measuring roi in training with case studies

ROI INDIA

2 day Workshop

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

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

Application Objectives

1) Develop an evaluation plan for a specific program

Impact Objectives

1) Improve the effectiveness of the programs

2) Redesign ineffective programs

3) Show ROI on your programs

Six months after completing the workshop, you should:

Case Study[ Reliance Insurance Organization ]

Page 1.4

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?

Activity Based Result Based

No business need for the program Program linked to specific business needs

No effort to prepare the work environment

to support program

Environment prepared 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

is Training Evaluation

ARTScience

Kirkpatrick Model Phillips ROI Model

ReactionLevel 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage

Dr. Donald Kirkpatrick Dr. Jack PhillipsLevel 1Developed

Inputs / IndicatorsLevel 0 100%

Level 5


Reaction Reaction, Satisfaction & Planned ActionLevel 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


90–100%


Level 5

Learning Learning 70–80%


Reaction Reaction, Satisfaction & Planned Action

Learning Learning

Behaviour Application

Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


90–100%

70–80%

20–30%


Level 5

Learning

Implementation

If the participants know the L3 behaviors are being

tracked they will be more likely to apply



Learning Learning


Results Business Impact

Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


90–100%

70–80%

20–30%

10–20%


Level 5

Customer satisfaction

Sales

Units manufactured

Students graduated

Costs

Quality complaints

Time to project completion

Rework



Learning Learning



Isolating the effects of the program

Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


90–100%

70–80%

20–30%

10–20%


Level 5



Learning Learning




Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


90–100%

70–80%

20–30%

10–20%

01–05%


ROE / ROI Level 5

Benefits/ Cost Ratio =

Program Benefits

Program Cost

ROI =

Net Program Benefits

Program Costs

X 100


2, 30, 000

88, 000

ROI =

2,30,000 – 88,000

88, 000

Program Benefits from Participants (1st year) = ` 2,30,000

Costs per Program (25 participants) = ` 88,000

= 2.61

= 161% X 100



Learning Learning




Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage


10 step by step of collecting, analyzing, reporting, using systematic & methodic

90–100%

70–80%

20–30%

10–20%

01–05%


Return on InvestmentLevel 5

Develop

Objectives of

Solution (s)

Develop

Evaluation

Plans and

Baseline Data

Collect

Data During

Solution

Implementation

Collect

Data After

Solution

Implementation

Level 2: Learning Level 4: Business Impact

Level 1: Reaction,

Satisfaction, and

Planned Actions

Level 3:

Application/ Implementation

Evaluation Planning Data Collection

THE PROCESS MODEL

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures

Data Analysis Reporting



Learning Learning




Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage



12 guiding principles to be conservative in approach

90–100%

70–80%

20–30%

10–20%

01–05%



Job Aid



Learning Learning




Level 1

Level 2

Level 3

Level 4

Accountability

Process Model

Standards

Publications

Usage



12 guiding principles to be conservative in approach

5 books 40 books,3000 case studies

Slowly phasing out 3000 organizations in 50 countries

90–100%

70–80%

20–30%

10–20%

01–05%



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

An Evaluation

FrameworkCase Applications

and Practice

A Process

Model

Operating

Standards and

Philosophy

Implementation

Strategy

Pieces of Puzzle

All program are ‗not evaluated’ at all

levels…

Level Measurement category Current status Evaluation

Targets

0 Inputs and Indicators: 100%

1 Reaction and planned action: 100%

2To measure what the participants have

learned in the program-90%

3 Application and Implementation: 50%

4 Impact and consequences: 30%

5 Return on investment: 10%

Level Measurement category Current status Evaluation

Targets

0 Inputs and Indicators:Done for less then 25% of the

programs100%

1 Reaction and planned action:Done for 100% of the workshops

conducted.100%

2To measure what the participants have

learned in the program-

Done for more than 60-70% of the

training programs by way of Tests

and role plays.

90%

3 Application and Implementation:Done for less than 10% of the

training programs50%

4 Impact and consequences:Not done for any training program

previously30%

5 Return on investment:Not done for any training program

previously15%

Tata Sky

What is your organization’s

current status?

Develop

Objectives of

Solution (s)

Develop

Evaluation

Plans and

Baseline Data

Collect

Data During

Solution

Implementation

Collect

Data After

Solution

Implementation


OUTPUT, TIME, COSTS, QUALITY

CUSTOMER SERVICE

• Customer Complaints

• Customer Satisfaction

• Customer Dissatisfaction

• Customer Loyalty

• Customer Retention

• Customer Value

• Lost Customers

EMPLOYEE DEVELOPMENT

/ADVANCEMENT

• Promotions

• Capability

• Intellectual Capital

• Programs Completed

• Requests for Transfer

• Performance Appraisal Ratings

• Readiness

• Networking

INITIATIVE/INNOVATION

• Creativity

• Innovation

• New Ideas

• Suggestions

• New Products and Services

• Trademarks

• Copyrights and Patents

• Process Improvements

• Partnerships

• AlliancesWORK

CLIMATE/SATISFACTION

• Grievances

• Discrimination Charges

• Employee Complaints

• Job Satisfaction

• Organization Commitment

• Employee Engagement

• Employee Loyalty

• Intent to Leave

• Stress

IMAGE

• Brand Awareness

• Reputation

• Leadership

• Social Responsibility

• Environmental Friendliness

• Social Consciousness

• Diversity

• External Awards

WORK HABITS

• Tardiness

• Violations of Safety Rules

• Communication Break-downs

• Excessive Breaks

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

Analysis

Design

Development

Implementation

Evaluation

}

The best way to Predict a future is to …

create it.―

‖

ProjectBusiness Alignment and Forecasting The ROI Process Model

Business Alignment Model

Learning Needs

Preference Needs

Measurement and

Evaluation

Reaction

Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives

Application ObjectivesPerformance Needs

Impact ObjectivesBusiness Needs

Payoff Needs ROI Objectives

End HereStart Here

5

4

3

2

5

4

3

2

1 1

ROI Needs

Analysis

Project

Learning Needs

Preference Needs Reaction

Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives




End HereStart Here

5

4

3

2

5

4

3

2

1 1

( Supervisors need )

Counseling & Discussion Skills

Cause & Effect

Learning Needs

Preference Needs

Performance Needs

Business Needs

Payoff Needs

5

4

3

2

1

Absenteeism is causing

15,00,000 monthly

Unplanned absenteeism is 16% and

increasing. Greater than benchmarked 5%

Discussion between team member

and supervisor are not occurring

Counseling and discussion skills

Counseling skills must be practical

and should happen immediately

ROI Objectives

Learning Needs

Preference Needs

Performance Needs

Business Needs

Payoff Needs5

4

3

2

1


15,00,000 monthly

Unplanned absenteeism is 16% and

increasing. Greater than benchmarked 5%

Discussion between team member

and supervisor are not occurring

Counseling and discussion skills

Counseling skills must be practical

and should happen immediately

4/5 on the practicality of the

program and relevance to job

Participants will learn key

counseling skills

Counseling discussion conducted in

95% situations when an unexpected

absence occurs

Reduce absenteeism to 5%

ROI of 20%

Reaction Objectives

Learning Objectives

Application Objectives

Impact Objectives

V Model

Learning Needs


Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives




End HereStart Here

5

4

3

2

5

4

3

2

1 1


`15,00,000 monthly

Unplanned absenteeism is 16%

and increasing. Greater than

benchmarked 5%

Discussion between team

member and supervisor are

not occurring

Deficiency in counseling and

discussion skills

Counseling skills must be

practical and should happen

immediately

4/5 on the practicality of

the program and relevance

to job


counseling skills

Counseling discussion conducted in 95% situations

when an unexpected absence occurs

Reduce absenteeism to 5%

ROI of 20%

Reaction Questionnaire at

the end of the program

Practice session during program and

facilitator assessment

Follow up questionnaire to

participants to check the

frequency of discussions

Monitor absenteeism

records for 6 months

Calculate ROI, BCR

V Model –Tata Sky

Learning Needs


Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives




End HereStart Here

5

4

3

2

5

4

3

2

1 1

Increase Sales

Increase EPRS

Profiling of the customer,

Standardization in customer demo,

& transaction

Greeting

Asking right questions to the prospects to

understand the wants and needs,

Match the needs with features & benefits

ILT and role plays 4/5 on the practicality of the


Participants will learn key interaction

& influencing skills

Use the skills consistently, which is 100% of the

times

+ve ROI

Track business dashboards

every month

Calculate ROI, BCR

Increase walk-in conversion ratio

Increase the subscription recharge by 10%

Increase Sales by 10%

Action plan activity sheet

Facilitator assessment through role

plays

Reaction and planned action through a

questionnaire at the end of the program

Learning Needs

Preference Needs

Performance Needs

Business Needs

Payoff Needs5

4

3

2

1

Increase Sales

Increase EPRS

Increase walk-in conversion

Profiling of the customer,

Standardization in customer

demo, & transaction

Greeting, Asking right questions to the

prospects to understand the wants and

needs, Match the needs with features &

benefits

ILT and role plays

Sales Revenue

EPRS Revenue

4/5 on the practicality of the



interaction & influencing skills

Use the skills consistently, which is

100% of the times

+ve ROI

Increase Sales by

Increase the subscription recharge by

Increase walk-in conversion ratio

V Model – Publishing Firm

Learning Needs


Learning

Application

Impact

ROI

Reaction Objectives

Learning Objectives




End HereStart Here

5

4

3

2

5

4

3

2

1 1

Potential project loss of

`1,25,00,000 a year

-Improve quality of emails

-Decrease supervisors monitoring

time

Excellent email communication

skills for a global audience

Structure, tone, style and grammar

and global culture

Blended – ILT, LMS and coaching Overall score of 90%

Participants will learn email skills

Use appropriate email writing skills 100% of the

times while writing emails

Error rates to zero

Decrease managers monitoring time to nil

ROI of 50%

Online reaction Questionnaire

Online pre and post assessment

Email scorecard

Performance records &

Interview

Calculate ROI, CBR

Each level includes:• Data Sources• Data Collection• Key Questions• Key Issues

Collect Data After Solution

Implementation

Isolatethe Effects

of the Solution

Convert Data To Monetary

Value

CalculateThe Return On

Investment

TabulateCosts of Solution

IdentifyIntangibles

Significant Influences • Policy Statement• Procedures and Guidelines• Staff Skills• Management Support• Technical Support• Organizational Culture

Phillips ROI Methodology TM

Develop Report and

CommunicateResults

Level 4 Level 3 Level 3 and 2 Level 1

Level 3Level 4

Level 5

Level 5

Results-Based Approach

Intangible Benefits

Specify Skill/Knowledge

Deficiencies of Affected Population

TrainingRequired

?

Level 2

Problem/Opportunity Present or Anticipated

Identify Job Performance

Needs, Gaps, and Why

Identify Solutions

Identify Preferences

Develop Objectives/ Evaluation Strategy

Identify TransferStrategy Options and

L-2 & L-3 Support For All Stakeholders

Identify Business, Needs, Gaps, and Stakeholders

Design Solution and StakeholderComponents

ConsiderResources/ Logistics Delivery

Develop Content/ Materials

Conduct/ Implement Solution

Level 1Level 2

Implement Pre-activity

Implement Transfer Strategy

- Solution- Pre-work Activity/Transfer Strategy

Page 3.9

( More Examples )

1 Reaction

2 Learning

3 Application

4 Impact

5 Return On Investment

Develop

Objectives of

Solution (s)

Develop

Evaluation

Plans and

Baseline Data

Collect

Data During

Solution

Implementation

Collect

Data After

Solution

Implementation


Initial collection of data which serves as a basis for

COMPARISON with the subsequently acquired data.

125 Kgs 86 Kgs

Existing Expected

1. Data collection Plan

2. ROI analysis plan

( sample )

Level Objectives Measures/Data

Data

Collection

method

Data Source Timings Responsibility

1 Positive reactionAn overall average

rating of 4/5 Questionnaire

Participants of the

program

At the end of

each workshopFacilitator

2Will be able to demonstrate all

the 3 skills during the role playFacilitators rating

Observation

of skill practice

by facilitator

FacilitatorDuring the

workshopFacilitator

3

(1)Will be able to assess all the

EZs for adherence to the

taught processes

(2)Will be able to bring all the

employees to a consistent level

of display of learned skills.

Completion of Action

plan

Action plan

sheet

Retail Operation

Incharges(ROIs)

Retail Operation

Managers(ROMs)

30 – 45 days

after the

workshop

Regional Managers

Retail Operations

4

(1)The walk in conversion

ratio will increase

(2)The sales will increase

(3)The customer retention will

increase

Monthly data from the

Retail Operation

Vertical of the

Experience Zones

Business

performance

monitoring

Dashboard,

Retail Operations

45 – 90 days

after the

workshop

Regional Managers

Retail Operations

5 ROI No Objective was set for this level in the beginning. The expectation was to have a positive ROI.

Level Objectives Measures/Data

Data

Collection

method

Data Source Timings Responsibility

1Reaction to the program,

content and facilitator.

An overall average

rating of 4.5/5

Online

questionnaire

Participants of the

program

At the end of


2 Assess the email writing skillsScore above 90% in

the post assessmentOnline test Participant

At the end of


3

Demonstrate appropriate

structure, tone, style and

grammar in emails

100% score on the

score cardScore card Participant

Weekly

monitoring of

emails for 3

months

Facilitator

4

Improve quality of emails

Decrease managers monitoring

time

Decrease email errors

to zero

Decrease manager‘s

monitoring time to nil

Performance

records,

Interview

Managers3 months after

trainingFacilitator

5 ROI 50% ROI was set.

Data Items

(Usually

Level 4

Method for

Isolation

Methods of

Converting

Data to

Monetary

Values

Cost Categories Intangible

Benefits

Communication

Targets for Final

Report

Other

Influences/

Issues

During

Application

Monthly

conversion

ratio

Participant

estimate

(ROMs &

ROI)

Standard

Value.

(1)Facilitation Fees

(2)Program Materials

(3)Market survey Fees

(4)Facility costs

(5)Participants salaries

ROMs

ROIs

Exec. V P

Retail

operations

Any change

in market

factor

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 )

Publishing Firm – Score from emails, reports

Parameters Pre-Assessment

Grammar 63.8 %

Structure 85.4%

Tone & Style 58.3%

Average Score 70.2%

3.26 / Appendix A.4

Develop

Objectives of

Solution (s)

Develop

Evaluation

Plans and

Baseline Data

Collect

Data During

Solution

Implementation

Collect

Data After

Solution

Implementation

Level 2:

Learning

Level 4:

Business Impact

Level 1: Reaction,

Satisfaction, and

Planned Actions

Level 3:

Application/ Implementation


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

1. Skills

2. Knowledge

3. Capacity

4. Capability

5. Awareness

6. Confidence

A. Survey

B. Test

C. Questionnaire

D. Interview

E. Focus Group

F. Observation

G. Performance Records

S.No InstrumentLevel

1

Level

2

Level

3

Level

4

1 Survey

2 Test

3 Questionnaire

4 Interview

5 Focus Group

6 Observation

7 Performance Contracts

Impact Questionnaire for Leadership Development Program

Page 4.11

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures


Case StudyFirst Bank (page 5.3)

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?

External Factors

Management

Attention

Incentives

Systems/Procedures

Changes

Programs

TOTAL

IMPROVEMENT

AFTER

PROGRAM

EFFECT OF

PROGRAM ON

IMPROVEMENT

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

No Program

Program

Measurement

Measurement

Control Group

Experimental

20%

10%

J F M A M J J A S O N D J

REJECT

RATES

18.5% Pre Program Six-Month Average

Projected Average —

Using Pre Data as a Base

14.5%

7% Post Program

Six-Month

Average

CPI Program Conducted

MONTHS

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

Analysis

Design

Development

Implementation

Evaluation

}

• Participants estimate

• Supervisor estimate

• Customer Input

• Experts Inputs

Francis Galton

Sales %

Attributable to

training

Confidence Level

ERPS %

Attributable to

training

Confidence

Level

Total Average for

the Group42% 86% 42% 88%

Corrected Group average for sales 36% of the increase in Sales of Boxes

Corrected Group average for

Subscription Recharge(EPRS)37% of Increase in Monthly Recharge( EPRS)

Data

Source

Time Savings

in Hours

Attribution

Level to

Training

Confidence

Level

Adjusted

Value

Decrease in

Supervisor

monitoring

time

Supervisors 1.2 hours / day 60% 100%21.5 days /

year

Project &

Strategic

Head

2 hours / week 60% 100% 7.8 days / year

Decrease in

escalations of

poor quality

email

Project Head - 60% 100% 4.2 escalations

Case StudyNational Bank

Page 5.10

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures


• 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

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%

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

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


Unit of measure = one less grievance


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


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


Using the adjusted value of 7 per month yields an annual improvement of 84


Annual value = 84 x 18,000

= 15, 12,000


One new customer,

Subscription recharge for a month


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)


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


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


Total benefit : 13,14,000 + 94,47,780 = 1,07,61,780

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%

No

Is there a

standard

value?Yes

Is there a

Method to

get there?

Move to

Intangible

Benefits

Can we get

there with

minimum

resources?

No

Yes

No No

Can we

convince

executive of

credibility in

2 minutes?

Convert

data and

add to

numerator

Yes Yes

Add to

numerator

Move to

Intangible

Benefits

Move to

Intangible

Benefits

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures


• Needs Analysis cost

• Development cost

• Delivery cost

• Evaluation cost

• Others

S. No The Cost category

Value( In

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

4.

Participants Salaries(As per managerial grades):

M1-2 Participants( @ Rs.10000 per day) 40,000

M2 – 2 Participants( @ 7000 per day) 28,000



M5 – 22 Participants ( @ 1400 per day) 61,600

5.Cost of internal venue for the six batches done for the Company staff (ROIs

and the ROMs).This included rent of venue and food.1,50,000

6.Cost of the 25 training batches for the Experience Zone Employees (@

Rs.25000 per batch).This included rent of venue and food.6,25,000

7.Cost of 6 refresher batches – required to tackle the employee churn (@

Rs.25000 per batch).1,50,000

Total Costs for the training program 25,51,600

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures



Benefits/ Cost Ratio

Program Cost

ROI = Program Benefits – Program Costs

Program Costs

X 100

Program Benefits = 1,07,58,691

Program Costs = 25,51,600


1,07,58,691

2551600

= 4.21

ROI =

1,07,58,691 – 25,51,600

25,51,600

= 321% X 100

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI


Brand Awareness

Job satisfaction

Organizational Commitment

Work Climate

Employee Engagement

Employee Stress

Employee Innovation

Employee Networking

Employee Collaboration

Employee partnering

Customer Satisfaction

/Dissatisfaction

Reputation

Image

Customer Complaints

Customer Response Time

Customer Loyalty

Teamwork

Cooperation

Conflict

Decisiveness

Communication

Accountability

Alliances

Awards

Capability

Capacity

Creativity

Clarity

Caring

Corporate Social

Responsibility

Human Life

Intellectual Capital

Leadership

Poverty

Sustainability

Work/Life Balance

• 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.

Isolate the

Effects

Convert Data

to Monetary

Value

Calculate the

Return on

Investment

Tabulate Costs

of Solution

Identify

Intangible

Measures

Generate

Impact

Study

Level 5:ROI

Intangible Measures


• General information

• Methodology for impact study

• Data analysis

• Costs

• Results

• Barriers and enablers

• Summary of findings

• Conclusions and recommendations

• Exhibits

Chain of

Impact

Difficulty of

Assessment

Power to

Show Results

Frequency of

Use

Value of

Information

Lowest Lowest Frequent Low

Reaction

Learning

Application

Impact

ROI

Highest Highest Infrequent High

Shyam [email protected]

Principal & Founding Partner

GreenBooks & ROI India

Facebook: www.facebook.com/shyamsunder.a

Twitter: www.twitter.com/shyamsunder

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