ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />1<br />ROI Methodology™<br />Introduction to the methodology<...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />2<br />The ROI Process Generates Six Types of   Data<br />Rea...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />3<br />ROI by the Numbers<br />Process refined over a 25-year...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />4<br />Applications<br />Learning and Development<br />Career...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />5<br />Key Questions<br />How can I design a practical evalua...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />6<br />	Key Issues with This Level of Analysis<br />Objective...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />7<br />	Definition of Results-Based Programs<br />Programs ar...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />8<br />	Definition of Results-Based Programs 	(continued)<br ...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />9<br />Criteria for an EffectiveROI  Process<br />What are th...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />10<br />An Evaluation Framework<br />Case Applications and Pr...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />11<br />ROI is Reported In the Context of the Five-Level Fram...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />12<br />	Chain of Impact Tells a Complete 	 Story<br />Reacti...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />13<br />All Programs Are Not Evaluated at All Levels<br />Cos...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />14<br />V Model<br />End Here<br />Start Here<br />Payoff Nee...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />15<br />What Can You Do with the ROI Process?<br />Payoff of ...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />16<br />	Criteria for Selecting Programs 	For Level 4 And 5 E...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />17<br />Human Capital Perspectives<br />
ROI Trainer 2009<br />ROI Methodology - ROI oncoaching<br />18<br />Human Capital Perspectives<br />
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />19<br />	Baseline Data<br />Ask the Client:<br /><ul><li>What...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />20<br />	Baseline Data (continued)<br />  Determine if baseli...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />21<br />	Factors to Consider When Developing an Evaluation St...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />22<br />Examples from coaching:Objectives for coaching - Reac...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />23<br />Objectives for coaching – Learning<br />After complet...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />24<br />Objectives for coaching - Application<br />Six months...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />25<br />Objectives for coaching - Impact<br />Six months afte...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />26<br />Objectives for coaching - ROI<br />The ROI of the coa...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />27<br />Methods of Collecting Data<br />Level 3<br />Level 4<...
Follow-Up questionnaires
Observation on the job
Follow-up interviews
Follow-Up focus groups
Program assignments
Action planning
Performance contracting
Program Follow-Up session
Performance records</li></li></ul><li>ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />28<br />Evaluation Fram...
ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />29<br />Evaluation Framework and Key Questions<br />29<br />
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2009 Roi Trainer 1 Rev1

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2009 Roi Trainer 1 Rev1

  1. 1. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />1<br />ROI Methodology™<br />Introduction to the methodology<br />Presentation of main elements<br />Simple guide on how to get started<br />
  2. 2. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />2<br />The ROI Process Generates Six Types of Data<br />Reaction to a project or program<br />Learning the skills/knowledge/information to make the program successful<br />Application/Implementation progress with the program<br />Business impact related to the project or program<br />Return on Investment<br />Intangible benefits<br /> …and includes a technique to isolate the effects of the program<br />
  3. 3. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />3<br />ROI by the Numbers<br />Process refined over a 25-year period<br />3,000 impact studies are conducted each year<br />More than 300 case studies have been published on ROI<br />More than 3,000 individuals are certified to implement the ROI methodology<br />Over 30 ROI books have been developed by ROI Institute authors<br />A professional network has been formed to share information<br />The ROI methodology has been adopted by over 3,000 organizations in manufacturing, service, non-profit, and government settings in over 40 countries<br />
  4. 4. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />4<br />Applications<br />Learning and Development<br />Career Development <br />Competency Systems<br />Diversity Programs<br />E-Learning<br />Executive Coaching<br />Gainsharing<br />Meetings and Events<br />Leadership Development<br />Organization Development<br />Orientation Systems<br />Recruiting Strategies<br />Safety & Health Programs<br />Self-Directed Teams<br />Skill-Based/Knowledge-Based Compensation<br />Technology Implementation <br />Quality Programs<br />Wellness/Fitness Initiatives<br />4<br />
  5. 5. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />5<br />Key Questions<br />How can I design a practical evaluation strategy that has credibility with all stakeholders?<br />How can I collect the type of performance data that will get the attention of senior management?<br />How can I get the internal support to design and implement my evaluation strategy?<br />How can I proceed if the evaluation reveals an unacceptable ROI?<br />How can I convert soft data into a monetary value?<br />How can I use the ROI evaluation process to implement a results-based philosophy?<br />How can I make cost effective decisions at each of the five (5) evaluation levels?<br />How can I convince clients that my program is linked to business performance measures?<br />
  6. 6. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />6<br /> Key Issues with This Level of Analysis<br />Objectives?<br />Credibility of data?<br />Source of data?<br />Consistent methodology?<br />Scope?<br />Standards?<br />Use of data?<br />Cost of process?<br />Fear of data?<br />
  7. 7. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />7<br /> Definition of Results-Based Programs<br />Programs are linked to business needs<br />Assessment of performance issues and effectiveness<br />Assessment of learning needs<br />Objectives are defined at higher levels<br />Expectations are created with stakeholders<br />
  8. 8. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />8<br /> Definition of Results-Based Programs (continued)<br />The application issue is addressed early and often<br />The level of evaluation is established for each program<br />Partnerships are developed with key managers<br />The evaluation is completed, capturing a variety of data<br />Results are communicated to the appropriate stakeholders<br />
  9. 9. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />9<br />Criteria for an EffectiveROI Process<br />What are the characteristics of an effective ROI process that would work within your organization?<br />
  10. 10. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />10<br />An Evaluation Framework<br />Case Applications and Practice<br />Implementation<br />Operating Standards and Philosophy<br />A Process Model<br />Pieces of the Results-Based Puzzle<br />
  11. 11. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />11<br />ROI is Reported In the Context of the Five-Level Framework<br />Level<br />1. Reaction & Planned Action<br />2. Learning<br />3. Application<br />4. Business Impact<br />5. Return on Investment<br />Measurement Focus<br />Measures participant satisfaction with the program and captures planned action<br />Measures changes in knowledge, skills, and attitudes<br />Measures changes in on-the-job behavior<br />Measures changes in mission critical outcomes<br />Compares program benefits to the costs<br />
  12. 12. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />12<br /> Chain of Impact Tells a Complete Story<br />Reaction & Planned Action<br />Learning & Confidence<br />Application & Implementation<br />Isolate the Effects of the Program<br />Business Impact<br />ROI<br />Intangible Benefits<br />
  13. 13. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />13<br />All Programs Are Not Evaluated at All Levels<br />Cost-Benefit<br />Comparison<br />5-10%<br />Level 5<br />Evaluation Purposes<br />Program Need<br />Program Profile<br />Stakeholder Needs<br />Changes in Key<br />Business <br />Measures<br />10-20%<br />Level 4<br />Changes in<br />Performance<br />Level 3<br />30%<br />Need for Skills<br />or Knowledge<br />Level 2<br />40-60%<br />90-100%<br />Preferences<br />Level 1<br />
  14. 14. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />14<br />V Model<br />End Here<br />Start Here<br />Payoff Needs<br />5<br />5<br />ROI<br />ROI Objectives<br />4<br />4<br />Impact<br />Impact Objectives<br />Business Needs<br />Application<br />Application Objectives<br />3<br />3<br /> Performance Needs<br />2<br />Learning Needs<br />2<br />Learning<br />Learning Objectives<br />Measurement and Evaluation<br />Initial Analysis<br />1<br />1<br />Preference Needs<br />Reaction<br />Reaction Objectives<br />Project<br />Business Alignment and Forecasting<br />The ROI Process Model<br /> 3.6<br />
  15. 15. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />15<br />What Can You Do with the ROI Process?<br />Payoff of the ROI Methodology<br />Align programs to business needs<br />Show contributions of selected programs<br />Earn respect of senior management/administrators<br />Build staff morale<br />Justify/defend budgets<br />Improve support for programs<br />Enhance design and implementation processes<br />Identify inefficient programs that need to be redesigned or eliminated<br />Identify successful programs that can be implemented in other areas<br />Earn a “seat at the table”<br />
  16. 16. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />16<br /> Criteria for Selecting Programs For Level 4 And 5 Evaluation<br />Expected life cycle of the program<br />The importance of the program in meeting the organization’s goals<br />The connection of the program to strategic objectives<br />Cost of the program<br />Visibility of the program<br />The size of the target audience<br />Extent of management interest in the programs’ accountability<br /> 2.11<br />
  17. 17. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />17<br />Human Capital Perspectives<br />
  18. 18. ROI Trainer 2009<br />ROI Methodology - ROI oncoaching<br />18<br />Human Capital Perspectives<br />
  19. 19. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />19<br /> Baseline Data<br />Ask the Client:<br /><ul><li>What do you (the client) want to change?</li></ul> What will it look like when it has changed?<br /> How does it look now?<br /> What direct measures reflect the change?<br /> (Output, Quality, Cost, Time)<br /> What indirect measures reflect the change?<br /> Who can provide information about the relationship between training and the business measures?<br /> What other factors will influence these business <br /> measures?<br /> What solutions have you tried?<br />
  20. 20. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />20<br /> Baseline Data (continued)<br /> Determine if baseline data is available from organization records.<br /> If organization does not have baseline data, <br /> determine if it can be estimated by participants or <br /> others.<br />Determine the timing for the baseline data <br /> collection.<br /> Collect baseline data as appropriate.<br />
  21. 21. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />21<br /> Factors to Consider When Developing an Evaluation Strategy<br />Location of participants<br />Duration of program<br />The importance of program in meeting organizational objectives<br />Relative investment in the program<br />The reason for program’s existence<br />Ability of participants to be involved in evaluation<br />The level of management interest and involvement in the process<br />The content and nature of the program<br />Interest in evaluation by senior management<br />The availability of business results measures<br />
  22. 22. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />22<br />Examples from coaching:Objectives for coaching - Reaction<br />After participating in the coaching program, the participant will:<br />Perceive coaching to be relevant to the job<br />Perceive coaching to be important to job performance at the present time<br />Perceive coaching to be value added in terms of time and funds invested<br />Rate the coach as effective<br />Recommend this program to other executives<br />
  23. 23. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />23<br />Objectives for coaching – Learning<br />After completing the coaching program, the participants should improve their understanding of or skills for:<br />Uncovering individual strengths and weaknesses<br />Translating feedback into action plans<br />Involving team members in projects and goals<br />Communicating effectively<br />Collaborating with colleagues<br />Improving personal effectiveness<br />Enhancing leadership skills<br />
  24. 24. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />24<br />Objectives for coaching - Application<br />Six months after completing the coaching program, participants should do the following:<br />Complete the action plan<br />Adjust the plan accordingly as needed for changes in the environment<br />Show improvements in<br />Uncovering individual strengths and weaknesses<br />Translating feedback into action plans<br />Involving team members in projects and goals<br />Communicating effectively<br />Enhancing leadership skills<br />
  25. 25. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />25<br />Objectives for coaching - Impact<br />Six months after completing the coaching program, participants should improve at least three specific measures from the following areas:<br />Sales growth<br />Productivity/Operational efficiency<br />Direct cost reduction<br />Retention of key staff members<br />Customer satisfaction<br />
  26. 26. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />26<br />Objectives for coaching - ROI<br />The ROI of the coaching program should at least be 25%<br />
  27. 27. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />27<br />Methods of Collecting Data<br />Level 3<br />Level 4<br /><ul><li>Follow-Up surveys
  28. 28. Follow-Up questionnaires
  29. 29. Observation on the job
  30. 30. Follow-up interviews
  31. 31. Follow-Up focus groups
  32. 32. Program assignments
  33. 33. Action planning
  34. 34. Performance contracting
  35. 35. Program Follow-Up session
  36. 36. Performance records</li></li></ul><li>ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />28<br />Evaluation Framework and Key Questions<br />28<br />
  37. 37. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />29<br />Evaluation Framework and Key Questions<br />29<br />
  38. 38. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />30<br />Evaluation Framework and Key Questions<br />30<br />
  39. 39. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />31<br />Evaluation Framework and Key Questions<br />31<br />
  40. 40. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />32<br />Evaluation Framework and Key Questions<br />32<br />
  41. 41. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />33<br />Impact Questions for Follow-Up Evaluation<br />How did you apply what you learned in this program?<br />What was the impact of these efforts in your work unit?<br />What measures were changed in your work unit?<br />How much did they change?<br />What is the monetary value of the changes?<br />How did you arrive at this value?<br />What percent of this improvement was actually caused by the training?<br />What level of confidence do you place on this value? (Expressed as a percentage)<br />
  42. 42. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />34<br /> Techniques to Isolate the Effects of the Program<br />Use of a control group arrangement<br />Trend line analysis of performance data<br />Use of forecasting methods<br />Participant’s estimate of the program’s impact (percent)<br />Supervisor’s estimate of the program’s impact (percent)<br />Management’s estimate of the program’s impact (percent)<br />Use of experts/previous studies<br />Calculating/Estimating the impact of other factors<br />Use of customer input<br />
  43. 43. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />35<br />Common Intangibles<br />Customer satisfaction /dissatisfaction <br />Reputation<br />Image<br />Customer complaints<br />Customer response time<br />Customer loyalty<br />Teamwork<br />Cooperation<br />Conflict<br />Decisiveness<br />Communication<br />Brand Awareness<br />Job satisfaction<br />Organizational commitment<br />Work climate<br />Employee complaints<br />Employee awards<br />Employee stress reduction<br />Employee innovation<br />Employee networking<br />Employee collaboration<br />Employee partnering<br />
  44. 44. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />36<br />Sources for Intangible Benefits<br />Identified during needs assessments<br />Identification during early planning (with no intention to convert to monetary value)<br />Clients identify intangibles<br />Participants identify intangibles<br />Managers identify intangibles<br />Customers identify intangibles<br />Intangibles are often identified when attempts at conversion are aborted<br />
  45. 45. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />37<br />Issues with Intangibles<br />May be the most important data set<br />Are not converted to money by definition<br />Are usually not subjected to “isolating”<br />Must be systematically addressed<br />Must be reported “credibly”<br />
  46. 46. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />38<br />Twelve Guiding Principles Applied During the ROI Process<br />1. When conducting a higher-level evaluation, collect data at lower levels<br />2. When planning a higher-level evaluation, the previous level of evaluation is not required to be comprehensive<br />3. When collecting and analyzing data, use only the most credible sources<br />4. When analyzing data, select the most conservative alternative for calculations<br />5. Use at least one method is to isolate the effects of a project<br />6. If no improvement data are available for a population or from a specific source, assume that little or no improvement has occurred<br />
  47. 47. ROI Trainer 2009<br />ROI Methodology - ROI on coaching<br />39<br />Guiding Principles Applied During the ROI Process<br />7. Adjust estimates of improvement for potential errors of estimation.<br />8. Avoid use of extreme data items and unsupported claims when calculating ROI.<br />9. Use only the first year of annual benefits in ROI analysis of short-term solutions.<br />10. Fully load all costs of a solution, project, or program when analyzing ROI.<br />11. Intangible measures are defined as measures that are purposely not converted to monetary values.<br />12. Communicate the results of ROI Methodology to all key stakeholders.<br />

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