How to conduct training need analysis

How to Conduct a Training Needs Analysis

Employers can conduct a needs analysis by the following steps.

Step 1: Determine the critical performance gaps

Determine the specific performance gap areas where the critical changes are needed.  For this purpose we need to benchmark against the industry bests.

The KPI would be a good measure for comparative purposes.

The return on equity model which shows the ultimate goals of the business could be used for this purpose.

For in depth analysis, the analyst could examine and compare the cost volume profit model and key functional performance against the best in the industry.

Examples of these performance areas are:

1. Improve customers’ growth and retention.
2. Improve employee productivity and retention
3. Improve the speed at which warehouse employees fill orders.
4. Improve on the asset management of the business

Step 2: Identify areas of performance problems and issues

The critical management areas are measured for its true performance through input output analysis.  In addition, graphs should be used to further illustrate the dynamic performance movement.

We would identify the critical areas through the simple Pareto and sensitivity analysis

Step 3: Identify and focus on people problems and issues

We would identify performance problems caused by people or staff through productivity ratios and efficiencies.

Wrong or poor practices, systems or policies may not be the responsibility of the staff.

We need to pin point person or group of persons responsible after which a competency profile would be conducted.

Step 4: Suggest solutions and improvement changes

There are two groups of performance problems and issues.  One is caused by the labour, staff and people and the second groups are those that are caused by other factors.

Changes could be due to problems in the management systems, communication and authority or a combination or mix of all.

Training is only a relevant solution that affects competency gaps.

Management training is needed if the identified lacks of performance areas are caused by poor management skills and knowledge.

The technical incompetency of a worker is easily identified by matching against the best practices skills and knowledge of a standard worker in the industry.

Step 5: Design suitable processes and models

Top management must agree and approve on the key processes, strategies and models to be used by the business.

The models adopted and integrated are normally the best practices in the industry.

These models should be properly defined to enable simulations to be exercised for the purpose of estimating the results or the impact of change.

Step 6: Profile the identified workers and determine the competency gaps.

Only workers in the critically weak performance areas would be profiled on three specific areas:

1. Knowing what to do; identify best practices in the industry on the relevant area.
2. Having the capability to do it; – by examining their past performance records and competency history.
3. Having the motivation to do it.- adequate information and authority and recognition.

The required set of competencies is drawn from the best industry worker.

The identified training which should also be in alignment with the chosen business model

In addition, these identified gaps shall be discussed and confirmed with the staff concern, his supervisors and the industry expert.

Step 7: Determine how to train

There are many approaches to training.  Of course the cheapest and most effective shall be chosen.

Step 8: Conduct a cost benefit analysis (ROI training)

At this point, employers need to consider the costs associated with a particular training method and the extent to which competencies can be combined into the same training activity.

Opportunity costs associated with training shall be taken into consideration.

On the benefit side, the analyst could use the planned business models to simulate the results.

Step 9: Plan for Training Evaluation

The only way to evaluate the effectiveness of training is to measure the performance results after training.

Micro KPI targets could be set in advance by both the trainees and bosses.  They may want to include these in the job description.

The process in summary:

1. To identify where in the organization, training is critically needed?
• Performance gaps against industry standards.
• True performance
2. Who among the staff needs it?
• Non-performers
• confirm with boss and further analysis through some watch.
• Duty and task analysis
3. What training are needed for the concern staff?
• against bench marks
• best practices
• competency gaps
4. How will the training be provided?  Alternative delivery costs
5. How much will it cost? and
6. How much the impact be on the business?
• simulated ROE
7. Calculate the ROI to justify training

Performance first TNA

Training Need Analysis in 6 key steps

1. Identify Critical performance gaps (bench marks with industry standards)
• ROE Chart Du Pont
• Benchmarked standards 
• Input output graph to measure actual performance
2. Identify the critical job holders (non-performers yet critical)
• BSC perspectives
• KRA -  pareto principles
• gaps caused by competency and not by volume change
• KPIs
• Job analysis
3. Identify the unique critical competency gaps (compare performers against non-performers)
• knowledge gaps
• skill gaps
• attitude gaps
4. Conduct alternative confirmation on the unique competency gaps
• check with supervisors
• personal interview
• personal training records
• duty and task analysis
5. Conduct  training need justifications
• training inputs, output and outcome.
• ROI /  IRR justification
6. Submitting TNA report

Copyright:  Arriffin Mansor 012-2786282

Competency based TNA - 8 steps

Identifying competency gaps through performance gaps.

(the only effective training need analysis)

1. Identify critical performance gaps of the company with suitable benchmarks.
• From ROE check in depth at the bottom of the Du Pont Chart.
2. Check the root cause of poor performance beside competency.
• identify performance gaps purely contributed by lack of competencies.
3. Identify critical job holders to check on their competencies
4. Draw best practices from benchmarks and compare them to arrive at the unique competency gaps.
5. Confirm types of competency needs through BSC analysis. OR
6. Confirm competencies through alternative processes.
• survey questionaire
• focus groups
• observation
• task analysis
• personal records
• Personal interview
7. Chose appropriate training delivery for most economical approach.  Conduct cost benefits analysis to justify training. (use before and after  training comparison)
• Calculate the training benefits through the performance improvement gains
• divided by the training investments/costs
• ROI training
8. Submit TNA reports.

copyright (c) Arriffin Mansor 012-2786282

Top 16 best practices in HR Training

Here are the top 16 best practices in Malaysia announced by Malaysia's HRDF.

1. Top Management must display positive role models for training.
• discussed with CEO and key functional heads
2. Heads of departments should be actively involved in training.
• Both Gaps agreed with them
3. Training is linked to the business plans and continouse improvement.
4. Dedicated training personnel to provide customised and targeted training.
5. Flexible budgeting approach to training.
6. Take advantage of the levy and government financial support
7. Develop an Annual training plans
• prioritized training activities based on ROI
8. Ensure new recruits complete mandatory training programs before confirmation.
• understand company's performance policy
9. Develop a culture of learning i.e training culture and systems
10. Employee should know the importance of continous training
• on and off the job training
11. Training is linked to performance appraisal and remuneration.
• KPIs used in the above functions
12. Develop a Formal job description
• based on best practices and key result areas
13. Conduct staff performance appraisals to identify skill gaps
14. Identify departmental needs for training
• gaps are departmental needs
15. Obtain information from multiple sources: CEOs, HODs, employees, performance appraisal
16. Develop core mandatory programmes for the company.

Extracted by Arriffin Mansor 012-2786282

Arriffin Mansor 012-2786282

Job and training description 11 points

Job descriptions plans, monitors performance and identify gaps for training needs purposes

1. Establish the performance targets  of all duties and tasks.  Relate and agree with performance objectives of the job.
2. Establish and agree on performance gaps between the achieved and the standards
3. Identify best practices through benchmarks and sets of required competency.
4. Discuss and agree on the key result areas   
5. Discuss and agree on key performance indicators
6. Discuss and agree on the KPI rate.
7. Delegating responsibility by performance metrics
8. Accountability by performance results and performance evaluation
9. Job description clearly shows the person whom the job holder report to.
10. Job description also define the required authority to be delegated.
11. Job description set the clearly duties and tasks expected of the job holder.

Being a performance contract agreed between the boss and the employees that includes the measurable job goals with the expected performance standards to be achieved with the agreed key result areas, job description also delegates authority and resources for that purpose.

copyright arriffin@gmail.com 012-2786282

Job description under performance regime - 10 points

How job descriptions are discussed and agreed before they are signed as a performance contract between the employees and their bosses.

1. Established, defined and measured performance objective and goals
2. Establish and agree on performance gaps between the actuals and the standards
3. Identify benchmarks and best practices and a sets of required competency.
4. Discuss and agree on the key result areas to achieve these objectives
5. Discuss and agree on key performance indicators  on the activities.
6. Delegates duties and tasks by performance metrics
7. The desired performance results clearly described to enforce accountability.
8. Job description identify the person whom the employee report to.
9. The Job holder and his boss may recognize some competency gaps in the job holder which may require some kind of training to close the gaps. 
10. Job description also define the required authority and resources to be delegated to the employees to carry out his tasks and duties.

Arriffin Mansor 012-2786282

Latihan ialah Tiru dan laku - copy and paste in training

JENIS LATIHAN UNTUK KAKITANGAN YANG TELAH DIKENALPASTI MEMERLUKAN SUPAYA IMPAKNYA TERHADAP MATLAMAT SYARIKAT.

Latihan sebenarnya ialah meniru dan melakukan sebaik apa dan siapa yang mendatangkan hasil sama seperti mereka yang ditiru (benchmarkings dan best practices)

Latihan hanya perlu pada mereka yang menghasilkan jurang prestasi yang negatif.  Bagi mereka yang menghasilkan prestasi terbaik maka mereka tidak perlu latihan. (critical performance gaps)

Latihan patut tertumpu pada pekerja dan kumpulan pekerja yang menghadapi jurang prestasi.  Dari jurang prestasi kita kenali jurang kompetensi. (poor performers)

Jurang kompetensi seorang pekerja dikenalpasti melalui profiling.  Apa kompetensi yang mereka tiada atau tidak cukup berbanding dengan mereka yang didapati kompeten melalui prestasi.

Amalan terbaik atau best practices ialah gerak laku mereka yang menghasilkan prestasi yang terbaik dalam industri.

Arriffin Mansor 012-2786282

The myth in TNA survey

To my mind, opinion and perception survey for training need analysis is a myth.

Processing a sample of opinions does not serve the purpose of identifying performance gaps of the population needed to improve subsequent performance of an organisation.

How could a worker knows exactly what his training needs are?  How could the feedback from the workforce which are full of opinions form a basis of their own training?

True a survey has been an accepted tool in scientific study by researchers and student.  It may be suitable for marketing analysis because marketing is identifying of perceptions and opinions.  Indeed a TNA survey, with a set of wrong collected data (opinions and perceptions) processed with a highly sophisticated statistical instrument would still be not meaningful.

Workers and managers would not know of their shortcomings or their incompetency because of the following reasons:-

1. It is beyond their knowledge. (unconscious incompetence)
2. A new competency would be unknown to the surveyed workforce.(new competency)
3. Workers would not disclose their incompetency because of their pride and to uphold their image. (non-disclosure)(suppressing information)
4. Surveys are a collection of the job holders' subjective perceptions and opinions.

The only approach to TNA is to identify critical performance gaps from which the competency gaps could be drawn.

Performance gaps drawn from actual performance reports are more objective in its approach.  After all, this is exactly what the CEO wants out of a TNA.  The CEO would like to know what kind of training he need to give to my workforce that would give positive maximum impact to the bottom line.

A benchmarked company does not only provide performance standards but it also provide best practices for the purpose of training need identification.

After all, training is a copy and paste applications.  It is identifying what and how to copy and duplicate them.

It is not merely the transmitting of opinions and feelings.

Arriffin Mansor 012-2786282


Example of survey questionnaire used in TB

Sales Skills	1weak	2	3avg.	4	5strong
Ability to qualify buyers quickly
Identifying customer needs
Identifying customer objections
Overcoming customer objections
Prospecting / cold contacts
Conducting presentations
Closing the sale

TRAINING NEED ANALYSIS in 12 steps****

Performance gaps are drawn from performance before and after. TRAINING NEED ANALYSIS
Total Performance Analysis					Competency Analysis
1	Analyse financial statements	ROE Charts
2	Industry performance standards	KPIs
3	Job Descriptions
4	Performance standards
5	interview CFO and heads of functional departments to confirm gaps
		Key Performance gaps
					CRITICAL  JOB HOLDERS
				6	Job Descriptions	Key Result Areas
				7	Duty Analysis
				8	Task Analysis	Input output analysis
				9	Knowledge, skills & attitude
				10	Best Practices - competencies
				11	Change direction by CEO – New Goals	Competency Gap Analysis
				12	Alternative delivery	ROI justification
							TNA

Arriffin Mansor 012-2786282

Corporate Competency Workshops****

1. Performance audit and turnaround strategies
2. Competency gaps and Training Need Analysis
3. Productivity Linked Wage System
4. Performance Framework
5. Performance Leadership and Team Building 
6. Strategic Finance in spreadsheet
7. Cash flows and project financing
8. Managing Change
9. Business plans in 7 steps
10. Marketing Strategies and Budgeting

Arriffin Mansor 012-2786282

TNA that comply with best practices

(Our TNA approach as described further down is in line with the best practices adopted by HRDF Malaysia)

A PERFORMANCE BASED APPROACH a suggested practice by the Malaysian HRDF.

1. Identify critical performance gaps based on financial statement analysis through benchmarking internally and externally.
2. Incorporate new strategies and best practices adopted by management for the coming periods.
3. Identify the critical groups or persons that require performance improvement and competency profiling.
4. Identify competency gaps that requires training solutions.
5. Identify the expected training benefits and justify training through the ROI.

How to identify performance gaps through financial analysis and benchmarkings.

1. ROE Du Pont Chart
2. Functional Key Performance Indicators
3. Process Indicators
4. Input efficiency indicators

How to identify competency gaps among the critical group or persons lacking in performance above.

1. Job Analysis  -  objectives / goals
2. Duty analysis -  key result areas /  job descriptions
3. Task Analysis -  key activity / job specifications

Use the BSC perspective to identify learning and growth on the performance objectives.

Measure their knowledge, skills and attitude through observation and interviews with the job holders and their bosses and peers.

The competency gap analysis is confined only to the critical non-performers.

The ROI is computed by dividing the expected training benefits by it's costs.

The training gains and benefits is derived by performance after training less performance before training.

The input output graphic presentation illustrates the net benefits in training.

Top 16 BEST PRACTICES IN TRAINING -  Extracted from the booklet by HRDF Malaysia

1. Top Management must be positive role models for training.
• discussed with CEO and key functional heads
2. Heads of departments should be actively involved in training.
• Both Gaps agreed with them
3. Training is linked to the business plans and continouse improvement.
4. Dedicated training personnel to provide customised and targeted training.
5. Flexible budgeting approach
6. Take advantage of the levy and government financial support
7. Annual training plans
• prioritized training activities based on ROI
8. Ensure new recruits complete mandatory training programs before confirmation.
• understand company's performance policy
9. Develop a culture of learning i.e training culture and systems
10. Employee should know the importance of continous training
• on and off the job training
11. Training is linked to performance appraisal and remuneration.
• KPIs used in the above functions
12. Formal job description
• base on best practices and key result areas
13. Conduct staff performance appraisals to identify skill gaps
14. Identify department needs for training
• gaps are departmental needs
15. Obtain information from multiple sources: CEOs, HODs, employees, performance appraisal
16. Develop core mandatory programmes 

Extracted by Arriffin Mansor 012-2786282

Standard Operating Procedures SOP

What should be in the SOP?

definition:  A set of fixed instructions or steps for a carrying out routine operations.

9 elements

1. Performance objectives / goals / kpis
2. Key Result Areas to achieve goals
3. Key Performance Indicators / Efficiency measures
4. Internal Control systems - promote efficiency, integrity and objectivity and performance.
5. Chart of Authority - delegation of authority
6. Functional descriptions, process and activity description.
7. Strategic Maps - linkage to the organisation
8. Key Activity budgets.
9. Input output system and
10.  the value chain system

Arriffin Mansor 012-2786282

ROI training Formula

What is ROI?

1. ROI or return on investment is a measure justifying all kind of investments.
2. ROI is a ratio dividing profit with investment.

Training investments definition

• All costs involved to improve the competencies of the staff.

Training income / impact definition

• All improvement recorded after the training interventions, performance after training less before training.
• Identify the key performance indicator to measure results of training
• Compute the before and after KPI ratios
• Use input output graph to measure the impact of competency improvement.

EXAMPLE - calculating the ROI.

Before training performance -   RM3,000 sales profit 

After training performance -     RM 5,000 sales profit

One year impact RM2,000 x 12  =  RM24,000

If training costs is   RM20,000, profit is RM4,000 divided by RM20,000

ROI is 20% per annum  

Difficulty in evaluating training

1. Unlike other investments, the impact and outcome in training is continuous and infinity.  The impact on staff training could be long and timeless.
2. Measuring precise training costs and investment is almost impossible.
3. Classroom training costs are easier to account but on the job training and coaching is difficult to value and demarcate.

Arriffin Mansor 012-2786282