Corporate training organizations have traditionally operated under a supply based business model; create portfolios of courseware, publicize a schedule, see how many employees register for the courses, charge back the costs to the respective line of business, and measure success based on how many people attended and the scores of the level 1 evaluations.
The objective of supply based learning is to develop a more well rounded employee with the hope they will be more satisfied, stay longer, and perform better. It is where the employee is encouraged to take ownership of their own development. The problem is that not all employees make good decisions about their own development. Some are more focused on bettering their own career, no matter what the cost or implications are to the business. Sound familiar?
Do you agree with me that this is NOT GOOD for the business! Why do I think so? Because it is an incredibly inefficient business model for corporate training. I’m sure it is a great model for academic institutions focused on selling registrations and tuitions. And maybe even customer training organizations who seek additional revenues from the sale of training.
But let’s face it - businesses are not academic institutions. Business success is measured by the amount of money made for the shareholders; not how much training is provided to employees. As training professionals, our role is to help the business succeed. So spending dollars on training that doesn’t get results is bad for business.
What’s better? Demand based learning (DBL). DBL is an operational business philosophy about how to run a training organization. It is where the training organization focuses on providing learning programs (courses, role playing, and simulations) that help solve specific business issues or challenges.
The objective of the demand based learning organization is to provide the employee with the necessary skills to be successful in their job, so they can be higher performers, and the employee and the business both benefit.
Training organizations that operate under the demand based philosophy tends to create shorter, very focused learning programs that help drive business performance. The training is application oriented where employees are prescheduled for training that is designed specifically for their role. Demand based learning organizations generally do not offer open enrollment - although they do often provide much of the training online or in live simulated environments.
Some may think that demand based learning is best for organizations providing technical training; like manufacturing, call centers, and IT support. To the contrary, it has been proven to be a very effective approach for professional training too. For example, sales training in pharmaceutical companies frequently use a demand based model. When the sales rep is hired, they are expected to complete a sales orientation program. Training is specific to the sales process and product features the company wants to present.
Still not convinced! So here are my 5 reasons why demand based learning is more effective and efficient than supply based learning.
1. Higher Return on Investment – because the training is directly aligned to a business requirement, there is no wasted dollars spent on training that has no impact on the business.
2. Training is More Strategic – because training is aligned to a specific business issue, there is a higher focus and visibility on the outcomes. Strategic focus brings executive involvement, which results in investment of activity.
3. Training is About Solutions - all training is designed to solve a business issue. Supply based portfolios are also called competency based portfolios, and are designed to provide the employee with the knowledge necessary to do a job; Demand based learning, or solutions based portfolios go one step further and teach the employee how to apply knowledge into performance.
4. Training is delivered to the Right People at the Right Time – one of the greatest wastes is delivering educational programs to people who don’t need it, and won’t ever use it. The hidden cost is their time away from the job.
5. Increased Skill Retention and Application – because training is delivered to the right people and at the right time, the probability and propensity to retain and apply skills is much higher.
