Where is the payback for good quality training, compared to cheaper options?

†††† Quality of E-learning software and training in general

 

 

March/April 2009

Quality, and the dedicated pursuit of improved quality, translates into increased sales, improved earnings and enhanced market share over time. Every successful company knows that the quest for quality must be an integral part of planning, processing and execution.

Elevating quality is a function of training. Will quality-fortified training initiatives be enough to reinforce your quality standards and permeate every aspect of your organizational goals and objectives?

The most efficient tool in your training arsenal is a Learning Management System (LMS), and whether you are training 25 or 25,000 employees, itís a no-brainer when justifying the cost-effective training solution an LMS provides. With online training throughout the organization, the cost of an LMS typically achieves an investment return of two to three times the initial cost in the first year alone.

Investing in an LMS for custom e-Learning may be the most gainful investment a company can make. Considerations centered around return on investment (ROI) reflect basic and obvious cost savings, such as reduced travel expenses and improved productivity. Add improved quality resulting in enhanced revenue and the ROI increases significantly.

Creating Added Value

For further added value, remember to calculate how the resulting achievements in lower production or service delivery cost, combined with improved customer satisfaction, usually result in higher sustainable profit margins and market share.

Essentially, when considering the cost of training, the value of quality should also be taken into account. So ask yourself, can you define the value of a better-educated sales staff or production team, or a company-wide quality surge?

The true value of quality is calculated in terms of cost reduction, customer satisfaction and incremental sales. Seeing the whole picture can be elusive. To expand your vision, when calculating the ROI on your LMS purchase, include a reasonable return for achieving a higher quality benchmark. The discernible results will help clarify your decision.

The Cost of Deficient Quality

Once you've identified the cost of improved quality, try and calculate the cost of poor quality in both the short- and long-term. Inferior quality may be difficult to quantify, but measurements of employee turnover, diminished or flat sales returns, customer dissatisfaction and revenue shortfalls or decreases are strong indicators that quality is a fundamental component of your company's success.

Quality, and its costs, can be measured on both ends of the spectrum. Your competition is hoping you won't get the whole picture.



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