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The Tech Leadership Academy is made possible by generous funding from Microsoft Community Affairs Evaluation: Technology ROI Beth KanterAuthor, Beth’s BlogPartner, Zoetica 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.
@kanter http://www.bethkanter.org http://www.zoeticamedia.com
Measuring the Networked Nonprofit: Using Data for Decision Making
Session Objectives ,[object Object]
Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomesThese materials are available under the Creative Commons Attribution-NonCommercial 3.0 License.
INSERT Poll: Have you ever asked or been asked these questions     What is the value (of x technology) ? Should we invest our time or money in this technology?
Has your organization conducted an ROI analysis or study as part of a technology investment? Yes No
Objective 1 Understand the importance of evaluation in successfully managing technology :
What three words are top of  Mind when you think about  A successful ROI process? TYPE into the CHAT
What: Return on Investment An analysis that looks at the benefits, costs, and value of a technology initiative over time.
 5  ROIDesign Principles
Simple and Economical
Credible
Micro  versus Macro
Considers more than just direct costs
Time:      Future or Past When is ROI used?
Future Investing in a Video Conferencing System
Laptops and Internet Access Past
How much time will staff members save with laptops?   How does access to technology and information improve services to client? Laptop Project Pilot
Cost of travel time from monthly time sheet Mileage # Trips Needed w/out laptop # Trips Needed w/laptop Value of Shifted Time
Articulated value of using Facebook and Twitter as: -Customer Service-Efficient way for staff to answer  public health questions -Efficient communication with journalists Quantified: Saved TimeSaved Paper and Postage Positive word of mouth -
“People regard our program as honest and informative. After almost two years on the social media front, we’ve developed a good system to get timely and accurate public health messaging to our communities. We firmly believe that our presence on social media sites has really enhanced our communication with the media and public. Executive Director, Gary Edwards said it best in our 2010 Annual Report; that during tough economic times, SLVHD rose to the occasion and found innovative, cost effective ways to communicate with our community. “    - VannaLivaditis, New Media Coordinator
Ladder of Value Results Impact $ Investment Interaction Insight Number of Months Strategy, Measure, Improve
Use ROI if….. Long Life Cycle Mission Critical Linked to Strategic Goals Large Investment  Visible or Controversial Change management Large Target Audience And ….
How much does it cost? Can we afford it?
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
Benefits Benefits Efficiency Effectiveness
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
Tangible Benefits Tangible Benefits
 Easy to Quantify Easy to assign money values
We can save $25,000!  I like that! Tangible Benefits
Intangible Benefits
Subjective
Less Credible
Usually Behaviorally Oriented
Job SatisfactionProductivityJob CommitmentWork EnvironmentMoraleEmployee RetentionInnovationCompetenciesLeadershipTeam workCooperationDecision-makingCommunicationClient satisfactionClient complaintsClient response time Typical  Intangibles
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“
Can you Quantify Love?
ROI by the Numbers
You may need to collect data …
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
Don’t Panic!!
Prioritize what data you need Understand what type of data decision-makers respond to
 Now comes the calculations …
[object Object],of different solutions ,[object Object],with the benefits ,[object Object],of not doing the project  ,[object Object],[object Object]
CRM System Source:  Steve Heye,  YMCA National  Software ROI Spreadsheet
C Communicating Results
ROI Storytelling Techniques
Don’t show all, but have it ready
What happens if ROI is negative?
[object Object],[object Object]
Episode #1: Save Paul From the Hammer
Meet Paul
Walter
Check please!
Walter, you should get iPhones for all your staff
Let’s get all the attorneys iPhones!
That’s dumbest thing I ever heard …
They will end up in the blender!
TYPE IT INTO THE CHAT … How can Paul use ROI techniques to make a better decision?
Episode #2:  Lost in Translation
Meet Peter
He’d waste less time scrolling …..
I need a magnifying glass to see read this on the screen! Why can’t this spreadsheet fit on the screen!
The monitors we have aren’t broken,  why fix them?  We can’t afford it!
Type into Chat How can Peter convince  his boss using  ROI techniques?
Scenario #3:  No Buy-In
Meet Pauline
I better copy those papers now while no is using the copy machine …
The copy machine isn’t working! Crap I have a deadline!
I can’t find the staff’s performance review from last quarter ..
I’m going to design and spec out an Intranet!
For that money we could hire more staff!
How can Pauline use ROI analysis to get buy-in from Boss and others? Type into chat
Your Turn!
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
For Friday Small Groups: Using the principles and methods, design an ROI project for a technology investment your organization is considering .
May 11th Slides:  NTEN Leadership

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May 11th Slides: NTEN Leadership

  • 1. The Tech Leadership Academy is made possible by generous funding from Microsoft Community Affairs Evaluation: Technology ROI Beth KanterAuthor, Beth’s BlogPartner, Zoetica 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.
  • 4. Measuring the Networked Nonprofit: Using Data for Decision Making
  • 5.
  • 6. Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomesThese materials are available under the Creative Commons Attribution-NonCommercial 3.0 License.
  • 7. INSERT Poll: Have you ever asked or been asked these questions What is the value (of x technology) ? Should we invest our time or money in this technology?
  • 8. Has your organization conducted an ROI analysis or study as part of a technology investment? Yes No
  • 9. Objective 1 Understand the importance of evaluation in successfully managing technology :
  • 10. What three words are top of Mind when you think about A successful ROI process? TYPE into the CHAT
  • 11. What: Return on Investment An analysis that looks at the benefits, costs, and value of a technology initiative over time.
  • 12. 5 ROIDesign Principles
  • 15. Micro versus Macro
  • 16. Considers more than just direct costs
  • 17. Time: Future or Past When is ROI used?
  • 18. Future Investing in a Video Conferencing System
  • 19. Laptops and Internet Access Past
  • 20. How much time will staff members save with laptops? How does access to technology and information improve services to client? Laptop Project Pilot
  • 21. Cost of travel time from monthly time sheet Mileage # Trips Needed w/out laptop # Trips Needed w/laptop Value of Shifted Time
  • 22. Articulated value of using Facebook and Twitter as: -Customer Service-Efficient way for staff to answer public health questions -Efficient communication with journalists Quantified: Saved TimeSaved Paper and Postage Positive word of mouth -
  • 23. “People regard our program as honest and informative. After almost two years on the social media front, we’ve developed a good system to get timely and accurate public health messaging to our communities. We firmly believe that our presence on social media sites has really enhanced our communication with the media and public. Executive Director, Gary Edwards said it best in our 2010 Annual Report; that during tough economic times, SLVHD rose to the occasion and found innovative, cost effective ways to communicate with our community. “ - VannaLivaditis, New Media Coordinator
  • 24. Ladder of Value Results Impact $ Investment Interaction Insight Number of Months Strategy, Measure, Improve
  • 25. Use ROI if….. Long Life Cycle Mission Critical Linked to Strategic Goals Large Investment Visible or Controversial Change management Large Target Audience And ….
  • 26. How much does it cost? Can we afford it?
  • 27. 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?
  • 28. Objective 2: Provide a methodology for analyzing the return on investment of technology that includes both quantitative and qualitative outcomes
  • 29. Benefits Value Costs THE ROI PUZZLE The Rubrics Cube of ROI
  • 31. 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
  • 32. Improves ability to deliver Improves access to services Improves access to information Improves accuracy Improves effectiveness of information delivered Effectiveness
  • 34. Easy to Quantify Easy to assign money values
  • 35. We can save $25,000! I like that! Tangible Benefits
  • 40. Job SatisfactionProductivityJob CommitmentWork EnvironmentMoraleEmployee RetentionInnovationCompetenciesLeadershipTeam workCooperationDecision-makingCommunicationClient satisfactionClient complaintsClient response time Typical Intangibles
  • 41. Keep in Mind List all benefits regardless of whether or not they initially appear difficult to support or quantify
  • 42. 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?
  • 43. “Anything can be measured in a way that is superior to not measuring it at all“
  • 45.
  • 46. ROI by the Numbers
  • 47. You may need to collect data …
  • 48. 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
  • 50. Prioritize what data you need Understand what type of data decision-makers respond to
  • 51.
  • 52.
  • 53. Now comes the calculations …
  • 54.
  • 55. CRM System Source: Steve Heye, YMCA National Software ROI Spreadsheet
  • 56.
  • 57.
  • 58.
  • 61. Don’t show all, but have it ready
  • 62. What happens if ROI is negative?
  • 63.
  • 64. Episode #1: Save Paul From the Hammer
  • 68.
  • 69.
  • 70.
  • 71.
  • 72.
  • 73. Walter, you should get iPhones for all your staff
  • 74. Let’s get all the attorneys iPhones!
  • 75. That’s dumbest thing I ever heard …
  • 76. They will end up in the blender!
  • 77. TYPE IT INTO THE CHAT … How can Paul use ROI techniques to make a better decision?
  • 78. Episode #2: Lost in Translation
  • 79.
  • 81.
  • 82.
  • 83.
  • 84. He’d waste less time scrolling …..
  • 85. I need a magnifying glass to see read this on the screen! Why can’t this spreadsheet fit on the screen!
  • 86.
  • 87. The monitors we have aren’t broken, why fix them? We can’t afford it!
  • 88. Type into Chat How can Peter convince his boss using ROI techniques?
  • 89. Scenario #3: No Buy-In
  • 91. I better copy those papers now while no is using the copy machine …
  • 92.
  • 93.
  • 94.
  • 95.
  • 96. The copy machine isn’t working! Crap I have a deadline!
  • 97. I can’t find the staff’s performance review from last quarter ..
  • 98. I’m going to design and spec out an Intranet!
  • 99. For that money we could hire more staff!
  • 100. How can Pauline use ROI analysis to get buy-in from Boss and others? Type into chat
  • 102. 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
  • 103. For Friday Small Groups: Using the principles and methods, design an ROI project for a technology investment your organization is considering .

Editor's Notes

  1. Understanding how to apply an ROI process to technology decision-making with help your organization avoid making mistakes and save valuable time and resources.
  2. 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
  3. http://www.youtube.com/watch?v=_ANboUjG6GQ&feature=player_embeddedFacebook has become a forum to get people’s questions answered about public healthIf someone asks a question, and they didn’t get to it in time – other people answer itBooking an appointment, couldn’t make it appointment, taking two weeksAsking people for advicePaying attentionQuestion about the two different types of flu vacines ..Person answered, manager put a clarifying answer onTwitter: Helpful, esp. with h1n1 – real-time input – real time conversation, get people’s updates fastConversation – re: h1n1 – help me understand why it is so much more dangerous than regular flu?Helpful to reach reporters – first day h1n1 – fox 13 was camped outside city clinic – getting people to go another clinicReporter had tweeted he was sitting outside at one – and she suggested an alternativeSee you thereDid not take any effort
  4. http://pulseandsignal.com/interview/salt-lake-valley-health-department-one-year-later/
  5. . 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?
  6. Understand the importance of evaluation in successfully managing technology