ROI calculation for trainings, effectiveness and evaluations for training programs with impact on the ROI, facts and figures for an incresase in ROI by trainings

1. Training as an Effective Measure to
Increase ROI
Example: „Intercultural
Communication Trainings“

2. Case Study: Intercultural
Communication Trainings
Current Situation:
o A large number of IT projects fail, because of
missing intercultural skills
o The potential of multicultural IT projects cannot
be exploited at a percentage larger than 50%
Benefit of intercultural Seminars:
Participants learn how to,
o …recognise and structure intercultural
differences and experiences
o …overcome challenges in intercultural contexts

3. Why Trainings in Intercultural
Communication?
Improvement of communication skills
in an international context:
According to studies, 70% of all errors
in IT Projects are based on failure in
communication
.

4. Intercultural Trainings lead
to…..
• … decrease of Losses
Caused by intercultural
misunderstandings

5. Intercultural Trainings lead
to…..
…faster success in project
execution due to improved
collaboration

6. Intercultural Trainings lead
to…..
…..better team spirit in project
teams and higher chances to build a
„High Performance Team“

7. Intercultural Trainings lead also
to…..
• ….. A significant competitive edge
• …...more effective communication
• ……decrease of misunderstandings and its costs
• ……improved mutual understanding

8. How Effects of Trainings can be
Measured in Numbers?
• Isolation of training effects in a control
group
• Monitoring of visible results
• Estimation and statements of the
participants
• Estimation of the project team leader
(„Supervisor Assessments“)
->Conversion of data in solid numbers and results

9. 4- level Model of Training
Evaluation
ROI
Level 2 Level 3 Level 4
Level 1 Return on
Learning Behavior Business Invest of
Reaction Change Results
Trainings
Nach Donald Kirkpatrick

10. „Intercultural Communication
Trainings“ – Impacts on the Business
Which results are achieved in the context of
intercultural communication?
• Higher level of cultural awareness, understanding
of the functions, what means „culture“?
• Negotiation skills in an intercultural context, focus
on Sales Presentations
• Awareness of the meaning of time in different
cultures
• Ability of effective virtual communication/video
conferences

11. Examples for Seminar Content on
„Intercultural Communication“
o Negotiations in an
intercultural environment
o Practicing of different
communication styles
o Presenting in the context of
another culture, e.g. Sales
Presentations
o The meaning of time in
different cultures
o Practices for virtual
communication
o Support of adaption of agility
(e.g. Scrum)

12. Evaluation of Trainings
- Guidelines-
o Compare with a seperated control
group
o Concede sufficient time for visible
results in behavior change
o Implement measures before and
after the program
o Evaluation questionnaires:
Questioning of the
participants, supervisors, co-
workers, etc.

13. Performance Indicators and Measurable
Improvements (after the Training):
Hard Facts Soft Facts
 Duration of the project  Effective communication
 % of Unproductive  Employee satisfaction
working time
 Quality in decision
 Customer satisfaction making
 Need of extension of
 Lower stress level
project time
 Error in the project  Higher level of agility
 Number of units with re-
working

14. Significant Cost Cuttings due to..
o Shorter project duration
Projects can be realised within an
->
average of 2 months quicker
o Significant reduction of ineffective
communication
o Improvements of communication in
video conferences
-> Costs for travel and face-to-face
meetings can be lowered
-> Effective Working in Offshore
Situations

15. ROI- Calculation for Trainings on
the Topic of „Intercultural
Communication“ in IT Offshoring
Projects
Project Time –with and without
Trainings in months
6
5
4
3
2
1
0
2007 ohne 2012 mit Training
Training

16. Calculation of ROI for
Trainings
ROI = Total Benefits – Total Costs x 100 =
Total Costs
Figures:
100.000 € Cost cuttings by shorter project duration
25.000 € Expenses for inhouse seminars „Intercultural
Communciation“
ROI = 100.000 – 25.000 x 100 = 300%
25.000

17. Immaterial Effects of
Seminars („Intangibles“)
Some effects of Trainings are „intangibles“ and cannot
be measured in numbers
• Z.B. increased self esteem and motivation of the employees
• increased employee satisfaction
• increased communication skills
• improved Customer Service Skills
• ability, to work and communicate in a functioning team structure
• Agility, agile and motivation with a high level of motivation

18. Thank you for your attention!
Should you have further questions, please
don´t hestiate to contact us!
MBO Consulting
Sonja Uhl
Manager Trainings & Events
Sonja.uhl@mbo-consulting.eu
www.mbo-consulting.eu