Investment in Training
Considering a company’s business strategy provides insight into both the level and type of investments companies should make to realize their strategic objectives. U.S. organizations spent about $70.6 billion on employee training and development in 2015. That’s a lot of money for training. The decision about how much to spend for learning and development will depend upon your company’s strategy. Deciding how much money is available for training should be factored into an organizational needs analysis. If little money is available, the company will have to use other means to ensure that employees are trained to do their jobs. More selective hiring is one alternative. These are the direct costs of failing to train employees. Indirect costs can include recruiting and hiring expenses related to replacing employees who are injured and can no longer work, or who quit because they believe their workplace isn’t safe. Similarly, ensuring that employees understand any regulatory restrictions or requirements they must adhere to will dramatically decrease a firm’s long-term legal problems. Therefore, managers need to remember that no matter what the company strategy, there are certain types of training that have to occur, regardless of the cost.
What the heck does a consultant DO, exactly? - Management Consulting 101
People say that I solve #businessproblems. That’s not wrong. But it’s way over-simplified. What does it mean to “solve problems”? What specifically do #consultants do to do that? So let’s put it this way. Think of #managementconsultants, especially entry-level ones as “content ambassadors”. We act like the bridge between a complicated client context with various needs, conditions, and attributes and a massive back-end network of knowledge and experts. This sounds simple but it’s not. There is a lot of slicing and shovelling involved. Let’s look at an example. I was in charge of the cement workstream and the key question was: should the client close down the plant? Yes, I have a massive network of experts behind me but there’s no way they can answer that question given how little they know about the client and market context. As the #consultant in charge, I have to analyze the problem, breaking it into smaller parts… In order to know if the client should close the plant or not, we need to know if we can turnaround their negative profits and if yes, how long does it take? Then into the first branch, I explore ways to improve sales and ways to cut costs. Suppose I was studying the costs and realize logistics is one of the biggest. Then only at this point would I choose from the network a cement logistics expert to talk to. Is this clear enough for ya? Let’s watch this video for more insights! Visit our website for more DETAILED GUIDES on McKinsey PST, Case Interview and Consulting Math http://mconsultingprep.com/ McKinsey PST: https://mconsultingprep.com/problem-solving-test/how-to-prepare/ Consulting Math: https://mconsultingprep.com/consulting-math/ Case Interview: https://mconsultingprep.com/case-interview/ Case Interview Question Types:https://mconsultingprep.com/case-interview-questions/ Case Interview Prep Ebooks https://mconsultingprep.com/case-interview-books/ Read 50+ posts on our blog for insider tips and tricks on McKinsey PST and Case Interview http://mconsultingprep.com/blog/ Help us reach 50,000 YouTube subscribers at https://goo.gl/ziBfQs and keep making everything available for free. Watch all of our VIDEOS on Youtube at https://goo.gl/ziBfQs McKinsey PST Prep Playlist https://www.youtube.com/playlist?list=PLV4GapePqKHXcG-HB8NKNf43FhOxCJSm3 Case Interview Prep Playlist https://www.youtube.com/playlist?list=PLV4GapePqKHUsb4IDNo7AGkA-yjKnyUex LEARN MORE ABOUT OUR E2E SECRETS PROGRAM TO ACE THE CASE https://mconsultingprep.com/case-interview-end-to-end/ JOIN US ON FACEBOOK https://facebook.com/MConsultingprep Hope to see you in the next video!