Hapag-Lloyd (formerly ANZDL)
ANZDL, now operating as Hapag-Lloyd after Hapag-Lloyd's purchase of CP Ships, are a containerised ocean transportation service operating between Australia, New Zealand, North American and the Pacific Islands. At the time of the study ANZDL had more than 300 employees worldwide with 100 of these positions held in Australia.
The aim of their training program known as "Effective Personal Leadership" is to develop a company of 'business people' with a focus on the integration and linkage among staff, activities and achievement. The program therefore promotes the need for employees to master several types of business skills as well as providing latitude for personal and professional growth.
To achieve these results the program was delivered by an outside consultant and aligned to the Generic Management Competency Standards for Frontline Management endorsed by the then Australian National Training Authority (ANTA). The analysis of the returns, again coming from Doucouliagos and Sgro (2000), are taken from a group of 21 Managers, including their Australian General Manager. The program consisted of 15 sessions of 2 hours each over 18 months.
To measure the benefits the two authors undertook a pre-course evaluation of the trainee group and business to establish objectives that relate to measurable outcomes. Due to the nature of the training that focused on management skills the costs of the training were easily identifiable but the full range of benefits were not.
A pre and post survey of trainees was undertaken with significant increases in participants' perception of the degree to which organisational goals and objectives have been obtained post training. Nonetheless, it is difficult for a company to base return on investment calculations on perception alone, but the report authors looked to analyse the business improvements targeted through the Effective Leadership program such as:
- Achieve a significant reduction in overall equipment repair costs (maintenance)
- Reduce storage costs to customers by streamlining storage processes (improved customer service)
- Increase staff productivity from prior years and decrease administration costs through work process simplification (improved profitability).
ANZDL trainees successfully achieved the goal of reducing administration costs by eliminating unnecessary suppliers as well as increasing Divisional Staff productivity through a work simplification process. These two benefits alone are calculated to have resulted in a 323% Return on Investment for ANZDL.
While the entire ROI may not be attributable to the training program, qualitative feedback from the trainees confirm that the program made a positive contribution to the development of their leadership skills suggesting that the training program accounted for a significant percentage of the full ROI.
As well as business benefits many of the trainees also believed the training improved their work and family life balance.