.

Rule of Diminishing Returns

As the graph below shows, return on education investment begins to decline after a certain point – thus, Diminishing Returns.

As the graph indicates, there is a point of diminishing return that is typically associated with employee skills at the “Stabilization” level or Level I.

Any Training effort to ‘push' the employee's to a higher skill level will require more investment, time and resources.

The reasons for the Rule are simple:

• Retention is 30-36%, regardless of method of Education.
• Training facilities are limited, which results in a time gap between training and go-live. Can you train all of your people, on all skills the day before go-live? The amount of time between training and usage results in a lower retention rate.
• Employee Turnover or reassignment between Training and go-live.
• On-going business changes between Training event and go-live.

Even if budget and time constraints are not a factor, missing goals can cause issues with achieving “Elite” status:

Employee's become frustrated or overwhelmed

• Management begins to question effectiveness of education initiatives
• Business Processes begin to be performed ‘outside' of SAP (spreadsheets, etc)
• Credibility in future education events is damaged
• Credibility of SAP is damaged

Source of Skills >>