Excerpt From Bottomline on ROI

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THE BOTTOMLINE ON ROI

Benefts and Barriers to Measuring

Learning, Perormance Improvement,

and Human Resources Programs

Patricia Pulliam Phillips


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Copyright 2012 by Patricia Pulliam Phillips.Published by HRDQ.

Unless otherwise stated, no part o this publication may be reproduced, stored ina retrieval system, or transmitted in any orm or by any means without prior writ-ten permission o the Publisher, except as permitted under the 1976 United StatesCopyright Act (17 U.S.C.), Section 107 or 108. Inclusion in any publication oferedor sale or other commercial purposes is prohibited.

Any and all other reproduction, repurposing, or reuse may not be done without priorwritten permission o the Publisher. Requests or permission should be e-mailed to:[email protected].

Te material in this publication is provided as is. HRDQ disclaims any warranties,expressed or implied, regarding its accuracy or reliability, and assumes no respon-sibility or errors or omissions. o the extent permissible by law, HRDQ acceptsno liability or any injuries or damages caused by acting upon or using the contentcontained in this publication.

For additional copies o this publication, contact the HRDQ Client Solutions eam at:

Phone: 800-633-4533610-279-2002

Fax: 800-633-3683610-279-0524

Online: HRDQ.com

ISBN: 978-1-58854-597-8

Publisher: Martin DelahoussayeEditorial development: Charyl LeisterPublishing assistant: Sarah GreyCover design: Judy SelingInterior design: Integrative Ink

Printed in the United States o America on recycled paper.

HRDQ and the HRDQ logo are registered trademarks o Organization Design and

Development, Inc.

0579E1BK

EN-01-DC-11


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TABLEOFCONTENTS

FOREWORD........................................................................................vii

INTRODUCTION .............................................................................xvii

CHAPTER1: ROI DEFINED ...................................................... 1

Te ROI Calculation ..................................................................... 1

Imperection o Financial Measures ........................................... 10

Rationale or Implementing ROI ............................................... 12

Benets o the ROI Methodology .............................................. 15

ROI on the ROI .......................................................................... 17

Candidates or ROI .................................................................... 18

Characteristics o Organizations Using ROI............................... 18

Symptoms that an Organization is Ready or ROI .................... 20

CHAPTER2: THE EVALUATION PUZZLE............................. 25

Evaluation Framework ................................................................ 26

ROI Process Model ..................................................................... 32

Operating Standards: Guiding Principles ................................... 34

Case Application and Practice .................................................... 38

Implementation ........................................................................... 41

CHAPTER3: THE ROI METHODOLOGY............................ 47

Criteria or an Efective ROI Process ......................................... 48

Te ROI Methodology................................................................ 51

Evaluation Planning.................................................................... 52


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Data Collection ........................................................................... 60

Data Analysis .............................................................................. 62

Reporting .................................................................................... 73

CHAPTER4: COMMUNICATIONOFRESULTS ......................... 75

Analyze Need .............................................................................. 75

Plan the Communication ............................................................ 76

Select the Audience ..................................................................... 82

Develop the Report ..................................................................... 82

Select the Medium ...................................................................... 86

Communicate Results ................................................................. 87

Analyze Reactions ....................................................................... 89

CHAPTER5: SUCCESSFUL ROI IMPLEMENTATION ........ 91

Barriers to Implementation ......................................................... 91

Next Steps................................................................................... 95

Te Bottomline ........................................................................... 96

CHAPTER6: FREQUENTLYASKED QUESTIONS ................ 99

REFERENCES ................................................................................. 109

ABOUTTHEAUTHOR................................................................... 113

ABOUTTHEDEVELOPEROFTHEROI METHODOLOGY.... 115

PUTYOUR MONEYWHEREYOUR MOUTHIS..................... 117

ABOUTTHEROI INSTITUTE .................................................... 118


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THE BOTTOMLINE ON ROI


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Benefts o the ROI Methodology

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Gain the Confdence o Clients

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Alter or Eliminate Ineective Programs

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Excerpt From Bottomline on ROI

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