Training Industry Magazine - Training Outsourcing 2015 Special Edition - (Page 24)

'I DON' T REALLY KNOW' IS NO LONGER AN OPTION WHY APPLYING BPO TO TRAINING IS THE RIGHT CHOICE By Edward Trolley "I don't really know" is an honest answer, but frankly, it's inadequate. CEOs and executive teams of large organizations should have a handle on large annual investments. Yet, "I don't really know" is the answer we've received from hundreds of senior executives over the past six years when we asked them what they spend annually on training. And these same executives embarrassingly provide the same response when they are asked, "What value are you getting from the investment?" These answers are astonishing when the average 20,000-person organization invests $100 million per year on the direct and indirect costs of training. According to the Association for Talent Development and NIIT's own research, companies typically spend $5,000 per person per year on training. And they do it year after year. What other investment of this size gets the "I don't really know" response? Despite all the business-driven rhetoric, most corporate training organizations we have studied are evaluated based on activity levels and whether they stay within budget. But there is more to this picture. Many organizations spend more outside the corporate function than inside it. Everyone is in the training game. No matter how hard organizations try to contain it, spending at the corporate and business level continues unabated. WHY HAS TRAINING REMAINED UNDER-MANAGED, UNDER-LEVERAGED AND UNDER-UNDERSTOOD? The reasons are many and varied: º Executives have always believed training is "a good thing to do" and have allowed their organizations a lot of latitude to do it. º Training has maintained a "sacred cow" 24 status and has often escaped the sharp eye of the CFO. º Companies have convinced themselves that training is a core competence, even though it doesn't receive ample capital investment and isn't held accountable for delivering value commensurate with the investment it does receive; therefore, it is one of the first budget items to be trimmed in difficult times. º Elements of cost are pervasive across the organization, including dedicated staff and parts of finance, procurement and IT. º It has not traditionally been run like a business, with a business' requirements of cost management, customer service, quality management, responsiveness, measurement and reporting. º Scale is not fully leveraged because, at best, the activities, processes and technology can be leveraged only within the confines of the company itself, despite the fact that most of these factors are not company-unique. HOW CAN TRAINING SHARPEN ITS FOCUS, REDUCE ITS COSTS, AND IMPROVE THE QUALITY AND VALUE OF ITS SERVICES? The answer is by applying traditional Business Process Outsourcing (BPO) practices

Table of Contents for the Digital Edition of Training Industry Magazine - Training Outsourcing 2015 Special Edition

Perspectives on Training Outsourcing
Table of Contents
Infographic
Be the CEO of Your Learning Organization
Training as a Service: Making Training More Effective & Profitable
Finding the Right Training Partner to Minimize Risk in High Consequence Environments
Proving Your Relevance: How to Flex More Muscle Through Outsourcing
Defining the Link between Performance and Results
Higher Value Outsourcing: Moving to an Integrated Workforce Development Model
Five Steps to Ensure a Successful Shift to Digital Learning
I Don't Really Know' is No Longer an Option
Choosing the Right Training Partner & Modality to Achieve the Best Results
Transforming Learning and Development Through Training Outsourcing
Setting the 'Gold Standard' in Video E-Learning
10 Lessons for Success in Managed Learning
How to Select a Provider for Outsourcing Training Services
Three Rules to Begin a Great Partnership with a Custom E-Learning Provider
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Company News

Training Industry Magazine - Training Outsourcing 2015 Special Edition