Measuring ROI on (Spring) Training

It's a great day in Arizona.  Not just because of the idyllic weather, but because it is the first day of Spring Training -- my second favorite day of the year (right behind Thanksgiving.)  If you've never been to Spring Training before, you really should come check it out.  Picture perfectly-sized stadiums, warm sunshine, unusually accessible ball players, and fans brimming with an overwhelming sense of optimism that this could be their team's big year– it’s a beautiful thing.

But sitting in the stadium today, it wasn't long before my brain started crunching numbers.  How much does this training cost them?  There’s facility maintenance, players' salaries (don't go there!), staff…  How do they justify the investment?  And how can I duplicate that in organizations?

Looking closer at the players I realize there isn't a Babe Ruth in the bunch.  None of them look like they are coming off four months of debauchery and excess.  These guys are ready to play ball.

And then it hit me:  Spring Training isn't actually about training at all anymore, it's about product testing.  It's become a dedicated time to work through any kinks and to make adjustments before the product goes live.

Now the dollars make sense. 

But since I need a justifiable excuse to write off my tickets as a business expense, I'm not willing to let it go at that.  I'm sure there is more to learn here.  Because at one point it was about the training.  And with all of the recent news about entire training departments being eliminated, I think it's timely to explore any lessons in training and ROI that we can take from this.

The real world isn't a T-ball game; people care about the numbers.
They might not keep score in T-ball anymore, but think of all of the baseball statistics that are kept.  Seriously, is there anything they don't track?  Think about all of the reports that are circulated in organizations.  Sometimes I wonder if there is a report that tracks the reports.  In the real world, people love their numbers.  Plus, numbers are the language of business. 

If you want to be a part of the conversation, you need to speak the same language, which means you need to be talking about the same numbers the rest of the organization is talking about.  These numbers usually fall into three broad categories:

  • Making the organization money
  • Saving the organization money
  • Protecting the organization's money

And by money I mean hard dollars, not intangible predictors of the potential of something that might someday translate into hard dollars.  Real hard, cold, transferable cash.

If you can tie your training to one of these objectives, you'll have something valuable to discuss.

The most important numbers speak for themselves.
If you want to know what is important to any organization, look at the numbers they track and look at where the money is spent.  Typically, the closer you are to directly impacting the bottom line, the more freely the cash flows, and the more frequently and thoroughly your results are tracked.  This is where you want to play.  It's true in the sports world and it's true in the corporate world.

You will know your training is making an impact when the senior executive team starts appearing in your doorway to show you the latest numbers.  That's how closely they monitor them.  No appointment required.  And when training is linked to the most important numbers, that's exactly the response you can expect.

If on the other hand, you rely on data you compile for an annual ROI report to justify your training, you might as well eliminate the program because you are providing too little, too late. 

Training is a team sport.
Ball players vigorously go after acquiring and honing the skills they need to succeed.  No one tells them they have to do it.  They understand the economics of the situation.

If you have to mandate participation in training you either:
a) Hired the wrong people
b) Offer the wrong training

Realistically, one department cannot be expected to provide training on all of the skills every individual needs to succeed.  But at the rate things change, it is critical that individuals continually hone and expand their skills.   If your organization wants to excel, they have to hire people with the internal motivation to seek out continued learning and development on their own.  Human capital is a vital organizational investment.  Are you getting a good return on your people?  Are your players showing up ready to play ball?

On the other hand, the training that is provided should focus on the most vital aspects for success – those that can most directly impact measurable organizational objectives.  If your training programs don't contribute to any of those, you are offering the wrong training.

The bottom line:  is it worth it?
There are all kinds of ways to measure the value of a learning experience.  One model would even allow me to calculate ROI on attending today’s Spring Training game.  Take a look:

Total Value (estimated business impact of innovating new ROI model)         $1,000,000
Impact attributed to game attendance                                            30%
My level of confidence in the accuracy of my numbers                70%

Total Adjusted Value                                                                                                      $210,000

Total Cost (parking, tickets, hot dog, beer, program, t-shirt)                                       $75.00

Net impact ROI                                                                                                                 $209,925

Ok, it’s an exaggerated and silly example.  But not any sillier than some that I have seen used to justify expenses.  If you give people this kind of data, no business leader will ever take your results seriously.  Measuring ROI to justify your existence or any one program is not the point of evaluation. The point of evaluation is to determine:  is it a worthwhile investment of time, money, and energy for the organization?  Sometimes all you have to do is ask “What do you think?  Is it valuable?”  And that’s enough.

As for today, I would have to respond (in my very best Simon Cowell accent) “Loved it!”  And judging by my ROI, I think I might have to go to another game tomorrow.  At this rate, I can hardly afford not to.

 

 
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