ROI is the ultimate measure. This is a two day intense workshop. Contact us at roi@greenbooks.co.in

1. ROI INDIA
2 day Workshop

2. Reaction Objectives
1) Perceive it to be relevant to your work
2) Find it important to your success on the job
3) Find the case studies relevant and useful

3. Learning Objectives
1) Identify the different evaluation levels
2) Align programs to business needs
3) Indentify latest 3 ways to collect data
4) Describe at least 2 ways to isolate the effects of the program
5) Calculate ROI given benefits & cost

4. Application Objectives
1) Develop an evaluation plan for a specific program

6. Impact Objectives
Six months after completing the workshop, you should:
1) Improve the effectiveness of the programs
2) Redesign ineffective programs
3) Show ROI on your programs

7. Case Study
[ Reliance Insurance Organization ]
Page 1.4

8. Discussion Questions
1) Is this situation typical?
2) What are the basic issues in the case?
3) How could this situation be avoided in the future?
4) What should Marge do? Be specific?
5) What should Frank be expecting in the future?

9. Activity Based Result Based
No business need for the program Program linked to specific business needs
No effort to prepare the work environment Environment prepared to support program
to support program
Reporting on programs is input focused Reporting on programs is output focused
Objectives are defined at lower levels Objectives are defined at higher levels

10. is Training Evaluation

11. Science ART

14. 1954

17. 1959

20. 1970

22. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction
Level 2
Level 3
Level 4
Accountability
Level 5
Process Model
Standards
Publications
Usage

25. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3
Level 4
Accountability
Level 5
Process Model
Standards
Publications
Usage

26. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4
Accountability
Level 5
Process Model
Standards
Publications
Usage

27. Implementation
Learning

29. If the participants know the L3 behaviors are being
tracked they will be more likely to apply

30. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability
Level 5
Process Model
Standards
Publications
Usage

31. Customer satisfaction
Sales
Units manufactured
Students graduated

32. Costs
Quality complaints
Time to project completion
Rework

33. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability Isolating the effects of the program
Level 5
Process Model
Standards
Publications
Usage

35. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability Isolating the effects of the program
Level 5 ROE / ROI 01–05%
Process Model
Standards
Publications
Usage

36. (ROE)

38. (ROI)

39. Program Benefits
Benefits/ Cost Ratio =
Program Cost
Net Program Benefits
ROI = X 100
Program Costs

40. Program Benefits from Participants (1st year) = ` 2,30,000
Costs per Program (25 participants) = ` 88,000
2, 30, 000
Benefits/ Cost Ratio = = 2.61
88, 000
2,30,000 – 88,000
ROI = X 100 = 161%
88, 000

45. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability Isolating the effects of the program
Level 5 Return on Investment 01–05%
Process Model 10 step by step of collecting, analyzing, reporting, using systematic & methodic
Standards
Publications
Usage

46. THE PROCESS MODEL
Evaluation Planning Data Collection
Level 1: Reaction, Level 3:
Satisfaction, and Application/
Planned Actions Implementation
Develop Collect Collect
Develop
Evaluation Data During Data After
Objectives of
Plans and Solution Solution
Solution (s)
Baseline Data Implementation Implementation
Level 2: Learning Level 4: Business Impact

47. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

48. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability Isolating the effects of the program
Level 5 Return on Investment 01–05%
Process Model 10 step by step of collecting, analyzing, reporting, using systematic & methodic
Standards 12 guiding principles to be conservative in approach
Publications
Usage

49. Job Aid

50. Kirkpatrick Model Phillips ROI Model
Level
Developed 1 Dr. Donald Kirkpatrick Dr. Jack Phillips
Level 0 Inputs / Indicators 100%
Level 1 Reaction Reaction, Satisfaction & Planned Action 90–100%
Level 2 Learning Learning 70–80%
Level 3 Behaviour Application 20–30%
Level 4 Results Business Impact 10–20%
Accountability Isolating the effects of the program
Level 5 Return on Investment 01–05%
Process Model 10 step by step of collecting, analyzing, reporting, using systematic & methodic
Standards 12 guiding principles to be conservative in approach
Publications 5 books 40 books,3000 case studies
Usage Slowly phasing out 3000 organizations in 50 countries

51. Myths of ROI Evaluation
1) Soft skills can not be measured
2) We are not yet there for ROI
3) We don‘t believe in ROI
4) My senior management doesn‘t want to know ROI
5) ROI Measurement is too expensive
6) ROI can‘t be measured and reported by HR & Training professionals

52. Pieces of Puzzle
An Evaluation Case Applications
Framework and Practice
Implementation
Strategy
Operating
A Process Standards and
Model Philosophy

53. All program are ‗not evaluated’ at all
levels…

54. Evaluation
Level Measurement category Current status
Targets
0 Inputs and Indicators: 100%
1 Reaction and planned action: 100%
To measure what the participants have
2 90%
learned in the program-
3 Application and Implementation: 50%
4 Impact and consequences: 30%
5 Return on investment: 10%

55. Tata Sky
Evaluation
Level Measurement category Current status
Targets
Done for less then 25% of the
0 Inputs and Indicators: 100%
programs
Done for 100% of the workshops
1 Reaction and planned action: 100%
conducted.
Done for more than 60-70% of the
To measure what the participants have
2 training programs by way of Tests 90%
learned in the program-
and role plays.
Done for less than 10% of the
3 Application and Implementation: 50%
training programs
Not done for any training program
4 Impact and consequences: 30%
previously
Not done for any training program
5 Return on investment: 15%
previously

56. What is your organization’s
current status?

58. Evaluation Planning Data Collection
Develop Collect Collect
Develop
Evaluation Data During Data After
Objectives of
Plans and Solution Solution
Solution (s)
Baseline Data Implementation Implementation

59. OUTPUT, TIME, COSTS, QUALITY

60. INITIATIVE/INNOVATION EMPLOYEE DEVELOPMENT
WORK HABITS
• Creativity /ADVANCEMENT
• Tardiness • Innovation • Promotions
• Violations of Safety Rules • New Ideas • Capability
• Communication Break-downs • Suggestions • Intellectual Capital
• Excessive Breaks • New Products and Services • Programs Completed
• Trademarks • Requests for Transfer
• Copyrights and Patents • Performance Appraisal Ratings
• Process Improvements • Readiness
• Partnerships • Networking
WORK • Alliances
CLIMATE/SATISFACTION
• Grievances
• Discrimination Charges
• Employee Complaints IMAGE
CUSTOMER SERVICE • Brand Awareness
• Job Satisfaction
• Customer Complaints • Reputation
• Organization Commitment
• Customer Satisfaction • Leadership
• Employee Engagement • Customer Dissatisfaction • Social Responsibility
• Employee Loyalty • Customer Loyalty • Environmental Friendliness
• Intent to Leave • Customer Retention • Social Consciousness
• Stress • Customer Value • Diversity
• Lost Customers • External Awards

61. Hard Data Soft Data
Easy to quantify Difficult to quantify
Easy to assign a rupee value Difficult to assign a rupee value
Objectively based Subjectively based
Common measures Less credible as a performance measure
Can be measured Can be measured

63. }
Analysis
Design
Development
Implementation
Evaluation

65. ―The best way to Predict a future is to …
create it.‖

66. Business Alignment Model
Start Here End Here
Payoff Needs 5 ROI Objectives 5 ROI
Business Needs 4 Impact Objectives 4 Impact
Application Objectives Application
Performance Needs 3 3
Learning Needs 2 Learning Objectives 2 Learning
Measurement and
ROI Needs
Evaluation
Analysis
Preference Needs 1 Reaction Objectives 1 Reaction
Project
Business Alignment and Forecasting The ROI Process Model

67. Start Here End Here
Payoff Needs 5 ROI Objectives 5 ROI
Business Needs 4 Impact Objectives 4 Impact
Application Objectives Application
Performance Needs 3 3
Learning Needs 2 Learning Objectives 2 Learning
Preference Needs 1 Reaction Objectives 1 Reaction
Project

68. ( Supervisors need )
Counseling & Discussion Skills

69. Cause & Effect

71. Payoff Needs
Absenteeism is causing 5
15,00,000 monthly
Business Needs
Unplanned absenteeism is 16% and 4
increasing. Greater than benchmarked 5%
Performance Needs
Discussion between team member 3
and supervisor are not occurring
Learning Needs
2
Counseling and discussion skills
Preference Needs
Counseling skills must be practical 1
and should happen immediately

72. Payoff Needs ROI Objectives
Absenteeism is causing 5
ROI of 20%
15,00,000 monthly
Business Needs Impact Objectives
Unplanned absenteeism is 16% and 4 Reduce absenteeism to 5%
increasing. Greater than benchmarked 5%
Performance Needs Application Objectives
Discussion between team member 3 Counseling discussion conducted in
and supervisor are not occurring 95% situations when an unexpected
absence occurs
Learning Needs Learning Objectives
2
Counseling and discussion skills Participants will learn key
counseling skills
Preference Needs Reaction Objectives
Counseling skills must be practical 1 4/5 on the practicality of the
and should happen immediately program and relevance to job

73. V Model
Start Here End Here
Payoff Needs 5 ROI Objectives 5 ROI
Absenteeism is causing ROI of 20%
`15,00,000 monthly Calculate ROI, BCR
Business Needs 4 Impact Objectives 4 Impact
Unplanned absenteeism is 16% Monitor absenteeism
and increasing. Greater than Reduce absenteeism to 5%
records for 6 months
benchmarked 5%
Application Objectives Application
Performance Needs 3 3
Discussion between team Counseling discussion conducted in 95% situations Follow up questionnaire to
member and supervisor are when an unexpected absence occurs participants to check the
not occurring frequency of discussions
Learning Needs 2 Learning Objectives 2 Learning
Deficiency in counseling and Participants will learn key Practice session during program and
discussion skills counseling skills facilitator assessment
Preference Needs 1 Reaction Objectives 1 Reaction
Counseling skills must be 4/5 on the practicality of Reaction Questionnaire at
practical and should happen the program and relevance the end of the program
immediately to job

74. V Model – Tata Sky
Start Here End Here
Payoff Needs 5 ROI Objectives 5 ROI
+ve ROI Calculate ROI, BCR
Business Needs 4 Impact Objectives 4 Impact
Increase Sales Increase walk-in conversion ratio Track business dashboards
Increase EPRS Increase the subscription recharge by 10% every month
Increase Sales by 10%
Application Objectives Application
Performance Needs 3 3
Profiling of the customer, Use the skills consistently, which is 100% of the Action plan activity sheet
Standardization in customer demo, times
& transaction
Learning Needs 2 Learning Objectives 2 Learning
Greeting
Participants will learn key interaction Facilitator assessment through role
Asking right questions to the prospects to
& influencing skills plays
understand the wants and needs,
Match the needs with features & benefits
Preference Needs 1 Reaction Objectives 1 Reaction
ILT and role plays 4/5 on the practicality of the Reaction and planned action through a
program and relevance to job questionnaire at the end of the program

75. Payoff Needs
5 +ve ROI
Sales Revenue
EPRS Revenue
Increase Sales by
Business Needs 4
Increase the subscription recharge by
Increase Sales
Increase walk-in conversion ratio
Increase EPRS
Increase walk-in conversion
Performance Needs 3 Use the skills consistently, which is
Profiling of the customer, 100% of the times
Standardization in customer
demo, & transaction
Learning Needs 2 Participants will learn key
Greeting, Asking right questions to the interaction & influencing skills
prospects to understand the wants and
needs, Match the needs with features &
benefits
Preference Needs 1 4/5 on the practicality of the
program and relevance to job
ILT and role plays

76. V Model – Publishing Firm
Start Here End Here
Payoff Needs 5 ROI Objectives 5 ROI
Potential project loss of
ROI of 50% Calculate ROI, CBR
`1,25,00,000 a year
Business Needs 4 Impact Objectives 4 Impact
-Improve quality of emails Error rates to zero Performance records &
-Decrease supervisors monitoring Decrease managers monitoring time to nil Interview
time
Application Objectives Application
Performance Needs 3 3
Excellent email communication Use appropriate email writing skills 100% of the Email scorecard
skills for a global audience times while writing emails
Learning Needs 2 Learning Objectives 2 Learning
Structure, tone, style and grammar Participants will learn email skills Online pre and post assessment
and global culture
Preference Needs 1 Reaction Objectives 1 Reaction
Blended – ILT, LMS and coaching Overall score of 90% Online reaction Questionnaire

77. Results-Based Approach
Level 5 Level 4 Level 3 Level 3 and 2 Level 1
Problem/ Identify Identify Job Identify Transfer
Business, Strategy Options and Develop
Opportunity Performance Identify Identify Objectives/
Present or Needs, Gaps, Needs, Gaps, and Solutions L-2 & L-3 Support Preferences
and For All Stakeholders Evaluation
Anticipated Why Strategy
Stakeholders
Each level includes:
• Data Sources Specify Skill/
• Data Collection Training Knowledge Level 2
• Key Questions Required Deficiencies of
• Key Issues ? Affected Population
Design Consider Develop
Solution and Resources/ Implement Conduct/ Implement
Content/ Pre-activity Implement Transfer
Stakeholder Logistics Materials
Components Delivery Solution Strategy
- Solution Level 1
- Pre-work Activity/Transfer Strategy Level 2
Tabulate
Costs of
Phillips ROI Methodology TM Solution
Collect Data After Isolate Convert Data To Calculate Develop
the Effects Report and
Solution Monetary The Return On Communicate
Implementation of the Solution Value Investment Results
Level 3 Level 5
Level 4 Significant Influences
• Policy Statement Identify
• Procedures and Guidelines Intangibles
• Staff Skills
• Management Support Intangible
• Technical Support Benefits
• Organizational Culture Page 3.9

78. ( More Examples )

79. 1 Reaction
2 Learning
3 Application
4 Impact
5 Return On Investment

81. Evaluation Planning Data Collection
Develop Collect Collect
Develop
Evaluation Data During Data After
Objectives of
Plans and Solution Solution
Solution (s)
Baseline Data Implementation Implementation

83. Initial collection of data which serves as a basis for
COMPARISON with the subsequently acquired data.

84. 125 Kgs 86 Kgs

85. Existing Expected

86. 1. Data collection Plan
2. ROI analysis plan

87. ( sample )

88. Data
Level Objectives Measures/Data Collection Data Source Timings Responsibility
method
An overall average Participants of the At the end of
1 Positive reaction Questionnaire Facilitator
rating of 4/5 program each workshop
Observation
Will be able to demonstrate all During the
2 Facilitators rating of skill practice Facilitator Facilitator
the 3 skills during the role play workshop
by facilitator
(1)Will be able to assess all the
EZs for adherence to the Retail Operation 30 – 45 days
taught processes Completion of Action Action plan Incharges(ROIs) after the Regional Managers
3
(2)Will be able to bring all the plan sheet Retail Operation workshop Retail Operations
employees to a consistent level Managers(ROMs)
of display of learned skills.
(1)The walk in conversion
Monthly data from the
ratio will increase Business 45 – 90 days
Retail Operation Dashboard, Regional Managers
4 (2)The sales will increase performance after the
Vertical of the Retail Operations Retail Operations
(3)The customer retention will monitoring workshop
Experience Zones
increase
5 ROI No Objective was set for this level in the beginning. The expectation was to have a positive ROI.

89. Data
Level Objectives Measures/Data Collection Data Source Timings Responsibility
method
Reaction to the program, An overall average Online Participants of the At the end of
1 Facilitator
content and facilitator. rating of 4.5/5 questionnaire program each workshop
Score above 90% in At the end of
2 Assess the email writing skills Online test Participant Facilitator
the post assessment each workshop
Weekly
Demonstrate appropriate monitoring of
100% score on the
3 structure, tone, style and Score card Participant emails for 3 Facilitator
score card
grammar in emails months
Decrease email errors
Improve quality of emails Performance
to zero 3 months after
4 Decrease managers monitoring records, Managers Facilitator
Decrease manager‘s training
time Interview
monitoring time to nil
5 ROI 50% ROI was set.

91. Data Items Method for Methods of Cost Categories Intangible Communication Other
(Usually Isolation Converting Benefits Targets for Final Influences/
Level 4 Data to Report Issues
Monetary During
Values Application
Monthly Participant Standard (1)Facilitation Fees ROMs Any change
conversion estimate Value. (2)Program Materials ROIs in market
ratio (ROMs & (3)Market survey Fees Exec.V P factor
ROI) (4)Facility costs Retail
(5)Participants salaries operations

92. Tata Sky – Sales Mystery Shopping
• Ambience ( 4 parameters )
• Grooming ( 4 parameters )
• Opening the call (15 parameters )
• Developing/ Identifying the need ( 8 parameters )
• Proposing a solution ( 4 parameters )
• Objection Handling ( 5 parameters )
• Closing (4 parameters )
• Follow up ( 2 parameters )
• Process adherence ( 4 parameters )
• Telephone Related (1 parameters )

93. Publishing Firm – Score from emails, reports
Parameters Pre-Assessment
Grammar 63.8 %
Structure 85.4%
Tone & Style 58.3%
Average Score 70.2%

94. 3.26 / Appendix A.4

96. Evaluation Planning Data Collection
Level 1: Reaction, Level 3:
Satisfaction, and Application/
Planned Actions Implementation
Develop Collect Collect
Develop
Evaluation Data During Data After
Objectives of
Plans and Solution Solution
Solution (s)
Baseline Data Implementation Implementation
Level 2: Level 4:
Learning Business Impact

97. 1. Relevance to work
2. Important to success
3. Would recommend to others
4. Amount of new information
5. Method of delivery
6. Learning Environment
7. Planned Action

98. 1. Skills
2. Knowledge
3. Capacity
4. Capability
5. Awareness
6. Confidence

99. A. Survey
B. Test
C. Questionnaire
D. Interview
E. Focus Group
F. Observation
G. Performance Records

100. Level Level Level Level
S.No Instrument
1 2 3 4
1 Survey
2 Test
3 Questionnaire
4 Interview
5 Focus Group
6 Observation
7 Performance Contracts

102. Impact Questionnaire for Leadership Development Program
Page 4.11

103. Page 4.21

104. Page 4.22

106. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

107. Case Study
First Bank (page 5.3)

108. Discussion Questions
1) Is this situation typical
2) Should CEO drop the issue?
3) What are some approaches to resolve the dilemma?
4) What would you do?

109. External Factors
Management
Attention
TOTAL Incentives
IMPROVEMENT
Systems/Procedures
AFTER
Changes
PROGRAM
Programs EFFECT OF
PROGRAM ON
IMPROVEMENT

110. 1. Use of a control group arrangement
2. Trend line analysis of performance data
3. Participant‘s estimate of the program‘s impact (percent)
4. Supervisor‘s estimate of the program‘s impact (percent)
5. Management‘s estimate of the program‘s impact (percent)
6. Use of experts/previous studies

112. Control Group No Program Measurement
Experimental Program Measurement

113. 18.5% Pre Program Six-Month Average
CPI Program Conducted
20% Projected Average —
Using Pre Data as a Base
14.5%
REJECT
RATES
7% Post Program
10% Six-Month
Average
J F M A M J J A S O N D J
MONTHS

114. 1. If the training program would not been implemented, would this trend
continue on the same path established before the training?
2. No other variables and influences entered the process after the training was
conducted

115. }
Analysis
Design
Development
Implementation
Evaluation

116. • Participants estimate
• Supervisor estimate
• Customer Input
• Experts Inputs

117. Francis Galton

120. ERPS %
Sales %
Attributable to Confidence
Attributable to Confidence Level
training Level
training
Total Average for
42% 86% 42% 88%
the Group
Corrected Group average for sales 36% of the increase in Sales of Boxes
Corrected Group average for
37% of Increase in Monthly Recharge( EPRS)
Subscription Recharge(EPRS)

121. Attribution
Data Time Savings Confidence Adjusted
Level to
Source in Hours Level Value
Training
21.5 days /
Decrease in Supervisors 1.2 hours / day 60% 100%
year
Supervisor
monitoring Project &
time Strategic 2 hours / week 60% 100% 7.8 days / year
Head
Decrease in
escalations of
Project Head - 60% 100% 4.2 escalations
poor quality
email

122. Case Study
National Bank
Page 5.10

124. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

125. • Converting output to contribution - standard value (profit/savings)
• Converting the cost of quality - standard value
• Converting employee‘s time (using compensation)
• Using historical costs/savings
• Using internal and external experts
• Using data from external databases/studies

126. Service/Production Workers - Hourly (e.g. Courier) 40 - 70%
Skilled Hourly (e.g. Machinist) 75 - 100%
Clerical/Administrative (e.g. Scheduler) 50 - 80%
Professional (e.g. Sales Representative, Nurse, Accountant) 75 - 125%
Technical (e.g. Computer Technician) 100 - 150%
Engineers (e.g. Chemical Engineer) 200 - 300%
Specialists (e.g. Computer Software Designer) 200 - 400%
Supervisors/Team Leaders (e.g. Section Supervisor) 100 - 150%
Middle Managers (e.g. Department Manager) 125 - 200%

127. Exit cost of previous employee Lost productivity
Recruiting cost Quality problems
Employee cost Customer dissatisfaction
Orientation cost Loss of expertise/knowledge
Training cost Supervisor‘s time for turnover
Wages and salaries while training Temporary replacement costs

128. Step 1 Define the unit of measure
(Increase in sales, decrease in absenteeism, time saving)
Step 2 Determine the value of each unit
One unit of sales, one cost of an absentee, one hour of time saving)
Step 3 Calculate the change in performance
Change during the reporting period
Step 4 Determine the annual amount of change
Step 5 Calculate the total value of improvement
The value of one unit of improvement multiplied by the amount of annual change during
the reporting period

129. Step 1 Define the unit of measure
Unit of measure = one less grievance
Step 2 Determine the value of each unit
Using internal experts on the labour relations staff, the cost of an average grievance was
estimated to be 18,000, considering time and direct cost
Step 3 Calculate the change in performance
Six months after the program, total grievances per month had declined by 10.
Supervisors isolated the effects of the program, determining that 7 of the 10 grievance
reductions were because of the program
Step 4 Determine the annual amount of change
Using the adjusted value of 7 per month yields an annual improvement of 84
Step 5 Calculate the total value of improvement
Annual value = 84 x 18,000
= 15, 12,000

130. Step 1 Define the unit of measure
One new customer,
Subscription recharge for a month
Step 2 Determine the value of each unit
Average revenue earned is Rs. 300 for a set top box(Finance dept. worked out).
Increased subscription recharge per month= Rs. 21,27,878 (after deduction 70% cost)
Step 3 Calculate the change in performance
Average increment in sales boxes is 1016. Out of which 36% was attributed to training.
(1016 x 36)/ 100 = 365
The percentage increase in subscription recharge attributable to training is 37%.
(2127878 x 37)/ 100 = 7,87,315
Step 4 Determine the annual amount of change
Annual value of increased sales in the set top box : 300 x 365 x 12 = 13,14,000
Annual value of increased in subscription recharge : 7,87,315 x 12 = 94,47,780
Step 5 Calculate the total value of improvement
Total benefit : 13,14,000 + 94,47,780 = 1,07,61,780

132. TURNOVER COSTS SUMMARY
Entry Level - Hourly, Non Skilled (e.g. Fast Food Worker) 30 - 50%
Service/Production Workers - Hourly (e.g. Courier) 40 - 70%
Skilled Hourly (e.g. Machinist) 75 - 100%
Clerical/Administrative (e.g. Scheduler) 50 - 80%
Professional (e.g. Sales Representative, Nurse, Accountant) 75 - 125%
Technical (e.g. Computer Technician) 100 - 150%
Engineers (e.g. Chemical Engineer) 200 - 300%
Specialists (e.g. Computer Software Designer) 200 - 400%
Supervisors/Team Leaders (e.g. Section Supervisor) 100 - 150%
Middle Managers (e.g. Department Manager) 125 - 200%

134. Is there a
standard Add to
Yes
value? numerator
No
Can we get Can we Convert
Is there a convince
there with data and
Method to Yes Yes executive of Yes
minimum credibility in
add to
get there?
resources? 2 minutes? numerator
No No No
Move to Move to Move to
Intangible Intangible Intangible
Benefits Benefits Benefits

135. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

136. • Needs Analysis cost
• Development cost
• Delivery cost
• Evaluation cost
• Others

137. Value( In
S. No The Cost category Indian
Rupees)
1. Facilitation fees for the Master trainer 2,00,000
2. The cost for the content 12,00,000
3. The cost for the Market survey 25,000
Participants Salaries(As per managerial grades):
M1-2 Participants( @ Rs.10000 per day) 40,000
M2 – 2 Participants( @ 7000 per day) 28,000
4.
M3 – 2 Participants( @ 4000 per day) 16,000
M4 – 10 Participants( @ 2800 per day) 56,000
M5 – 22 Participants ( @ 1400 per day) 61,600
Cost of internal venue for the six batches done for the Company staff (ROIs
5. 1,50,000
and the ROMs).This included rent of venue and food.
Cost of the 25 training batches for the Experience Zone Employees (@
6. 6,25,000
Rs.25000 per batch).This included rent of venue and food.
Cost of 6 refresher batches – required to tackle the employee churn (@
7. 1,50,000
Rs.25000 per batch).
Total Costs for the training program 25,51,600

138. Data Analysis Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

139. Benefits/ Cost Ratio
Benefits/ Cost Ratio =
Program Cost
Program Benefits – Program Costs
ROI = X 100
Program Costs

140. Program Benefits = 1,07,58,691
Program Costs = 25,51,600
1,07,58,691
Benefits/ Cost Ratio = = 4.21
2551600
1,07,58,691 – 25,51,600
ROI = X 100 = 321%
25,51,600

141. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures

142.  Brand Awareness  Customer Complaints  Creativity
 Job satisfaction  Customer Response Time  Clarity
 Organizational Commitment  Caring
 Customer Loyalty
 Work Climate  Corporate Social
 Teamwork
 Employee Engagement Responsibility
 Cooperation
 Employee Stress  Human Life
 Conflict
 Employee Innovation  Intellectual Capital
 Decisiveness
 Employee Networking  Leadership
 Communication
 Employee Collaboration  Poverty
 Employee partnering  Accountability
 Sustainability
 Customer Satisfaction  Alliances
 Work/Life Balance
/Dissatisfaction  Awards
 Reputation  Capability
 Image  Capacity

143. • The confidence of the Experience zone employee increased due to the training. This
reflected in all the activities of the store. The morale of the experience zone employee as
well that of the owner increased. The effect was noticeable but since we could not measure
the difference in confidence pre and post training, this was reported as an intangible benefit.
• The better customer management at the stores reduced the incoming call load at the
contact center. As we could not use any method to isolate the effect we decided to keep it
as an intangible method.
• Better handling of customers during the time of sale also ensured that they recharged for the
first month more regularly. This reduced the casual churn of the customers due to not
recharging their accounts in time. Here again since we could not find a way to isolate this
particular effect of training we decided to list this as an intangible benefit.
• The ROIs got skilled on the job coaching. This will help in better channel management.

144. Tabulate Costs
Data Analysis of Solution Reporting
Convert Data Calculate the Generate
Isolate the
to Monetary Return on Impact
Effects
Value Investment Study
Level 5:
ROI
Identify
Intangible
Measures
Intangible Measures

145. • General information
• Methodology for impact study
• Data analysis
• Costs
• Results
• Barriers and enablers
• Summary of findings
• Conclusions and recommendations
• Exhibits

146. Chain of Difficulty of Power to Frequency of Value of
Impact Assessment Show Results Use Information
Lowest Lowest Frequent Low
Reaction
Learning
Application
Impact
ROI
Highest Highest Infrequent High

147. Shyam Sunder
ss@greenbooks.co.in
Principal & Founding Partner
GreenBooks & ROI India
Facebook: www.facebook.com/shyamsunder.a
Twitter: www.twitter.com/shyamsunder