The document discusses conducting return on investment (ROI) analysis for technology decisions. It provides principles for ROI analysis, including keeping it simple, credible, considering both direct and indirect costs/benefits, and analyzing ROI for both past and future investments. A methodology is presented involving identifying benefits, costs, and calculating the ROI puzzle. Both quantitative and qualitative benefits are important to consider. Examples are given of quantifying intangible benefits and collecting relevant data. Storytelling techniques can help communicate ROI results. Overall it emphasizes the importance of evaluation in technology management and provides a framework for a rigorous yet practical ROI analysis.

1. The Tech Leadership Academy is made possible by generous funding from Microsoft Community AffairsEvaluation: Technology ROIBeth KanterAuthor, Beth’s BlogPartner, ZoeticaThese 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.

3. @kanterhttp://www.bethkanter.orghttp://www.zoeticamedia.com

4. Measuring the Networked Nonprofit: Using Data for Decision Making

5. Session ObjectivesUnderstand the importance of evaluation in successfully managing technology

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?YesNo

9. Objective 1Understand 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 InvestmentAn analysis that looks at the benefits, costs, and value of a technology initiative over time.

12. 5 ROIDesign Principles

13. Simple and Economical

14. Credible

15. Micro versus Macro

16. Considers more than just direct costs

17. Time: Future or PastWhen is ROI used?

18. FutureInvesting in a Video Conferencing System

19. Laptops and Internet AccessPast

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 sheetMileage# Trips Needed w/out laptop# Trips Needed w/laptopValue 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 journalistsQuantified:Saved TimeSaved Paper and PostagePositive 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 ValueResultsImpact$InvestmentInteractionInsightNumber of Months Strategy, Measure, Improve

25. Use ROI if…..Long Life CycleMission CriticalLinked to Strategic GoalsLarge Investment Visible or ControversialChange managementLarge Target AudienceAnd ….

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. BenefitsValueCostsTHE ROI PUZZLEThe Rubrics Cube of ROI

30. BenefitsBenefitsEfficiencyEffectiveness

31. EfficiencyImproves the ability to maintain a systemEliminates duplicate systemsAccommodates increases in workload or demand without additional costsReduces manual operationsImproves efficiencyReduces Travel Cost/Time

32. Improves ability to deliverImproves access to servicesImproves access to informationImproves accuracyImproves effectiveness of information deliveredEffectiveness

33. Tangible BenefitsTangible Benefits

34. Easy to QuantifyEasy to assign money values

35. We can save $25,000! I like that!Tangible Benefits

36. Intangible Benefits

37. Subjective

38. Less Credible

39. Usually Behaviorally Oriented

40. Job SatisfactionProductivityJob CommitmentWork EnvironmentMoraleEmployee RetentionInnovationCompetenciesLeadershipTeam workCooperationDecision-makingCommunicationClient satisfactionClient complaintsClient response timeTypical Intangibles

41. Keep in MindList all benefits regardless of whether or not they initially appear difficult to support or quantify

42. ConversionTest1. 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“

44. Can you Quantify Love?

46. ROI by the Numbers

47. You may need to collect data …

48. Staff SurveysStaff InterviewsClient surveysClients InterviewsData from systemTask AnalysisTimes Sheet AnalysisArticlesField researchObservationSecondary research reportsBenchmark studiesBudget and Financial Analysis

49. Don’t Panic!!

50. Prioritize what data you needUnderstand what type of data decision-makers respond to

53. Now comes the calculations …

54. Compare the total costs of different solutionsCompare the total costs with the benefitsCompare the costs of not doing the project Identify pilot goal to identifycost/benefitSpreadsheet Aerobics

55. CRM SystemSource: Steve Heye, YMCA National Software ROI Spreadsheet

59. CCommunicating Results

60. ROI Storytelling Techniques

61. Don’t show all, but have it ready

62. What happens if ROI is negative?

63. Understand how to apply ROI evaluation method. several different common situationsThe Perils of Paul, Peter, and Pauline: How will you save them with ROI?

64. Episode #1: Save Paul From the Hammer

65. Meet Paul

66. Walter

67. Check please!

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

80. Meet Peter

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!

87. The monitors we have aren’t broken, why fix them? We can’t afford it!

88. Type into ChatHow can Peter convince his boss using ROI techniques?

89. Scenario #3: No Buy-In

90. Meet Pauline

91. I better copy those papers now while no is using the copy machine …

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

101. Your Turn!

102. SummaryFocus on benefits, not featuresResist fondling the hammerDon’t ignore intangiblesUse ROI Story Telling techniquesCompare costs of alternatives, cost/benefit, and cost of not doingPilot project to get credible numbersCollect the data you needUse 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 .