Signs are showing that small businesses and corporations have been increasing their annual training budgets for 2014. With over $70 billion spent in 2013 on corporate training, there’s one thing that can come from this huge spending, and that is the economy may be picking up.
We are in a new global economy and the very least that can be said of it is, what worked five years ago, last month, last week and yesterday, is no longer relevant for today or tomorrow. Let’s face it; companies are starting to realize that their leadership lacks many of the skills needed to survive. Why the upsurge in corporate training? Many organizations spent years building management teams, and simply put aside the notion of leadership.
You manage things, you lead people. We went overboard on management and forgot about leadership.
Grace Hopper, Rear Admiral, US Navy
Today, these same organizations face the challenges of reduced skills within levels of management and a widening gap with leaders and their overall capabilities. Managers have placed themselves out-of-touch with current trends, and doing business the old way is no longer an option, or even desirable.
The good news is one of the first signs of positive economic activity is money being spent on training. Traditionally, when the economy is bad, businesses will spend less on training. But, when businesses are experiencing growth they pour more money into the training of leaders and other positions such as sales people. Many business analysts would classify corporate training as one of the most discretionary spending areas within an organization. Knowing that, small businesses can be assured of a positive trend that is taking place in the business world today.