CINCINNATI, OH, October 25, 2021 — In an industry first, a training organization has cracked the code of adding direct value to a company during training. The Innovation Engineering Institute released a white paper today announcing the results of an audit of their Innovation Engineering Blue Belt Certification program. The data shows that a person in the program generates a median value of $39,864 of value for their organization during the course.
This information comes at a time when training spending is under scrutiny.
According to Harvard Business Review although organizations spend more than $350 billion globally on training, they are not spending their money effectively. Only 12% of employees apply new skills learned in L&D programs to their jobs, and only 25% of respondents to a recent McKinsey survey believe that training measurably improved performance. Grovo estimates the total loss to a business from ineffective training at $13.5m per year, per 1,000 employees.
Part of the challenge has been the difficulty of measuring training effectiveness. Typically measurements happen at the end of the course through post-evaluations, examinations, or extrapolating how the skills impact business results. The Innovation Engineering Institute took a different approach and adapted its training to work on live business issues. Participants use their new skills during the course to address challenges and opportunities in real-time. Part of the course even requires that they do the math on their projects to ensure they’re adding direct value.
“Because it’s an innovation course, this data is even more exciting,” says Maggie Pfeifer, VP of Education. “The valuations students do are often conservative because they continue innovating through the course – making their projects more valuable, feasible, and unique. And that’s just on the project they’re currently working on. Imagine the lifetime value of that person when they take those same growth and innovation skills to more of their work.”
While the average value of each participant depends largely on the size of the organization and the scope of their work, even at the lowest end in the data set – the value of the work 3X exceeds the cost of the training itself. And for those people and organizations in Ohio that leverage the state’s TechCred program the payback is 10X.
The Innovation Engineering Institute is the organizing body for Innovation Engineering, an academic field of study and area of applied leadership science. The Institute partners with professional organizations, academic institutions, and companies to further the discipline and application of systems-driven innovation. The Eureka! Ranch is a founding member of the Innovation Engineering Institute.
Corie Roudebush Spialek
Director of Operations
SOURCE: Eureka! Ranch International, Ltd.