Most company executives decide to spend cash on training because it is popular, especially when economic times are good. There is a view that it is “good” & it is also something that responsible leaders are supposed to do to prepare for the future. However, just spending cash on training isn’t the only answer. Training alone will not produce the kind of results that training combined with coaching & mentoring can produce. Training can increase specific skill sets but education, coaching & mentoring is necessary for complete employee development which incorporates leadership in to the equation.

When Times Get Tough

Unfortunately, training becomes the first activity to be cut when times get tough. There is also no clear cut objective measure that calculates the business case for Return on Investment (ROI) for training.

Continued Investment in Training Activities Should Take in to Consideration:

• How the employee learned how to do their job? Was it in a seminar?

• What role did formal company sponsored training play in the development of the best people at the moment employed?

• What measures exist to identify current employee effectiveness? How do you measure improvement & contributions to profitability?

• There are many ways to change behavior & training is one of the least effective. High impact change strategies start with direct manager coaching, counseling & mentoring.

Regular performance appraisals, changes in incentive or pay practices, changes in work flow processes & information system tools are often necessary to support the coaching & mentoring process.

• How does the proposed training investment fit in to the organization’s overall change strategy? Is there even a clear strategy in existence?

Training — The Official Definition:

Limiting the behavioral responses to a given stimulus, while development is intended to increase behavioral alternatives to the same stimulus

As an example, employees need to be trained to enter an order because there is a “right way” to do it. Sales people need to be developed to increase their effectiveness in customer situations. The desired behavior is clear & compliance measures are relatively easy to ascertain. Development is much more esoteric if a real return on investment is desired. Development requires coaching & mentoring.

Walking the Walk

When individual companies select to make the investment & develop proprietary training programs, a different approach may be necessary to meet desired objectives. In simple terms this approach includes:

1. An assessment of the training population (employees) in question from both peer comparisons & within the distribution segment that the company competes. This normally results in some staffing changes, i.e. “let’s get rid of the habitual non-performers first”.

2. Development of an explicit & company specific “Best Practices” model that defines individual behaviors, management practices, & the information tools necessary to accomplish the work. This usually results in some formal definition of work flow processes & formal tools to do the work & measure success, i.e. “a formal scorecard for sales people”

3. Support & commitment on the part of the management group to create this company success model. This usually results in new computer reports, information tools, as well as policy & procedure changes.

4. Company managers should be certified in the process to provide ongoing support with new people. Coaching & mentoring classes should be completed by all managers to support the training process. Employees are taught how to use the new tools & measurement systems with the full involvement of their immediate supervisor. Post training coaching & reinforcement is the number one criteria to insure behavioral change.

Many companies will chose to buy seminars where the main concern is the speaker, & audience entertainment style evaluations, i.e. “This was the best seminar that I ever attended”. While managers get a “feel good” there are other alternatives for those who believe that employee performance is a basis for competitive advantage. Seminars are not designed for behavior modification. They must be supported by follow-up training, coaching & mentoring dependent upon individual employee circumstance.

Training is designed to improve specific skills. Education is designed to teach knowledge. It is significant to realize when to train & when to educate. Timing is important…

When Should I Train & When Should I Educate?

Leadership carries a responsibility to release the greatness in others. The ability to recognize potential in others is significant in determining the type of support an employee may need. Training is the easy part because most training is job specific. However, internships are often initiated by progressive companies for high potential employees. Internships should include training, education & coaching & mentoring. Training should be given to all employees to improve specific job performance. But, if you are going to build bench strength & create effective succession planning, training, education & coaching & mentoring combined are the prerequisites for success.

Training alone can be effective when;

• New skills are required due to job requirement changes

• Performance levels are not acceptable

• Task related issues are identified

• New employees are hired

Education can be effective when;

• Employees seek additional responsibility

• Employees seek more challenge

• Employees demonstrate potential for future development

• Needs for bench strength & leadership voids are identified

Authors Note: Education & training can always be beneficial under almost any circumstances. The intent of this article is to encourage not discourage more education & training. However, realistically, every company has a budget. As a result, it is helpful to identify specific needs for training & education to maximize the return on investment dollars.

Whether the company is providing training, education or both, the success ratio & return on that investment can be increased exponentially if they are supported by a coaching & mentoring process.

Check out Rick’s new CD & Workbook — Real World Leadership Kit — “Learning to Lead So Others Will Follow” http://www.ceostrategist.com/resources-store/real-world-leadership.html http://www.ceostrategist.com – Sign up to receive “The Howl” a free monthly newsletter that addresses real world industry issues. – Straight talk about today’s issues. Rick Johnson, expert speaker, wholesale distribution’s “Leadership Strategist”, founder of CEO Strategist, LLC a firm that helps clients create & maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com