So it’s really pretty simple. We should offer training that is strategic to the business, and not offer training that’s not strategic to the business. Duh huh! So why is it during any down economic cycle we are pressured to reduce spend on training as a means to reduce costs? If the training is strategic, then why would we cut it? I think it has a lot to do with the idea that what 
we are offering is the wrong training; training that is not truly strategic.
To help answer this question, Training Industry, Inc. created a tool called the Portfolio Rationalization Quadrant (PRQ). The Quadrant is designed for use when rationalizing which courses you should offer and which you should not; and to determine which courses you should use internal resources for design and delivery - and those you should outsource.
The PRQ allows you to evaluate a portfolio of courses based on their strategic value to the business and the relative amount of intellectual property included in the program. To utilize the tool you assign every course in your portfolio a score of 0 to 10 along both the x and y axis (x,y). A score of 10 on the x axis implies your course is highly strategic to your company’s employees and/or customers; basically saying they absolutely have to have the training when they need it. If you rate the course a 0 on the strategic axis, you are saying that the course has no strategic value at all, or that your company’s employees and/or customers performance would not be impacted if it was not offered. Another way of stating it is that this course is a nice to have, but you cannot say how it directly aligns with the strategic objectives of the business.
You do the same rating for each course related to the amount of proprietary content contained in the course. If the course is rated a 10, you are saying the course contains very sensitive and proprietary information that can only be found within the corporation. If the course is rated a 0, then the course has no proprietary information in it at all. Stated another way, the course content is available on the open training market and is off the shelf. A course that has a score of (8,8) is one that is highly strategic, and highly proprietary to the company. A course with a score of (2,3) says it has low strategic value and low amounts of proprietary information. A score of (8,0) says the course is highly strategic with no proprietary content. This implies it is only available on the open market but very important to the business. A course of (0,8) says the course has no strategic value but virtually all the content
is proprietary. You must question yourself why you are offering this type of program.
After plotting all courses, you will have a scatter diagram showing all courses in your portfolio. Courses which fall into Quadrant 1 represent those courses which are highly strategic and highly proprietary, and should continue to be offered during any economic period. Courses that fall into Quadrant 4 are those that demonstrate low strategic value and low amounts of proprietary content. These courses should probably not be offered, and you should question whether you ever should again. Courses that fall in quadrant 2 are those that have high strategic value, but low proprietary content, and represent those that you should continue to offer, but you may want to see if they can be pushed out to a future economic period. Courses that fall in quadrant 3 have low strategic value, but high levels of proprietary information, and represent courses you can push out to future economic periods. Because they may be delivered by internal staff, they do not have the same cost impact to the business as those which use external resources.
Please note that this is not a perfect science. It is a tool designed to assist in decision making. As the leader of the business (or the training organization), you must be sure to objectively evaluate each program on the importance to the business.
There are many implications for how to use the Portfolio Rationalization Quadrant. Whether you are deciding what training to offer, what training to cut, whether to insource or outsource development or delivery, the tool can conceptually help you in the decision process.
If you would like a copy of the Portfolio Rationalization Quadrant, please send an email at dharward@trainingindustry.com.
Written for TrainingIndustry.com
