4 Responses

1. Centralised training

   Debbie

   There is no easy answer to your question because there are many centralised and/or decentralised models being used. There are some many factors affecting choice – such as size of organisation, nature of the learning required, location of the subject and training expertise and much more.

   As a general rule I advocate that the structure of the L&D function should follow the requirements of the business. In an ideal world the budget would be set based on identified needs and distributed according to those needs. In practice there is a bit of reverse engineering required ie working out how much you have to spend and then organising the function and delivery mechanisms to target the priorities you can afford.

   Often organisations place the primary responsibility with individuals and line managers. The more technical the training the more likely it is to be delivered at the desk (elearning, coaching) or close to the workplace (by a technical trainer drawn from the business). The more corporate the training (either because it is for all staff or because it is a corporate initiative) or the more generic the topic (eg management, leadership) the more likely it is to be coordinated and funded at the centre. The size of the central team will depend on how much you deliver yourselves and how much you buy in, how much is course based and how much is elearning or other methods, and how much you want to invest in the trainers (numbers of them, levels and range of expertise).

   Despite these generalisations, I think it best that you create a model that works for your situation. This is one area where there is not one best practice you can follow, though there are many lessons you can learn and ideas you can borrow. It is about best fit more than best practice.

   Hope that helps

   Graham

2. Centralised Training Function/Budget

   Hi Debbie,

   I used to run a centralised training function for a large Shared Service Centre for a fortune 500 company, which was at first run through a centralised budget, and then laterly through organising training centrally once the budget had been devolved.  There are many advantages to this way of working and also some problems as well. I’m happy to talk this through with you if you feel that it would be useful. Feel free to contact me off-line.

   Regards

   Martin Smith

   Learning and Development Consultant

3. Agree the scope

   Hi

   I operate a central training budget but we make it very clear what the money is for. Each department has niche training requirements that they fund themselves and I look after Management Development programmes.

   If you are moving from decentralised to centralised budgets, it’s worth looking into how it was managed before. We’ve been able to make huge cost savings by having a single point of contact for booking hotels etc (which is in my budget!). If you want to manage a budget well, then IMHO, the person booking should understand the cost and who bears it.

    

4. Centralised model for Learning/Training and spend

   Thank you all for your input – much appreciated.

   Rgds

   Debbie