Return on investment, it’s a pressure that everyone I know in training is feeling these days.
Sure, a clear ROI has been the Holy Grail for training and development for years. But these days it’s different. In this economic climate, there is a heightened sensitivity to cost and to delivering maximum return to the business.
As a training professional, how do you answer the ROI question when your boss comes calling?
I’ve been in the training industry for nearly a quarter century now. In all that time, I have encountered only one kind of off-the-shelf solution that consistently delivers immediate impact to the bottom line: developing business acumen.
Surprisingly, it’s a challenge that exists even in the most high-performing organizations in the world: without a business acumen lens, employees are unable to see the impact of their work on the larger enterprise. That’s why business acumen training solutions are so powerful. They give employees a practical understanding of how each decision they make can impact the business and their future.
Imagine that everyone in your business, from housekeeping to the CEO, practically understands how the decisions that they make contribute to your bottom line. It’s a feasible vision, and I’ve seen companies make amazing strides by equipping their employees.
Let’s have a little fun with the math:
Assuming that your company has 5,000 employees; and that every employee makes a decision that can save the company $1 a day. In a single year, that translates to $1,825,000.
If your business typically returns a net profit of 10%, that means that your business would have to generate $18,250,000 in revenues to have the same impact.
Alternatively, imagine how much that $1,825,000 can return to the business over the next decade: over $6,000,000 at a 12% return on capital.
And this is a conservative scenario! Remember, this assumes that the average employee makes a decision that can save your company a single dollar. Imagine if every employee committed to make a daily decision that saves your company $5, $10, or even $100/day.
In my experience, employees adopt this sensitivity when they are equipped with an enterprise view of the organization, and understand how the financials work.
It’s training that delivers a dramatic return.
So what do you say? Are you looking for a way to make a quick impact on the bottom line – one that can pay dividends for years? I’d like to show you some solutions that will build your employees’ business acumen.
Check out the broad range of business acumen solutions Blueline delivers.
Then give me a call. We’ll discuss how to put these solutions to work for you.