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Training Return on Investment (ROI) PowerPoint Presentation

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The uploader spent his/her valuable time to create this Training Return on Investment (ROI) powerpoint presentation slides, to share his/her useful content with the world. This ppt presentation uploaded by worldwideweb in Business & Management ppt presentation category is available for free download,and can be used according to your industries like finance, marketing, education, health and many more.

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Slide 1 - Training Return on Investment (ROI) Pitfalls & Problems www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 2 - Cost vs. Investment Cost: An amount paid, price; a loss, sacrifice or penalty www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 3 - Cost vs. Investment Invest: To spend or utilize for future advantage or benefit www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 4 - Accounting Questions How are “fixed” costs allocated & distributed? Which “variable” costs are included? Over what time frame is the measurement made: Quarterly, Annually, Longer? How is lowered productivity measured when people are being trained? www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 5 - Accounting Questions Discounted Cash flow Rate of Return (DCFROR) depends on discount rate, time frame, cash flow, etc. Internal Rate of Return-depends on a management established ‘threshold’ KEY QUESTION: Should training decisions meet the same investment criteria as other capital investments? www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 6 - Accounting Questions “Break-Even Point” is a simple technique KEY QUESTION: When is the cost of training not worth the benefit? www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 7 - Management Focus Cost vs. Investment “philosophy” Training “costs” get cut or eliminated during economic downturns www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 8 - Management Focus Some skills are “perishable”; training effectiveness may decline over time. Dangerous Oversimplification: training is the only influencing variable. www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 9 - Management Focus Identify the expected outcomes from the beginning Know the “rules of the game” before you start www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 10 - The “ex-post facto” calculation Done “after the fact” Lack of proactive stance “Reproduce” original baselines www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 11 - The “ex-post facto” calculation Justification of an outcome with no influence or control of the variables Variables outside organization’s control Questionable conclusions about measured effects www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 12 - Reliable & Valid Measures Valid: measures what it is supposed to measure Reliable: consistent and reproducible www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 13 - Reliable & Valid Measures Simple for physical output Somewhat easy for Psychomotor More difficult for cognitive domain Most difficult for affective domain www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 14 - If you are going to use ROI: Know your accounting system. This analysis approach is complex, time consuming & costly: Is it worth it? Determine the organizational “philosophy” about “cost” versus “investment”. www.bmsproject.weebly.com, www.mymba.weebly.com
Slide 15 - Final Advice Using ROI as the “bottom line” may not be the best criteria for determining the value of training. It can be a good indicator, but it may not be the indicator. www.bmsproject.weebly.com, www.mymba.weebly.com
 

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