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When there’s a financial situation such as the company needs to hit its quarterly profit target but revenue is below target, the bean counters often look to raise quick cash by cutting expenses. One area that’s often targeted for deferment is maintenance training.
The word “deferment” here is really code for code for “You can’t do it this quarter, we’re saying you can do it next time but we’ll find an excuse then too since we got by with it this time.”
Now, let’s see if we can follow the “logic” here. Using some typical numbers, there’s a strong chance of incurring a $90,000 production outage, compared to a $5,000 training spend and the $90,000 loss is somehow going to boost profits. Shipping orders late will somehow improve sales so that revenue dip doesn’t happen again even though some customers will cancel and go with a competitor.
Or you might wonder if the sales targets were missed due to deferring sales training to meet a previous quarter’s target. That’s probably what happened.
When the budgets were set forth, a lot of thinking presumably went into allocating limited resources in an optimal manner. It’s not a normal business practice to budget stupidly and then just cut essential expenditures to meet a profit goal.
So when does it make sense to suspend training? That would be some time between never and absolutely not. Make the case to defend your training budget if this issue comes up.
Source: Mark Lamendola | Mindconnection