Proper allocation of training budgets and resources requires fundamental and important business decisions. Unless the organization's training function is a revenue-generating business, the demand for training most likely exceeds capacity and budgets are likely viewed as an expense - which is continually scrutinized. As a result, resources need to be focused on those initiatives that are important and which can maximize the training investment and demonstrate value. Otherwise, limited resources may be improperly invested in programs that end up having minimal impact on the organization's missions/goals.

How can training program funding decisions be optimized? Should money and resource allocations be equally spread across programs? Should the focus be on a few programs, with eLearning or blended solutions being favored to spread the investment? How can spending on the training function be prioritized in advance to deal with the constant challenge of new products, regulations and initiatives that require training?

Managing training budgets and resources should be no different than managing any other investment, including information technology. The issue is how much time, money and resources are required to run programs versus the benefits generated in return. To identify benefits, links should be established between training activities and missions/goals - to define why training is needed in the first place. Training should address specific performance deficiencies needed to achieve unit/organizational goals and, as a result, the success and importance of training will not be measured by the skills and competencies that are being developed, but by the impact of the newly acquired skills on "performance".

This paper presents a process for capturing the costs and benefits of instructor-led, eLearning, and blended solutions, assessing the impact of training initiatives on performance, missions and goals, identifying reasons behind success/failure, and maximizing training investment by redirecting resources to those activities that generate the greatest impact.