Before the economic downturn, many companies sent their managers to formal learning programs offered by local colleges and universities. However, given companies’ shrinking budgets, these companies are turning away from pricey collegiate programs and are instead developing low-cost, custom training programs that address specific organizational needs.

Why? According to The Wall Street Journal article, Training Without a Campus, “These days, companies are looking for immediate impact and are keeping closer tabs on training, reining in unnecessary programs, and turning to faster and more specific training to educate top managers…..Many corporations are looking to provide employees with immediately applicable skills — the sort that can help them navigate the downturn.”

Has your company cut formal training programs or education benefits to local colleges and universities? If so, what alternatives has your organization offered to further your learning and development?

What type of training solution would make Toyota Canada’s company spokesperson say, “The return on investment — more than 350 times the annual cost — is astounding”?

The answer is virtual instructor-led training (VILT). Are you surprised?

Toyota Canada uses the HP Virtual Classroom as a learning channel for its national dealer network. The VILT replaces costly onsite training and greatly reduces travel time and associated costs as well as lost productivity. Toyota Canada estimated its corporate office cost savings at over $7.5 million with an annual cost of $20,000 to use the virtual classroom. You can read more here.

Has your organization used virtual instructor-led training to save costs? Has it worked? Or, has your company considered VILT but has concerns about its feasibility? Are you wondering how to design and deliver good VILT? Let us know!

In the meanwhile, here are some materials that might be of help: a VILT Workshop PowerPoint, handout and job aid from ASTD TechKnowledge 2009.