One of the major mistakes I consistently run across as a business coach is the lack of training in small companies, and my definition of ‘small' is sales under $300 million.
Jim CastigliaWhen I worked for a California consulting firm in the early 1990s, I trained Fortune 500 executives in presentation, business writing, and Socratic selling skills. I can attest to the money and effort they invested in training. These companies spend millions of dollars each year on training delivered by outside companies. Why? Because they know that training works and has a high ROI.
I’m currently training a small $3 million company in advanced sales techniques and helping them to define a clear, step-by-step sales process. Their salespeople have had formal sales training in Dale Carnegie, but there’s nothing brought back into the company as a regular training program.
Why Companies Don’t Make Training Essential
Why don’t companies recognize the value of consistent, ongoing training? The number one reason I see is the “We’re too busy” excuse.
The second reason is, “We don’t have the money.” I can guarantee that not training people costs you thousands of dollars you don’t see. Think of what a lost sale costs your firm because a salesperson lacked sales training.
Another roadblock I often hear is, “I haven’t seen the value in past training initiatives, much less a return on the investment.” I’ll show you later in the article how to measure training so you know it’s valuable.
Training Can Create Productive Habits
Remember that we never rise to the occasion; we fall to our level of training. The best athletes, military special operators, martial artists, dancers, bodybuilders, teachers, cosmetologists, etc., train heavily because it works.
When I was a developing martial artist living in a rough neighborhood in San Francisco — I had earned a green belt after about a year of training — my girlfriend and I were approached on the street and confronted by two thugs. I kicked one of these men and dropped him to the sidewalk. It ended the confrontation. That kick seemingly came out of nowhere, catching me and my target by surprise … it was automatic. Later, I realized I had practiced that kick hundreds of times in the dojo.
Remember, you never rise to the occasion; you fall to your level of training.
When and How Often Should We Use Training?
The best train often and give it 100%. Companies can train their people on problem-solving, taking initiative, becoming fully engaged, using their strengths, enhancing performance, developing and deploying strategy, building teamwork, mastering communication, handling stress, learning accounting (since the language of business is numbers), showing employees how to build their wealth — which is one significant reason employees are working in the first place — and understanding the company culture with its values, beliefs, and norms of behavior.
There are always things on which companies can train their people.
Make time to think about what would be a powerful training focus for your company in 2024. What stands out to you from the list above?
How to Measure Training
Here are five factors to measure in any training you incorporate in your company from the book, The Bottomline on ROI by Patricia Phillips:
- Reaction: how do participants in the training rate their reactions to the training experience?
- Learning: what skills, techniques, methods, capabilities, attitude changes, and competencies did the participants learn?
- Application: what changes in behavior on the job are observed? What specific applications and implementations are happening?
- Business Impact: what’s the business impact of changes related to the training
- ROI: what’s the monetary value of the business impact compared with the costs of the program?
Intangible Benefits of Training
Don’t forget to measure the all-important intangible benefits that can accrue from training. Here’s a list to consider:
- An increase in employee engagement.
- Heightened job satisfaction.
- Reduction in absenteeism.
- Less stress.
- Enhanced company working environment.
- Higher morale and esprit de corps.
This article has shown you how to make your company more valuable by utilizing training strategies.
Contact me at my email if you have any questions: jvcastiglia@icloud.com, or call or text me at 949-338-7141. I’m happy to help.
Jim Castiglia is the founder of Business Street Fighter Consulting and supports entrepreneurial business owners in their desire to grow and maximize the value of their business. He can be reached by email at JimC@BSF.consulting or by phone at 919.263.1256. Visit www.BSF.consulting
