ROI of Training - Converting Value and Calculating

1. MEASURING ROI OF TRAINING

7. MAJOR CATEGORIES OF HARD DATA Primary Measurements of Improvement “ Hard Data” Output Increases Quality Improvement Time Savings Cost Savings

8. ACCRA BRICKWORKS EXERCISE What category does your measure fall in? Output Increases Quality Improvement Time Savings Cost Savings

9. OUTPUT Units Produced Tons Manufactured Items Assembled Money Collected Items Sold Forms Processed Loans Approved Inventory Turnover Patients Visited Applications Processed Students Graduated Tasks Completed Output Per Hour Productivity Work Backlog Incentive Bonus Shipments New Accounts Generated COSTS Budget Variances Unit Costs Cost By Account Variable Costs Fixed Costs Overhead Cost Operating Costs Number of Cost Reductions Project Cost Savings Accident Costs Program Costs Sales Expense TIME Equipment Downtime Overtime On Time Shipments Time to Project Completion Processing Time Supervisory Time Break in Time for New Employees Learning Time Meeting Schedules Repair Time Efficiency Work Stoppages Order Response Late Reporting Lost Time Days QUALITY Scrap Waste Rejects Error Rates Rework Shortages Product Defects Deviation From Standard Product Failures Inventory Adjustments Time Card Corrections Percent of Tasks Completed Properly Number of Accidents

10. MAJOR CATEGORIES OF HARD DATA How to calculate Per category Output Increases Quality Improvement Time Savings Cost Savings

11. Units Cost Per Unit Before Value After Value Widget Produced R 1 100 R 100 200 R 200 Units Cost Per Unit Before Total cost After Total Cost Widget Cost R 1 100 R 100 R.5 R 150

12. Units Cost Per Unit Before Value After Value Widgets R 1 100 R 100 200 R 200 Units Cost Per Unit Before Value After Value Hours Worked for “n” R 50 100 R 5000 50 R 2500

16. WORK HABITS Absenteeism Tardiness Visits to the Dispensary First Aid Treatments Violations of Safety Rules Number of Communication Break-downs Excessive Breaks Follow-Up WORK CLIMATE/SATISFACTION Number of Grievances Number of Discrimination Charges Employee Complaints Job Satisfaction Employee Turnover Litigation Organization Commitment Employee Loyalty Increased Confidence CUSTOMER SERVICE Customer Complaints Customer Satisfaction Customer Dissatisfaction Customer Impressions Customer Loyalty Customer Retention Customer Value Lost Customers EMPLOYEE DEVELOPMENT/ADVANCEMENT Number of Promotions Number of Pay Increases Number of Learning Programs Attended Requests for Transfer Performance Appraisal Ratings Increases in Job Effectiveness INITIATIVE/INOVATION Implementation of New Ideas Successful Completion of Projects Number of Suggestions Implemented Setting Goals and Objectives New Products and Services Developed New Patents and Copyrights

17. EXAMPLE OF SOFT DATA Soft Data Related Value Measure Absenteeism Labour unrest Industrial Accident Poor work climate Staff loyalty Customer loyalty Customer complaints

18. EXAMPLE OF SOFT DATA

19. EXAMPLE OF SOFT DATA

25. Time; Quality; Output Cost per Unit Cost Per Unit Less INCREASE/DECREASE IN EXPENDITURE - IMPACT ON PROFIT Production More

26. Contribution to profit Contribution to profit More INCREASE/DECREASE IN EXPENDITURE - IMPACT ON PROFIT Sales Less

28. R 285,000/35 = Cost per complaint Cost of Sexual Harassment Complaint Actual cost from records Estimated additional from staff Staff time; Management time Cost R 285,000 Total of 35 complaints Legal fee; Settlement cost

40. MEASURING FINANCIAL PAYOFF

41. Benefit/Cost Ratio = Benefits ROI = Program Benefits Program Costs Net Program Benefit Program Costs Measuring Financial Payoff X 100 1