Tuesday, October 13, 2009

Measuring the RoI on Entry Level Training Programs

Organisations spend a fortune on training fresh recruits from campus (as well as on other organisational learning initiatives which is such a fad in this 'knowledge economy'), but I wonder whether they ever measure the return on investment that they get from these trainings?
Even though I do not have empirical data to prove my case, I would safely bet that most organisations do not measure their returns on trainings and more importantly do not even have a methodology to do so. I perceive this as a serious faultine in an organisation's HR and learning processes, because the organisation is fundamentally not measuring whether the huge amount of money, time and resources spent on training are contributing to organisational effectiveness and growth. What is the point of training if the employee is not able to contribute to the bottom line of an organisation? I am convinced that there are serious faults with the way training is being imparted currently, especially to entry level employees (I had touched upon this point in a previous post), because there is a glaring disconnect between actual project contribution of an employee and the training that is imparted.
Why does this happen?
The primary reason for this has to be the organisational design - with different departments handling a 'resource' at different points of time and working in silos. Almost every company that I know has a dedicated training department which takes care of the entire training initiatives, then there is the HR department which liasons between the employees and the training department and finally there are the operational departments where the employees actually work. Now what happens when an entry level employee joins the organisation? The HR folks handle all the onboarding formalities and pass the new employees on to the training department. The training department 'owns' the freshers for the stipulated training time which could range from one month to a maximum of three months. In the mean time, the HR department will liason with the various operations departments to understand the openings available for freshers in various projects and will decide on a resourcing plan. Once the training period is over, the fresh recruits will be 'released' to their allocated operations departments. That's the end of the story - the training department will flaunt their 'metrics' on the number of recruits they trained each period, the number of recruits who obtained excellent rating in the evaluation exams, number of hours training was conducted and a host of other 'performance indicators' that will help the training manager draw up colourful charts, the HR department on the other hand will also draw up their metrics on the number of positions filled with freshers, number of offers vs. number of actual joiners etc. Are these metrics and measures important and of any value? Is the measure of the number of people trained or number of hours training was imparted of any true value to the organisation? My answer is no - these are all dead statistics, numbers which might look good on a presentation, but giving no real insight into the actual impact on organisational performance. If the actual effectiveness of trainings are to be meausured, the training and HR teams should move beyond their current boundaries and look into the operations departments for data on the impact of the trained employees on project delivery. Post-training, if majority of the employees have not been able to contribute positively to a project or if their skills are being eroded, then that does not speak volumes about the effectiveness of the training. I am also convinced that if organisations start measuring the actual impact of training and more importantly learning on organisational performance, they will even rethink some of the training strategies they have in place. Thus my argument is that organisations need to meausre the returns they have on trainings and need a complete rethink about the KPIs that are set for the training department, the measure of a good training department is not in the number of people they were able to train, but in the contribution of the training to organisation's financial performance. But that cannot happen as long as the various departments work in isolation of each other and lack systems thinking. Well there is only one important measure of success for any department in an organisation, the direct or indirect impact that the department's activities have on the financial performance of an organisation.

Just Believe!

The greatest mistake a manager can make is to not see the potential and aspiration of his team members and provide the right opportunities. Why is it that most people I know reluctant to give inexperienced yet high potential employees the big opportunity citing their relative lack of exposure to an area as a constraint? Experience is a devious word and over the years as I have come to understand, one that can breed mediocrity. Trust and believe in the 'potential' of an employee rather than his/her specific experience, for only the that can assure you continuous growth and excellence.
Just believe....the results will follow and there is no better investment you can make towards the future of the team and the organisation!

Friday, October 2, 2009

Watch without numbers....

Overheard at office, a conversation between two cubicle mates, working on different projects:

A: 'When did you come to office today?'
B: 'Hmm, around 8 in the morning?'
A: 'My goodness, that's almost 12 hours of work, too much of work load these days is it?'
B: 'I enjoy what I do, I am getting to work on end to end systems here and not just at a small piece of code. I don't think that's any load'

It goes back to the old quote 'If you find a work you enjoy doing, you will not be working for a single day of your life'. Well, I find that the workplace is a victim of an overdose of this propaganda cocktail of 'a balanced life', 'work-life balance', 'fun at work' and the rest that tend to treat work as a means of earning livelihood and separated from the definition of the self.

Well, does it really matter from the point of view of an organisation what attitude an individual has towards work, as long as deadlines are met and great products are delivered? Well I think yes, it does indeed matter....that might just be one piece to the jigsaw called 'true work satisfaction'
I want to sign off this post with a short scene from Good Will Hunting where Matt Demon tries to explain why he's able to do Organic Chemistry problems with ease (when Minnie Driver says that 'nobody does Organic Chemistry for fun'. How many times have I heard one variant or other of that phrase - 'nobody works for fun!').

Monday, August 10, 2009

I've been shopping at Flipkart

The entrepreneur bug seems to have bitten too many young Indians of late! We've been seeing entrepreneurship camps, been hearing about seeding (that was a pure biological term in the 90s) and angels (and this was reserved to the Bible) and have been having our own share of college dropouts idolising Bill Gates! For someone who truly believes in the power of potential and will, it's just amazing to see this enormous rush of energy and I am convinced that some of these ventures will take India from being a pure service oriented market to a product oriented one.
It is in this context that I want to write about Flipkart.com. It is an online book store, modeled in the same lines as of Amazon started by two IIT Delhi grads. There isn't anything spectacular about Flipkart, because they are just following the lines of a model started off by Jeff Bezos 15 years ago. But somehow I like Flipkart (as they say it all lies in winning the heart of the customer!) for it's simplicity, for the fact that it's founded by two young Indian lads, for it's excellent share of rare books, for it's excellent price mechanism where the same title is offered at varying prices based on the print, publisher etc, for it's extremely search engine friendly design, for it's easy and flexible payment options, for it's very prompt delivery and excellent packing (the books I ordered came bubbled wrapped and in a cardboard box) and for it's decent customer service (when they could not procure a book I ordered from any of their vendors, they gave me a discount coupon on future purchages and I just got an alert from them saying that a book that I said I was interested in was available with them now). The site has a user friendly design with common features like comments and related books, but considering the fact that they are still growing, these features are not very mature and useful. But overall I will recommend this site for others within India to shop for books - because it does a decent job of delivering books on time, has a solid collection of books and because it's a startup right here at Koramangla, Bangalore!
Pure book portals are a relatively new concept in India and it's an area with huge potential. It is pretty disappointing though that almost all the players are sticking onto the tried and tested ways of retail or online book selling and have not ventured out to try out new avenues. Typically most Indians are not tuned to buying books and most books sold at these outlets are prohibitively expensive for the common man (mango people according to Imtiaz Ali - watch this) - because of this business model most major players are restricted to a very small pie of urban corporate class. There lies a sea of opportunity for these players to reach out to the average Indian - through regional language books, second hand books and networking the many local run libraries in the thousands of small towns and villages of the country.