Why is training important in highly competitive markets?

What are most critical success factors for any business?  Efficient organization structure, investments, innovation, establishment of long lasting relations with customers, employment of competent personnel, innovative products and services, aggressive marketing campaigns etc.  But the problem is that it will not work unless the personnel is regularly trained and educated.  Business world is changing rapidly, and so are IT and production technologies, as well as marketing and promotion techniques, sales methods etc.  If the company stops and its development, it is doomed to fail as it will have no chances to beat competitors.  For this reason training of personnel is extremely important, no matter in what business area the company is operating.

This is how training works

This is how training works

As any business aspect and development direction, training must be properly evaluated.  Moreover, training goals and measures should be well integrated into the system of company strategy, values and mission.  Every training session must have clear aims and objectives and these objectives should approach and the company to implementation of strategic goals.

Any training session should have a clear message that is well understood for all participants. Of course, companies conducting training sessions want to have return of such kind of investment.  As known, investments in personnel are the most effective long-term investment tools.  With the help of balanced scorecard it will be possible to align training goals and measures with strategic goals of the company.

What makes an effective training session?

What makes an effective training session?

For example, the company wants to increase its market share by 10%.  This is only possible through introduction of innovative products and adoption of new sales methods.  In its turn, it can be achieved through improvement of personnel professional level.  So, training sessions should focus on new sales techniques and methods as well as adoption of innovative ideas.  In such a way, training results will directly influence implementation of objectives in all perspectives of balanced scorecard – financial, customer, internal processes, learning and growth.

At the same time, it is extremely important to create winning key performance indicators to correctly evaluate training performance.  The wrong KPIs will lead to wrong decision making which is not good.  Such key performance indicators may include training budget, number of employees who have undergone training sessions, number of training sessions per employee, employee satisfaction with training session etc.

The choice of key performance indicators depends on company strategic goals and organization structure.  With the help of balanced scorecard it will be very easy to see what needs to be done to achieve strategic goals as cause and effect ties will be understood even for ordinary employees.

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