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We often hear people talk about “the bottom line” as a figure of speech. It’s an accounting term and refers to the bottom line in a financial statement, showing net profits or net losses. We care about those two things in training, but we don’t usually focus on both very well. Let’s take a closer look at what I mean.
Value Defined
Years ago, as a bachelor, I bought an ice cream scoop. I decided I was classy enough to own such a specialized utensil. I had two choices available in the store I visited: a $3.00 metal scoop with a plastic handle or a $9.00 scoop made entirely of metal. I opted for the cheaper one. I figured I was classy, but I wasn’t a fool—or so I thought. Within one year, the plastic handle broke on my ice cream scoop. So here I was, one year later, faced with the exact same choice. I realized if I had bought the more expensive scoop, it probably would have lasted more than three years. The more expensive scoop was cheaper in the long run; it produced a better return on investment. (By the way, I still own that $9.00 ice cream scoop, years and years later.)
The Value of Training
Now, imagine you’re selling your training to your organization. Your training is the $9.00 ice cream scoop. You know your option provides the best value. But does the rest of the organization know it, too? If they don’t, they might just opt for the $3.00 option: outside vendors, off-the-shelf programs, or ready-made online training. You know those options would likely be bland, non-customized training and not meet everyone’s needs. The value proposition is worse with those options. The problem is your customers might not see the bottom line.
A Transaction Is Happening
Every time someone attends your training, a transaction takes place, but not the kind that involves a receipt or a contract—it’s a more subtle transaction. Every manager who sends an employee to training is exchanging employee time for better productivity. Now ask yourself, “How obvious is it to my customers (managers and employees) exactly how much value they’re getting for their investment?” If you want to do a better job showing the value of training, try some of the following ideas.
- Refer to training as an investment. Tell your customers they are exchanging their time and money for improved job performance.
- Describe the benefits of training, such as fulfillment of business objectives, increased productivity, reduced business problems, etc., even if you don’t calculate a financial return-on-investment for your training,
- Focus on what employees and managers are getting for their time invested. Never talk about training costs without talking about training benefits in the same conversation.
Our product is very intangible—it’s improved job performance. The costs of that product are more obvious and concrete. Do yourself and your organization a favor and help everyone see the value and bottom line of training.
As a training manager, you need to know how to secure organizational support from executives and employees, as well as how to monitor your department’s effectiveness (even if you’re not a training expert). These topics are covered in our workshop, The Successful Training Manager. Take your training department to a higher level of performance!
