Training evaluation is measurment of HR efficiency in the company

Training and coaching has become extremely popular in different business areas.  Indeed, this is the best way to improve professional level of employees.  As known, if the company wants to further develop it should start with own personnel.  If the company wants to operate your level of personnel should be ready for this.  That’s why most successful companies spend millions to train personnel.  Training and coaching is within responsibility of human resource department.  It should be said that training is a tricky thing.  Everything done and business must have commercial goals.  So, view the company spends some money to train personnel it naturally expects greater output or higher performance.  If there are no results then a training session is just a waste of money and time.  For this reason, evaluation of HR performance is important in financial and organization terms.

What makes effective training?

What makes effective training?

The last decade saw a sharp increase in popularity of balanced scorecard.  This revolutionary concept implied evaluation of financial and nonfinancial indicators.  By the way, many are of human resource key performance indicators are nonfinancial.  At a first glance, it is rather difficult to measure such things as employee loyalty or training efficiency, say apart of organization climate.  But balanced scorecard does measure such things which helps see the progress of the company on the way to implementation of strategic goals.  It is imperative that all HR action and campaigns are well integrated into the system of company values, mission and strategic goals, otherwise there will be conflicts.

How training leads to financial results

How training leads to financial results

Evaluation of human resource department is also about evaluation of training efficiency.  It is imperative for employees to understand why the need training and what benefits they will have as a result of such training.  Personnel motivation means a lot.  As such, employees should implement their personal goals and at the same time reach strategic goals of the company.  This is a real art of human resource management.

When using balanced scorecard to evaluate HR efficiency and training performance, top managers should carefully choose key performance indicators which influence key success factors.  Such indicators may concern different aspects of training campaigns: training cost per employee, employee attitude two was training, expected revenue per employee as a result of training campaign and a number of others.  These indicators and their evaluation should show clear cause and effect ties so that managers can actually see what needs to be changed to implement strategic goals of the company.

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Training for innovation

Recent financial crisis has shaken the world of business.  But besides negative consequences this crisis became a cold shower for many companies that finally understood that human resources are to be valued.  In fact, employees working for the company are the supreme value.  It is through innovation, creative ideas and initiatives that a company may overcome the crisis and turn profitable again, attracting new customers and offer new products and services for existing ones.

Effect of training on organization performance

Effect of training on organization performance

The last decade saw a sharp increase in popularity of different training courses, seminars, coaching campaigns etc.  It became clear that an initiative coming from the lowest managerial level may give a company enormous competitive advantage over rival companies.  Well educated personnel possessing me you knowledge and techniques will directly work with customers.  Changes in the company management are OK, but the company needs to make sure that those front line employees who contact customers on the everyday basis should use their knowledge to profit the company.  Training and coaching is an inseparable part of a great company performance.  As any performance, of training should be evaluated since the company needs to spend certain amount of money to conduct training sessions, and naturally the company wants to get this money back in profits.

Balance scorecard makes it possible to evaluate training through introduction of key performance indicators and their measurement.  BSC is different from other performance evaluation systems by the fact that all goals and objectives, as well as measures, are subordinated to the company strategy.  In other words, everything performed within the framework of training campaigns aims at implementation of strategic goals.

Of course, it is impossible to avoid financial indicators in evaluation of training efficiency.  Cost per employee cost per training campaign, number of canned beans and total costs of very important indicators.  But balanced scorecard has a full range of nonfinancial indicators which can reveal weaknesses in training campaigns.

With the help of balanced scorecard it will be easier to motivate personnel participate in training.  Every employee should understand why he needs training and what benefits he and his company will get.  By using acquired knowledge in practice and employee can drain profits for the company and get benefits for himself in case a company has a comprehensive compensation and bonus system.

Key training KPIs

Key training KPIs

Evaluation of training will make it possible to see if the company personnel is ready to use innovative methods and techniques, operate new equipment, apply innovative approaches to customer relations etc.

Gain competitive advantage through training of personnel

Just hiring many employees for the company does not mean that such personnel will efficiently work.  Of course, every company and every HR department tries to find the best professionals.  Headhunting is very popular nowadays as business owners came to understand that employees are supreme value for a company.  But business never stays one place.  Companies are developing and reacting to market changes.  Sometimes it is very important that the company employees acquire me you knowledge and get new skills.  Sure thing that the skills are acquired during special training sessions which are organized in or outside the company.  It should be noted that training and coaching has become extremely popular in all business spheres.

This is how training works

This is how training works

However, just organizing all the training session may be not enough.  That training should be effective and efficient.  Naturally, every business owner expects to earn money before investing it.  Training is investment in personnel.  By the way, many business specialists consider investing in personnel to be the most effective long-term investment.  Inefficient training sessions will turn out to be a waste of time and money.  Besides, employees need to understand why they should undergo training and what benefits it entails.

With the help of balanced scorecard it will be possible to measure efficiency of training and track the way how strategic goals are being implemented.  Were strategic goals can one set in training?  For example, this may be improving computer literacy of the personnel or increasing professional level of salesmen, etc.

Effective training campaign

Effective training campaign

Balanced Scorecard communicates strategic vision with operational management (what is being done to reach strategic goals).  It visualizes the strategy and makes it possible to see what should be improved in training campaigns.  Balanced Scorecard uses a set of KPIs which are known as key performance indicators.  These indicators can be financial and nonfinancial.  In training both categories of indicators are quite relevant.  Two financial indicators we can refer cost per training sessions, training budget, cost per employee or expected revenue you per employee.  To nonfinancial were refer employees satisfaction, number of training sessions held, average training session time and a number of others.  It should be noted that the choice of key performance indicators solely depends on the company strategic goals.

Ultimate goal is of course increasing company revenue you.  So if as a result of the training session an employee can yield better results such training session can be considered effective.  But there is always room for improvement.

Why is it important to train personnel and measure training process?

Nowadays too many business owners forget that the supreme value of their companies is the people who work there.  But the recent financial crisis has vividly demonstrated that well educated and efficient personnel is the key to success.  Those companies who had the best human resources managed to survive the crisis and even increase their profits and in large customer base.  This all became possible because these companies had a comprehensive strategy.  It is strategic planning that can lead a company to success.  In the modern markets short term goal policies sometimes prove to be ineffective.

This is how training works

This is how training works

That is why it is very important to train and educate personnel.  Moreover, this training should be economical if effective.  It is evident that an employer should spend a certain amount of money to educate one employee.  And naturally, an employer expects employee to work better and bring more profits for the company.

An efficient HR department needs to conduct training sessions for employees in such a way so that the entire company benefits from it.  Every training session should have its goals.  At the same time, employees should understand why the need such a training.

Use of balanced scorecard in evaluation of training will help both managers, HR specialists and ordinary employees better understand the importance of training sessions, their efficiency and expected financial gains.

Balanced scorecard uses the principle of key performance indicators evaluation.  Every business or any business aspect has its own set of KPIs.  Training also has specific key performance indicators which help managers find out whether or not a training session was effective.

Training KPIs to be measured

Training KPIs to be measured

So, what are these key performance indicators?

First and foremost, this is cost per employee.  As said above, the company spends a certain amount of money to train one employee.  One needs to keep balance here, as saving too much and training may result in low education level of the personnel.  This leads us to the next KPI which is expected revenue per employee.  Obviously, the company wants to have profits resulted in education of personnel.  So if the company gets profits as a result of training sessions it means that the training was in general effective.

Training budget is in another indicator one should pay a special attention.  If the company manages to gradually increase this budget and at the same time increase profits this signals that the training campaign proves to be effective.

Are you ready to use Balanced Scorecard? Check your knowledge now

Implementation and maintenance of Balanced Scorecard is quite a difficult and for some companies a painful process.  This performance evaluation tool works only when a number of conditions are observed.  One of the most common myths about Balanced Scorecard is that BSC is a magic tool that is capable of turning any company into a successful international corporation.  Well, there is no magic in the business world.

Balanced Scorecard yields positive results only when it is properly implemented.  As said above, the system itself will not do all the work.  If the company management is not ready to implement BSC, this system will turn into a useless pile of datasheets, charts, tables and other information.  It should be noted that implementation of Balanced Scorecard requires sufficient investment.  Thus, unsuccessful implementation of BSC is simply a waste of money.

It is very important for the company to know 2 basic things: how a company learns that it needs Balanced Scorecard and how a company knows that it is ready to use Balanced Scorecard.  To answer the first question one should keep in mind the following:

  • If the company midlevel and top management is not involved in strategic planning than such a company certainly needs Balanced Scorecard
  • If the company personnel does not understand strategic goals such company needs Balanced Scorecard
  • If there is poor communication between companies belonging to one holding, such companies need Balanced Scorecard
  • If there is no operational control in the company such company needs Balanced Scorecard

To answer the second question (are you ready to use Balanced Scorecard) you can download free questionnaire on Balanced Scorecard from AKS-LABS.  This survey is offered in pdf extension which one can print out and check the answers.

BSC questionnaire will be helpful for the entire company

BSC questionnaire will be helpful for the entire company

This questionnaire would be helpful both for those who plan to use Balanced Scorecard men those already using BSC.  Having answered the question and check the results one will be able to evaluate knowledge on Balanced Scorecard.

The questions mostly concern implementation stages of Balanced Scorecard, peculiar features of this system, key performance indicators, their number and impact on co performance, strategy maps, strategic goals etc.

This survey is designed both for company management and ordinary employees.  It is very important that every employee understands strategic goals of the company and the way Balanced Scorecard works.  Having analyzed questionnaire results it will be possible to determine total readiness of the company and its management to use Balanced Scorecard in the everyday work.

Check your BSC knowledge

Check your BSC knowledge

Read on BSC questionnaire here.

Check out new templates on BSC system

Implementation and maintenance of balanced scorecard is quite a complex and lengthy process.  The company management needs to realize that balanced scorecard will not work unless a number of important conditions are fulfilled.  Balanced Scorecard it appears to be useless if numerous mistakes are made when the system is being implemented.

That’s why it is very important to be 100% ready to use the system.  For this a reason special training on Balanced Scorecard and use of additional materials is highly recommended.  Balanced Scorecard is not as easy as it might seem, and it will be quite a challenge to successfully implement it without professional assistance.

Developers of BSC Designer from AKS-LABS offer users practical courses and theoretical materials.  We have already written about audio training course on Balanced Scorecard.  Now it is the time for a free product – a collection of templates for Balanced Scorecard.

Templates on balanced scorecard are offered in archive containing several power find and pdf files.  What can you find in those files?  Well, first and foremost the templates present the four perspectives of balanced scorecard: financial, customer, internal processes, learning and growth.  Each perspective has its objectives measures, targets and initiatives.

Enjoy free BSC templates from AKS-LABS

Enjoy free BSC templates from AKS-LABS

AKS-LABS offers free templates with charts and tables which you can use to design a strategy maps and Balanced Scorecard for your company.  This will help visualize company strategy through indication of company goals, measures and response actions.

The templates contain screenshots from BSC Designer for users to understand how real values and indicators will be represented in the program.  You also see how the information will be shown in excel format.  Templates for KPIs in different perspectives will help better understand concept of balanced scorecard and save your time.

Templates are available for download from this page.

Download free BSC templates

Download free BSC templates

Educate yourself when using BSC system

Buy a new training course on Balanced Scorecard

Buy a new training course on Balanced Scorecard

Automated business management tools are becoming increasingly popular in the recent years, especially in the large companies.  But the revolution in the concept of communicating company strategic vision with operation level broke out with the development of balanced scorecard system.  Of course business has always been measured.  But prior to the early 1990s only financial indicators were evaluated.  Balanced scorecard system started evaluation of non-financial indicators.  Indeed, how a company can become financially prosperous?  Of course through improvements in operational management.

Balanced scorecard system was the first to communicate strategic vision of the company goals with operational or lower management.  Through evaluation of four perspectives balance scorecard helps company management to work out key performance indicators, response measures and set realistic strategic goals.

This system has received a lot of criticism mostly from those companies and top managers which failed to make an effective use of balanced scorecard.  It should be noted that implementation of balanced scorecard is not an easy process.  It is very important to get basic knowledge and acquire key skills when implementing balanced scorecard.

From now on top managers and everyone who wants to use balanced scorecard in their company can purchase a training course on BSC which covers a lot of important issues and gives answers to a number of controversial and acute questions.

The training course is structured in a very convenient way.  The course sections are synchronized with stages of balanced scorecard implementation.  Thus, you will learn new things from simple tool more complex issues.

Experts in balance scorecard will share their vision on initial steps of balanced scorecard implementation and design, selection of winning KPIs and determining the optimal number of them, creation of strategy maps and cascading balanced scorecard.  Of course this is not the complete list of issues covered in the training course which consists of mp3 files (total length is 5 hrs).

It should be noted that the speaker uses at very clear and simple language, so even if you are not balanced scorecard expert you’re likely to understand everything or almost everything.

To support the idea of balanced scorecard learning will give you this statistics: only about 30% of managers are satisfied with the results obtained with balanced scorecard when the system was implemented without expert help, additional training or professional assistance.

Why not educate yourself and learn secrets of balanced scorecard system?  Purchase balanced scorecard training audio course from this page.

Education is all important to successfully implement BSC

Education is all important to successfully implement BSC

Select major training kpi with Balanced Scorecard system

It is impossible to wane in the Morton business without proper management.  No matter how much money you can invest in your company, it doesn’t matter how many office buildings and production facilities you have, without proper human resource management your business will fail.  Nowadays, many businessmen forget about people who work for them.  These people think that their business is their money, real estate, offices, computers etc.  But the reality is that your business is people who work for you.

Thus, it is very important to train your personnel and raise professional level of your employees.  It doesn’t matter what position such an employee in the occupied.  Even if your secretary will work faster the entire company may benefit from it, say apart of top managers, project managers and other people with much responsibility.

Measure major training kpi

Measure major training kpi

Different trainings, seminars and workshops are very popular in all businesses fields.  You invest money in your personnel.  It needs saying that such investments are very long lasting and they yield positive results.  However are we can talk about positive results only in case these trainings are professionally organized and efficiently conducted.  An ineffective training session will turn into a waste of your money and your employees’ time.  Ineffective training will spoil company’s image.  If people do not benefit from such training they will not certainly work better.

Taking into account the above said, training sessions must be evaluated.  Evaluation process may take much time, the cause the training session is a complex structure with many elements.  But using balanced scorecard system you will be able to measure all those elements, commonly known as key performance indicators or KPIs.

Balanced scorecard system helps in measurement of KPIs so that you are able to measure overall performance of your human resource department that is in charge of organizing and conducting training sessions for the personnel.

Balanced scorecard system is a great business tool to evaluate everything that can be measured in figures and percents.  If you regularly perform training evaluation, you will be able to track changes (positive or negative).

Results obtained by balanced scorecard system can be used in strategic planning.  It is very unwise to invest money in business expansion if your employees are not ready to operate on a higher level.  Thus, with the help of balanced scorecard system you will measure training efficiency and introduce changes into it to solve current problems.

Use Balanced Scorecard system to measure training kpi

Use Balanced Scorecard system to measure training kpi

Use a reliable training measure system

National and world economies are just a recovering from the most severe economic crisis since the great depression.  Tough competition and read used buying power of customers resulted in failure of many businesses all over the world.  Competition is something that keeps businesses alert.  At the same time the aim of every competitor is to wipe out your business& attract your customers.  Thus, it is very important for in a business to do everything possible to stay competitive.  It is impossible to be competitive with incompetent personnel.  This is a very serious problem for most businesses, as companies have money and resources to succeed in business but the people who work for the company are not ready to work professionally.

For this reason company management all from all denies is special trainings for their personnel.  If you warned to improve something about your company you should definitely start with the people who work there.  At the same time training should be effective, and drain definite results.  The ultimate goal of any business is making profits, and effective training is a compulsory element in earning more money.

Use the best training measure system

Use the best training measure system

Training evaluation must be performed from time to time to measure efficiency of seminars, training sessions and training masses.  Training is a complex process with many stages and if you make mistake on the initial stage you won’t get expected results.  That is why you need to evaluate training and use obtained results in your father work and strategic planning.  It is not easy to properly measure training performance.  However, if you choose to use balanced scorecard system this process will become much easier for you and the people who work for the company.

Balanced scorecard system measures individual indicators which are known as key performance indicators.  KPIs are values expressed in figures and per cents that show how well your business or its aspect is doing.

Cost per employee is one of the most important indicators in training metrics.  This figure shows how much you spend two train one employee.  At the same time you need to compare this figure2 revenue per employee which is the second most important indicator.

You also need to pay attention2 cost savings which is the amount of money you manage to save as a result of a well organized training session.  For example you may save on electricity bills, time required for the project etc.

Training measure system will help in performance evaluation

Training measure system will help in performance evaluation