BUSINESS STANDARDS
is the quarterly magazine of BSI Group, highlighting the vital role that standards play in today's business environment. Regular features include interviews with leading business figures, as well as news on the latest developments in management systems and standards.

Business Standards > Articles

Train for gain

11 Sep 2009
Topics: Training, China, Six Sigma

In a recession, how should organizations approach training? Do they cut the budget and wait it out? Or do they put training at the heart of a survival strategy to prepare for future success?

Training budgets have taken a hit in the recession. Industry surveys predict corporate training spends have been cut by at least 10 per cent on 2008 budgets.

At the same time, a recent CBI report* has revealed that just over half (51 per cent) of the more than 580 companies it surveyed are looking to get more out of staff training than they did before the recession, to help their businesses survive.

"They are recognizing that, if you spend on the right kind of training, for the key people, you're actually going to get a huge return on investment," says Richard Keown, director of BSI Training.

It's an important perspective: Keown points out that budget cutters may be creating problems for themselves down the line.

"What some are doing right now is shedding their workforce but not optimizing what they have," he says. "People are not adequately equipped to deal with a much leaner system and infrastructure to maximum efficiency. Invest in these people and you would have a very robust organization, which will come out of the recession much fitter."

Value for money

What is the right kind of training for a downturn? BSI Training argues that its portfolio, which focuses on delivering business performance, business continuity and risk management, makes a lot of sense when times are challenging.

Work on performance is a strong cost saving investment. Moreover, BSI's training underpins the competence of staff to implement, embed and maximize the benefits of management systems certification. Now more than ever, corporates are looking for robust, standards-compliant suppliers and partners across the board.

How do organizations make the most of what they have and identify the training they need? A good start is to do a gap analysis, or to commission "training needs" analysis.

Next, organizations need to invest in the most effective kinds of training. A recent trend is "blended learning" where courses are delivered using a mix of media, a formula recently adopted by BSI. E-learning is used to deliver pre-course preparation, ensuring that all delegates can start the course at a similar level. It can also be useful for reinforcement. Instructor-led formats are then used to teach advanced techniques and processes, and importantly, to change the way people work.

Another factor is location. The value of on-site training is increasingly recognized because it encourages team building, and the course content will be tailored to your operation. There are also obvious savings in time, and travel and accommodation costs.

Endgame

Finally, Keown notes that organizations are not really looking for training per se, so much as they are looking for a solution. Training itself isn't the endgame, so much as actual, embedded, business improvement. For this reason, BSI Training can go into organizations to evaluate what is needed to provide staged training agendas for delivery over a number of weeks or months.

"If you're looking for value," says Keown, "this approach can often deliver maximum return on investment. We will train a number of people, with an outcome that is tailored to your requirements as an organization."

Indeed some of these training projects can be very long-term. Bao Steel in China, for example, has had a contract with BSI Training for more than 10 years, wherein BSI regularly delivers modules in order to embed and perpetuate business performance improvement. This partnership has provided clear returns on investment.

Continuing to train through a downturn can make a lot of sense. It can maintain and improve both quality and productivity, reduce errors and delays, and help organizations keep pace with the competition.

Training also helps renew people's interest in their work or helps them get up to speed more quickly with new tasks. Undoubtedly it also improves loyalty, morale and confidence in the business.

Successful companies recognize the relationship between training and business performance in all financial climates, but now more than ever, training should be seen as an investment for surviving the downturn and planning for the future.

CASE STUDY: Six Sigma training in practice

Derek Robinson is the business process improvement manager at FMG Support, the UK's largest independent fleet performance improvement company. FMG supplies fleet incident management and roadside repair and recovery management and has a UK-wide network of customers including Royal Mail, Carlsberg and the Highways Agency.

Robinson chose to undergo a one-year, five-stage Lean Six Sigma training programme with BSI in order to give FMG a competitive edge and lift its client service delivery to a higher standard. He became a certified Lean Six Sigma Black Belt, and the training also equipped him to instil the Six Sigma methodology throughout FMG, ensuring that the maximum number of people benefit.

By collecting data that measured return on investment, FMG was able to measure the benefits of the training in real terms. Since completion, Robinson has been instrumental in streamlining a number of business processes that have improved customer service and increased overall efficiency. For instance, the purchase and sales invoicing processes were improved by bringing in web-based solutions to speed things up. This yielded cost saving and cash flow improvements of £800,000.

Robinson adds: "In receiving Six Sigma certification from BSI, we also have something tangible to show our customers, which gives them added confidence in our ability to provide them with the best possible service."

For more informationon BSI Training, visit www.bsigroup.co.uk/Learning * Emerging stronger: the value of education and skills in turbulent times, CBI/Nord Anglia Survey, April 2009

Business Standards © 2009. Editorial produced by Caspian Publishing in association with the British Standards Institution. Editorial opinions expressed on are not necessarily those of BSI Group or Caspian Publishing. Neither Caspian Publishing nor BSI Group accept responsibility for advertising or editorial content, nor for that appearing on linked third-party websites. Reproduction in whole or in part is forbidden without written permission from BSI Group or Caspian Publishing.

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