Hello, I'm Steven Mathur, and I'm a director of business improvement. Today I'm going to talk to you about how to train and develop your people. We're going to look at this from a strategic point of view. So as opposed to how to develop specific training courses, or how to deliver courses, looking at how you as a business owner, or as an HR manager, or the general manager or manager of your business, how you can create a strategic training and development approach. The first thing we're going to look at is aims and reasons for training. So why should we spend time money and effort delivering training to our workforce?
What does training actually do? So what's the process when somebody learns? We'll also talk about how to do training needs analysis to make sure that the training that we're doing is delivering for us? Well, let's talk about how to choose trading. have to plan and prepare both in terms of our people and our business, for delivering trading. And we also want to talk about how we measure return on investment to make sure that actually trading is delivering and we can measure that return.
So the first question then is what is trading actually for? There's lots of answers to that. So here's a few. And so for a lot of businesses training is really about being compliant. So there's lots of training that falls into that category. And it could be that we want to improve performance and we say that training people is a way to help us improve our performance as a business.
Maybe we want to increase efficiency, increased productivity, increased levels of innovation, flexibility. Sometimes training is done to retain excellent people and help them grow within our organization. Well, better problem solving within our business. Maybe it's because of culture change. So these are all good reasons why we might want to do training. So with all those different reasons why we might want to do training, it can be a bit confusing to think about, well, what is it about?
What am I actually doing here with training? And how can I categorize that? So I found a useful thing to do is to use Paul Kearns three box system, and you can see the quote there. So if you're interested in reading more about that, and check out the book, we're going to refer to this later on when we come to literally measuring the return on investment from trading. But it's really useful to categorize trading even before we start, so we've got three boxes there. And training falls into one of those boxes.
We have must have types of training in one box, and things like that include basic product knowledge, compliance training, company standards, training, statutory trading, and regulatory resources. training courses or programs, they must have, we don't have a choice, we've got to do them. And so for those sorts of training, we want to make sure that they're done well. And they are completed on time. So those four must have box. Added Value training is a bit different, because that's really about revenue improvement is about improving something, perhaps reducing cost, process improvement, performance improvement.
So these are all areas where we might want to increase the levels of competence within our teams in order to deliver added value. So we call these added value types of training. And then we've got the nice to have box. Now this is slightly controversial because in this nice to have box, we've got things like management competencies, team building, leadership development, and things like a corporate university that some businesses have. Now, you might be reading that thinking Well, I think management training is is a must have? Well, the question is Is, is it measured?
And is it clear why you're delivering it, if you're not clear about why you're delivering it, and what the outcomes are going to be, it sits in the nice to have box. So in the next slide, we're going to focus a little bit on added value training and see how that one works. That's really where we're gonna focus most of our attention today. But we are going to talk a little bit about must have training as well, and also how to share some of those nice to have training programs into added value. So you can actually start to measure the return on investment. And that middle one is where me and my business like to operate, which is in that added value section.
So working with teams to help them improve their skills and knowledge in order to deliver something specific for the business. So to illustrate how that type of training works, To use this very simple diagram, what we've got here is a high level strategic goal. The goal says by October this 28th 2016, we will have increased equipment efficiency by 20% as measured by the factory KPI management system. So KPIs are key performance indicators. These are ways that a business might be able to tell how well they are doing in terms of their performance. Equipment efficiency is really looking at how well as a business we are utilizing that equipment.
So increasing equipment efficiency by 20% means utilizing our equipment more efficiently and obviously, increasing our likelihood of increased productivity and making more money. So it's a high level strategic goal. In order to achieve that high level strategic goal, we've got some lower level goals or projects. We're working on. So by April the 29th 2015, we will have reduced average changeover times by 7% as measured through the KPI system. So changeover times is all to do with how much time is spent in between one product to the next.
So once you finish one product, how long does it take you to get that equipment and machine ready to start to produce your next set of products or your next product. The time when that machine is idle, or when you're setting it up is obviously dead time. You're not making any money during that period. So trying to reduce the amount of time taken for that process is obviously of great importance and can have an effect massive effect on whether you're going to deliver your strategic goal of creasing efficiency by 20%. There might be another project on the go which is about increasing reliability of machinery by Having preventative maintenance, for instance. So you can see how in a business, you might have a high level strategic goal.
Underneath that you you'll have some smaller goals with more specific numbers attached to them. We then go a level down and we've got a goal there that by March The Third, we will have reduced changeover on line two by 20 minutes. And we're also going to do something on line One, two. So the reason I've gone through all these levels with you is for when we get to the end, you can see that at this bottom level, we've now got by the 20th of January, and to have completed changeover reduction training. So hopefully you can see by looking at these different levels, that bottom level, they're a very specific training program is an added value piece of training that has a direct line of sight to that higher level, strategic business goal objective. It's really clear why that trading is being done, and it's adding some value to the business.
This, you can see how much better it is, when you've got visibility of that. Then somebody just saying, oh, there's some cheap trading somewhere or colleges doing or universities doing, shall we put a banner on the course, you can see how the difference there, or what difference that makes by being really clear about what the training is for how it's going to help you and your business achieve its objectives and goals. The trading now becomes value added and you can start to measure its effects. Another example of added value training might be, you might decide you want to create a culture of continuous improvement. So you want to have a world or a business where everybody gets involved in continuous improvement where people identify opportunities, they start to do projects and they start to measure the improvement they're making. That will be a sort of culture of continuous improvement.
You might identify that in order to do that you need team leaders who take ownership of their areas. And they own continuous improvement projects themselves. You might also have regular, two way communication events held by managers with operators. Let's go down the further level. In order to make sure that team leaders own improvement projects, you might like to have continuous improvement projects or possibilities or opportunities identified by members of the team themselves that would help drive that sort of culture. You also would like team leaders to lead improvement projects and the teams themselves to get heavily involved in delivering those projects.
So the question would be if you want all those things, what skills and knowledge are you going to need? So you might do some training on lead awareness for all operators. You also might do some project management training for those people are likely to be doing them. So you can see those two pieces of training at the bottom of that that diagram there are really focused really clear why those training courses have been delivered. And it will be easy to measure return on investment. So that's the power of added value trading as opposed to all we think we better train people, let's put them on a course, or there's some free training or the Sunday training or the some training we can deliver here.
Let's do that for them. You can see how that would be more difficult to identify return on investment. So getting real clarity on what the training is for and having a strategic approach to trading, make sure that you can measure the return investment, and it's focused so you know why you're doing it. Things are much less clear, however, when training is the sole preserve of HR. So if training is just kind of farmed out to HR, or even a training department that has little interest in the operational side of the business, then it's very difficult to get that line of sight. We've just looked at whether your project is about Proving something that's around the manufacturing side of your business, or perhaps the sales side of your business or whatever the the business is, or whether it's a cultural change project you're looking at, it's very difficult to identify those things.
If training is not part or not seen as part of the way we deliver to our customer, also can get in the way of that is when training is merely a servant to the line. So without a strategic view, and managers might say, Oh, we could do with a bit of training on this, or we could do some training on that. So there's lots of requests for trading happening. And if you're responsible for delivering that training, you might be trying to find ways to fulfill that need, but you're not quite sure where it all adds up and how it contributes to the business delivering what it needs to. So that's when trading is a servant to the line. It's not going to seat at the table.
It's not able to share in that decision making process is just seen as a service that is expected to deliver whatever is required at the time. So it's really much better if you can take a strategic approach to it. Also, what gets in the way sometimes is if there's a disconnect between business strategic goals and training, so there might be a clear business strategy. But training doesn't really feature into that or doesn't have visibility of what those are. What can also get in the way is if training is taken up, because it's seen is generally a good thing. But clear outcomes are not identified.
So it might be that people have good intentions, they understand that training is important. They don't really know what it's for, and how it links to those business objectives. So, again, making sure that clarity on why that training is being done will help to make sure that training delivers for you. Finally, training sometimes doesn't work because it's not supported by operational managers. So people go off on training. managers don't really know why the training is being done.
They're not really involved in it. People come back, they're not supported. So, in that respect training sort of just falls on stony ground. So again, that can sometimes get in the way. So summary. trading is a way to achieve your business goals through people.
If done well, it can help ensure compliance to a minimum standard. So that's that box, one type of training stuff that you've got to do to make sure we're compliant or to a minimum standard of competence. But it can also help improve performance. So these are added value types of training that helps to increase the levels of performance through your team. It works best when a business takes a strategic approach to learning and development. So training is actually seen as part of how you deliver value to your business and indeed to your customers.