Return On Investment Made Easy
By Derek Good$25.00 USD
The world has frequently experienced periods of economic uncertainty. Market economies can alter very quickly; a wobble in the markets in Europe send shock waves across the entire world.
While economies are somewhat fragile, trying to get investment in some areas - in particular training and HR programmes is somewhat difficult. What is it that prevents organizations from investing in the times when their people need it most?
Because if companies tighten their investment belts during troubled times, they may suffer when things return to stability and the main reason organizations (or the decision makers in those organizations) don't invest in HR and training programmes is because they fail to link the outcomes to tangible benefits.
Some people see training as a ‘nice to have' but not essential. If you employed someone to operate a new piece of machinery, you wouldn't dream of letting them figure it out for themselves. You would expect them to be trained on how to utilise it properly so they didn't damage the equipment.
That's fine when organisatins look at heavy machinery, but how does that apply to training someone who doesn't operate machinery - like a receptionist for example?
For the same reasons you wouldn't let someone loose on an expensive piece of machinery, you really shouldn't let them loose on your most important assets - your customers. They can do as much damage to your bottom line without training on how to deal with your customers optimally as they can without being trained on how to run your precious piece of kit.
One negative experience will mean the customer will tell 9, 12, 15 people. It's therefore critical to understand what our customers are worth.
If you're working in a supermarket and the customer has $150 worth of groceries in their shopping trolley - your interaction with them is not just worth the $150 - it's $150 multiplied by the number of times they do a big shop there. If that's monthly and they'll live there for ten years, your $150 shop is suddenly $18,000!
So, training to create motivated, skilful and knowledgeable employees can really save money, improve profits and provide a return for what you spend in helping get that way.
How do you do it? How do you help your manager see it that way and how do you get that business case signed off?
Forget about expensive calculations, weeks of effort gathering data and lengthy formulas that take days to work out, you need to be able to get the result in principle worked out in minutes so you can convince the ever busy manager of the merits of your plan.
This book will provide you with key insights, simple formulas and practical thinking to help you understand ROI like never before and arm you for the boardroom with a
solid business case.
How to test and measure
The importance of hard and soft measures
Using the right language (to explain ROI to a busy manager)
The magic formula
10 tips for getting a business case signed off
Answers to various exercises
If you are an HR manager or trainer and despair of ever being able to convince managers and owners that training is an investment not a cost, then this book will show you how to present a business case that will be listened to.