Carver Consulting

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Carver Consulting

• Michael Alexander, Jacob Ceterdun, Shannon
  Parkerson

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CarverConsulting

• Carver Consulting offers human potential
  consulting and training to businesses and
  individuals.  We provide customized workshops
  focusing on leadership development,
  communication, conflict resolution, customer
  service and career transition.  We also
  specialize in executive and personal coaching to
  assist individuals in maximizing their
  organizational impact.  Our client list includes
  a wide range of both large and small companies.

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CarverConsulting

• Product InformationLeadership Development -
  Customized workshops provide an interactive and
  fun approach to applying leadership principles
  and practices.  Individuals learn tools and
  approaches for leading with inspiration in the
  dynamic pace of work.  Customized modules focus
  on content areas specific to the
  client.Executive Coaching - Completely tailored
  to the individual's growth opportunities.
   Content areas include greater effectiveness in
  workplace partnerships, enhancing personal power
  and impact, leadership development and conflict
  resolution.Communication - Focuses on what it
  takes to communicate with ease when meeting many
  new customers, working cross-functionally, or
  within work groups.Presentation Skills -
  Strengthen your ability to speak to and inspire
  people to action.  Enhancing personal presence
  and impact.  Bring ease and joy to presenting
  your great ideas!
• http//www.carverconsulting.com/index.html

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Background of the Firm

• Why a merger?
• Stronger and more diversified services in the US.
• Compete nationally with larger firms.

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Professional Training

• First Dilemma
• Outside
• Organize own training

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The National Training Center

• Purchased Sandown College
• Renovation 17.5 million
• 1 million over budget.
• State-of-the-art

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• Capacity
• 120 participants
• 48 weeks of the year
• 30 partners
• 90 staff consultants
• Are they creating competitive value over
  competitors?
• http//www.youtube.com/watch?vH4Fb_OAyZfs

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• PROBLEM- The managing partner of a relatively new
  consulting firm is concerned because training
  costs at the firm's new training center are
  higher than expected.
• Analysis of actual costs compared to those
  expected.
• In addition, he is considering capitalizing some
  training costs for later amortization.
• A management control system for the center is
  also a priority.

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Training Evaluation

• The evaluation process
• Conduct a needs analysis
• Develop measurable learning outcomes and analyze
  transfer of training
• Develop outcome measures
• Choose an evaluation strategy
• Plan and execute evaluation

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Outcomes

• Cognitive used to determine the degree to which
  trainees are familiar with principles, facts,
  techniques, procedures and processes emphasized
  in the training program.
• Skill based used to assess the level of
  technical or motor skills and behaviors
• Affective includes attitudes and motivation.
• Results used to determine the training
  programs payoff to the company.
• Return on investment (ROI) compares the
  trainings monetary benefits to the cost of
  training. http//www.youtube.com/watch?vxe3Oh7Wyy
  E4

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Evaluation Designs

• Post test Only refers to an evaluation design
  in which post training outcomes are collected.
• Pre-test/Post Test a design in which both
  pre-training and post training outcome measures
  are collected.
• Pre-test/Post Test w/ comparison group includes
  trainees and a comparison group. A design in
  which both pre-training and post training outcome
  measures are collected from both groups.
• Time series a design in which training outcomes
  are collected at periodic intervals both before
  and after training.

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Carver Consulting Case

• The case involves a new consultant, Patricia
  Ryan, specializing in personnel and human
  relations receiving an assignment to determine
  why costs of training are higher than previously
  anticipated. David Li, Chairman, typed a memo to
  Patricia Ryan stating some specific questions
  about training costs and capturing the value of
  human capital being gained through the training
  program.

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Training Costs

• Estimated 784 per week including transportation
  cost.
• Actual 1,047 33 higher!
• Additional Costs
• 3,500 per week salaries for staff consultants
• 7,400 per week for partner or principal

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Memo questions

• 1 Should we add human capital that has been
  gained through the training to the balance sheet?
  Why or why not?

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Memo Questions

• 2 Which of the training costs incurred in 1993
  are the best candidates for capitalization? If
  some should be but others shouldnt be, what
  criteria permits you to separate these costs? Are
  there other costs incurred by CC related to
  training activities that should be capitalized?

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Memo Questions

• 3 Given the data for average years with the
  company being about 3 years and only 30 of new
  hires make it to 4 years as well as only 1 in 10
  making partner, if some training costs are
  capitalized , over what time period should they
  be matched with revenues?

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Memo Questions

• 4 If we do capitalize some training cost, the
  operating income reported will be higher for
  1993. How, if at all, should this affect the cash
  payout to partners and principles for 1993? How
  will the capitalization of training costs affect
  the cash flows for the firm?

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Memo Questions

• 5 Do you have any possible hypothesis about
  why the actual cost of 1047 per week was
  different from the estimated cost of 784 per
  week and what may have caused the difference?

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Memo Questions

• 6 Can you outline a system or ways in which we
  might track the cost of training better in the
  future?

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Memo Questions

• 7 Do you have any suggestions about changes to
  the firms management control system or incentive
  systems to encourage partners and principles to
  use the center to its capacity?