Helping your Training Organization Survive and Thrive Through the Recession

When I had written the article, “Recession Proof your Training Organization,” for the Chief Learning Officer back in May of 2008, the recession was just beginning.   Now, a year later, with better understanding and realization, I still strongly stand by the key points I stated in the article to help make your training organization thrive through this tough time:

1.       Right Size Now

2.       Demonstrate Clear ROI from your Training

3.       Deliver High-Quality Programs, On Time

4.       Outsource Noncore Activities

5.       Choose the Right Training Modality

For your training organization to survive the current recession and support long-term success, it’s crucial to understand what all of these points mean.  However,  I dropped the “right sizing point” since all organizations already reduce the size of their teams, and I doubt there is much “right sizing” left to complete.

I will dive into more detail, and also add another key point, which is to reuse the content you already have.

1. Demonstrate Clear ROI from your Training.  Simply saying that you are delivering a great training product won’t cut it these days. You have got to be able to prove your value to the company in hard, cold dollars, demonstrating an uncontestable return on investment for every penny in your budget.  If you cannot measure the ROI, you might want to question why you are doing the project before someone else asks the question. When in doubt, work on projects that drive incremental revenue or reduce costs within the next six months.

 

2. Deliver High-Quality Programs, On Time, that Align with Business Objectives.  During corporate belt-tightening, all things perceived as “fluff” should automatically go. Take a good hard look at the programs you offer— how well do they align with the two universal goals of increasing revenue and cutting costs? Clearly, any training that improves employees’ critical skill sets will be a must-have, such as compliance programs and other mandated training initiatives. This is what will allow you to stay in the game.

 

But for other programs, keeping them may be something you will want to reevaluate. Inspecting your organization for indications that training quality is slipping, and fixing those issues fast is critical. In many cases, Pulitzer-quality text or sophisticated graphics are less important than timely delivery, which lets the organization start realizing value immediately. A perception of being slow and unresponsive will doom your group, even if there are really good reasons for these delays or changes.

 

3. Outsource When it Makes Sense.  Like anything else, outsourced training has its pros and its cons. Bringing in contract training resources saves headcount and related fixed costs, and often allows you the flexibility of offering training programs that would not possible with just your in-house staff. However, on the other hand, outsiders often lack the industry or company-specific knowledge necessary for effective training in your particular market niche. A good solution is maintaining a small core of trainers to manage internal coordination and provide subject matter expertise.

 

 4. Choose the Right Training Modality.  Studies have shown that training effectiveness is heavily dependent on the way material is presented. Some topics, like diversity awareness or interpersonal communications, are best taught in a traditional instructor-led classroom setting. Others, like introducing new product features or regulatory compliance, can often be covered faster and more easily with an e-course. Webinars work well for other topics that require discussion in addition to content, such as an overview of an issue with a question-and-answer period following.

 

Selecting the best modality for your various training offerings demonstrates to senior management that you are a good steward of tight dollars. By explaining why one delivery method is superior to others, you substantiate your role as a leader, and prove your personal value to the company. You might point out, for example, that switching your new-hire training from an instructor-led to an online format trims orientation time by an entire day, at a savings of $1,000 per person (see the Training Calculator). Once again, this underscores the need for credible metrics and a value-driven approach to training.

 

5. Reuse the Investment in Content that Already Exists.  Most of the budget for developing new online training relates to the content creation.  As we work with large organizations, we usually find they have an abundant of content in the form of presentations, recorded webinars, white papers, etc.  However, often times, the content needs to be trimmed down, organized, the interactivity needs to be added, and the assessments needs to be built.   These organizations have spent historical dollars in developing the content, so this presents an opportunity to leverage their investment.   In addition, re-using and enhancing the existing content will support the turnaround time

 

I am in high hopes that my next follow-up article will relate to supporting your organization during the faced-paced time of the recovery.

 

Biographical Note:  Charlie Gillette is Managing Director of Knowledge Anywhere, an online training company in Bellevue, WA:  www.knowledgeanywhere.com.  email: charlie@knowledgeanywhere.com