Calculating the ROI (return on investment) in Training has always presented a challenge for Human Resource professionals. During economic recession periods, such as in 2009, the majority of corporations cut Training budgets drastically as one of the first attempts at reducing costs. Presently, there appears to be a return to regular training activities. What can this pattern tells us about achieving positive ROI in training? Why are training budgets so easily cut and restored? Does training present such limited ROI that it is only affordable when times are good? Surly there are other factors which should dictate training decisions besides whether the quarterly revenues were up or down. We need an effective measuring device to help us make training decisions. We need to view training as and investment not as a cost.

According to Marshall Goldsmith, a business-literature author and executive coach, approximately 80% of Fortune 500 companies and FTSE 1000 companies today use executive coaching extensively in an effort to stay on top. Over the past decade there has been a substantial global increase in coaching, both in firms providing services and in the programs they offer. In China, likewise, corporate coaching has become an increasingly common phenomenon, although mainly reserved for multi-national companies. That being said, it is still common for organizations in China to avoid coaching because it is still quite misunderstood. There is still a considerable degree of vagueness on the concept of coaching, as it is often confused with training, mentoring or even consulting. Network HR aims to shed light on this critical, innovative method of continual improvement.

Recently, using my Linkedin.com account, I signed up to be part of the “Trainers Network” – a group of many hundreds of corporate trainers and speakers all over the world. One of the most commented on discussions is on the topic “1 Major Difference Between A Great Trainer & A Mediocre Trainer Is...” and people have to give their ideas. Over the past 6 months there have been a total of 193 people ommenting on this issue with a wide range of answers.

Not surprisingly, most popular answer of all was “Passion!” To be a great trainer most agreed it took a great deal of passion for the subject being taught and an ability to transfer this passion to the trainees. One gentleman did reply that he’s seen extremely passionate trainers who deliver information that is relatively irrelevant for the audience and I had to agree. Passion, while being essential to keep the audience engaged, is certainly not the only thing a trainer needs.

I began to think about the question myself and started writing down some notes:

-Deal swiftly with the “Elephant in the Living Room”

Imagine that it’s a rainy Saturday afternoon and that you are popping around to your friend’s house for a quick visit. Your friend greets you warmly at the door. On entering their family home you take off your shoes and jacket and make your way through to the living room. You greet your friend’s parents briefly as they glance up from watching their favourite TV show and suddenly you notice… there sat on the sofa is an enormous African elephant. Your friend returns from the kitchen and hands you a glass of coke, beckons you to sit down on the little room left on the sofa and asks you how your week has been. You are quite astonished that no one has mentioned the enormous animal in the room but begin to describe the ups and downs of your week at work. Somehow everyone in the room appears to have accepted the smelly, grey quadruped but it keeps nagging away at you. Later on in the conversation you begin to feel that too much time has passed for you to mention it. Talking about it now could be rude, might be awkward and everyone seems fine with it. You try your best to ignore it as it slowly crushes you up against the arm of the sofa and lights up the room with the smell of a great big…