The issue of the return on investment in training has been debated for a long time. The fundamental question is, of course, to measure whether the financial resources invested in training have a measurable financial impact on the organization's financial performance through better efficiency and increased productivity of the organization's managers and key leaders
For more than 25 years as a stakeholder in the Learning and and Development space, it appears to me that not all learning subject matters have the same observable returns. Some subject matters have an impact that is more difficult to measure over a longer period; others have a more immediate impact. If there is one investment in training that, in my opinion, allows for immediate and lasting change, it is that of business presentation skills, and here are the reasons:
According to the Kirkpatrick Model, there are four levels of measurement:
Reaction:
What participants think of the training. Although the data from satisfaction surveys is as reliable as the end-of-course questionnaires used to collect this information, and this topic can be debated as well, my experience is that I receive unsolicited testimonials of appreciation from participants several months or even years after the end of the program. This is not always the case with leadership or management skills learning programs, for example, which take a little longer to show changes.
Learning:
The knowledge or skills that have been acquired. Participants who have completed the learning path often tell me about the shortcuts they have incorporated into their preparation for an important business or technical presentation. They now stick to the message, spend less time writing and more time practicing to have a greater impact on their audiences and save considerable computer screen time.
Behaviour:
Changes in job performance. In the case of presentation skills to senior management or employees of the organization, for example, it is easy to notice whether the candidate is actively looking for opportunities to present to audiences and whether his or her presentations are more effective or sought after because of his or her new ease and improved public speaking skills.
Results:
Impact on business objectives. While there are multiple desirable impacts of improving business presentation skills, such as productivity, retention, the impact on sales and business development is often the one that sales managers tell me about most often. And while it is difficult to isolate all variables outside of the ROI calculation, such as price fluctuations, the impact of competition, or the contraction of the local or global economy, pre- and post-training sales figures often highlight the influence of training.
ROI Calculation
Now let's imagine an example of a simple ROI calculation (Phillips ROI Model)
Once the business results are converted into monetary value, they are compared to the training costs for a true calculation of the return on investment. For example: if we measure the increase in dollar sales numbers for a given period per employee $5000, LESS the investment in training per candidate $2000 and DIVIDE this difference by the investment in training per candidate $2000, we get $1.50 for each dollar invested in training, provided that the other variables (price, market share, seasonality, competitive impacts, etc.) are controlled.
What is your experience with the financial return on business presentation training?