Successfully reported this slideshow.
Your SlideShare is downloading. ×

Measuring ROI in Training with Case Studies

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Upcoming SlideShare
ROI training 98
ROI training 98
Loading in …3
×

Check these out next

1 of 147 Ad
Advertisement

More Related Content

Slideshows for you (20)

Similar to Measuring ROI in Training with Case Studies (20)

Advertisement

Recently uploaded (20)

Measuring ROI in Training with Case Studies

  1. 1. ROI INDIA 2 day Workshop
  2. 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. 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. 4. Application Objectives 1) Develop an evaluation plan for a specific program
  5. 5. 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
  6. 6. Case Study [ Reliance Insurance Organization ] Page 1.4
  7. 7. 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?
  8. 8. 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
  9. 9. is Training Evaluation
  10. 10. Science ART
  11. 11. 1954
  12. 12. 1959
  13. 13. 1970
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. Implementation Learning
  18. 18. If the participants know the L3 behaviors are being tracked they will be more likely to apply
  19. 19. 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
  20. 20. Customer satisfaction Sales Units manufactured Students graduated
  21. 21. Costs Quality complaints Time to project completion Rework
  22. 22. 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
  23. 23. 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
  24. 24. (ROE)
  25. 25. (ROI)
  26. 26. Program Benefits Benefits/ Cost Ratio = Program Cost Net Program Benefits ROI = X 100 Program Costs
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. Job Aid
  33. 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 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
  34. 34. 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
  35. 35. Pieces of Puzzle An Evaluation Case Applications Framework and Practice Implementation Strategy Operating A Process Standards and Model Philosophy
  36. 36. All program are ‗not evaluated’ at all levels…
  37. 37. 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%
  38. 38. 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
  39. 39. What is your organization’s current status?
  40. 40. 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
  41. 41. OUTPUT, TIME, COSTS, QUALITY
  42. 42. 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
  43. 43. 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
  44. 44. } Analysis Design Development Implementation Evaluation
  45. 45. ―The best way to Predict a future is to … create it.‖
  46. 46. 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
  47. 47. 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
  48. 48. ( Supervisors need ) Counseling & Discussion Skills
  49. 49. Cause & Effect
  50. 50. 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
  51. 51. 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
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. 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
  57. 57. ( More Examples )
  58. 58. 1 Reaction 2 Learning 3 Application 4 Impact 5 Return On Investment
  59. 59. 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
  60. 60. Initial collection of data which serves as a basis for COMPARISON with the subsequently acquired data.
  61. 61. 125 Kgs 86 Kgs
  62. 62. Existing Expected
  63. 63. 1. Data collection Plan 2. ROI analysis plan
  64. 64. ( sample )
  65. 65. 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.
  66. 66. 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.
  67. 67. 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
  68. 68. 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 )
  69. 69. Publishing Firm – Score from emails, reports Parameters Pre-Assessment Grammar 63.8 % Structure 85.4% Tone & Style 58.3% Average Score 70.2%
  70. 70. 3.26 / Appendix A.4
  71. 71. 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
  72. 72. 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
  73. 73. 1. Skills 2. Knowledge 3. Capacity 4. Capability 5. Awareness 6. Confidence
  74. 74. A. Survey B. Test C. Questionnaire D. Interview E. Focus Group F. Observation G. Performance Records
  75. 75. 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
  76. 76. Impact Questionnaire for Leadership Development Program Page 4.11
  77. 77. Page 4.21
  78. 78. Page 4.22
  79. 79. 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
  80. 80. Case Study First Bank (page 5.3)
  81. 81. 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?
  82. 82. External Factors Management Attention TOTAL Incentives IMPROVEMENT Systems/Procedures AFTER Changes PROGRAM Programs EFFECT OF PROGRAM ON IMPROVEMENT
  83. 83. 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
  84. 84. Control Group No Program Measurement Experimental Program Measurement
  85. 85. 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
  86. 86. 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
  87. 87. } Analysis Design Development Implementation Evaluation
  88. 88. • Participants estimate • Supervisor estimate • Customer Input • Experts Inputs
  89. 89. Francis Galton
  90. 90. 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)
  91. 91. 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
  92. 92. Case Study National Bank Page 5.10
  93. 93. 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
  94. 94. • 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
  95. 95. 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%
  96. 96. 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
  97. 97. 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
  98. 98. 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
  99. 99. 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
  100. 100. 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%
  101. 101. 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
  102. 102. 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
  103. 103. • Needs Analysis cost • Development cost • Delivery cost • Evaluation cost • Others
  104. 104. 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
  105. 105. 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
  106. 106. Benefits/ Cost Ratio Benefits/ Cost Ratio = Program Cost Program Benefits – Program Costs ROI = X 100 Program Costs
  107. 107. 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
  108. 108. 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
  109. 109.  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
  110. 110. • 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.
  111. 111. 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
  112. 112. • General information • Methodology for impact study • Data analysis • Costs • Results • Barriers and enablers • Summary of findings • Conclusions and recommendations • Exhibits
  113. 113. 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
  114. 114. Shyam Sunder ss@greenbooks.co.in Principal & Founding Partner GreenBooks & ROI India Facebook: www.facebook.com/shyamsunder.a Twitter: www.twitter.com/shyamsunder

×