Everyone talks about wanting a measurable ROI from a training initiative...but how do you, personally, measure your ROI?

How to Measure Training Results: A Practical Guide to Tracking the Six Key Indicators by Jack Phillips and Ron Stone ISBN-10: 0071387927 or ISBN-13: 978-0071387927 is the book that
you want for this subject. For me the guarantee that I give my customer is that
they are the sole judge and jury on the results of the training.

I will place a student that does not measure up back into our training class without charge if they do not improve in the skill that I am teaching. I give the client up to one year to determine this. I also tell the client that if the student "washes out" for whatever reason - I will re-train the new
employee for up to one year providing the student returns with all of the material from the previous student. If they do not have the material I collect for a new set of material.

Any graduate is free to re-attend a program for refresher as long as the same version of the class is being taught without charge.

As for managers that want to measure ROI my impression is that the accounting community has the whole concept backwards. Why the heck is it that you can purchase a new computer or a major piece of equipment and it considered an investment yet you train a person that will provide the company multiples of financial return and the cost is considered and expense?

None the less, the "bean counter" that you are generally working with has not got a clue on the valid methods of calculating an ROI and when they do it will take them more time than it is worth to figure it out. I refer the accountant type to the above book! Even then I have the ROI requesters head spinning when they realize they do not have a clue on how to do Value
Justification. The real answer for me is - Have your bottom line profits improved? Did you implement and effective follow up program and some pig headed discipline to put the training into place? Knowledge is a great thing - The real issue is however are your people implementing the ideas? Did top management participate in the training with their people so that a real discussion of systemic issues related to the training can be addressed? In most cases the
managers have less than one hour per month to guide the actions of the new graduates of any training and that is in the 3% of the companies where the manager even gives one hour of face time per month to their people. 97% do not give as much as the hour. These are the statistics according to Harris Interactive study done for the Franklin Covey organization.