Business training - what is the ROI?

Having worked in both the private and in the public sector I know that spending money on development and training is both crucial and sometimes hard to measure.

There are some questions which should be asked before any training scheme is put in place and one of them is what will the Return on Investment or ROI be?

Many people pay for focussed networking events such as Pink Link Ladies or the Business Network  but there are also opportunities to network free which is something we at CBPartners promote and facilitate. If a networking event generates one potential customer is it worth the time, effort, travel cost and sometimes payment to join?

This is a question which every business should ask itself. No business should invest time, effort, energy, travel costs or even fees to something which will not generate new business.

So what is ROI?

It is one of the several commonly used financial metrics for evaluating the consequences of business investments, decisions or actions. ROI compares the magnitude and timing of investment gains directly with the magnitude and timing of investment costs. A high ROI means that investment gains compare favourably to the investment costs.

One of the issues of using ROI on its own is that is says nothing about the risk attached to an investment or conversely the risk of not investing and sometimes training comes into this category. It is therefore necessary not just to measure ROI but also to investigate risks associated with it.

With training and development programmes the first thing a business needs to consider are what will the gains be for the company of investing the time and money into the scheme and what will the risk be of not investing time and money.

All the monetary values should be assessed, including time from employees, travel to venues, cost of facilitating training and venue hire where necessary. An organisation is not just putting the cost of the programme into training and development but also the employees time away from a job. This is why more and more companies are investing in an online training offering.

The risk of not pursuing the programme should also be measured. Some health and safety training is mandatory and therefore the company directors can risk fines and even imprisonment if they are not carried out. Giving people the skills to do their jobs is something which is non negotiable but sometimes can be forgotten in some businesses where on the job training is not enough to really equip employees; if this is not done properly an employee can take action if disciplined or sacked for not doing their job properly.

A more difficult line to draw can be on things such as leadership development or management training. What will be the risk if managers are not au fait with their role or the company values and mission? There are many things which can be measured to prove the value of such training such as retention and recruitment, sickness and absence and productivity improvements. Alongside that could also go a decrease in poor performance amongst staff on the shop floor and less allegations of bullying or intimidation. A happier workforce will produce better results.

If the training and development is for you as a Boss or Director do you always measure its value? What do you do better at the end of a course? Do you know more about your customers, products, HR, business planning and development? These are things which may well get a great ROI because they will improve your effectiveness and performance.

As an example training should lead to reducing the effort required to make something work, increased skills leading to improved performance and higher levels of motivation leading to increased effort. Training can also lead to a higher success rate in winning competitive tenders, sales referrals made by non sales staff and new product ideas.

All training should be throughly assessed to validate it as a business tool, justify the costs incurred, to help improve the design of the training and to help in selecting training methods. If it is worth the cost and will lead to better results in a difficult market it is worth the investment.

Starting a new business - online help

Even though we are facing difficult economic times I guess we are a Nation of optimists because here in Blackburn we are seeing more and more start ups seeking advice and help from our Guardian Angels mentoring scheme.

One of the places I think is great for advice is the business link site and whilst the people and offices no longer exist as the service has gone fully onlineI hope the site stays up forever. It contains advice and help clearly labelled and easy to click on links so that you can search for exactly what it is you need. I do not think there is an aspect of business which is not covered on this site.

Another useful site is The Start Up Donut. Again this is a very comprehensive site which is easy to navigate and contains all the information anyone can require including a focus on finance. It has a start up blog which is informative and fun and you can find your local enterprise agency here and your local chamber of commerce to get further advice and help.

HM Revenue & Customs is also a site you should visit as a start up. It contains advice, information and guides on taxation and national insurance which are invaluable. There are also links to helplines and leaflets. H&M Revenue & Customs Advice Teams run free workshops which can help to put you in the picture about what is required being self employed or running a company and the contact details are on the site.

At smallbusiness.co.uk  you can get advice on government grants, raising money and business loans. There is also advice on business banking with a list of the best business banks and opening an account. The site has a Q&A section where you can ask a panel of experts any question you like and a section on creating a business from a hobby or following redundancy. There are some great links to blogs as well.

smallbusinesssuccess  is a little psychedelic at first with links to the side in bright blue so wear your sunglasses but also contains valuable snippets of information in easy to read chunks. It is particularly aimed at small businesses and has links to daily business articles and ideas and tips for those running a small business.

For business planning many banks offer free advice and tools to customers. Many of the tools are interactive and  if you have a business account make sure you utilise the free seminars, consultations with accountants and  legal guidance alongside business manager support which is part of the package you are probably paying for after the first year of banking. Bplans offer free business planning templates and advice on business planning and a blog to help you along.

As you can see there are fabulous online information sites out there and they are all free so get online and see what support and information you can glean and go into your next meetings with accountants and the banks armed and prepared. if you cant find all the information available from these sites or want to give us all some of your top sites leave us a comment and we will try to help or share your thoughts on online support.

Enterprise week

We are gearing up for a great week here at Blackburn Enterprise Centre supporting business and enterprise in our community.

We are running two free events for businesses, one a drop in centre where you can literally just appear and have a mentoring session with one of our top mentors. This is aimed at those who are looking to start a new business or grow an existing one. The last one was very well attended and people came from a variety of businesses to get free support. The drop in day runs from 11am till 3pm and is held once a month this week on Friday.

Tomorrow we are holding our first business surgery which are meetings which will be held twice a year and will allow business owners to meet the key members of the Blackburn with Darwen Borough council regeneration team. This is your opportunity to discuss the local economy, council strategy and policy and business issues with the people who influence and make decisions. Whilst this is invite only it does give business the opportunities and support and will be held from 10am till 12 pm.

We also support business in Blackburn with Darwen through our Guardian Angels programme which has been running for some time and offers free mentorship to businesses. The stories of how mentoring has turned around some of the businesses are incredible and the success of the scheme rests largely on our pool of experienced business mentors.

Over the year we have supported business in a number of ways offering free programmes and support from coaching to empowering lives and giving back to our mentors through our business events including meals and speakers.

As support for new businesses and those wishing to grow gets more and more difficult to obtain we are pushing ahead with our programmes to ensure that business in our area is supported and strengthened.

Labelling people

We love to put people into boxes and categorise things to make them easier to understand but labelling can also have harmful side effects.

So let's start with the positives. We use labels in order to identify people and create a mental file for them. It makes things easier if we have ascribed characteristics or traits we recognise to people because then we can differentiate and identify people. So we describe someone who breaks the law as a criminal or someone as a nurse because that is what they do.

All of us have plenty of labels attached to who we are. Have a think and write them down. Are you a parent, carer, sibling, employed, unemployed, socialist, conservative, atheist, muslim, etc etc?

Looking at your list does this sum up who you are? Of course not but it sometimes provides a useful framework for reference and I guess many of us introduce ourselves by using our labels.

We will walk into a business meeting and start with "I am a business owner and entrepreneur who likes working with teams" and that provides a reference point for the person you are talking to but it is not really your essence or the core of who you are.

Unfortunately labelling can also provide us with stereotypes and can lead to discrimination. So when I use the term criminal to describe someone people will conjure a mental image of a criminal and make associations which they will apply to the person concerned. That person may or may not fit the criteria but they are not a universal criminal.

When someone uses a term to describe someone else they need to be extremely careful to avoid pigeonholing and stereotypes. Labelling people with the same nationality, gender, religion can lead to prejudice and it is that which gives labels a bad name.

If someone says "women drivers" it does paint a picture which may be true of some women but not of others; it can also imply a shared perception between people and therefore be used to include you in a feeling about women groups which you do not necessarily share.  The effects of labelling are not trivial and we sometimes learn to apply labels others have given us in childhood with grave effects. I have known people who thought they were stupid simply because teachers told them so enough times and they were from the wrong area.

How often have you started a new job to be told about people on the first day so that you are not allowed to form your own opinions? Sometimes the labels get attached to managers or staff and it is what I call impression management where people try to get everyone to share their own perceptions.

When we assess our employees, meet new people and go somewhere new a positive thing to practice is to understand our own inner use of labels and to try to avoid using them. People should be allowed to express themselves as individuals and live their own lives free from the negative effect of labels and nurtured to be different and unique in their own inimitable way.

Conrad Murray - make sure you are protected

Seeing Dr Murray being convicted of involuntary manslaughter has bought home to me the point of making sure that every business and business person is protected. I am not saying we would all be in a similar position but how often as a new start up or even in business do we forget to make sure we are properly insured and protected in any situation?

Conrad Murray was working for a client and gave in to that clients demands. He put money above and before professionalism. Jackson was a star and it is easy to be star struck. Going after big deals we can easily forget to protect ourselves or even we can agree to things we wouldn't normally do. The consequences of making the wrong decisions for that star have been grave indeed for Conrad Murray.

1. Ensure you pause and consider before putting your name to something or jumping into business with someone no matter how great the client.

Conrad Murray should have used a professional code of conduct to protect him. As a professional he should have considered himself unqualified to administer the drug as he was not an anaesthesiologist.

2. Dont agree to do things you do not have the skills or training to accomplish.

Conrad Murray faced court and had to hire lawyers and defend himself. He still may face further action from the heirs to Jackson or his family.

3. Ensure your insurance is up to date and you are fully covered for all you do. This includes things like indemnity insurance  and public liability insurance, employers' liability if you employ staff, Property insurance and finally check to see if you need different insurance if you are using your car for business purposes. Get advice and help with the issue of insurance because it will depend on the business you are running and how big your company is. Everyone will need insurance. If your client loses money because of a mistake you have made or because your work is poor or late they can claim. Make sure you are covered.

Dont forget that some of this is a legal requirement for a business and that the consequences of not having it may be severe. Shop around and get the best deal.

Conrad Murray worked alone. It was his decisions alone which got him convicted.

4. Take advice and seek support. Working alone is isolating and can be frightening if you are used to being part of a team. Mentoring schemes can be free or available for a small fee. Having someone to chat things through with is not only good for you but really best practice overall. Business coaches are widely available and can prove extremely useful.

CBPartners works hard to support businesses and to provide excellent mentors and coaches contact us if you would like to know more. 01254 505050.

LEAN Leadership

One of the aspects of my job that I really enjoy is visiting different companies. One of the things that I suspect many organisations underestimate is the importance of the first impression. Whether it's a solicitors office piled high with files, a restaurant with tables full of dirty plates or a shop floor cluttered with stock, I can't help but make a judgement.

One of the main things that I'm asking myself is whether this looks like a business that's in control. Does everyone know what they're supposed to be doing? Would they take care of my business with the care that I would expect? Do they understand the current priorities? And, at the end of the day, does everyone know if they've had a good day or not?

This applies to all levels of an organisation and to all types of businesses. In a truly Lean organisation, that first impression should be one of calm and control, not chaos and clutter. And this is not just about being neat and tidy. This goes to the heart of the culture of an organisation. What is your business telling potential customers about you?


A LEAN leader sets direction and ensures that team goals support the vision for the business. They set expectations and are role models and a technical resource. The benefit of this model is that through this leadership the business becomes more streamlined, customer focussed and places an importance on systems and processes which are measurable and bring real results. 


The LEAN leader is an information conduit not a controller and monitors and audits meaningful metrics of performance. The LEAN leader does not blame but conducts root cause analysis  to know why something happened in order to learn from events and make sure that it does not happen again. Everything in a LEAN organisation is geared towards flow and getting product to market in an orderly and systematic way. 


Places are going fast so come and find out more at my masterclass on the 22nd November and we can carry on the discussion over a fabulous meal and networking with other business leaders  keen to learn about the LEAN model of leadership. 


When: Tuesday November 22nd, 6-8pm
Where: The Oyster and Otter, Feniscowles, Blackburn, BB2 5DQ
 
Contact Jo on 01254 505050 or jo@cbpartners.org for further details and to book a place. 

Towards Sales Excellence

The topic of our next get fit for business is Sales Excellence and it seems a good thing to prepare people for it by raising a few questions about sales and setting the scene.

I suspect that driving sales is key to most business people at any time but it becomes even more important in a recession and when markets seem to be dwindling in some sectors. For many businesses who have relied on the public sector this is a time to take stock and go after sales in new markets.

Farming is a really good example of this where farmers in the 90's in particular were struggling and converted barns into bunk barns and cottages into rentals. There was a growth in farming scarce breeds and organic farming and anything which managed to bring in new markets and diversify was tried. Many of those farmers were extremely successful.

Another interesting area is the growth of coffee franchises in this country. There was a time when coffee was not our drink of choice and ordering a skinny latte, extra shot, extra hot with hazelnut would have been unthinkable. I know several people who said that coffee bars similar  to those in the US would not work in tea drinking Britain; yes they were wrong and probably missed a trick. Those who decided to go for it have been extremely successful.

Moving on to sales I am particularly uncomfortable with cold calling and would welcome any tips or help with it. I have read articles that say it is dead in any case but now there is something called warm calling where you research the area you are calling and the market and make sure you have done your homework first. This appeals to me because it means you are not following a script per se but you do know what you are talking about and who you are talking to. Understand your clients need for change and dissatisfaction with the status quo. Get people to buy something they really need.

The goal of all marketing is sales and one of the key thing in sales is to be hungry and confident. Confidence comes from excellent knowledge of your product or service. I dont like impatience in a sales person and certainly that is one of the things that puts many off. Sometimes customers just dont get it and patience is needed. A great example of this recently was when a friend of mine took her 80 year old mother to buy a computer in an apple shop. Although it took ages and a number of products were explored eventually she came out with something she could use and which was ready for her to plug in and go.

Ultimately we are all sales people and whenever we think there is a mystique around sales it is good to remember that. Every day we sell something to someone in terms of influencing them, getting change to happen or even creating understanding of goals and strategy in a company. Yet sales can still seem difficult and worrying and if you are like me then there are areas where you need help or can do with some more inspiration.

John Finlay of Onward Consultancy will be running a whole day for us on Sales Excellence at CBPartners on the 10th November and there are only two spaces left. He will introduce you to a 6 step sales process than can be adopted by any customer facing business to build value into long term client relationships. The day will cover all the key elements of sales, including  how to  convert telephone calls into appointments and appointments into sales opportunities, turning those  objections into orders  and negotiating to get the best deal for your business and the customer.


Contact us on 01254 505050