Odfjell nr 3 - 2005.indd

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Strengthening Odfjell seafaring skillsAn emerging academy (Part III of III)By Captain Kjell Johansen, Odfjell ManilaReturn on Training Investment - Do we reap what we sow?In the two previousissues ofOdfjell Quarterlywe have coveredthe establistmentof the OdfjellAcademy, and wehave emphasizedOdfjell’s commitmentto enhance‘Health, Safety,Security and Environment (HSSE)’awareness and operational excellenceamong our seafarers through theCompetence and Career Management(C&CM) programme. This time I wouldlike to focus on the benefits of trainingin monetary terms and on how todetermine whether or not training programmesreally provide added value.All types of generic training can be purchasedoff the shelf, and in many casesat lower cost than providing it internally.However, at Odfjell Manila we believethat in order to close skill gaps and developindividual competence and careerplans, training should be developedand delivered by those who have thebest knowledge about the company’soperation, namely people working forOdfjell. This has been the main reasonfor the establishment of the OdfjellAcademy, which will be instrumentalwhen it comes to training of seafarersin the future. Obviously we need tofind ways to evaluate our programmes,comparing the quality of the trainingand the value of increased crew competencewith the cost of providing it. Thekey concept in this context is Return onTraining Investment, in short ROTI.What is ROTI?Regardless of which measures a companytakes to improve its operation,cost/benefit considerations are importantprior to deciding whether to goahead or not. Management needs toknow that the investments, no matterwhich area of operation, are moneywell spent. The same principle appliesto competence development of seafarers.One way of measuring the effectof training is through the implementationof a Return on Training Investment(ROTI) programme, which may providevaluable information on whether or notour training activities meets the C&CMstrategy and goals of the company.Measurement of ROTI starts withdefining the reasons and goals for thetraining, determining how much theBridge simulation training12 ODFJELL Quarterly October 2005
During classroom sessionstraining costs and finally verifying theamount of return. ROTI is an instrumentto assess benefits of training, as in theformula below:Added value(Business Benefits)Training InvestmentsROTI =Training InvestmentAlthough the formula may seem simple,putting a monetary value on the businessbenefits of training is easier saidthan done. As mentioned above, themain objective of the C&CM programmeis to improve health, safety, security,environment protection, efficiency andeffectiveness of the company’s shipboardoperations. Hence, to measurefinancial benefits is important, and thisis achieved by linking learning goals tobusiness objectives and then calculatesavings over time. The figure belowshows an example of how one identifiedbusiness objective can lead to adesigned training programme.Some of the most important ways inwhich training may benefit the companyin the long run, are through reductionof accidents, better operationalDemonstrating basic seamanship skillsefficiency, improvedcustomersatisfactionand higher personnelloyalty.Questions thatalways shouldbe asked whenspecific trainingis developedand implementedare:• What returnof investmentcould weattach to aparticularcourse?• When will theimpact be evi- Cadets saluting the training officerdent?• How can we be certain that effectiveperformance is due to the training?• Could improved competence be theresult of other factors such asimproved working conditions,rewards, motivation, personalcircumstances?Although it may be difficult to measureROTI, Odfjell will launch a pilot projectcovering some clearly defined operationalareas where measurement shouldbe relatively easy:• Reduce vetting non-conformitiesthrough increased focus on how tocarry out a proper ‘MasterVerification’.• Reduce the use of auxiliary enginesthrough increased knowledge bothby engine and deck crew of how tomaximize the use of such machinery.• Reduce maintenance costs throughproper understanding of how to usemeasuring equipment to establishcorrect machinery operatingparameters.Other operational areas suitable formeasurement may be added on. Byestablishing tailor-made companyspecific training programmes, it shouldbe possible to assess whether or notthese efforts will give positive returnsin the form of less customer complaints,reduced fuel & lube oil consumption orfewer incidents of machinery failure.We will then use the experience gainedthrough this pilot project to “calibrate”an overall ROTI model covering allrelevant areas of operation on board.ODFJELL Quarterly October 2005 13
Page 1: Company Magazine for the Odfjell Gr
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