HR IN MSME S
SUMEET VARGHESE
Improving ROI from
training & development
ormal learning and development in an MSME
F
environment has been challenged on many
counts. While some entrepreneurs find it
expensive and irrelevant, others question its
utility. Worse, many find conventional
training to be highly ineffective. Obviously
m any HR professionals in the industry have to
overcome these issues when working with large
organizations as well. However, with MSMEs this
challenge takes a different orientation. As many MSME
entrepreneurs tend to be more focused on the here
and now, any effort to convince them about the long-
term benefits of a particular training or developmental
initiative are at best misplaced. So how can the HR
community communicate real or estimated value-
add from a training program to an MSME owner and
ensure the same is delivered to the satisfaction of the
owner? Part of the answer to this question lies in
understanding how MSME owners learn and apply
new practices on their own. It is also equally critical
here to get a sense of the motivators influencing the
MSME owner's decision to learn something.
For any MSME owner, the impetus to embrace
newer and better management practices lies in the
tangible return he/she expects and receives from any
new initiative. As a matter of fact, when the benefits
are tangible, there is a strong likelihood for the new
intervention to stick. In a community of entrepreneurs
based in Maharashtra that this author worked with,
learning a new management practice or technique
was based on four important processes - all equally
critical:
Unlearning - shedding existing inhibitions or
apprehensions about the technique through sustained
questioning of existing practitioners
Learning - understanding the nuts and bolts of
launching a new intervention from an expert who has
actually rolled out the new practice
Application - trying out new learnings with the
support of peers who have implementation experience
Teaching - training and mentoring other novices
in the new technique and in the process re-training
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oneself
Interestingly this cycle comprising four distinct stages
of learning does not end with just one topic learnt or
one practice implemented. It is meant to be
continuous and or to put it in other words, a way of
life.
But how effective is this process? Does it work at all?
Let's take the case of Vivek Patil - a member of this
group. He is 44 years old and runs United Heat
Transfer. His firm makes process equipments for
established players like Dresser and Ingersoll Rand.
He has some 65 employees on the rolls and a healthy
turnover. Earlier, Vivek had a bunch of consultants to
guide him but growing disenchantment with their
methods led him to join this community of
entrepreneurs. As part of the curriculum that is
imparted to new members, Vivek learnt about 5S
practices from an expert, a dedicated mentor and
several others who had rolled out 5S in their plants.
Typically, the instructional process followed comprised
the following:
Regular classroom-based instructional training (of
varying duration spread across several weeks) in 5S
which featured sharing of best practices in 5S with
real case examples from companies in the area
Actual demos during Interplant visits to role model
plants
Group activities and discussions with expert,
mentor and novices on an ongoing basis
Implementation support from expert, mentor and
other practitioners
Regular audit of implementation level by expert,
mentor and other practitioners
When this author caught up with Vivek to
understand the effectiveness of the training imparted
to him, he had some real tangible benefits to cite.
Apparently, because of the substantial inputs he
received in 5S, Vivek began sticking to the procedures
prescribed in the 5S Manual. He removed objects on
the shop floor that they were not utilizing and began
preparing and implementing a set of specific time-
bound activities. For instance, a bell would be rung at
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 HR IN MSMES

regular intervals to signal start of cleaning processes.

Moreover, thanks to the pressure from the scheduled
audit by peers, Vivek introduced an audit internally to
check implementation level, every Sunday. Realizing
he would need a lot of support on the floor to achieve
any transformation, he appointed heads in each
function to look after the 5S activities in their specific
area. Each was also empowered to conduct checks
and present a Non Compliance Report where
necessary.
Interestingly, it didn't take long for others to notice
the transformation. Many of Vivek's clients from
Europe were surprised to see a spic and span shop
floor. Earlier, the same set of clients had to move
through a dusty, grimy, disorganized shop floor thanks
to the nature of the engineering jobs Vivek's firm
handled. Vivek particularly remembered one client
from France who was so impressed by the turnaround
that he and his team took snaps and sent the same
back in the form of a report. Obviously the French
were not just interested in taking snaps - they rewarded
Vivek with more orders.
Vivek is not the only member who has seen his
business increase courtesy a training and development
input. Many of the entrepreneurs this author spoke to
cited varied benefits - all tangible, from a host of new
practices that they learnt and applied with support
from experts, mentors and other members trying to
learn the same thing at the same time. Vivek's example
and that of the other entrepreneurs is instructive in
two respects - one, MSMEs don't discount the value
add from a training investment and second, training
and development has to be purely transformational
to have any effect or impact for an MSME. Typically,
HR professionals who plan to address training needs
in an MSME setup may have to focus on the following
aspects more than ever:
1. Chalking out Potential impact in terms of real
tangibles from the training investment
2. Clear training and development philosophy
designed to maximize both learning and impact
3. Well-outlined training and development process
structure with timelines and resources
4. Systematic follow-up to check for implementation
and improvements
5. Creating a Community of Learners comprising
Experts, Mentors and Novices
Without doubt, this model of training and
development does not fit into the 1 or 2 or 5 day
seminar based training paradigm that most HR
professionals have heard of. But, unfortunately the
1 or 2 day seminar model may not deliver much value
to an MSME. Clearly, If HR is all about adding value,
training and development may have to re-invent itself
since it's precisely this aspect of HR that holds a lot
of promise to both HR and MSME owners. HC

Sumeet Varghese is an independent management consultant.

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