Case Study : International Rectifier
w is this accomplished with limited resources and one individual
who manages and implements product training globally?
To prepare for effective sales calls,
how is product training disseminated to the entire sales force before new products are launched.
International
Rectifier, a global manufacturer of power management semiconductors,
found its solution in the online world of e-learning.
Challenges
International Rectifiers Power Tech Learning Center
has helped trim sales training costs
by 75%.Robert Grant, Executive Vice President
of Sales & Corporate Marketing for International Rectifier, said,
The number and complexity of new product introductions continues to
grow at an accelerated rate, and our global sales force requires immediate
access to product knowledge in order to effectively service our customer
base. In addition, this new method of training has enabled us to reduce
our training costs by 75%.
Busy sales people require a flexible
training solution to accommodate their hectic schedules and remote geographic
locations. In addition, effective communication must always be a two-way
street.
Just as important is an evaluation system to measure
training effectiveness. By the same token, feedback from the students
on the training system itself can lead to continuous
improvement on training materials
anddelivery.
Before e-learning was introduced
as a training solution for the IR sales force, a more informal training
process was in place.
Although well received and fairly
effective, it was a catch-as-catch-can situation, requiring a lot
of effort and expense. Several days of selling opportunities were lost.
Solutions
An interim solution using an Internet
conferencing platform was introduced. International Rectifier set up
monthly product training sessions. Because of the different time zones,
multiple training sessions were needed to accommodate the worldwide
audience. The benefit of Internet conferencing became apparent immediately,
since real-time visual and audible communications with the presenter
via live chat and conference calls were available. The sales force also
liked the idea of attending training sessions from their home base
without the need for travel, and at a time most convenient for them.
Although convenient and effective, there was room
for improvement:
Registration: A limited number of seats (site licenses) were available,
limiting the number of participants. The registration process was also
cumbersome to manage.
Security: Each training session had a unique user ID and password.
Multiple user ID codes and passwords created confusion for the sales force.
Evaluation: There was no evaluation process to capture and track
the knowledge gained or training satisfaction.
Progress Report: Supervisors and students wanted to see individual
training progress in real time.
Refinements
International Rectifier responded
to these challenges by launching the Power Tech Learning Center, deployed
using GeoLearnings GeoExpress Learning Management
System (LMS). The LMS was implemented in two phases. In Phase 1, the
LMS platform was customized to include the previous Internet-based conferencing
solution. The unique user ID and password scheme was discarded, and
the registration process was automated. An attendance report and administration
management were also integrated into the LMS.
In Phase 2, the Personal Learning
Plan module was added to the LMS. In the PLP module, multiple programs
can be created for different job functions. Each student is enrolled
in one or more programs. Each student is required to complete a curriculum
of prerequisite courses, major courses and elective courses every quarter.
In return for successful completion of their training, they are rewarded
through a commission and incentive plan.
In addition, International Rectifiers in-house recording
capability has been enhanced. The entire monthly product training events
are archived so that the sales force can access training sessions at
their convenience. This in-house recording capability reduced course
development costs by as much as 90%, and course development time was
reduced by 80%.
Looking back at the companys progress, there were
several success factors that lead to the successful deployment of a
successful online training tool at International Rectifier:
Phased Approach
to Roll Out
International Rectifier rolled out the e-learning
system world wide by geographical region. Regional managers took the
responsibility for communicating and coordinating the new online Learning
Center for their region.
Management
Support
An organization must believe
and communicate that training is an important aspect for sales force
success. International Rectifier reinforces this principle by formally
tying its sales compensation and commission structure closely with its
training programs.
Needs Assessment
Conducting a detailed analysis of needs is very important
so that the systems design can meet the companys needs accurately.
Benefits & Competitive Advantages
Approximately 500 sales students
from International Rectifier have completed 5,525 courses over the past
nine months. The cost to deliver the training is less than $12 per student
per course. The cost includes LMS, Web conferencing and recording media.
The company saved approximately $250,000 during the past year with the
online learning system, compared to the on-site training.
Using e-learning, International Rectifier
is now able to train its worldwide sales force in an effective and timely
manner. Sales people can refresh their memories and sharpen their product
knowledge before meeting with customers at any time. And sales management
is able to identify the skill and knowledge levels of each individual
sales professional for ongoing support and training.
Key points:
E-learning helped reduce sales training costs at IR by 75%
IR saved approximately $250,000 in the first 9 months
with the online learning system, compared to the on-site training used
in the past.
The cost to deliver training is less than $12 per
student per course.
IR reduced course development costs by as much as 90% and development
time was reduced by 80%.