The importance of training BSC

Different training and coaching sessions have become trendy nowadays.  Companies either conduct own training sessions or send their employees to undergo coaching and training at special centers.  But the problem is that very often company management and employees themselves do not understand benefits of such training.  It’s not a secret that education of employees is rather expensive these days.  Of why spend money for something that will not bring any benefits for the company?  Of but as training is very popular not sending of employees to training sessions is considered to be a bad tone.

Well, this is not to say that training is not necessarily.  Just to the contrary, and effective training session will make it possible for an employee to use obtained knowledge and skills in real business.  But how can you say whether or not a training session is effective?  Will training cost become a major criterion?  Or does employees satisfaction with training matter most of all?

How training works

How training works

Consider using balanced scorecard and you will have answers to most of questions related to efficiency of training sessions.  Balanced scorecard will not only evaluate training efficiency but will also align training goals and measures with the company strategy.  In such a way, both top management and employees that undergo training sessions will understand why they do that and what benefits of training are.

Most important training KPIs

Most important training KPIs

With a balanced scorecard it will be possible to see a clear cause and effect ties between training and implementation of strategic goals in each of the four categories of balanced scorecard: financial, customer, learning and growth, internal business processes.  For example, to implement some financial goals, like increasing net profit, it is necessary to gain new market share and attract new customers which is only possible through introduction of innovative products and services, which in its turn, is possible through education of personnel and their ability to use acquired knowledge in practice.

Much depends on the right choice of key performance indicators (KPIs).  It is also important to set the right weight for each indicator in category of indicators.  For some companies, it is impossible to increased training budget which, however, does not mean that their training sessions will be ineffective.  Of other companies, to the contrary, need additional funds to invest in training in human resource management to improve professional level of the personnel.

Use of balanced scorecard to evaluate training efficiency and is the right choice for any company.

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