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Abstract

Although typically applied to entire enterprises, the concept of business models applies to training and performance improvement groups. Business models are “the method by which firm[s] build and use [their] resources to offer…value.” Business models affect the types of projects, services offered, skills required, business processes, and type of respect accorded the training and performance improvement group. Six business models characterize training and performance improvement groups: (a) consulting firm—a group from outside an organization that advises on strategic and performance issues and implements them; (b) internal profit center—an internal group that offers services such as performance consulting and classroom and e-learning courses for a fee and makes a profit; (c) internal cost center—an internal group that provides classroom and e-learning courses and related administration at cost; (d) leveraged expertise—a small internal group of trainers who identify training needed, train subject matter experts to provide it, and handle related logistics; (e) development shop—an external group that develops training programs on contract; and (f) course marketers—an organization that builds courses.

Keywords

business models management cost center profit center

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Business Models for Training and Performance Improvement Departments

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