The 2,892% return on investment talent case
DEVELOR has recently conducted a talent management program with ComAp, which designs and manufactures control products for power generation and diesel/gas engines, along with associated accessories and software. By the end of the program not only the leaders and talents of the company in question improved through the training sessions, but the firm itself was also able to generate hard cash.
Ten talent program participants were selected by the Executive team from the group of 33 management team members with emphasis on two key factors: (1) potential, including the attitude and (2) performance. They were expected to define and deliver cross-functional business improvement/innovation projects within a 12 months period following and to evaluate generated business value in hard cash. Besides that, the Executive team has also aimed at fostering the development of key contributors in the management team and at increasing their engagement.
We used the Kirkpatrick-based DEVELOR Value Chain (DVC) methodology for design, delivery and evaluation of the program. DEVELOR in partnership with ComAp designed a highly customized talent development program focused both on improving soft and managerial skills of selected talents and also on implementing new knowledge and skills in practice. Therefore focus also fell on establishing a real change. The participants were guided through the process of preparation and implementation of real business projects. At the end of the program the impact and the business contribution of the program was evaluated.
“I was impressed by the ownership and commitment demonstrated by the Executive team of ComAp during the whole program,” says Stanislav Tichý, Managing Director of DEVELOR Czech Republic, responsible for the project. “It indeed was one of the key success factors for the talents to drive their business improvement projects and to generate valuable impact.”
The most important benefit of the talent program has been truly invaluable. By joining the talent program, the participants have accepted a very demanding challenge above their current responsibility that has stretched their abilities and invited them to demonstrate their potential in practice. They had to handle their new responsibility along with their already big workload, they needed to secure resources and cooperation of other key people in the company to ensure success of their projects. As a results of this, they have witnessed very intense personal growth.
“I was proud to witness the talents’ self-awareness, self-confidence and reputation growing. I highly appreciate their efforts and business impact of their achievements. Although this has not been our intention, all of the participants were promoted during or soon after finishing the program, four of them to the Executive team positions.“ says Martin Málek, Chairman of the Board and HR Director, ComAp
Besides the significant skill development of the talent team, the immediate business value generated by the program at ComAp was EUR 169,000 on saved costs on a yearly basis. The extra business value generated in the form of sales volume and margin increase and additional cost saving came to EUR 358,000 which brought the return of investment of the talent program to a stunning 2,892%.
As an added value the business also gained non-financial advantages. ComAp was able to improve in evaluating and developing performance and potential across the Management team, and also in deploying cross-functional strategic initiatives that will contribute to ComAp’s future business success.
DEVELOR firmly believes that well-designed and -delivered talent development is suited to help companies manage their business better, instead of occasionally having almost random “nice-to-have training” sessions.