Sales Training ROI - Keys to Measuring Business Impact

Measuring the effectiveness and business impactlearned in the program).
of sales training should be rigorous, but alsoPhase 2: Research Design & Instrumentation
practical. Many tools are available from the twoThis phase enables you to define the types and
traditions of educational inquiry - qualitative andsources of needed data, create a research design
quantitative - and each has its own strengths andthat enables you to collect and analyze valid and
weaknesses.reliable data, and construct data collection
In the qualitative research method, you collectinstruments. Successful completion of this phase
in-depth data from a limited number of sourcesensures that you collect the right data, from the
(e.g., sales training participants and their managers).right sources, at the right time, in the right way,
For example, you attend and observe the trainingand with the right tools.
session, conduct in-depth interviews withPhase 3: Sampling
participants, and observe their behaviors on theThis phase consists of the critical step of selecting
job through attending their sales calls. You mayrepresentative samples of sales training
also interview a handful of their customers toparticipants and non-participants and their
explore their behavioral changes post training, ormanagers, peers, and customers. It is impractical,
interview sales managers to explore behavioralexpensive, and unnecessary to collect data from
changes in their sales reps on the job and toall participants in sales training. Using appropriate
gauge the impact of their new behaviors onsampling techniques enables you to collect a
metrics such as revenue, sales cycle, etc. Themanageable set of data and to generalize the
resulting qualitative data is analyzed and reportedfindings to the broader population.
through business impact cases and directPhase 4: Data Collection & Analysis
quotations from participants, managers, orThis phase is the most labor-intensive part of the
customers.process. It is when you collect and analyze data,
In the quantitative research method, you collectvalidate the findings, and formulate
large quantities of data through surveys and datarecommendations for continuous improvement of
extracts from corporate databases (e.g., HR orthe training program. It consists of four steps:
sales), and you use statistical analysis technique to- Testing business metrics data collection
measure participant satisfaction, learning, andprocedures and collecting baseline data
impact of participants' behavioral changes on- Collecting data on achievement of learning
metrics such as customer satisfaction, sales quotaobjectives, resulting behavioral changes, and
attainment, and retention of the sales force.business metrics
Sometimes performance of those who attended- Analyzing data and identifying areas for
sales training is compared to those who did not,improvement
and statistical analysis techniques are used to- Triangulating data from multiple sources to
determine whether investment in sales trainingensure valid inferences and recommendations
made a difference. The results in quantitativePhase 5: Reporting
research methods are reported through graphicThis phase is the most visible phase of the
representation of customer satisfaction over ameasurement process. This is when you
period of time before, during, and aftercommunicate measurement findings, conclusions,
implementation of a sales training program or inand recommendations through reports and
tables that represent quota attainment of thosepresentations to key stakeholders and members
who attended training versus those who did not.of the organization. Clear, objective, and
(See McMillan and Schumacher (1997) and Marshallpersuasive communication of findings and
and Rossman (1995) for more detail on theserecommendations is critical to demonstrate not
two methodologies.)only the value of the sales training program but
Introducing a Blended Methodology to Measurealso the value of the measurement effort.
Sales Training ImpactAudiences for this communication include:
Both quantitative and qualitative methods have- Sales training managers - to demonstrate
strengths and weaknesses. The methodologyaccountability to business sponsors who have
described in this Infoline uses a blended approachinvested in the program
that capitalizes on each tool's benefits while- Design and deployment team - to celebrate their
avoiding its shortcomings. In this way, thecontribution to creating value for the organization
methodology effectively manages the complexitythrough development of effective and high-impact
of measuring the business impact of sales trainingsale training programs and through implementation
programs.of the recommendations for continuous
Overview of the Methodologyimprovement
Implementation of the methodology results in a- Business sponsors and sale managers - to
six-phase process:appreciate the value generated through
Phase 1: Context Discovery & Metrics Definitioninvestment in sales training
This phase of the process consists of two stepsPhase 6: Data Storage & Security
- defining measurement requirements andMeasurement of the effectiveness of sales
preparing a "business value chain." These twotraining and especially of its business impact is not
steps are critical to the success of thea once-and-for-all-time effort. For some programs,
measurement effort because they help buildsuch as those that continue in the organization
management buy-in for your measurementover time, you need to revisit the data collected
efforts. They also define the scope of theto build trends and to measure the continuing
measurement effort, customize the process tocontribution of the program. Because the data will
the needs of your organization, and build abe needed in the future, it is imperative to store
blueprint for your measurement activities byit securely. The sensitivity and confidentiality of
determining what to measure (i.e., learningHR and business data requires that you take the
outcomes, desired behaviors on the job, andnecessary steps to ensure it is secure.
metrics impacted by application of what was