How to make best use of your training budget in 3 steps
In uncertain times, L&D budgets have a tendency to get slashed. This doesn’t need to herald doom and gloom. It’s an ideal time for L&D to reposition yourselves as integral to the business, as consultative partners who help to support wider organisational strategy and goals, rather than as a training shop.
So how do you do this with a limited budget?
We always recommend looking for learning and performance problems to fix, or opportunities to capitalise on, and directly targeting them with projects. That way, you spend your budget where it will have the most positive impact for the business. It is easy to be seduced by new tech – resist! Instead….
- Make better use of what you already have
- Supplement / add to it to fill gaps
…in that order.
Within the organisation will be problems and opportunities of different magnitudes. These might range from a small niggle that requires a ‘work-around’ in order for people to get their jobs done, through to large problems that generate risk and cost the organisation money. We use a process with customers to identify and prioritise these problems and spot opportunities:
- We start by talking to them, their stakeholders and a range of people across the function or business. These are short, informal chats where we ask about where they think improvements can be made or ways of working improved. What should happen is that, as we collate these, a number of problems or opportunities appear, triangulated by the independent comments of different stakeholders.
- Next, we attempt to quantify the problems and opportunities. We aim to put monetary figures against them. This might include errors made and the cost to put them right, time costs, efficiency losses, sales opportunities lost, cost of non-compliance and so forth. We ask questions during the interviews to start to quantify the problems and opportunities.
- Then we prioritise the problems in order of magnitude and impact on the business. You should then spend your budget addressing the most impactful problems and capitalising on the most valuable opportunities. Each of these high-impact problems / opportunities should become a project with an appropriate budget attached to solving it based upon it’s magnitude.
This simple approach means you’ll be focused on outcomes, aligned to the business and making a real difference in what you do. It will also lead you away from costly traditional training approaches and towards practical solutions to real problems and opportunities.