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The ROI of Nonprofit Technology Beth Kanter,  Beth’s Blog
About Me
Agenda ROI Primer:  Nonprofit Technology The Perils of Pauline and Paul:  Three Interactive Scenarios Reflection
ROI Primer
An  analysis  that looks at the  benefits ,  costs , and  value  of a technology initiative over  time . What: Return on I...
A successful ROI process is …
Simple and Economical
Credible
Micro  versus Macro
Considers more than just direct costs
When is ROI used?  When should an ROI approach  be used?
Future Past
Investing in a Video Conferencing System Future
Laptops and Internet Access Past
How much time will staff members save with laptops?  How does access to technology and information improve services to cli...
Cost of travel time from monthly time sheet Mileage Value of Shifted Time # Trips Needed w/out laptop # Trips Needed w/lap...
Use ROI if….. <ul><li>Long Life Cycle </li></ul><ul><li>Mission Critical </li></ul><ul><li>Linked to Strategic Goals </li>...
How much does it cost? Can we afford it?
Benefits Value Costs THE ROI PUZZLE
Benefits Efficiency Effectiveness Benefits
<ul><li>Improves the ability to maintain a system </li></ul><ul><li>Eliminates duplicate systems </li></ul><ul><li>Accommo...
<ul><li>Improves ability to deliver </li></ul><ul><li>Improves access to services </li></ul><ul><li>Improves access to inf...
Tangible Benefits Tangible Benefits
Easy to assign money values   Easy to Quantify
Tangible Benefits I like that! We can save $25,000!
Intangible Benefits
Subjective
Less Credible
Usually Behaviorally Oriented
Typical  Intangibles Job Satisfaction Productivity Job Commitment Work Environment Morale Employee Retention Innovation Co...
Keep in Mind <ul><li>List all benefits regardless of whether or not they initially appear difficult to support or quantify...
1. Does an acceptable, standard metric exist for the measure?  2. Can the conversion be accomplished with minimum resource...
“ 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 Artic...
Don’t Panic!!
Prioritize what data you need Understand what type of data decision-makers respond to
 
 
Now comes the calculations …
<ul><li>Compare the total costs  </li></ul><ul><li>of different solutions </li></ul><ul><li>Compare the total costs  </li>...
Spreadsheet Aerobics
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?
The Perils of Paul, Peter, and Pauline:  How will you save them with ROI?
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!
How can Paul use ROI techniques to make a better decision? TYPE IT INTO THE CHAT …
Episode #2:  Lost in Translation
Meet Peter
 
 
 
 
He’d waste less time scrolling …..
Why can’t this spreadsheet fit on the screen! I need a magnifying glass to see read this on the screen!
 
The monitors we have aren’t broken, why fix them?  We can’t afford it!
How can Peter convince  his boss using  ROI techniques? Type into Chat
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
Focus on benefits, not features Resist fondling the hammer Don’t ignore intangibles Use ROI Story Telling techniques Compa...
Thank You!  Beth’s Blog http://beth.typepad.com http://www.meetyourmission.org/
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ONTC Slides

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ONTC Slides

  1. The ROI of Nonprofit Technology Beth Kanter, Beth’s Blog
  2. About Me
  3. Agenda ROI Primer: Nonprofit Technology The Perils of Pauline and Paul: Three Interactive Scenarios Reflection
  4. ROI Primer
  5. An analysis that looks at the benefits , costs , and value of a technology initiative over time . What: Return on Investment
  6. A successful ROI process is
  7. Simple and Economical
  8. Credible
  9. Micro versus Macro
  10. Considers more than just direct costs
  11. When is ROI used? When should an ROI approach be used?
  12. Future Past
  13. Investing in a Video Conferencing System Future
  14. Laptops and Internet Access Past
  15. How much time will staff members save with laptops? How does access to technology and information improve services to client? Laptop Project Pilot
  16. Cost of travel time from monthly time sheet Mileage Value of Shifted Time # Trips Needed w/out laptop # Trips Needed w/laptop
  17. Use ROI if….. <ul><li>Long Life Cycle </li></ul><ul><li>Mission Critical </li></ul><ul><li>Linked to Strategic Goals </li></ul><ul><li>Large Investment </li></ul><ul><li>Visible or Controversial </li></ul><ul><li>Large Target Audience </li></ul><ul><li>And …. </li></ul>
  18. How much does it cost? Can we afford it?
  19. Benefits Value Costs THE ROI PUZZLE
  20. Benefits Efficiency Effectiveness Benefits
  21. <ul><li>Improves the ability to maintain a system </li></ul><ul><li>Eliminates duplicate systems </li></ul><ul><li>Accommodates increases in workload or demand without additional costs </li></ul><ul><li>Reduces manual operations </li></ul><ul><li>Improves efficiency </li></ul><ul><li>Reduces Travel Cost/Time </li></ul>Efficiency
  22. <ul><li>Improves ability to deliver </li></ul><ul><li>Improves access to services </li></ul><ul><li>Improves access to information </li></ul><ul><li>Improves accuracy </li></ul><ul><li>Improves effectiveness of information delivered </li></ul>Effectiveness
  23. Tangible Benefits Tangible Benefits
  24. Easy to assign money values Easy to Quantify
  25. Tangible Benefits I like that! We can save $25,000!
  26. Intangible Benefits
  27. Subjective
  28. Less Credible
  29. Usually Behaviorally Oriented
  30. Typical Intangibles Job Satisfaction Productivity Job Commitment Work Environment Morale Employee Retention Innovation Competencies Leadership Team work Cooperation Decision-making Communication Client satisfaction Client complaints Client response time
  31. Keep in Mind <ul><li>List all benefits regardless of whether or not they initially appear difficult to support or quantify </li></ul>
  32. 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? Conversion Test
  33. “ Anything can be measured in a way that is superior to not measuring it at all“
  34. Can you Quantify Love?
  35.  
  36. ROI by the Numbers
  37. You may need to collect data …
  38. 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
  39. Don’t Panic!!
  40. Prioritize what data you need Understand what type of data decision-makers respond to
  41.  
  42.  
  43. Now comes the calculations …
  44. <ul><li>Compare the total costs </li></ul><ul><li>of different solutions </li></ul><ul><li>Compare the total costs </li></ul><ul><li>with the benefits </li></ul><ul><li>Compare the costs </li></ul><ul><li>of not doing the project </li></ul><ul><li>Identify pilot goal to identify cost/benefit </li></ul>
  45. Spreadsheet Aerobics
  46. CRM System Source: Steve Heye, YMCA National Software ROI Spreadsheet
  47.  
  48.  
  49.  
  50. C Communicating Results
  51. ROI Storytelling Techniques
  52. Don’t show all, but have it ready
  53. What happens if ROI is negative?
  54. The Perils of Paul, Peter, and Pauline: How will you save them with ROI?
  55. Episode #1: Save Paul From the Hammer
  56. Meet Paul
  57. Walter
  58. Check please!
  59.  
  60.  
  61.  
  62.  
  63.  
  64. Walter, you should get iPhones for all your staff
  65. Let’s get all the attorneys iPhones!
  66. That’s dumbest thing I ever heard …
  67. They will end up in the blender!
  68. How can Paul use ROI techniques to make a better decision? TYPE IT INTO THE CHAT …
  69. Episode #2: Lost in Translation
  70. Meet Peter
  71.  
  72.  
  73.  
  74.  
  75. He’d waste less time scrolling …..
  76. Why can’t this spreadsheet fit on the screen! I need a magnifying glass to see read this on the screen!
  77.  
  78. The monitors we have aren’t broken, why fix them? We can’t afford it!
  79. How can Peter convince his boss using ROI techniques? Type into Chat
  80. Scenario #3: No Buy-In
  81. Meet Pauline
  82. I better copy those papers now while no is using the copy machine …
  83.  
  84.  
  85.  
  86.  
  87. The copy machine isn’t working! Crap I have a deadline!
  88. I can’t find the staff’s performance review from last quarter ..
  89. I’m going to design and spec out an Intranet!
  90. For that money we could hire more staff!
  91. How can Pauline use ROI analysis to get buy-in from Boss and others? Type into chat
  92. 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 Summary
  93. Thank You! Beth’s Blog http://beth.typepad.com http://www.meetyourmission.org/

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