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David Hall
dhall@tmaworld.com




Training ROI made simple
Why ROI?




               Making
               Saving

               Wasting




           © Transnational Management Associates Ltd. All Rights Reserved.   2
EVALUATION MODELS




             © Transnational Management Associates Ltd. All Rights Reserved.   3
The five levels of evaluation

    Evaluation requirement                                     Cost & Effort
                                          Most valuable, difficult, infrequently used

Level 5 – Return on Investment of Training


Level 4 – Business Impact


Level 3 – Behavior/ Application


Level 2 – Learning


Level 1 – Reaction                Least valuable, easiest, most frequently used


                                  © Transnational Management Associates Ltd. All Rights Reserved.   4

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The five levels of evaluation

    Evaluation requirement                                     Cost & Effort
                                          Most valuable, difficult, infrequently used

Level 5 – Return on Investment of Training                                Philips – 1970


Level 4 – Business Impact                                      Kirkpatrick – 1959


Level 3 – Behavior/ Application                       Rackham              (CIRO)–       1970


Level 2 – Learning                          Kaufman & Keller – 1994

                                     Holton – 1996
Level 1 – Reaction                Least valuable, easiest, most frequently used


                                  © Transnational Management Associates Ltd. All Rights Reserved.   5
Patricia Pullman Phillips




“Reduction in training budgets are due, in part, to training‟s
inability to demonstrate value to the organization”

“As a tool ROI does not enjoy widespread application”

“Some very real barriers do exist - additional, time, costs,
skills & resources”

Practically, however, the ROI calculation alone is an imperfect
measurement which must be used in conjunction with other
performance measurement tools




                                      © Transnational Management Associates Ltd. All Rights Reserved.   6
“What is our intent in collecting this data?”


“Not all training programmes are candidates for ROI”




                                     © Transnational Management Associates Ltd. All Rights Reserved.   7
ROI Calculation




            • Gross Benefit - Cost
  ROI % =                                                       X 100
                  Total Cost




                         © Transnational Management Associates Ltd. All Rights Reserved.   8

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ROI Calculation




             €100,000-€50,000
           Math is not the problem!
    ROI % =                                                       X 100
                    €50,000

              = 1 x 100 = 100% ROI



                         © Transnational Management Associates Ltd. All Rights Reserved.   9
Forecasting & measuring costs



  1. Design & development
  2. Promotion
  3. Administration
  4. Faculty
  5. Materials
  6. Facilities
  7. Students
  8. Evaluation
  ?. Unknown costs (specific to your organization)




                                 © Transnational Management Associates Ltd. All Rights Reserved.   10
Forecasting & measuring benefits




  1. Labour saving

  2. Increased productivity

  3. Increased efficiency

  4. Cost saving

  5. Income generation

  6. Unknown benefits (specific to your organization)




                                  © Transnational Management Associates Ltd. All Rights Reserved.   11
Variables?




             Management

             Lost productivity

             Replacement cover

             Migration

             Change




                      © Transnational Management Associates Ltd. All Rights Reserved.   12

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Coaching and mentoring are development techniques that use one-on-one discussions to enhance skills and performance. Coaching focuses on teaching, motivating, and encouraging employees to achieve their goals, while mentoring is a relationship where a more experienced mentor provides career guidance to a protégé. Both provide benefits such as increased skills, promotions, and satisfaction for both parties. Effective coaching and mentoring require setting goals, providing feedback, and overcoming obstacles through open communication and planning.

There is no ROI without…




DEPLOYMENT



              © Transnational Management Associates Ltd. All Rights Reserved.   13
There is no ROI without…




IMPROVEMENT &
DEPLOYMENT


              © Transnational Management Associates Ltd. All Rights Reserved.   14
Improvement in capability




WILLINGNESS
&
ABILITY

               © Transnational Management Associates Ltd. All Rights Reserved.   15
Ability




UNDERSTANDING
&
SKILL

           © Transnational Management Associates Ltd. All Rights Reserved.   16

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Willingness




CONFIDENCE
&
MOTIVATION

             © Transnational Management Associates Ltd. All Rights Reserved.   17
Deployment



DO MORE
DO BETTER
DO NEW

              © Transnational Management Associates Ltd. All Rights Reserved.   18
How do we find out?

LEARNERS
               ASK
MANAGERS
               MEASURE
OTHERS
              © Transnational Management Associates Ltd. All Rights Reserved.   19
What do measure?


CAPABILITY AUDIT
captures improvement




                 © Transnational Management Associates Ltd. All Rights Reserved.   20

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What do we measure?


FREQUENCY

captures deployment of capability
before & after


                  © Transnational Management Associates Ltd. All Rights Reserved.   21
Capability Audit
          Audits          Reports



                                                                                                Decision Making
 Pre-training audit
 The following short self assessment will record your current Willingness and Ability to perform in the 10 key
 skills areas of Impactful Presentations & also the frequency with which you currently apply those skills

 The questionnaire will take you approximately 5 minutes to complete.




            Ability                           Willingness                                   Frequency
                                    Click on the tabs to learn more about
                                     Ability, Willingness and Frequency




                   Start questionnaire




                                                         © Transnational Management Associates Ltd. All Rights Reserved.   22
Capability Audit
         Audits            Reports



                                                                                                     Decision Making
 Pre-training audit

                                                     Ability
   The level of a person‟s capability will be determined by a combination of their willingness & ability to perform
   the task or do the job.


   When rating this assessment consider that Ability will be a combination of Understanding & Skill.

   You may have a high level of understanding of music but a low level of skill in playing the piano.
   Alternatively you may be very skilled at playing the piano and yet not understand about the structure of
   notes.




   Understanding                                                                                                   Skill


                                            Start questionnaire

                                                              © Transnational Management Associates Ltd. All Rights Reserved.   23
Capability Audit
        Audits           Reports



                                                                                                   Decision Making
 Pre-training audit

                                               Willingness
   Willingness in this context is a combination of Confidence & Motivation.

   You may be motivated to sell the company‟s new product because of the bonus you will earn but lack the
   confidence to pitch to a large new client.

   Alternatively you may be very confident to pitch but lack the motivation because the commission is very
   low




   Confidence                                                                                       Motivation


                                          Start questionnaire

                                                            © Transnational Management Associates Ltd. All Rights Reserved.   24

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Capability Audit
        Audits           Reports



                                                                                                   Decision Making
 Pre-training audit

                                                Frequency
    The value of any individual to an organisation is measured by their actions and the benefits those actions
    deliver.

    In completing this section of the self assessment, consider, honestly, how often you actually do the
    things listed to the left.

    It may be that you never take account of the effect your decision will have on others or that sometimes
    you do & sometimes you don‟t, or that you always consider every effect on everyone.




   Never                                       Sometimes                                                   Always


                                          Start questionnaire

                                                            © Transnational Management Associates Ltd. All Rights Reserved.   25
Capability Audit
        Audits                   Reports




   Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the
                                                                                                                     Decision Making
   frequency to which you use those skills in your job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   26
Capability Audit
        Audits                   Reports




   Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the
                                                                                                                     Decision Making
   frequency to which you use those skills in your job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   27
Capability Audit
         Audits                  Reports




   Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the
                                                                                                                     Decision Making
   frequency to which you use those skills in your job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   28

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Capability Audit
         Audits                  Reports




   Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them,
                                                                                                                     Decision Making
   as well as the frequency to which they use those skills in their job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   29
Capability Audit
         Audits                  Reports




   Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them,
                                                                                                                     Decision Making
   as well as the frequency to which they use those skills in their job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   30
Capability Audit
         Audits                  Reports




   Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them,
                                                                                                                     Decision Making
   as well as the frequency to which they use those skills in their job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   31
Capability Audit
         Audits                  Reports




   Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them,
                                                                                                                     Decision Making
   as well as the frequency to which they use those skills in their job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments


          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   32

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Capability Audit
        Audits                   Reports



   Manager                                                                                                           Decision Making
   Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them,
   as well as the frequency to which they use those skills in their job.
   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       M: Needs to be more systematic and organized in gathering & managing data



                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments

          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   33
Capability Audit
         Audits                  Reports



   Learner & Manager                                      REPORT                                                     Decision Making
   Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the
   frequency to which you use those skills in your job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
       Willingness
       Frequency
   -
       L: I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info
       M: Needs to be more systematic and organized in gathering & managing data


                                                                        Low                                                          High
   Consult effectively with other people as appropriate
      Ability
       Willingness
       Frequency
   + Additional Comments

   Generate a list of options                                           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments
   Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
   available options
      Ability
       Willingness
       Frequency
   + Additional Comments

   Take account of the consequences of the decision on others           Low                                                          High

      Ability
       Willingness
       Frequency
   + Additional Comments

          Save & continue later                                Continue>

                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   34
Capability Audit
            Audits                  Reports



   Learner & Manager                                        Assessment                                                   Decision Making
   .


   Gather all relevant & available facts before making a decision           Low                                                          High

      Ability
          Willingness
          Frequency
   -
         I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info



                                                                            Low                                                          High
   Consult effectively with other people as appropriate
      Ability
          Willingness
          Frequency
   + Additional Comments

   Generate a list of options                                               Low                                                          High

      Ability
          Willingness
          Frequency
   + Additional Comments
       Use a range of tools & techniques to evaluate the pros and cons of   Low                                                          High
       available options
          Ability
          Willingness
          Frequency
   + Additional Comments

   Take account of the consequences of the decision on others               Low                                                          High

      Ability
          Willingness
          Frequency
   + Additional Comments
             Save & continue later                               Continue>

                                                                                  © Transnational Management Associates Ltd. All Rights Reserved.   35
Scrap learning




“This concept is very troubling in learning today.

About 65 percent of training is not optimally

applied on the job”


(KnowledgeAdvisors, 2008)




                                © Transnational Management Associates Ltd. All Rights Reserved.   36

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“The core problem is that managers are not

properly preparing learners for training nor are

they supporting them afterward on the job”




                                © Transnational Management Associates Ltd. All Rights Reserved.   37
Scrap learning




“ The result is wasted (i.e., scrap) learning.

Scrap can be reduced through better manager

engagement”




                                 © Transnational Management Associates Ltd. All Rights Reserved.   38
Scrap learning




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prior to learning and follow through afterward

with projects and measurable goals overcome the

scrap learning crisis.”

ESI International white paper 2011




                               © Transnational Management Associates Ltd. All Rights Reserved.   39
Motivation




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                           © Transnational Management Associates Ltd. All Rights Reserved.   41
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                        © Transnational Management Associates Ltd. All Rights Reserved.   45
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                    © Transnational Management Associates Ltd. All Rights Reserved.   46
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                                               © Transnational Management Associates Ltd. All Rights Reserved.      50
Deployment
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 Performance Zones                                                                                   When am I going to start
                         What am I aiming for?                  How do I get there?
                                                                                                         and finish this

Global Virtual Teams
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Capability              my colleagues in the XY             start spending time on searching                            ongoing
                        community                           for my own unique solution
We share what we have

                        To improve my verbal                Prepare more for the call, slow         4/11/11             ongoing
Communication           communication with my               down and ensure mutual
We pay attention to     colleagues in India                 understanding before we finish the
                                                            call and put summary in email.
each other

                        Improve my understanding of         Ask them.                               4/11/11             Ongoing
Cultural Intelligence   the cultural differences between    Get on a course                         ASAP – Jan at
                        myself and my colleagues in         Research                                the latest
We play well together   India                                                                       4/11/11             11/11/11


                                                              © Transnational Management Associates Ltd. All Rights Reserved.      51
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                     © Transnational Management Associates Ltd. All Rights Reserved.   52
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                    © Transnational Management Associates Ltd. All Rights Reserved.   54
Deployment
                               Target                                Tactics
 Performance Zones                                                                                   When am I going to start
                         What am I aiming for?                  How do I get there?
                                                                                                         and finish this

Global Virtual Teams
                        AOK= all ok   FP= Future Priority                                                Start               Finish

                        AOK
Cooperation
We help each other

                        FP
Convergence
We pull in the
same direction
                        AOK
Coordination
We work together
                        Benefit from the experience of      Put out a blog for help before I        10/11/11            10/12/11 +
Capability              my colleagues in the XY             start spending time on searching                            ongoing
                        community                           for my own unique solution
We share what we have

                        To improve my verbal                Prepare more for the call, slow         4/11/11             ongoing
Communication           communication with my               down and ensure mutual
We pay attention to     colleagues in India                 understanding before we finish the
                                                            call and put summary in email.
each other

                        Improve my understanding of         Ask them.                               4/11/11             Ongoing
Cultural Intelligence   the cultural differences between    Get on a course                         ASAP – Jan at
                        myself and my colleagues in         Research                                the latest
We play well together   India                                                                       4/11/11             11/11/11


                                                               © Transnational Management Associates Ltd. All Rights Reserved.    55
Deployment review
                                                                           Deployment
                       Target
 Performance                                    Tactics             When am I going to start and                   Deployment
                   What am I aiming
    Zones                                  How do I get there?               finish this                    Progress to date ( 3/12/12)
                         for?
                                                                        (LP Date: 3/11/11)
                   AOK= all ok FP=                                       Start              Finish         None      Some       Most        All
                   Future Priority

Cooperation        AOK
We help each
other
Convergence        FP
We pull in the
same direction
Coordination       AOK
We work together
                   Benefit from the       Put out a blog for help   10/11/11           10/12/11 +
Capability
We share what
                   experience of my
                   colleagues in the XY
                                          before I start spending
                                          time on searching for
                                                                                       ongoing                                          ✓
we have            community              my own unique solution

                   To improve my          Prepare more for the      4/11/11            ongoing
Communication
We pay attention
                   verbal
                   communication with
                                          call, slow down and
                                          ensure mutual
                                                                                                                               ✓
to                 my colleagues in       understanding before we
each other         India                  finish the call and put
                                          summary in email.

                   Improve my             Ask them.                 4/11/11            Ongoing
Cultural
                   understanding of
                   the cultural           Get on a course           ASAP – Jan at
                                                                                                                     ✓                  ✓
Intelligence
We play well
together
                   differences between
                   myself and my
                   colleagues in India    Research
                                                                    the latest

                                                                    4/11/11            11/11/11
                                                                                                                               ✓

                                                                    © Transnational Management Associates Ltd. All Rights Reserved.    56
Capability Deployment

         Never    Sometimes   Most                Always
Before




          3          6         1                       0




                                     © Transnational Management Associates Ltd. All Rights Reserved.   57

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         Never    Sometimes   Most                Always
After




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Before




          3          6         1                       0




                                     © Transnational Management Associates Ltd. All Rights Reserved.   58
Deployment review




                BETTER?




                    © Transnational Management Associates Ltd. All Rights Reserved.   59
Capability Audit
         Audits                  Reports



                                                                                                                     Decision Making
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   as well as the frequency to which they use those skills in their job.

   Gather all relevant & available facts before making a decision       Low                                                          High

      Ability
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                                                                              © Transnational Management Associates Ltd. All Rights Reserved.   60
TMA World ROI


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                        © Transnational Management Associates Ltd. All Rights Reserved.   61

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                               © Transnational Management Associates Ltd. All Rights Reserved.   62
QBIT = 2-4




Level 5 – Return on Investment of Training


Level 4 – Business Impact


Level 3 – Behavior/ Application


Level 2 – Learning


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                                  © Transnational Management Associates Ltd. All Rights Reserved.   63
IF capabilities deployed…


                                 Then
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 5.
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                                        © Transnational Management Associates Ltd. All Rights Reserved.   64
Survive & thrive


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                                 © Transnational Management Associates Ltd. All Rights Reserved.   66
The greatest waste of money…




                    NO DEPLOYMENT




                      © Transnational Management Associates Ltd. All Rights Reserved.   67
Thank you


                             QBIT


                         *                     ROI
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                         *        Deployment
                                               *

                               © Transnational Management Associates Ltd. All Rights Reserved.   68
Thank you for your participation

                  Please visit our website
              www.tmaworld.com
                       Get in touch!


          Contact us at enquiries@tmaworld.com

          or David directly at dhall@tmaworld.com




TMA World is a leader in developing talent for the global workplace.

                                   © Transnational Management Associates Ltd. All Rights Reserved.   69

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TMA World is a leader in developing talent for the
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   Engage global teams - to collaborate seamlessly and support international growth
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   Unify your people - to enable the free flow of ideas and skills globally


To find out more about how we can help you address your learning and development
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www.tmaworld.com


London   New York     San Francisco    Hong Kong       Singapore             Bangalore            Moscow

                                               © Transnational Management Associates Ltd. All Rights Reserved.   70
TMA World Publications
Written by Terence Brake, President, TMA World-Americas                                      http://virtualteamwork.blogspot.com

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       any easier to achieve and sustain. Global competitiveness requires continuous          collaboration. Enjoy!
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                                                                      © Transnational Management Associates Ltd. All Rights Reserved.   71

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Training ROI Made Simple

  • 2. Why ROI? Making Saving Wasting © Transnational Management Associates Ltd. All Rights Reserved. 2
  • 3. EVALUATION MODELS © Transnational Management Associates Ltd. All Rights Reserved. 3
  • 4. The five levels of evaluation Evaluation requirement Cost & Effort Most valuable, difficult, infrequently used Level 5 – Return on Investment of Training Level 4 – Business Impact Level 3 – Behavior/ Application Level 2 – Learning Level 1 – Reaction Least valuable, easiest, most frequently used © Transnational Management Associates Ltd. All Rights Reserved. 4
  • 5. The five levels of evaluation Evaluation requirement Cost & Effort Most valuable, difficult, infrequently used Level 5 – Return on Investment of Training Philips – 1970 Level 4 – Business Impact Kirkpatrick – 1959 Level 3 – Behavior/ Application Rackham (CIRO)– 1970 Level 2 – Learning Kaufman & Keller – 1994 Holton – 1996 Level 1 – Reaction Least valuable, easiest, most frequently used © Transnational Management Associates Ltd. All Rights Reserved. 5
  • 6. Patricia Pullman Phillips “Reduction in training budgets are due, in part, to training‟s inability to demonstrate value to the organization” “As a tool ROI does not enjoy widespread application” “Some very real barriers do exist - additional, time, costs, skills & resources” Practically, however, the ROI calculation alone is an imperfect measurement which must be used in conjunction with other performance measurement tools © Transnational Management Associates Ltd. All Rights Reserved. 6
  • 7. “What is our intent in collecting this data?” “Not all training programmes are candidates for ROI” © Transnational Management Associates Ltd. All Rights Reserved. 7
  • 8. ROI Calculation • Gross Benefit - Cost ROI % = X 100 Total Cost © Transnational Management Associates Ltd. All Rights Reserved. 8
  • 9. ROI Calculation €100,000-€50,000 Math is not the problem! ROI % = X 100 €50,000 = 1 x 100 = 100% ROI © Transnational Management Associates Ltd. All Rights Reserved. 9
  • 10. Forecasting & measuring costs 1. Design & development 2. Promotion 3. Administration 4. Faculty 5. Materials 6. Facilities 7. Students 8. Evaluation ?. Unknown costs (specific to your organization) © Transnational Management Associates Ltd. All Rights Reserved. 10
  • 11. Forecasting & measuring benefits 1. Labour saving 2. Increased productivity 3. Increased efficiency 4. Cost saving 5. Income generation 6. Unknown benefits (specific to your organization) © Transnational Management Associates Ltd. All Rights Reserved. 11
  • 12. Variables? Management Lost productivity Replacement cover Migration Change © Transnational Management Associates Ltd. All Rights Reserved. 12
  • 13. There is no ROI without… DEPLOYMENT © Transnational Management Associates Ltd. All Rights Reserved. 13
  • 14. There is no ROI without… IMPROVEMENT & DEPLOYMENT © Transnational Management Associates Ltd. All Rights Reserved. 14
  • 15. Improvement in capability WILLINGNESS & ABILITY © Transnational Management Associates Ltd. All Rights Reserved. 15
  • 16. Ability UNDERSTANDING & SKILL © Transnational Management Associates Ltd. All Rights Reserved. 16
  • 17. Willingness CONFIDENCE & MOTIVATION © Transnational Management Associates Ltd. All Rights Reserved. 17
  • 18. Deployment DO MORE DO BETTER DO NEW © Transnational Management Associates Ltd. All Rights Reserved. 18
  • 19. How do we find out? LEARNERS ASK MANAGERS MEASURE OTHERS © Transnational Management Associates Ltd. All Rights Reserved. 19
  • 20. What do measure? CAPABILITY AUDIT captures improvement © Transnational Management Associates Ltd. All Rights Reserved. 20
  • 21. What do we measure? FREQUENCY captures deployment of capability before & after © Transnational Management Associates Ltd. All Rights Reserved. 21
  • 22. Capability Audit Audits Reports Decision Making Pre-training audit The following short self assessment will record your current Willingness and Ability to perform in the 10 key skills areas of Impactful Presentations & also the frequency with which you currently apply those skills The questionnaire will take you approximately 5 minutes to complete. Ability Willingness Frequency Click on the tabs to learn more about Ability, Willingness and Frequency Start questionnaire © Transnational Management Associates Ltd. All Rights Reserved. 22
  • 23. Capability Audit Audits Reports Decision Making Pre-training audit Ability The level of a person‟s capability will be determined by a combination of their willingness & ability to perform the task or do the job. When rating this assessment consider that Ability will be a combination of Understanding & Skill. You may have a high level of understanding of music but a low level of skill in playing the piano. Alternatively you may be very skilled at playing the piano and yet not understand about the structure of notes. Understanding Skill Start questionnaire © Transnational Management Associates Ltd. All Rights Reserved. 23
  • 24. Capability Audit Audits Reports Decision Making Pre-training audit Willingness Willingness in this context is a combination of Confidence & Motivation. You may be motivated to sell the company‟s new product because of the bonus you will earn but lack the confidence to pitch to a large new client. Alternatively you may be very confident to pitch but lack the motivation because the commission is very low Confidence Motivation Start questionnaire © Transnational Management Associates Ltd. All Rights Reserved. 24
  • 25. Capability Audit Audits Reports Decision Making Pre-training audit Frequency The value of any individual to an organisation is measured by their actions and the benefits those actions deliver. In completing this section of the self assessment, consider, honestly, how often you actually do the things listed to the left. It may be that you never take account of the effect your decision will have on others or that sometimes you do & sometimes you don‟t, or that you always consider every effect on everyone. Never Sometimes Always Start questionnaire © Transnational Management Associates Ltd. All Rights Reserved. 25
  • 26. Capability Audit Audits Reports Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the Decision Making frequency to which you use those skills in your job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 26
  • 27. Capability Audit Audits Reports Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the Decision Making frequency to which you use those skills in your job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 27
  • 28. Capability Audit Audits Reports Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the Decision Making frequency to which you use those skills in your job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 28
  • 29. Capability Audit Audits Reports Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, Decision Making as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 29
  • 30. Capability Audit Audits Reports Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, Decision Making as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 30
  • 31. Capability Audit Audits Reports Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, Decision Making as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 31
  • 32. Capability Audit Audits Reports Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, Decision Making as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 32
  • 33. Capability Audit Audits Reports Manager Decision Making Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - M: Needs to be more systematic and organized in gathering & managing data Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 33
  • 34. Capability Audit Audits Reports Learner & Manager REPORT Decision Making Rate the 5 key capabilities below according to your Ability and Willingness to perform them, as well as the frequency to which you use those skills in your job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - L: I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info M: Needs to be more systematic and organized in gathering & managing data Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 34
  • 35. Capability Audit Audits Reports Learner & Manager Assessment Decision Making . Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 35
  • 36. Scrap learning “This concept is very troubling in learning today. About 65 percent of training is not optimally applied on the job” (KnowledgeAdvisors, 2008) © Transnational Management Associates Ltd. All Rights Reserved. 36
  • 37. Scrap learning “The core problem is that managers are not properly preparing learners for training nor are they supporting them afterward on the job” © Transnational Management Associates Ltd. All Rights Reserved. 37
  • 38. Scrap learning “ The result is wasted (i.e., scrap) learning. Scrap can be reduced through better manager engagement” © Transnational Management Associates Ltd. All Rights Reserved. 38
  • 39. Scrap learning “Managers who set expectations with employees prior to learning and follow through afterward with projects and measurable goals overcome the scrap learning crisis.” ESI International white paper 2011 © Transnational Management Associates Ltd. All Rights Reserved. 39
  • 40. Motivation © Transnational Management Associates Ltd. All Rights Reserved. 40
  • 41. Key Responsibilities Managing:  Systems / Processes  Resources  Budgets  Results  People © Transnational Management Associates Ltd. All Rights Reserved. 41
  • 42. Managing people  Managing Systems  Managing Resources  Managing Budgets  Managing Processes  Managing People © Transnational Management Associates Ltd. All Rights Reserved. 42
  • 43. Managing people Guidance Focus LEARNER Intention Permission © Transnational Management Associates Ltd. All Rights Reserved. 43
  • 44. Managing people Influence Importance MANAGER Evidence Effect- ROE © Transnational Management Associates Ltd. All Rights Reserved. 44
  • 45. Managing people Commitment Confidence TRAINER Motivation Tuning © Transnational Management Associates Ltd. All Rights Reserved. 45
  • 46. The Learning Path DISCOVER - Learning Path - Faculty & Learners - Foundation self study - Capability © Transnational Management Associates Ltd. All Rights Reserved. 46
  • 47. The Learning Path Understanding DEVELOP Skill Confidence Motivation © Transnational Management Associates Ltd. All Rights Reserved. 47
  • 48. The Learning Path DEPLOY - Learning - Deployment Plan - Post Learning Capability Audit - Deployment Review - Deployment Report © Transnational Management Associates Ltd. All Rights Reserved. 48
  • 49. Deployment plan Deployment Target Tactics Performance Zones When am I going to start What am I aiming for? How do I get there? and finish this Global Virtual Teams Start Finish Cooperation We help each other © Transnational Management Associates Ltd. All Rights Reserved. 50
  • 50. Deployment Target Tactics Performance Zones When am I going to start What am I aiming for? How do I get there? and finish this Global Virtual Teams AOK= all ok FP= Future Priority Start Finish AOK Cooperation We help each other FP Convergence We pull in the same direction AOK Coordination We work together Benefit from the experience of Put out a blog for help before I 10/11/11 10/12/11 + Capability my colleagues in the XY start spending time on searching ongoing community for my own unique solution We share what we have To improve my verbal Prepare more for the call, slow 4/11/11 ongoing Communication communication with my down and ensure mutual We pay attention to colleagues in India understanding before we finish the call and put summary in email. each other Improve my understanding of Ask them. 4/11/11 Ongoing Cultural Intelligence the cultural differences between Get on a course ASAP – Jan at myself and my colleagues in Research the latest We play well together India 4/11/11 11/11/11 © Transnational Management Associates Ltd. All Rights Reserved. 51
  • 51. Deployment support Manager Learner © Transnational Management Associates Ltd. All Rights Reserved. 52
  • 52. Deployment data collection Deployment Plans reviewed Capability Audits – Frequency differentials © Transnational Management Associates Ltd. All Rights Reserved. 53
  • 53. Deployment review MORE? © Transnational Management Associates Ltd. All Rights Reserved. 54
  • 54. Deployment Target Tactics Performance Zones When am I going to start What am I aiming for? How do I get there? and finish this Global Virtual Teams AOK= all ok FP= Future Priority Start Finish AOK Cooperation We help each other FP Convergence We pull in the same direction AOK Coordination We work together Benefit from the experience of Put out a blog for help before I 10/11/11 10/12/11 + Capability my colleagues in the XY start spending time on searching ongoing community for my own unique solution We share what we have To improve my verbal Prepare more for the call, slow 4/11/11 ongoing Communication communication with my down and ensure mutual We pay attention to colleagues in India understanding before we finish the call and put summary in email. each other Improve my understanding of Ask them. 4/11/11 Ongoing Cultural Intelligence the cultural differences between Get on a course ASAP – Jan at myself and my colleagues in Research the latest We play well together India 4/11/11 11/11/11 © Transnational Management Associates Ltd. All Rights Reserved. 55
  • 55. Deployment review Deployment Target Performance Tactics When am I going to start and Deployment What am I aiming Zones How do I get there? finish this Progress to date ( 3/12/12) for? (LP Date: 3/11/11) AOK= all ok FP= Start Finish None Some Most All Future Priority Cooperation AOK We help each other Convergence FP We pull in the same direction Coordination AOK We work together Benefit from the Put out a blog for help 10/11/11 10/12/11 + Capability We share what experience of my colleagues in the XY before I start spending time on searching for ongoing ✓ we have community my own unique solution To improve my Prepare more for the 4/11/11 ongoing Communication We pay attention verbal communication with call, slow down and ensure mutual ✓ to my colleagues in understanding before we each other India finish the call and put summary in email. Improve my Ask them. 4/11/11 Ongoing Cultural understanding of the cultural Get on a course ASAP – Jan at ✓ ✓ Intelligence We play well together differences between myself and my colleagues in India Research the latest 4/11/11 11/11/11 ✓ © Transnational Management Associates Ltd. All Rights Reserved. 56
  • 56. Capability Deployment Never Sometimes Most Always Before 3 6 1 0 © Transnational Management Associates Ltd. All Rights Reserved. 57
  • 57. Capability Deployment Never Sometimes Most Always After 0 1 4 5 Before 3 6 1 0 © Transnational Management Associates Ltd. All Rights Reserved. 58
  • 58. Deployment review BETTER? © Transnational Management Associates Ltd. All Rights Reserved. 59
  • 59. Capability Audit Audits Reports Decision Making Rate the 5 key capabilities below according to your team members Ability and Willingness to perform them, as well as the frequency to which they use those skills in their job. Gather all relevant & available facts before making a decision Low High Ability Willingness Frequency - I tend to over analyze and am fearful that I will make a decision without that one crucial piece of info Low High Consult effectively with other people as appropriate Ability Willingness Frequency + Additional Comments Generate a list of options Low High Ability Willingness Frequency + Additional Comments Use a range of tools & techniques to evaluate the pros and cons of Low High available options Ability Willingness Frequency + Additional Comments Take account of the consequences of the decision on others Low High Ability Willingness Frequency + Additional Comments Save & continue later Continue> © Transnational Management Associates Ltd. All Rights Reserved. 60
  • 60. TMA World ROI Cubit Qubit QBIT * ROI Capability * * Deployment © Transnational Management Associates Ltd. All Rights Reserved. 61
  • 61. Quantifying the Business Impact of Training ROI * Capability * Deployment * © Transnational Management Associates Ltd. All Rights Reserved. 62
  • 62. QBIT = 2-4 Level 5 – Return on Investment of Training Level 4 – Business Impact Level 3 – Behavior/ Application Level 2 – Learning Level 1 – Reaction © Transnational Management Associates Ltd. All Rights Reserved. 63
  • 63. IF capabilities deployed… Then Delegation QBIT 1. Distinguish between what is urgent, what is important & what is not 2. Set measurable objectives for priorities 3. Improved delegation  Delegate efficiently & effectively 4. Set clear outcomes and performance indicators for delegatee  Provideefficient use ofto the delegatee appropriate to the desired 5. More a thorough brief management resources  outcome Improved management capability 6. Inform all relevant others that a task has been delegated  Management time outcomes of delegatee 7. Monitor the actions & saved 8. Evaluate & Review with the delegatee their actions and outcomes  Reduction in errors 9. Recognise & reward success 10.Train, Coach & support the delegatee where necessary © Transnational Management Associates Ltd. All Rights Reserved. 64
  • 64. Survive & thrive Profit & Reputation * BI Profit * Reputation * © Transnational Management Associates Ltd. All Rights Reserved. 65
  • 65. Improved delegation =  More efficient use of management resources Profit  Improved management capability Profit & Reputation  Management time saved Profit  Reduction in errors Profit & Reputation © Transnational Management Associates Ltd. All Rights Reserved. 66
  • 66. The greatest waste of money… NO DEPLOYMENT © Transnational Management Associates Ltd. All Rights Reserved. 67
  • 67. Thank you QBIT * ROI Capability * Deployment * © Transnational Management Associates Ltd. All Rights Reserved. 68
  • 68. Thank you for your participation Please visit our website www.tmaworld.com Get in touch! Contact us at enquiries@tmaworld.com or David directly at dhall@tmaworld.com TMA World is a leader in developing talent for the global workplace. © Transnational Management Associates Ltd. All Rights Reserved. 69
  • 69. TMA World is a leader in developing talent for the global workplace. Across 50 countries we apply a blend of experiential workshops and e-learning methodologies to enable individuals at all levels to lead and collaborate across distances and difference: Develop leaders - who possess appropriate global mindsets and competencies Engage global teams - to collaborate seamlessly and support international growth Achieve consistency - across cultures, methodologies and management Harmonize cross-border relationships - both internally and externally Unify your people - to enable the free flow of ideas and skills globally To find out more about how we can help you address your learning and development challenges, please contact us at enquiries@tmaworld.com or visit our website www.tmaworld.com London New York San Francisco Hong Kong Singapore Bangalore Moscow © Transnational Management Associates Ltd. All Rights Reserved. 70
  • 70. TMA World Publications Written by Terence Brake, President, TMA World-Americas http://virtualteamwork.blogspot.com Where In The World Is My Team? Making a success of your virtual global workplace THE FUTURE OF VIRTUAL „Where In The World Is My Team? Making a success of your virtual global TEAMWORK & workplace‟ addresses the issues of „Sanity, Survival and Success in Global COLLABORATION Teams‟. Tools, theories and concepts are introduced to help businesspeople working internationally to understand and develop the competencies required to The work revolution is here and manage and lead global teams. now! This blog builds on the work of my new book - The Global Leader: Critical Factors For Creating The World Class Where in the World is My Team? Organization by discussing the latest thinking Globalization may have become a cliché, but that doesn‟t make it any less real or on virtual teamwork and any easier to achieve and sustain. Global competitiveness requires continuous collaboration. Enjoy! attention to core capabilities. „The Global Leader‟ addresses one of the most critical capabilities needed for winning in this new business environment: a company‟s ability to develop global leaders throughout its organization. Managing Globally „Managing Globally‟ is a practical, self-help guide to help you develop key management skills for working with other cultures. Packed with essential tips and advice you will learn how to adapt to different working practices, from overcoming language barriers, making presentations and carrying out negotiations to working in global teams and managing conflict. Manager's Handbook A comprehensive guide to learning key management skills, understanding core business concepts, and planning a successful career, „Manager's Handbook‟ is both an introduction for new managers and an up-to-date reference for experienced managers and those working in new businesses. © Transnational Management Associates Ltd. All Rights Reserved. 71