{"id":4686,"date":"2014-08-26T18:05:05","date_gmt":"2014-08-26T18:05:05","guid":{"rendered":"https:\/\/actuationconsulting.com\/?p=4686"},"modified":"2015-06-14T13:29:15","modified_gmt":"2015-06-14T18:29:15","slug":"trainings-return-investment-according-andy-grove","status":"publish","type":"post","link":"https:\/\/actuationconsulting.com\/trainings-return-investment-according-andy-grove\/","title":{"rendered":"Training’s ROI According to Andy Grove"},"content":{"rendered":"

I recently started a book by Ben Horowitz entitled “The Hard Thing About Hard Things<\/em><\/a>.” Ben covers a wide range to topics which are particularly pertinent to CEO’s and entrepreneurs in the high tech space. I was struck by one section of the book related to the value of training. Andy Grove is quoted as saying…<\/p>\n

“Training is, quite simply, one of the highest-leverage activities a manager can perform. Consider for a moment the possibility of your putting on a series of four lectures for members of your department. Let’s count on three hours of preparation for each hour of course time – twelve hours of work in total. Say that you have ten students in your class.\u00a0<\/em><\/p>\n

Next year they will work a total of about twenty thousand hours for your organization. If your training efforts result in a one percent improvement in your subordinates’ performance, your company will gain the equivalent of two hundred hours of work as the result of the expenditure of your twelve hours<\/em>.”<\/p>\n

The math is really very compelling. Over the years I have noticed that organizations tend to adopt\u00a0a particular approach to training. It typically falls into one of\u00a0\u00a0three patterns:<\/p>\n

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