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ICTD International Centre for Training and Development

ROI Calculations

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Globalization has brought with it increased turbulence, unpredictability and competition for markets and resources. The global village is further characterized by technological advances, socio-political challenges and legislative compliance requirements. For this reason

Businesses as well as public sector organizations need to balance effective human capital management with the pressures to create lean operations and drive down costs. Within this environment HR practitioners are increasingly challenged to develop relevant metrics and show the Return of Investment (ROI) for training. Classical evaluation methods in training and learning need to be revisited, and appropriate metrics developed, that balance Lagging and leading indicators at all levels of learning and application. This workshop utilizes sound theoretical frameworks, as well as the current legislative framework in education and training as departure point to guide participants through practical processes of measuring Training effectiveness, efficiency and ROI.

Course Objectives

Upon the successful completion of this course, participants will be able to:

  • Understand the relevance of training as a strategic business tool
  • Apply the four levels of training evaluation, as a basis for developing a case For training
  • Apply of sound business principles to develop a case for training
  • Knowing the criteria for measuring training success
  • Using a systematic process for gathering, and documenting relevant data, as well as Calculating ROI of training
  • Integration of training metrics into the HR scorecard
  • Know how to market the ROI of training

## Course Outline

The Training Context:

  • Human capital management in the global village
  • Human capital in the Southern African context
  • The legal and institutional framework of Outcomes Based
  • Education and Training

The Case for ROI of Training:

  • First curve challenges
  • Second curve challenges
  • New challenges, new metrics

The Foundations of Case Building (Evaluation of Training):

  • Reaction
  • Learning
  • Transfer
  • Consistent performance over time
  • ROI
  • Intangibles

Developing an Infrastructure for Evaluation and Case Building in Training

  • The value hierarchy
  • The needs/opportunity identification process;
  • The data gathering, consolidation, analysis and reporting process

Criteria for Measuring Training Success:

  • Qualitative visa a vie quantitative measures
  • Cost
  • Income

The Process of Calculating ROI

  • Forecasting and measuring training cost
  • Forecasting and measuring training benefits
  • Calculating ROI of training

Towards a Training Scorecard

  • Scorecard basics
  • The scorecard value chain
  • Training measures in the HR scorecard

Marketing Training ROI

  • The organizational politics of training
  • Approval and commitment
  • Social networks
  • Communities of practice

Course Summary and Close

Course Methodology

A variety of methodologies will be used during the course that includes:

  • (30%) Based on Case Studies
  • (30%) Techniques
  • (30%) Role Play
  • (10%) Concepts
  • Pre-test and Post-test
  • Variety of Learning Methods
  • Lectures
  • Case Studies and Self Questionaires
  • Group Work
  • Discussion
  • Presentation

Who should attend

This 5 days course is intended for all Training Managers, Training Executives, HR Managers, HR Directors, Organizational Development Managers, HR Strategists, HR Consultants, Human Capital Managers as well as Training & Development Professionals.


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