Posted tagged ‘ROI’

Playing by numbers

23 April 2012

The theme of last week’s Learning Cafe in Sydney was How to Win Friends and Influence Learning Stakeholders.

Among the stakeholders considered was the “C-Level & Leadership”. This got me thinking, do the C-suite and lower rung managers expect different things from L&D?

There’s no shortage of advice out there telling us to learn the language of finance, because that’s what the CEO speaks. And that makes sense to me.

While some of my peers shudder at the term ROI, for example, I consider it perfectly reasonable for the one who’s footing the bill to demand something in return.

Show me the money.

Stack of Cash

But I also dare to suggest that the managers who occupy the lower levels of the organisational chart don’t give a flying fox about all that.

Of course they “care” about revenue, costs and savings – and they would vigorously say so if asked! – but it’s not what motivates them day to day. What they really care about is their team’s performance stats.

I’m referring to metrics such as:

• Number of widgets produced per hour
• Number of defects per thousand opportunities
• Number of policy renewals
• Number of new write-ups

In other words, whatever is on their dashboard. That’s what they are ultimately accountable for, so that’s what immediately concerns them.

Woman drawing a graph

The business savvy L&D consultant understands this dynamic and uses it to his or her advantage.

He or she appreciates the difference between what the client says they want, and what they really need.

He or she realises the client isn’t invested in the training activity, but rather in the outcome.

He or she doesn’t start with the solution (“How about a team-building workshop?”), but rather with the performance variable (“I see your conversion rate has fallen short of the target over the last 3 months”).

He or she knows that the numbers that really matter don’t necessarily have dollar signs in front of them.

The hardworking woodcutter

22 February 2012

Late last year, I stumbled upon the story of the hardworking woodcutter.

It was shared by Dr Nupur Jaiswal in her article Engaging your
audience: Tips to try
in Training & Development in Australia, 38(4).

The story goes like this…

There was a woodcutter. He used to work incredibly hard to ensure a good livelihood, but he always felt that his work was not giving him enough output. Every day he would decide to work harder and longer, but at the end of the day he would find his pile of wood smaller than the previous day.

One day, when he was busy as usual, he noticed a bigger pile of logs with a woodcutter sitting next to it. He asked, “How can you have a bigger pile than me in less time, and how can you relax so early in the day?”

The other woodcutter replied, “I take time off to sharpen my axe.”

The first woodcutter said, “But how do you get the time? I don’t have any time for sharpening my axe.”

Pile of wood

The first woodcutter’s perspective is surprisingly common in the corporate sector – particularly in over-worked, under-resourced teams.

It’s tempting for the managers of these teams to deny their staff the opportunity to attend training, or even to undertake e-learning at their desks.

Why? Because they fear it will impact their performance stats.

And you know what? It will.

But what these managers don’t understand is that learning is an investment. Yes, your performance stats will probably take a short-term hit, but in the long term your team’s performance will be better than it otherwise would have been.

At the extreme end of the spectrum, those who fail to keep up with the necessary training will one day, sooner or later, discover they can no longer do their jobs.

And their heads will be chopped off by others with sharper axes.


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