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.

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