NTEN Nonprofit Technology Leadership Series

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  • Understanding how to apply an ROI process to technology decision-making with help your organization avoid making mistakes and save valuable time and resources.
  • Understand the importance of evaluation in successfully managing technologyProvide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomes
  • . To promote interaction, might you ask for participants to think of examples and/or nonexamples? When has following what you have outlined been productive for them? When has failure to follow the ROI principles caused difficulties?Do these principles make sense? Why or why not?Anything missing from the list?Is there a time when you didn’t follow one of the principles? What happened? What did you learn from it?What are some ways that you have applied these principles to your own ROI work?
  • Understand the importance of evaluation in successfully managing technology

Transcript

  • 1. The Tech Leadership Academy is made possible by generous funding from Microsoft Community Affairs
    Evaluation: Technology ROI
    Beth KanterCEO Zoetica and Co-Author, Networked Nonprofit
    These materials are available under the Creative Commons Attribution-NonCommercial 3.0 License.
  • 2. Understanding how to apply an ROI process to technology decision-making with help your organization avoid making mistakes and save valuable time and resources.
    These materials are available under the Creative Commons Attribution-NonCommercial 3.0 License.
  • 3. Session Objectives
    • Understand the importance of evaluation in successfully managing technology
    • 4. Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomes
    These materials are available under the Creative Commons Attribution-NonCommercial 3.0 License.
  • 5. Objective 1Understand the importance of evaluation in successfully managing technology
    :
  • 6. A successful ROI process is …
  • 7. What: Return on Investment
    An analysis that looks at the benefits, costs, and value of a technology initiative over time.
  • 8. Simple and Economical
  • 9. Credible
  • 10. Micro versus Macro
  • 11. Considers more than just direct costs
  • 12. When is ROI used?
    When should an ROI approach
    be used?
  • 13. Future
    Past
  • 14. Future
    Investing in a Video Conferencing System
  • 15. Laptops and Internet Access
    Past
  • 16. How much time will staff members save with laptops?
    How does access to technology and information improve services to client?
    Laptop Project Pilot
  • 17. Cost of travel time from monthly time sheet
    Mileage
    # Trips Needed w/out laptop
    # Trips Needed w/laptop
    Value of Shifted Time
  • 18. Use ROI if…..
    Long Life Cycle
    Mission Critical
    Linked to Strategic Goals
    Large Investment
    Visible or Controversial
    Large Target Audience
    And ….
  • 19. How much does it cost?
    Can we afford it?
  • 20. Discussion:
    Do these principles make sense? Why or why not?
    Anything missing from the list?
    Is there a time when you didn’t follow one of the principles? What happened? What did you learn from it?
    What are some ways that you have applied these principles to your own ROI work?
  • 21. Objective 2: Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomes
  • 22. Benefits
    Value
    Costs
    THE ROI PUZZLE
    The Rubrics Cube of ROI
  • 23. Benefits
    Benefits
    Efficiency
    Effectiveness
  • 24. Efficiency
    Improves the ability to maintain a system
    Eliminates duplicate systems
    Accommodates increases in workload or demand without additional costs
    Reduces manual operations
    Improves efficiency
    Reduces Travel Cost/Time
  • 25. Improves ability to deliver
    Improves access to services
    Improves access to information
    Improves accuracy
    Improves effectiveness of information delivered
    Effectiveness
  • 26. Tangible Benefits
    Tangible Benefits
  • 27. Easy to Quantify
    Easy to assign money values
  • 28. We can save $25,000!
    I like that!
    Tangible Benefits
  • 29. Intangible Benefits
  • 30. Subjective
  • 31. Less Credible
  • 32. Usually Behaviorally Oriented
  • 33. Job SatisfactionProductivityJob CommitmentWork EnvironmentMoraleEmployee RetentionInnovationCompetenciesLeadershipTeam workCooperationDecision-makingCommunicationClient satisfactionClient complaintsClient response time
    Typical
    Intangibles
  • 34. Keep in Mind
    List all benefits regardless of whether or not they initially appear difficult to support or quantify
  • 35. ConversionTest
    1. Does an acceptable, standard metric exist for the measure? 2. Can the conversion be accomplished with minimum resources? 3. Can the conversion process be described to an executive director and secure their buy-in in five minutes?
  • 36. “Anything can be measured in a way that is superior to not measuring it at all“
  • 37. Can you Quantify Love?
  • 38.
  • 39. ROI by the Numbers
  • 40. You may need to collect data …
  • 41. Staff Surveys
    Staff Interviews
    Client surveys
    Clients Interviews
    Data from system
    Task Analysis
    Times Sheet Analysis
    Articles
    Field research
    Observation
    Secondary research reports
    Benchmark studies
    Budget and Financial Analysis
  • 42. Don’t Panic!!
  • 43. Prioritize what data you need
    Understand what type of data decision-makers respond to
  • 44.
  • 45.
  • 46. Now comes the calculations …
  • 47.
    • Compare the total costs
    of different solutions
    • Compare the total costs
    with the benefits
    • Compare the costs
    of not doing the project
    • Identify pilot goal to identifycost/benefit
  • Spreadsheet Aerobics
  • 48. CRM System
    Source: Steve Heye,
    YMCA National Software ROI Spreadsheet
  • 49.
  • 50.
  • 51.
  • 52. C
    Communicating Results
  • 53. ROI Storytelling Techniques
  • 54. Don’t show all, but have it ready
  • 55. What happens if ROI is negative?
  • 56.
    • Understand how to apply ROI evaluation method. several different common situations
  • The Perils of Paul, Peter, and Pauline: How will you save them with ROI?
  • 57. Episode #1: Save Paul From the Hammer
  • 58. Meet Paul
  • 59. Walter
  • 60. Check please!
  • 61.
  • 62.
  • 63.
  • 64.
  • 65.
  • 66. Walter, you should get iPhones for all your staff
  • 67. Let’s get all the attorneys iPhones!
  • 68. That’s dumbest thing I ever heard …
  • 69. They will end up in the blender!
  • 70. TYPE IT INTO THE CHAT …
    How can Paul use ROI techniques to make a better decision?
  • 71. Episode #2: Lost in Translation
  • 72.
  • 73. Meet Peter
  • 74.
  • 75.
  • 76.
  • 77. He’d waste less time scrolling …..
  • 78. I need a magnifying glass to see read this on the screen!
    Why can’t this spreadsheet fit on the screen!
  • 79.
  • 80. The monitors we have aren’t broken,
    why fix them? We can’t afford it!
  • 81. Type into Chat
    How can Peter convince
    his boss using
    ROI techniques?
  • 82. Scenario #3: No Buy-In
  • 83. Meet Pauline
  • 84. I better copy those papers now while no is using the copy machine …
  • 85.
  • 86.
  • 87.
  • 88.
  • 89. The copy machine isn’t working!
    Crap I have a deadline!
  • 90. I can’t find the staff’s performance review from last quarter ..
  • 91. I’m going to design and spec out an Intranet!
  • 92. For that money we could hire more staff!
  • 93. How can Pauline use ROI analysis to get buy-in from Boss and others? Type into chat
  • 94. Your Turn!
  • 95. Summary
    Focus on benefits, not features
    Resist fondling the hammer
    Don’t ignore intangibles
    Use ROI Story Telling techniques
    Compare costs of alternatives, cost/benefit, and cost of not doing
    Pilot project to get credible numbers
    Collect the data you need
    Use ROI to drive change/buy-in, if needed