{"id":37568,"date":"2014-10-16t16:05:53","date_gmt":"2014-10-16t20:05:53","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=37568"},"modified":"2016-08-10t21:44:48","modified_gmt":"2016-08-11t01:44:48","slug":"4-steps-to-get-more-from-your-training-budget","status":"publish","type":"post","link":"\/\/www.g005e.com\/2014\/10\/16\/4-steps-to-get-more-from-your-training-budget\/","title":{"rendered":"4 steps to get more from your training budget"},"content":{"rendered":"

how to run your training like a business.<\/strong><\/span><\/p>\n

by michael ramos and cate miller<\/em><\/p>\n

with cpa firms spending 1.5 percent\u00a0to\u00a02.0 percent of revenue on learning, budgets can be hundreds of thousands of dollars\u00a0even for a modest-sized firm. but firms invest in learning because it is a critical component in addressing many of the top issues facing cpa firms today.<\/p>\n

\"training\u00a0 \u00a0part 1\u00a0in a 3-part series: run training like a business<\/strong><\/span><\/p>\n

\u00a0 \u00a0 \u00a0part 1: 4 steps to get more from your training budget<\/a><\/p>\n

\u00a0 \u00a0 \u00a0part 2: how to manage cpe by the numbers<\/a><\/p>\n

\u00a0 \u00a0 \u00a0part 3:\u00a0how to build a powerhouse learning team<\/a><\/p>\n

.<\/span><\/p>\n

the best\u00a0organizations view learning as an investment, and they manage their investment the same way a venture capitalist manages a portfolio company \u2013 like a business. unfortunately, many cpa firms have a less disciplined approach to learning, which means they\u2019re probably leaving money on the table.<\/strong><\/p>\n

\"the<\/p>\n

take action: <\/strong>if the firm thinks of learning as \u201csupport function,\u201d shift away from that mindset. <\/em><\/span><\/p>\n

some of a firm\u2019s most pressing needs can be addressed through learning. to manage learning like a business, the best firms build a learning group that provides a turnkey solution to the firm\u2019s professional development needs. the learning function should be much more than scheduling courses and tracking cpe.<\/p>\n

the learning function must be responsible and held accountable for other matters, including:<\/p>\n

\u2022 aligning the learning strategy to address organizational issues
\n\u2022 defining user needs and planning curriculum
\n\u2022 developing new learning services and delivery methods
\n\u2022 training in-firm trainers
\n\u2022 measuring and evaluating learning effectiveness<\/p>\n

a robust learning function is complex and it touches many aspects of the organization. because of these complexities, firm leaders should make conscious decisions about how the function is organized and how it integrates with the rest of the firm. at most firms, the business model for the learning function evolves haphazardly based on the individual responsible for the learning function, budget fluctuations, or mergers and acquisitions.<\/p>\n

take action:<\/strong> firm leaders should periodically challenge the status quo and discuss whether the current business model for the learning function is delivering full value given the size of the learning investment. if the current model is not working as it should, then commit to change.<\/em><\/span><\/p>\n

choose the right business model<\/strong><\/h2>\n

many business models can be successful. the key is to carefully construct a learning business model that:<\/p>\n

\u2022 reflects firm culture
\n\u2022 delivers value to firm over the long term
\n\u2022 aligns with the firm strategy<\/p>\n

when developing the business model, firm leaders will want to make critical decisions about:<\/p>\n

\u2022 centralized vs. decentralized decision-making.<\/strong> firms should decide which training decisions will be made at an organizational level and which ones will be distributed to individual business units (e.g., service lines, industry groups or offices). keep in mind that the question is not \u201ceither\/or.\u201d centralization and decentralization are two ends of a continuum, and the question firms face is where on that continuum they will place their learning function.<\/p>\n

\"screen<\/p>\n

\u2022 oversight and integration.<\/strong> the learning function should be integrated into the firm in a way that is consistent with how partners view the strategic value of learning.<\/p>\n

for example,<\/p>\n

\u2022 if learning is viewed as part of a comprehensive, integrated talent management and development strategy, then the function should be part of hr with a dotted-line relationship to a technical partner or partner group.<\/p>\n

\u2022 if learning is viewed as a critical element of driving performance, then oversight of the function should be provided by a partner or a single group of partners with a relationship to hr.<\/p>\n

traditionally, a combination of a hr-focused and business unit-focused models works best. but keep in mind that hybrid organizational models with dotted-line relationships are complicated. care must be taken to ensure that lines of decision-making authority are clearly drawn and communicated.<\/p>\n

\u2022 firmwide funding vs. cost recovery\/allocation.<\/strong> firms measure p&l at the business unit level. leaders of individual business units manage and are held accountable for their p&l. therefore, firms must decide whether and how to allocate training expenditures.<\/p>\n

\u2022 firmwide model:<\/strong> costs are reported at the firm level only. business units are not billed for usage.<\/p>\n

\u2022 cost recovery\/allocation:<\/strong> all training costs are allocated to business units based on participation and overall cost of course design.<\/p>\n

\"screen<\/p>\n

firms commonly use a hybrid model that includes elements of firmwide funding and allocation to individual business units.<\/p>\n

take action:<\/strong> assess your current business model and whether it is the right fit for your firm now and as the firm continues to grow. if it is not a good fit, commit to shifting to that model over time as part of the firm\u2019s strategic plan.<\/em><\/span><\/p>\n

require an annual learning plan<\/strong><\/h2>\n

those responsible for the learning function should prepare a business plan.<\/p>\n

this plan:<\/p>\n

\"screen<\/p>\n

\u2022 forces the firm to align the learning strategy with the firm\u2019s annual goals and make decisions about key elements of the firm\u2019s short- and long-term learning strategy<\/p>\n

\u2022 facilitates the communication of learning strategy to firm leaders and across the entire organization<\/p>\n

\u2022 provides a basis for accountability<\/p>\n

the annual plan does not have to be lengthy or overly detailed but it should be thoughtful and comprehensive and include matters such as:<\/p>\n

\u2022 trends of key learning analytics<\/p>\n

\u2022 program impact on job performance<\/p>\n

\u2022 industry benchmarks<\/p>\n

\u2022 new programs and services<\/p>\n

\u2022 schedule of courses to be offered by user group<\/p>\n

\u2022 annual, quarterly and monthly budget forecasts<\/p>\n

\u2022 learning department goals and kpis<\/p>\n

\u2022 course development plans<\/p>\n

\u2022 other investments in learning infrastructure or technology<\/p>\n

take action:<\/strong> decide how firm leaders will oversee the learning function and what is required of an annual learning plan. assign responsibility for creating and updating the plan and communicate it to all affected.<\/em><\/span><\/p>\n

the discipline of professional development<\/strong><\/h2>\n

cpas know business, and they have firsthand experience observing best practices of business management. to realize full benefits of their investment in their people, cpa firms should take what they know about managing a business and apply those principles to the firm\u2019s learning function.<\/p>\n

a good starting point would be to carefully define the business model for the learning function and develop an annual plan and budget. creating those expectations and driving that discipline is not difficult, and if done well, will yield improved results.<\/p>\n

 <\/p>\n

michael ramos <\/em><\/strong>is the principal of michael ramos and associates, a learning consultancy firm that works with cpa firms and organizations that provide products and services to the profession to help them develop and deploy high-impact learning programs. he has over 25 years of experience developing and delivering competency-based professional development programs and is the author of numerous auditing books and guides. he also served as the director of cpe and training at the aicpa.<\/em><\/p>\n

cate miller, cplp, phr <\/em><\/strong>is the director of learning & development at dixon hughes goodman llp, a position she has held for over six years. in that role she has oversight of the firm<\/em>\u2019s learning function and is charged with aligning the firm<\/em>\u2019s learning programs to organizational goals and objectives. she has over 20 years of learning and talent development experience and holds an mba from roosevelt university.<\/em><\/p>\n