Performance Management: What is key performance gap?

Performance Management: What is key performance gap?: "Performance Gap is the difference between achieved and targeted outcome. The key PGs could be identified using the DU Pont ROE format. Pri..."

Calculating ROI Training

8 steps to calculate the ROI of training.
ROI is used for both justifying  or evaluating training;
Use expected figures for justifying whilst for evaluating, actual figures.

1. Measure output input KPI before training.
2. Conduct training on best practices
3. Calculate total cost of training including opportunity.
4. Measure output input KPI after training.
5. Measure net improvement change through the shift of the KPI.
6. Calculate the net value of the output as the result of improvement in competency.
7. Eliminate the effect of volume and trend. (other factors than training)
8. Divide 6 by 3 to arrive at return on investment.
9. You can also extend the ROI calculation to IRR which is more precise indicator

Training Needs Analysis - 6 steps

The most efficient and effective TNA is as follows:-
a) Identify Critical performance gaps - use ROE Chart - compare actual against standards

b) Evaluate the gaps to confirm lower efficiency - use input output analysis to remove the influence of other factors.

c) Task and sub task gap analysis to identify competency gaps

d) benchmarking to identify best practices - standard competencies

e) Standard competencies minus actual competence = competency gaps

f) Group and cluster competencies for training delivery purposes.

We initially look for performance gaps and thereafter competency.  This is the most objective analysis by avoiding opinion survey.

We can do TNA less than 30 days.

see TNA Chart for greater appreciation.

Arriffin 012-2786282

Spreadsheet Finance - 7 key steps

1) Cost analysis for decision making

• Cost concepts
• Break even analysis
• Activity based costings

2) Working capital management

• Current Assets minus current liabilities
• Trading Strategies

3) Fixed Asset Investment and depreciations

• Evaluate fixed asset investment
• Leverage /  loans

4) Equity and Leverage

• Shares
• Preference shares
• debentures / bonds
• Bank Loans

5) ROE objective and structure format.

• Financial strategies to achieve objective

6) Cash flow projections

• Templates
• Liquidity Planning

7) Constructing the financial statements

• Income statement
• Balance Sheet

8) Evaluation of financial performance

• ROE Chart

When is a Performance Gap a Developmental Need?

What is Identification of Training Need?

HR Management: Training & Development