Paul Leone currently works within the Talent Acquisition and Development team at American Express in New York City and is specifically in charge of evaluating the business impact and ROI of global leadership training programs. Email Paul at paul.a.leone@aexp.com Takeaways Level 6 ROI is possible, but it requires careful planning and detailed record-keeping. Level 6 brings learning full circle, starting and ending with employee performance. Build manager support and follow-up into your training for the best success rate. Converting to online learning can help increase ROI potential by 75-100%. Survey employees both pre- and post-training to ensure the highest levels of learning retention. The “Transfer Climate” measurement is effective for identifying what’s hindering advancement. Training Industry Quarterly, Spring 2008 / A Training Industry, Inc. ezine / www.trainingindustry.com/TIQ http://www.trainingindustry.com/TIQ

Table of Contents Feed for the Digital Edition of Training Industry Quarterly - Spring 2008

Training Industry Quarterly - Spring 2008 At the Editor’s Desk Contents Winning Organizations Through People Before You Buy… Learning Technologies Take Your ROI to Level 6 LCMS: A Critical Link to Learning Success Establishing Best Practices for Learning Governance Training’s Role in Continuous Improvement Meet Jim Mitnick Meet Karen Kocher Meet Christina Cernuch The Personal Side of Personnel Training Closing Arguments

Training Industry Quarterly - Spring 2008

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