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.
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.
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?
Objective 2: Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomes
Benefits Value Costs THE ROI PUZZLE The Rubrics Cube of ROI
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
Improves ability to deliver Improves access to services Improves access to information Improves accuracy Improves effectiveness of information delivered Effectiveness
Keep in Mind List all benefits regardless of whether or not they initially appear difficult to support or quantify
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?
“Anything can be measured in a way that is superior to not measuring it at all“
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
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