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Refine your client recommendations using the FIT Tool

The program “Financial Impact Tree Tool V2 (“FIT Tool”)” will get you there

Moving from 'Learning' to solving a 'Real Business Issue'

Focus on solving a business issue

Learning returns the highest benefit when it is properly applied to solving real business problems. We recommend the line manager and the employee agree on measurable goals that will address known business issues.

The employee might then need to attend a development program such as this workshop. The objective is not just to attend a workshop, but rather to increase the employee’s business and financial acumen, and as a direct result of this development program, identify and help achieve specific, measurable, value-creating performance goals. To illustrate moving from learning-related goals to performance-related goals, we have prepared the following suggestions, which of course should be modified to meet the specific needs of the line manager and employee.

A business issue is on the table
Manager asks employee to solve the business issue
Training takes place with the issue in mind
Employee focuses on solving the issue
Employee reports outcome

  • Issue needs to be solved asap
  • Employee is unclear how to do that
  • Definition of KPIs to solve the issue
  • Training will be recommended to help solve the issue
  • Maybe a workshop
  • Maybe on-line
  • Employee addresses the issue with the newly acquainted knowledge
  • Employee shares how it was possible to meet the KPIs
  • Issue is solved

Value creating performance

Value-Creating Goal

Thanks to your new knowledge in using and applying the FIT tool, identify the needs of ten new opportunities (potential clients) and apply the FIT tool expertise to develop a high-quality recommendation for your ten clients.

Suggested application tasks in order to meet the above-mentioned goal

After reviewing the financial statements of a selected client and the results from the FIT Tool, determine the key transactional themes driving your client, which will be used to establish the client's specific underwriting needs. Your findings should be presented to Business Development (BD). From these findings a series of tangible actions should now be followed through with the goal to add one of your ideas into the business pipeline.

Summary

Addressing business issues - in a context of learning - promises to produce impressive ROIs. When we consider all the benefits and costs, this type of training/development investment creates significant value and provides impressive quantifiable returns, both for the employee and for Swiss Re.

Therefore, this approach moves us far beyond "just learning something"; it focuses us on the positive business outcomes by quantifying the expected costs and resulting value creation.

Our Thoughts – the Return on Investment (ROI) Calculation

This activity promises a strong ROI of 394%

The sections below reveal our calculation.

Select each thought (+) to learn more about it.

1) Quantifying the value of this venture

Quantifiable value: Assume that the time saving impact after this training intervention can be translated into less involvement of numerous experts, with the following saving each year: Time savings for employee – 10 hours for the year (US$170 per hour)

This can be translated into a quantifiable yearly saving for each participant of approximately US$1,700 (10 hours x US$170).

Further, assume that a unit of total sales goal in the market equates to US$100,000,000 which comprises 1,000 individual opportunities, the value of a new opportunity is imputed at US$100,000 (US$100,000,000/1,000).

We assume that the contribution from each new opportunity could be 5%. The value therefore can be calculated this way: US$100,000 x 5%, which equates to US$5,000 in benefit

The total enhanced value from this training intervention, could be as high as US$6,700 (Time saving – US$1,700 + New business – US$5,000).

Non-quantifiable value: Besides these measurable values, there are also non-quantitative benefits of this development. These include for example, higher NPS scores, as a result of high quality and focused recommendations, increased reputational value, as well as the enhancement of work quality, all of which often materialize over time.

Assume the cost of participating in the half-day training is US$300 which is ½ of the Swiss Re average training cost per day.

Also assume the opportunity cost for being away from the desk for half a day is US$700. Further assume that a half day of work is required to apply the findings and to achieve the above-mentioned performance goal, which adds an additional US$700 opportunity cost for not being productive.

Therefore, the total related cost of this learning investment is assumed to be US$1,700 (US$300 + US$700 + US$700).

The ROI in this case equates to a high 394% (US$6,700/US$1,700).

Don’t forget this ROI calculation is not considering the above-mentioned non-quantifiable value.

Additional savings could result since the savings could reoccur in subsequent years and the learnings from the workshop could be applied to other situations. In your own individual case, the numbers may differ, our intention here is to offer an example for creating your own ROI calculations.
Agree on your goal
Structured learning
Social learning
On-the-job learning