Quality, and the dedicated pursuit of quality improvement, translates into increased sales, increased earnings and enhanced market share over time. Every successful company knows that the quest for quality must be an integral part of planning, processing and execution.
Elevating quality is a function of training. Will quality-fortified training initiatives be enough to reinforce your quality standards and permeate every aspect of your organizational goals and objectives?
The most efficient tool in your training arsenal is a Learning Management System (LMS), or online training system, and whether you are training 25 or 25,000 employees, it’s a no-brainer when justifying the cost-effective training solution an LMS provides. With a successful online training program throughout the organization, the cost of an LMS typically achieves an investment return of two to three times the initial cost in the first year alone.
Investing in an online system to create and launch e-learning may be the most gainful investment a company can make. Considerations centered around return on investment (ROI) reflect basic and obvious cost savings, such as reduced travel expenses, condensed or reduced instructor overhead and greater productivity. You can also add improved quality, resulting in revenue growth and proven ROI performance.
Creating Added Value
For further added value, remember to calculate how the resulting achievements in lower production or service delivery cost, combined with improved customer satisfaction, usually result in higher sustainable profit margins and market share.
When considering the cost of training, the value of quality should also be taken into account. So ask yourself, can you define the value of a better-educated sales staff or production team, or a company-wide quality surge?
The true and tangible value of quality is calculated in terms of cost reduction, customer satisfaction and incremental sales, but seeing the whole picture can be elusive. To expand your vision, when calculating the ROI on your LMS purchase, include a reasonable return for achieving a higher quality benchmark. The discernible results will help clarify your decision.
The Cost of Deficient Quality
Another important calculation is the cost of deficient quality. Once you’ve identified the value of improved quality, try to calculate the cost of poor quality in both the short- and long-term. Inferior quality may be difficult to quantify, but measurements of employee turnover, diminished or flat sales, returns, customer dissatisfaction and revenue shortfalls or decreases are strong indicators that quality is a fundamental component of your company’s success.
Quality, and its costs, can be measured on both ends of the spectrum. The benefits of an online training initiative will positively impact your quality measurement!