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Take the Guesswork Out of Measuring ROI for Sales Training

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The why, what, and how of measuring the sales effectiveness and business impact of Power Messaging, Scott Watson of Beyond ROI.
Watch video of this presentation: http://conference.corporatevisions.com/new-measurement-tool/

Published in: Business, Economy & Finance
  • Watch more from Scott Watson presenting at the Marketing and Sales Alignment Conference where he shows results from Corporate Visions clients: http://conference.corporatevisions.com/new-measurement-tool/
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Take the Guesswork Out of Measuring ROI for Sales Training

  1. 1. Good  News:    You’re  already  a  measurement  expert!   What’s  the  poten=al  ROI  from  .  .  .    (pick  one  and  brainstorm)       #1  -­‐  A  fabulous  haircut?     #2  -­‐  A  really  nice  new  pair  of  shoes?     #3  -­‐  Brushing  your  teeth?     #4  -­‐  Snow  skiing  lessons?         #5  -­‐  Dinner  and  movie  with  your  significant  other???   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  1    
  2. 2. ASTD  State  of  the  Industry  Reports   ASTD  Study  #1     ASTD  Study  #2   100%   100%   91.3%   80%   74%   80%   60%   60%   53.9%   40%   31%   40%   22.9%   20%   14%   20%   8%   7.6%   2.1%   0%   0%   Level  1     Level  2 Level  3   Level  4   Level  5   Level  1     Level  2   Level  3   Level  4 Level  5   ReacKon   Learning   Behavior   Results   ROI   ReacKon   Learning   Behavior   Results   ROI   2004  Study  Notes:    Included  213  organiza=ons  represen=ng  the   2005  Study  Notes:    Included  18  Fortune  500  companies   broadest  range  of  size  and  industry.    Considered  by  ASTD  to   par=cipa=ng  in  ASTD’s  Benchmarking  Forum.    These  organiza=ons   accurately  represent  “the  U.S.  norm.”   represent  the  largest  and  most  complex  global  learning   organiza=ons.       Companies  measuring  at  “Level  5  ROI”  were  included  in  the   category  “Level  4  Results.”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  2    
  3. 3. Bersin  Research:    Most  Valuable  Measures?   ©  2011  Beyond  ROI,  Inc.  •        www.getBeyondROI.com   ©  2010  Beyond  ROI,  Inc.  • www.getBeyondROI.com   Page  3    
  4. 4. What  is  Measured  Now?   Bersin & Associates © November 2006 ©  2011  Beyond  ROI,  Inc.  •        www.getBeyondROI.com   ©  2010  Beyond  ROI,  Inc.  • www.getBeyondROI.com   Page  4    
  5. 5. Desired  vs.  Actual  Measurement…   ©  2011  Beyond  ROI,  Inc.  •        www.getBeyondROI.com   ©  2010  Beyond  ROI,  Inc.  • www.getBeyondROI.com   Page  5    
  6. 6. Is  there  funding  for  measurement?   82%  say,  “We  should   spend  more  –  or  much   more  on  measurement”   ©  2011  Beyond  ROI,  Inc.  •        www.getBeyondROI.com   ©  2010  Beyond  ROI,  Inc.  • www.getBeyondROI.com   Page  6    
  7. 7. “You’ve  always  known  that  well  designed   well  implemented  training  can   change  lives  and  grow  the  business…”   Now  you  can  prove  it.®   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  7    
  8. 8. Who  do  we  work  with?       Over  800  assessment  and  measurement  projects  completed  with…   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  8    
  9. 9. Why  measure  Power  Messaging?    Reason  #1:    Capture  Business  Results  from  Power  Messaging   –  how  are  we  growing  people?   –  how  are  we  growing  the  business?    Reason  #2:    Accountability  for  Execu=on   –  for  actually  using  new  knowledge,  skills,  and  process   –  for  manager  involvement    Reason  #3:  Feedback  for  Coaching  to  Power  Messaging   –  simple   –  relevant   –  ac=onable   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  9    
  10. 10. The  Science:    What  do  we  measure?   Cause   Effect   “How  much  is            Linked  to…   “How  much  does    it  used?”      it  help?”   Leading  Indicators  (surveys)   Lagging  Indicators  (your  metrics)     use  of  19  Power  Messaging  skills,     Success  Stories  –  with  actual  customers   processes,  and  tools     Pipeline  growth     5  coaching  ac=vi=es     Performance  against  plan     9  support  and  reinforcement     Deal  size,  Margin,  Volume,  etc.   ac=vi=es     ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  10    
  11. 11. How  do  we  get  them  to  be  honest?   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  11    
  12. 12. ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  12    
  13. 13. 82%  return  (92  of  112)  Leading  Indicators:    How  much  are  they  using  it?   Overall  Power  Messaging  Applica=on:    70.1%    (excluding  Coaching)   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  13    
  14. 14. 82%  return  (92  of  112)  Leading  Indicators:    Most  used  Power  Messaging  skills?   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  14    
  15. 15. 82%  return  (92  of  112)  Leading  Indicators:    Least  used  Power  Messaging  skills?   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  15    
  16. 16. What  about  the  “Lagging  Indicators?”   Cause   Effect   “How  much  is            Linked  to…   “How  much  does    it  used?”      it  help?”   Leading  Indicators  (surveys)   Lagging  Indicators  (your  metrics)     use  of  19  Power  Messaging  skills,     Success  Stories  –  with  actual  customers   processes,  and  tools     Pipeline  growth     5  coaching  ac=vi=es     Performance  against  plan     9  support  and  reinforcement     Deal  size,  Margin,  Volume,  etc.   ac=vi=es     ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  16    
  17. 17. Lagging  Indicators:    64%  Provided  Success  Stories  (59  of  92  parKcipants)   PercepKons  of  Value  in  the  Success  Story:    “Overall,  how  much  did  your  use  of  the  principles,   tools,  and  skills  from  Power  Messaging  contribute  to  your  SUCCESS  in  this  par=cular  sales   situa=on?”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  17    
  18. 18. Reality  Check®:    Success  Story  Summary   Financial  Impact:    A  total  of  $51,418,000  in  closed  business  and  $135,540,000  in  new  poten=al  business  was   reported  in  48  success  stories  with  specific  examples  of  how  Power  Messaging  was  used  in  the  sales  process.     Number   Closed   New   Impact  of  Power  Messaging     Total  Factored   of  Stories Business   OpportuniKes on  Success Value 4  $9,200,000    $11,450,000   “made  all  the  difference”  -­‐  100%  $20,650,000   21  $19,718,000    $69,600,000   “made  a  significant  difference”  -­‐  75%  $66,988,500   19  $21,250,000    $51,790,000   “made  some  difference”  -­‐  50%  $36,520,000   3  $1,250,000    $2,500,000   “made  a  likle  difference”  -­‐  25%  $937,500   1  $0        $200,000   “made  no  difference,  or  worse”  -­‐  0%  $0       48 $51,418,000 $135,540,000 $125,096,000 ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  18    
  19. 19. Reality  Check®:    Success  Story  Summary   How  were  Success  Stories  captured?    Similar  to  a  behavioral  interview,  the  RealityCheck  success  stories   enable  par=cipants  to  provide  a  single  specific  example  of  a  =me  when  they  used  Power  Messaging  with  an   actual  customer.     What  do  the  numbers  mean?    Success  Stories  are  simply  a  way  to  LINK  applica=on  and  results.    Because  we   asked  about  only  one  opportunity  per  par=cipant,  these  totals  do  NOT  represent  the  full  impact  of  the   Power  Messaging  program.       Totals  were  gathered  according  to  these  conservaKve  standards:    If  a  range  of  values  was  provided  in  the  success  story,  we  used  the  lowest  number  (e.g.,  one  par=cipant   reported  “35K  -­‐  100K  closed”  then  $35,000  was  counted).    If  we  did  not  see  clear  evidence  of  the  Power  Messaging  principles,  skills,  and  strategies  in  the   RealityCheck™  success  stories,  the  revenue  was  NOT  included.      We  encourage  you  to  do  a  “spot  check”  on  a  handful  of  success  stories  to  verify  the  closed  and  poten=al   revenue  amounts  provided  by  par=cipants  to  verify  accuracy.   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  19    
  20. 20. Comparisons:    Leading  and  Lagging  Indicators   Cause   Effect   “How  much  is            Linked  to…   “How  much  does    it  used?”      it  help?”    Comparison  #1  –  How  does  coaching  impact  Power  Messaging  usage?    Comparison  #2  –  How  does  higher  Power  Messaging  usage  correlate  with  larger  sales?    Comparison  #3  –  How  does  higher  Power  Messaging  usage  correlate  new  opportuniKes?   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  20    
  21. 21. 82%  return  (92  of  112)  Comparison  #1:    by  Coaching  .  .  .     PowerView  QuesKon:    “Your  mastery  of  Power  Messaging  skills  and  principles  will  con=nue  to   improve  over  =me,  especially  when  you  apply  them  regularly  with  a  helpful  coach,  and  take   advantage  of  the  available  reinforcement  content.”     ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  21    
  22. 22. Comparison  #1:    Coaching  and  Skill  ApplicaKon   Basis  for  Comparison:    Coaching  Ac=vity  (5  items)  compared  to  each  par=cipant’s  applica=on  of   Power  Messaging  skills  (19  items).    Both  scales  run  from  0-­‐100%  of  the  =me.     StaKsKcal  Significance:    The  rela=onship  between  manager  involvement  and  skill  usage  is  sta=s=cally  significant,  where   Student’s  T-­‐test  =  6.119,  confidence  interval  of  p  <  0.028  @  84  d.f.  (two-­‐tailed  test,  type  1  error,  95%  confidence  interval).   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  22    
  23. 23. Comparison  #1b:    Coaching  and  Skill  ApplicaKon   Basis  for  Comparison:    Coaching  Ac=vity  (5  items)  compared  to  each  par=cipant’s  applica=on  of   Power  Messaging  skills  (18  items).    Both  scales  run  from  0-­‐100%  of  the  =me.     StaKsKcal  Significance:    The  rela=onship  between  manager  involvement  and  skill  usage  is  sta=s=cally  significant,  where   Student’s  T-­‐test  =  6.638,  confidence  interval  of  p  <  0.01  @  86  d.f.  (one-­‐tailed  test,  type  1  error).   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  23    
  24. 24. Comparison  #2:    by  Skill  ApplicaKon  .  .  .     Number  of  Par=cipants   “Low     “High        Adopters”      Adopters”    0%                        25%                          50%                          75%                        100%   “Never”   “Rarely”   “Some=mes”   “Frequently”   “Always”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  24    
  25. 25. Comparison  #2:    Skill  ApplicaKon  and  Closed  Business   Basis  for  Comparison:    We  compared  par=cipants  with  “above”  vs.  “below  average”  applica=on  of   19  Power  Messaging  skills  to  closed  business,  as  captured  in  in  48  Success  Stories.   StaKsKcal  Significance:    The  rela=onship  between  skill  usage  and  closed  business  is  sta=s=cally  significant,  where     Student’s  T-­‐test  =  3.426,  confidence  interval  of  p  <  0.002  @  28  d.f.  (two-­‐tailed  test,  type  1  error,  95%  confidence  interval).   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  25    
  26. 26. Comparison  #3:    Skill  ApplicaKon  and  New  OpportuniKes   Basis  for  Comparison:    We  compared  par=cipants  with  “above”  vs.  “below  average”  applica=on  of   19  Power  Messaging  skills  to  new  opportuni=es,  as  captured  in  in  48  Success  Stories.   StaKsKcal  Significance:    The  rela=onship  between  skill  usage  and  new  opportuni=es  is  sta=s=cally  significant,  where     Student’s  T-­‐test  =  4.882,  confidence  interval  of  p  <  .01  @  44  d.f.  (two-­‐tailed  test,  type  1  error,  95%  confidence  interval).     ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  26    
  27. 27. Comments:    How  will  Power  Messaging  impact  your  Career?    “Power  Messaging  (Corporate  Visions)  is  not  just  a  course  that  you  take  like  a  SPIN  selling  or  any   other  sales  course  we  have  all  taken.  This  is  something  that  if  you  truly  embrace  it  will  change   not  only  you,  but  your  customers  and  anyone  you  deal  with  in  life.  I  am  not  the  same  Account   Manager  I  was  before  this  course  and  I  am  on  a  different  Career  path  than  I  was  before  (In  a   Good  Way).”    “Best  training  and  program  we  have  ever  had  and  used  -­‐  very  pracPcal  and  relevant.    Can  only   make  me  a  beQer  salesperson.”    “It  has  definitely  made  me  a  beQer  sales  rep  in  the  eyes  of  my  customers.  Larger  sales.  I  feel  it   was  the  best  applicable  training  I  have  received  in  5  years.”    “It  just  creates  a  whole  new  way  of  thinking  as  I  prepare  for  and  execute  meePngs  with   customers.  I  think  it  helps  us  think  outside  the  box  and  posiPon  ourselves  different  that  our   compePPon  in  life  and  sales.    I  think  it  helps  us  see  the  whole  picture  in  all  that  we  do.”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  27    
  28. 28. Appendix  A  ADDITIONAL  RESULTS     ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  28    
  29. 29. 82%  return  (92  of  112)  Overall  PercepKons  of  Power  Messaging:    Value   Overall  Value  of  Power  Messaging:    “Overall,  how  VALUABLE  are  the  principles,  techniques,  and   skills  in  Power  Messaging  to  you  in  your  role?”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  29    
  30. 30. 82%  return  (92  of  112)  Overall  PercepKons  of  Power  Messaging:    PracKcality   Overall  PracKcality  of  Power  Messaging:    “Overall,  how  PRACTICAL  are  the  Power  Messaging   tools  and  messages  to  you  in  your  role?”   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  30    
  31. 31. Industries  we’ve  gonen  to  know:     high-­‐tech     transporta=on     telecom     insurance       financial  and  business  services     media     energy  and  petrochemical     commercial  real  estate     manufacturing     M&A,  venture  capital     consumer  packaged  goods     churches,  schools,  and  prisons     pharmaceu=cals       medical  equipment   ©  2011  Beyond  ROI,  Inc.  •    www.getBeyondROI.com   Page  31    

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