Your SlideShare is downloading. ×
The Tech Leadership Academy is made possible by generous funding from Microsoft Community Affairs<br />Evaluation: Technol...
Understanding how to apply an ROI process to technology decision-making with help your organization avoid making mistakes ...
Session Objectives<br /><ul><li>Understand the importance of evaluation in successfully managing technology
Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative...
Objective 1Understand the importance of evaluation in successfully managing technology<br />:<br />
A successful ROI process is …<br />
What: Return on Investment<br />An analysis that looks at the benefits, costs, and value of a technology initiative over t...
Simple and Economical<br />
Credible<br />
Micro  versus Macro <br />
Considers more than just direct costs<br />
When is ROI used? <br />When should an ROI approach <br />be used?<br />
Future<br />Past<br />
Future<br />Investing in a Video Conferencing System<br />
Laptops and Internet Access<br />Past<br />
How much time will staff members save with laptops?  <br />How does access to technology and information improve services ...
Cost of travel time from monthly time sheet<br />Mileage<br /># Trips Needed w/out laptop<br /># Trips Needed w/laptop<br ...
Use ROI if…..<br />Long Life Cycle<br />Mission Critical<br />Linked to Strategic Goals<br />Large Investment <br />Visibl...
How much does it cost?<br />Can we afford it?<br />
Discussion:<br />Do these principles make sense?  Why or why not?<br />Anything missing from the list?<br />Is there a tim...
Objective 2:  Provide a methodology for analyzing the return on investment of technology that includes both quantitative a...
Benefits<br />Value<br />Costs<br />THE ROI PUZZLE<br />The Rubrics Cube of ROI<br />
Benefits<br />Benefits<br />Efficiency<br />Effectiveness<br />
Efficiency<br />Improves the ability to maintain a system<br />Eliminates duplicate systems<br />Accommodates increases in...
Improves ability to deliver<br />Improves access to services<br />Improves access to information<br />Improves accuracy<br...
Tangible Benefits<br />Tangible Benefits<br />
 Easy to Quantify<br />Easy to assign money values<br />
We can save $25,000! <br />I like that!<br />Tangible Benefits<br />
Intangible Benefits<br />
Subjective<br />
Less Credible<br />
Usually Behaviorally Oriented<br />
Job SatisfactionProductivityJob CommitmentWork EnvironmentMoraleEmployee RetentionInnovationCompetenciesLeadershipTeam wor...
Keep in Mind<br />List all benefits regardless of whether or not they initially appear difficult to support or quantify<br />
ConversionTest<br />1. Does an acceptable, standard metric exist for the measure? 2. Can the conversion be accomplished wi...
“Anything can be measured in a way that is superior to not measuring it at all“<br />
Can you Quantify Love?<br />
ROI by the Numbers<br />
You may need to collect data …<br />
Staff Surveys<br />Staff Interviews<br />Client surveys<br />Clients Interviews<br />Data from system<br />Task Analysis<b...
Don’t Panic!! <br />
Prioritize what data you need<br />Understand what type of data decision-makers respond to<br />
 Now comes the calculations …<br />
<ul><li>Compare the total costs </li></ul>of different solutions<br /><ul><li>Compare the total costs </li></ul>with the b...
CRM System<br />Source:  Steve Heye, <br />YMCA National  Software ROI Spreadsheet<br />
C<br />Communicating Results<br />
ROI Storytelling Techniques<br />
Don’t show all, but have it ready<br />
What happens if ROI is negative?<br />
<ul><li>Understand how to apply ROI evaluation method. several different common situations</li></li></ul><li>The Perils of...
Episode #1: Save Paul From the Hammer<br />
Meet Paul<br />
Walter <br />
Check please!<br />
Walter, you should get iPhones for all your staff<br />
Let’s get all the attorneys iPhones!<br />
That’s dumbest thing I ever heard …<br />
They will end up in the blender!<br />
TYPE IT INTO THE CHAT …<br />How can Paul use ROI techniques to make a better decision?<br />
Episode #2:  Lost in Translation<br />
Meet Peter<br />
He’d waste less time scrolling …..<br />
I need a magnifying glass to see read this on the screen!<br />Why can’t this spreadsheet fit on the screen!<br />
The monitors we have aren’t broken,<br /> why fix them?  We can’t afford it!<br />
Type into Chat<br />How can Peter convince <br />his boss using <br />ROI techniques?<br />
Scenario #3:  No Buy-In<br />
Meet Pauline<br />
I better copy those papers now while no is using the copy machine …<br />
The copy machine isn’t working!<br />Crap I have a deadline!<br />
I can’t find the staff’s performance review from last quarter ..<br />
I’m going to design and spec out an Intranet!<br />
For that money we could hire more staff!<br />
How can Pauline use ROI analysis to get buy-in from Boss and others? Type into chat<br />
Your Turn! <br />
Summary<br />Focus on benefits, not features<br />Resist fondling the hammer<br />Don’t ignore intangibles<br />Use ROI St...
NTEN Nonprofit Technology Leadership Series
Upcoming SlideShare
Loading in...5
×

NTEN Nonprofit Technology Leadership Series

604

Published on

Published in: Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
604
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide
  • 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 of "NTEN Nonprofit Technology Leadership Series"

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

    ×