After ROI it is IRR

Sunday, January 16, 2011

After ROI it is IRR

If you can calculate the ROI of training, you might as well proceed to calculate the internal rate of return of the training project.
The additional steps are as follows
Use excel or lotus spreadsheet for the purpose of analysis
1. Extend the training benefits to the economic life of the training.
2. Project the cash inflows and outflows of the training.
3. Calculate IRR/NPV

IRR and NPV has better meaning than ROI. It takes into account time value of money.

Arriffin Mansor 012-2786282

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Training Need Analysis - training timetable

	TRAINING NEED ANALYSIS
TIME	9.00-10.30	11.00-12.00	12.00-1.00	2.00-3.30	4.00-5.00	Assignments
DAY
1	Critical performance gaps use ROE du pont	Is gaps caused by competency	Use KPI to measure performance gaps	Benchmark to identify best practices Use BSC to identify learning and knowledge	Identify key persons	Performance gaps
2	Confirm competency gaps through alternative means	Combine and cluster competencies through alternative delivery	Justify training through expected benefits	Input output analysis to calculate expected performance improvement	Evaluate Training through ROI	Competency gaps
© Arriffin Mansor 012-2786282

Arriffin Mansor 012-2786282

Training Need Analysis - 7 step

1. Determine the new direction of the company - ROE Chart

2. Identify the critical performance gaps by comparing the new direction with the current performance.

3. Use the BSC perspectives towards and identifying learning and growth.

4. Identify Critical job holders and compile their competencies.

5. with internal and external benchmarks recognise best practices

6. From best practices, draw down the required gap competencies

7. Cluster and combine gap competencies into delivery set.

Contact Arriffin 012-2786282

Kuala Lumpur, Malaysia

TRAINING NEED ANALYSIS 2018 - (surveys avoided)

Sunday, January 16, 2011