The Real ‘Cost of Doing Business’

May 3, 2017

It’s often said that the definition of insanity is doing the same thing over and over again and expecting a different result. So let me set the scene, and then you tell me if the training shoe fits…

In 2008, the global analyst firm IDC published a white paper entitled ‘Counting the Cost of Employee Misunderstanding‘ which examined the financial impact of human error on 400 UK and US businesses with over 5000 employees. The study surmised that human error (defined as actions by employees who have either misunderstood or misinterpreted company policies, business processes or job functions); cost companies an estimated $37 billion every year. The further cost of damage to intangibles such brand reputation, trust and customer loyalty only extrapolate the consequences.

So by exposing human errors as one of the biggest drains on company profits and resources, you’d assume that this data must have caused quite a stir in the training and development community. Surely this preventable waste spurred a training revolution, given the bold-faced evidence that what we’re doing isn’t working. You’d think so, right?

Read more...

Previous Article
Learning Analytics…from the Learner’s Perspective
Learning Analytics…from the Learner’s Perspective

Dear Training & Development Professional, I’d love to be even more involved in my learning. Is there some w...

No More Articles

×

Want more great content? Subscribe to our blog:

First Name
Thank you! We publish new posts weekly.
Error - something went wrong!