10 - Training vs. Treading Water Building Capability Strategically

A series about business efficiency, finding profit and how to get there

Introduction
Most SME owners agree that training matters. It's good for morale, retention, and performance. But not all training is equal and not all of it is useful.

Too often, training becomes a tick-box exercise. A workshop here. A course there. Staff attend, nod politely, and return to the exact same habits. Nothing shifts.

This isn’t learning - it’s treading water.

In an efficiency-focused business, capability building must be purposeful, practical, and aligned to real business outcomes. That means identifying gaps that matter, building skills that move the needle, and making sure learning actually sticks.

Because well-trained teams aren't just more skilled, they're more confident, more efficient, and more invested.

Actions to Be Taken
To move from passive training to strategic capability building, follow these core steps

Audit Skill Gaps - Don’t Assume Them
Start by asking -

• What business outcomes are we struggling to achieve?

• What processes are bottlenecked by a lack of skill?

• Where are we reliant on one person for critical knowledge?

Talk to your team. Observe day-to-day performance. The real training needs often live below the surface.

Tie Every Training Effort to a Measurable Outcome
Training should result in -

• Faster delivery

• Fewer errors

• Increased customer satisfaction

• Better decision-making
  

  If you can't tie it to an outcome, question whether it's needed.

Create Just-In-Time Learning
Instead of waiting for annual training budgets, embed learning into workflows

• Use short, focused modules or internal sessions

• Record demos or how-to’s for repeatable tasks

• Encourage “train the trainer” to build internal expertise

Prioritise Cross-Training
Efficiency improves when more than one person knows how to do a task. Cross-train key roles to reduce bottlenecks, sick leave disruptions, and “key person risk.”

Review ROI After Training
What changed after the training? What didn’t? Capture feedback, measure impact, and iterate. Don’t just run sessions and move on, close the loop.

Psychological Perspective
Training done right boosts confidence. But training done poorly can have the opposite effect, leaving people overwhelmed, frustrated, or doubting their abilities.

People want to grow, but they also want relevance. A generic training session when they're drowning in work doesn’t feel like development, it feels like distraction.

The most powerful psychological shift comes when training is seen not as a bonus, but as a strategic lever. That means giving permission to learn as part of work, not in addition to it.

It’s also vital to create a culture where not knowing something isn't punished, it's seen as an opportunity for growth, not weakness.

HR Best Practice
HR plays a pivotal role in creating a learning culture that is aligned with business needs and grounded in practical outcomes.

Here's how to lead strategically -

• Build learning plans into performance reviews, not separate from them

• Offer micro-learning options (short, accessible, on-demand content)

• Recognise informal learning - mentorship, project-based development, peer shadowing

• Track progress over time, not just completion rates

• Measure behavioural change, not just satisfaction scores

Also, be cautious of overtraining. Learning fatigue is real. Space out sessions and focus on implementation before moving to the next thing.

Red Flags to Watch For and Mitigate Against
Watch for these common signs that training is present, but ineffective -

• Staff attend training but processes don’t change

• Same mistakes or inefficiencies persist post-training

• Training offered as a way to “fix” people rather than support them

• Over-reliance on external courses without internal reinforcement

• No follow-up or check-ins on learning application

 If your people are learning but not applying, you're not building capability — you're building confusion.

Narrative Story

Meet Nick from Timaru.
Nick runs a growing logistics company in Timaru. After expanding his team, he invested in multiple external training workshops. But weeks later, nothing had changed. Errors continued, morale dipped, and frontline supervisors felt overwhelmed.

He decided to pause all new training and ask his staff one question - “What’s the one thing you wish you felt more confident doing?”

Their answers were practical - quoting, customer conflict, dispatch prioritisation. So Nick brought it in-house. He built a simple training calendar, tapped experienced staff to lead sessions, and created a shared “playbook” of standard processes.

Six months later -

• Dispatch errors dropped by 40%

• Time to onboard new hires fell by half

• Supervisor confidence rose significantly

 Nick says - “Training stopped being a perk and became part of how we do business. That changed everything.”

Golden Nugget
Training should build momentum, not just knowledge - if it’s not changing how people work, it’s not working.

If you’d like a confidential, free of charge, free of obligation conversation about your business, here’s how to get me.

 📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact

If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview

🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.