Training - A Profit Center

Hi All,
I see there are a lot of Training Gurus around, so I am tempted to ask.
I work for an organization where contribution and image of training department to the improvement of employees and profits is seen as very low and training is seen as a cost center.
I wish to create a pitch on "Training- A Profit Center"
Can someone please help me with the Why What and How of the pitch/idea.
Regards,
Gagan

Merge your (training) functions with the quality functions and run projects for saving money.
There are other ways of turning the L&D team into a profit center. Hire me if you need help with that.

I thank you for the response, I however feel that saving is not the only way I am looking at to put in my pitch.
And hiring you will add to cost before we show us as profit making. :-)

Dear Mr Gagan Sharma,

I pained to find that training is treated as cost centre rather than profit centre. It is failure of we the training professionals.

In my training programme on "Effective Purchase Management" I start my session with a topic "how purchase is profit centre".

Whoever raises objection to the training or whoever says that training department is cost centre, tell them how much revenue was saved because of the training. Every Rupee saved because of the training, straight way goes to the profit.

Make it a point cost of training is always 10% to 20% of cost of non-training. Hereafter, revolve every programme around cost of non-training. Then work backward. Conduct the training and after the post-training evaluation prove that because of the training how much amount of revenue was saved.

It is something quite difficult. But ideal training manager should be able to prove that how gap in skills and knowledge reflects in the balance sheet of the company.

In one of the recent post, I had given tips on "what is the role of HR/Training manager before, during and after the training". Click the following link to read my reply:

https://www.citehr.com/243560-roll-d...ml#post1092322

Training programmes are useful to generate ideas also. To know how, click the following link:

<link outdated-removed>

If you have further doubts, clarify from me. By the way, how did I conduct my recent training programmes, how did I revolve it around cost/revenue about that I will give you brief through private message.

Thanks,

Dinesh V Divekar
Management & Behavioural Training Consultant



Limit of your words is limit of your world[I][COLOR=#0000BF][COLOR=#FF0000]

Training is seen as a cost center because the decision makers want immediate results - means "Quick Fix" - throw money and get it attitude.
Training should be an Integral Part of Production, Engineering, Sales and Marketing, HR and all other functions.
Rgrds,
Barath
+91 9444063345

Dear Gagan,

Thank you for raising the question. As expected Dinesh and Shastry have chipped in with their suggestions.

I would have much preferred to you raised this question after doing some research on the web and studied the opinion of others and posed more precise questions. For example, Johnny Frankland has written a small piece on Can Training Become a Profit Center? at <link outdated-removed> ( Search On Cite | Search On Google )

Which I found at Google

The article clearly states why Training is considered as a cost centre rather than a profict centre. When trainining is conducted for the sake of training without clear objectives, it is not easy to quantify benefits. Let me give you an example. In an organisation all middle managers for sent on a 2-day Time Management course; they all received excellent diaries (the replacement of these every year would have cost extra money, too). After the training, there was no follow up and none of the managers used the concept and the practices. So, how could the training dept have shown any benefit from that training. Similarly, managers went on courses on Finance. The managers were never even privy to the companies Balance Sheet or Profit & Loss Acoounts. They were trained in Ratio Analysis; all a waste of time.

So, like Dinesh has often stated, one has to start from the outcome of the training and its usefulness before even asking whether it should be cost centre or a profit centre.

I am sure HR experts may take a different stance and I am hoping this will genrate a good debate.

Have a nice day.

Simhan

A retired academic in UK