After featuring in an article in the 2010 Harvard Business Review, SMART ROI™ has been applied to over 130 corporate client projects in 9 sectors, including aviation where key clients are OEM’s such as Airbus and Pratt & Whitney. SMART ROI™ is a proprietary method created by Management & Excellence SA, Madrid, founded in 2001, and is registered with the US Patent and Trademark Office, Washington DC. Management and Excellence is working in partnership with Salient to quantify the benefits of Evidence-based Training.
What
SMART ROI™ is an established method for modeling the financial impact of training to improve human performance. Evidence-based Training improves crew processes and the management of complexity in operations. SMART ROI™ is an effective means to measure the impact of enhanced training.
Why
SMART ROI™ utilizes a host of financial tracking data showing the month-on-month impact of Evidence-based Training on operating effectiveness and efficiency.
Firstly, the total direct and indirect costs of EBT are included, including manpower, equipment, travel and associated costs.
The second category of financials is the most critical, namely, the operational benefits of an EBT program. Using a tailored learning approach with a focus on underlying competency performance and processes in the flight deck, EBT provides exposure to and normalizes the surprise effect. This has obvious safety benefits and in addition, SMART ROI™ quantifies cost reductions derived from more effective processes influencing the management of passenger-related events, diversions and returns to departure, delay management, etc. SMART ROI™ measures the extent to which EBT contributes to these cost reductions. It does not attribute 100% of cost reductions to the ROI calculation. This yields a more conservative and exact result.
How
SMART ROI™ is minimally invasive, taking very little of the client’s time. It begins with pilots completing a short pre and post training online survey. Using principles based on Self Efficacy, surveys capture expectations and learning outcomes from training. After this pilots voluntarily complete a further short survey post line operations in the period after training, to report the application of learning in managing complexity. These inputs are normally compared with an airline data to substantiate claims. Our experience has shown that pilots willingly take the 2 minutes to complete these anonymous surveys because they are contributing to something positive.
SMART ROI™ reports monthly ROI numbers on the impact of EBT on operational efficiency according to event type, circumstances, aircraft type, cost category.
These data:
- Help the airline client to accurately capture the impact investment in training
- Include trends highlighting areas of most significant impact.
- Suggest ways of further reducing operating costs.
