Any business investment needs to see a return. The ultimate objective of managing and developing people effectively is to improve organisational performance and therefore we need to understand the return on our investment (ROI).
A culture of continuous improvement is at the heart of BankMuscat. As people make the biggest difference between success and failure, it is important to continue making improvements to the way we manage and develop people and the way in which we implement and improve our business processes.
BankMuscat evaluates to understand the full cost of L&D strategies and the return on investment for the business in order for managers to make better decisions about how to invest time and money in people development; through measuring people’s progress, planning further development and new people management strategies. In addition, evaluation helps identify weaknesses in current practice before it impacts on the bottom line.
Understand what successes have been achieved
Identify weaknesses in system
Evaluation data informs strategies for improving BankMuscat’s performance and that of our managers
Evaluation of learning and development is a process which considers both ‘ inputs’ and ‘ outputs’ to determine the results and impact of our investment on BankMuscat’s performance.
The amount of resource (money, effort, personnel, time etc) invested with the aim of achieving an improvement.
The take-up and immediate feedback about the processes we use as part of implementing our strategy for improvement.
2a. Output measures – perceptions
How people feel about the results of the implementation of the strategy for improvement.
2b. Output measures – results
What has the impact of the improvement been on the critical measures of BankMuscat’s performance in Key Result Areas eg
Increase in X by X %
Increase in customers by X%
Achievement of external assessments (ISO / IiP)
Achievement of awards
Satisfaction and commitment (internal staff survey – raise level of satisfaction in X by X %
Results of performance management/appraisals
Meeting operational targets
Quality of product/service delivered
Application of new techniques/skills
Up grading IT Hardware / Software
BankMuscat conducts evaluation at four levels using different strategies such as questionnaires, interviews and focus groups, feedback from performance appraisal, one to one discussions between managers and their staff and self-reporting by learners.
Data is collected on results and compared with the actual change in business performance to work out the total value of the investment on the activities and compare it with the value of the improvement attributable to it.
Evaluation at 4 levels
Assesses trainees’ opinions of the programme, including the content, speaker, schedule etc., typically via evaluation forms or comment sheets. This level is important as companies often modify their training curricula based upon participants’ feedback.
Measures the learning of principles, facts and skills and the adoption of attitudes that were specified as the training objectives to be achieved by the programme.
Measures the extent to which there are long-term changes in employees’ behaviour and the aspects of job performance that are related to training objectives – “ transfer of training”.
Gauges the impact of the training programme on business variables such as higher productivity or reduced costs. Relates training outcomes to organisational objectives and effectiveness criteria.
Information from Managers and Staff
Administration department got the information related to training from manager and staff through meetings and interviews. As well from performance evaluation and presentations that staff make after their training. Also, by using the effectiveness of training form which filled by the staff and their immediate supervisor which cover the evaluation of the training from 4 levels (Reaction, Learning, Behaviour and Result). Furthermore, we get the information from the learning and development benefits forms.
Good Evaluation Questions eg
What was the most important or valuable learning for you? Why? How did you learn this? (reflecting on the immediate past experience and looking for insightful, long-lasting ‘ ah-ha’ moments that help people to see that they can learn, and how they learn)
How can you apply what you learned to the needs of your job, your team/department, and the priorities of the business? What will you do differently now? (thinking about the present and looking for wider learning application and its relationship to the business and its chosen metrics)
How could you integrate what you learned into further learning opportunities available to you, and the developing requirements of your job, your team/department, the organisation as a whole? (pointing to the future and looking for the multiplicative effects of the variety of ways people can learn)
Collecting data on results – actual changes in business performance which comes from the Annual report of BankMuscat achievement / performance and feedback from top management.
Isolating the effect of development/people management activities eg customer feedback / staff survey
BankMuscat Links Learning & Development to Strategic Goals
BankMuscat Analyses Training Activities and Designates Priorities
BankMuscat receives L&D needs from each department and analyses them according to the priorities.
ISO / IiP / XX
Degrees and Higher awards XX
Implementing TQM / ISO / IiP XX
THE OVERALL INVESTMENT IN L&D RESOURCES / MONEY / TIME
The amount of resource invested with the aim of achieving an improvement. =
Training Centre (No of rooms etc)
Regional Training Centres (No of rooms etc)
Training DVDs /Journals etc
No of staff involved in L&D
L&D Budget for 2008 = OMR xxxx
Time provided for attendance and study leave
Eg Number of free days on courses? XX
explain and quantify, where appropriate, how learning and development has improved the performance of the organisation
Not all L& D activities warrant in depth analysis and calculation of the ROI. Activities need only to be selected to determine their ROI if they are costly, involve a large number of employees or if management has decided they require the ROI on a particular initiative or project.
BankMuscat calculates ROI by
Converting the effects of the activity into a value of improvement
Working out the total value of the investment in the activity
Comparing the value of investment in the activity with the value of the improvement attributable to it divide the ‘ benefit’ by the ‘ cost’ to give a % return
ROI provides us with the actual changes in people and business performance and cost /benefit.
(Provide actual Examples here)
Programme Title / Duration
XXX No of Employees XX x No of days = XX days x average day salary @ OMR XX per day = XX
Training programme Cost: OMR XX + Salary costs OMR XX = XX
XX Benefit ÷ XX Costs = % ROI
OVERALL L&D OUTPUTS & COSTS
TOTAL NUMBER OF SHORT COURSE TRAINING DAYS = XX days
TOTAL NUMBER OF FREE TRAINING DAYS = XX days
TOTAL NUMBER OF ACCREDITED PROGRAMES (eg X BSc / X MBA / X PhD) = XX
TOTAL COSTS OF ALL TRAINING & DEVELOPMENT = XXX
TOTAL COSTS OF ALL RESOURCES (staff and DVDs/journals etc) = XXX
Continuous improvement in organisations can be seen as including four key elements:
Define: Using internal planning processes and management information to define the direction of travel for the organisation – what you want to achieve
Assess: Assessing where you are currently against your desired aims
Prioritise: Agree expectations over a desired timescale and the improvements you desire. Develop and agree performance improvement plans to support the process
Deploy: The actions you intend to take and the resources to be invested to achieve the improvements
Reviews are sometimes once a year activities, but sometimes more frequent reviews are necessary. Continuous review involves:
Reviewing of performance and people management at every management meeting
Having accurate data or information for the current situation
Involving others to tell ‘ how it is’ – inside and from outside the organization
Committing to improvement actions within time scales
BankMuscat uses the ‘ Plan, Do, Review’ process to continuously improve and categorises the improvements as follows:
Incremental improvements through efficiencies – productivity, cost savings etc
Significant improvements through something being more effective – customer service, people contributions etc
Radical improvements through system level re-engineering – work redesign, a new process etc
Strategic improvements through initiation of new products, new capabilities etc
evaluation of the investment in people is used to develop the strategy for improving the performance of the organisation AND IMPROVING the organisation’s strategy for managing and developing people
BankMuscat has made improvements in the 6 business enablers as follows: Examples
5% of the bonus percentage for new ideas
Peer Review of Presentation Skills
New Appraisal Process
Electronic employee’s files.
Flexible working hours
5% of the bonus percentage for new ideas
Identified Managers Capabilities
Management Development Programme
Learning & Development
New training needs identification process and training plan.
Evaluation & Continuous Improvement
New evaluation system and process for Continuous Improvement