The dual challenges of shrinking training resources and increasing training demands may make computer-based training an attractive option for internal audit departments.
Our internal audit organization of approximately 100 people was faced with an imposing training challenge when we converted from a mini- to a personal computer local area network (LAN). New word processing, spreadsheet, presentation, flow-charting, and analytical software packages were introduced, and we were forced to examine our training needs and to conduct a thorough analysis of available training alternatives.
Computer-based training was one of the solutions we considered and eventually adopted. In fact, over the past two years our organization has saved over $300,000 by using CBT versus contracted training for five standard software courses. In the process, we also saved approximately 500 staff days.
* Weighing the Costs
Training usually represents a substantial outlay for any organization, and costs were obviously an important consideration for us in this situation. The training options we explored included outside contracting, in-house training, and CBT tutorials.
Outside Contracting
For many organizations, the most common approach to training is an instructor-led, paper-based workshop that provides employees with hands-on instruction. This type of training is normally contracted out, runs over two days, and costs approximately $350(*) per person per course per day. Such generic courses tend to cover all the features of a software application, though auditors may only need to use 10% of them. For 100 staff members, the cost of contracting out per course -- excluding the participants' salaries and travel time -- is approximately $70,000, or $700 per person.
In-house Training
Within our internal audit organization, a staff of two develops courses specifically tailored to the needs of our staff. A training room has been set up and equipped with PCs, TV/VCR units, overhead projectors, and other equipment. In-house trainers purchase materials, including an instructor's guide, student workbooks, and data diskettes for each software application. Most packages cost approximately $200 per course per person. As with most off-the-shelf training materials, the trainer must tailor the package to suit the organization's needs.
Our experience suggests that a minimum of fifty hours of preparation is required for every hour of classroom instruction. The trainer then presents the material in one-day seminars to groups of about eight people. The cost of this alternative, including the trainer's salary but not the staff's salaries, is approximately $50,000, or $500 per person.
Computer-based Training Tutorials
In CBT, the computer presents the material to the learner, provides an opportunity for the learner to apply the skills and knowledge, and gives feedback on performance. The in-house trainer performs a needs analysis to derive learning objectives, identifies and modifies a relevant CBT package, tests the tutorial with a pilot group of trainees, and schedules training sessions. Since our internal audit organization operates on a LAN, we normally buy a few stand-alone copies of computer tutorials as well as a single LAN copy, for a total cost of approximately $600.
We use tutorials for most of our software training, including DOS, Windows, WordPerfect, Lotus 1-2-3, and Harvard Graphics. Our in-house trainer requires about three weeks to review the tutorial, prepare handouts, and set up appropriate training schedules. At most, a trainee needs one day to complete the CBT tutorial. Therefore, the total cost per course is approximately $6,000 for 100 people, or $60 per person. This cost includes the purchase price and the in-house trainer's time for briefings and administration.
As the Exhibit illustrates, computer-based training is clearly the most economical way to train auditors to use software applications. Savings are even greater considering that in-house and CBT courses take only one day of a participant's time per course instead of two days for contracted-out training. In addition, when comparing the incremental training time to train new staff, the trainer requires only a few additional hours to adapt a CBT tutorial for a new employee once the initial set up has been done.
* Strengths of CBT
Apart from its comparatively low costs, CBT offers other advantages. CBT meets different learning styles, matches the pace of individual learners, gives immediate feedback, offers easy access, can be used by staff with varying schedules, and provides consistency of delivery.
Meets Individual Needs
In a relatively small organization such as ours, it is neither practical nor economical for an in-house CBT program to satisfy all of the learning styles or preferences of our staff. However, we have devised an approach to CBT that we feel represents a reasonable compromise:
* The in-house trainer reviews the CBT package and prepares handouts on main teaching points.
* Staff attend a two-hour briefing by the trainer or subject matter expert to develop a general awareness of the software's basic features.
* Trainees can take the CBT tutorial to their desks or the in-house training center -- or they can begin using the software immediately.
* Staff can intersperse CBT tutorial sessions with on-the-job software use.
* Trainees can attend a one-hour information session to ask specific questions about the software.
* Staff have access to an in-house expert for ongoing support.
Allows Self-Pacing
Staff in our audit organization have diverse levels of software application knowledge. CBT tutorials are highly effective, as beginners and advanced users alike can navigate through modules in any order. Users can stop, pause, skip, or repeat whole lessons or difficult sections any time, thus choosing their own pace in a relaxed, low-pressure learning environment.
Provides Interactive Feedback
After the trainee has completed various exercises/activities, a quiz at the end of each module tests understanding of the material and provides instant feedback. If the trainee responds correctly to a question, words of congratulations appear. On the other hand, if the trainee makes a mistake, messages suggesting corrective action are given. The trainee may see the message "Please try again," and on a second attempt, a "Hint" may be offered. Some tutorials repeat these messages until the trainee answers correctly while others provide the correct answer at the user's request.
Training Costs for 100 Staff Members on One Software Application
Outside Contracting In-House Trainer CBT
Total Cost $70,000 $50,000 $6,000
Total Cost/Person $700 $500 $60
Total Person
Training Days 2 1 1
Total Trainer Preparation
and Delivery Days 0 20 20
Incremental Time to Train
One New Staff Member
(Trainer Preparation and
Delivery Days) 0 1 day 3 hours
Offers Easy Access
In our organization, we place CBT courses on a LAN, which provides staff with immediate access to tutorials. This constant availability is especially convenient if, for example, a trainee is using software and comes across a feature that he/she does not remember from the tutorial. In a Windows environment, the trainee can access the tutorial, search for the topic using the index feature, and "brush up" on the topic without ever having to leave the software application.
Is Available on Demand
We have found that a CBT course normally requires one day to complete. However, since lessons are divided into topics lasting one or two hours, staff can reconcile their work/travel schedules with their immediate training needs. In other words, the user can leave the tutorial any time and return to it when time is available.
Some CBT packages record progress by placing a check mark next to each completed lesson topic, thus making it easy to pick up where the trainee left off. In addition, some staff have signed out stand-alone versions of tutorials for use on home PCs. For users who prefer to train at home or "on the road," CBT transcends time, location, and availability of an instructor.
Assures Quality
In traditional classrooms, delivery style varies with each instructor. With CBT, all trainees receive the material consistently. CBT captures the talents of a professional trainer and delivers the customized product to individual users. Thus, the trainer can offer quality training whether one or a hundred trainees are involved.
* Caveats
With all these strengths, one might think that CBT sounds like a panacea for all training requirements. However, three important caveats are appropriate:
Complement CBT with Other Training
