Can you Prove the Value of your Programs?

Birmingham, Alabamaโ€”August 14, 2019. Headline after headline in the business press focuses on the economy. While it is booming in some areas, other areas are slowing, and economic uncertainty exists everywhere. Top executives must take steps to make sure the organization can weather the stormโ€”whenever or wherever it occurs.

One way executives meet this challenge is to ensure that expenditures represent investments and not just costs. If an expenditure is considered a cost, it will be frozen, reduced, or in some cases eliminated. If it is considered an investment that is producing a return, it will be protected and possibly even enhanced during difficult times. For example, many learning and development budgets are now being frozen or reduced, even with record profits. While this seems illogical, it happens. Now is the time to reflect on your budget and your programs. Can you withstand top executive scrutiny? Are you ready for ROI?

According to an Institute of Corporate Productivity (i4cp) report, Four Ways to Advance Your People Analytics, โ€œROI has become one of the most important topics with 47% of individuals surveyed selecting it as a priority. In the same vein, 30% pinpointed forecasting ROI as a priority.โ€

โ€œEveryone knows how important it is to be prepared for economic changes,โ€ said Patti Phillips, CEO of ROI Institute. โ€œWhat some people donโ€™t know is that calculating the ROI of your projects, programs, and initiatives can protect both you and your programs from becoming casualties of an unfortunate downturn.โ€

Self-Assessment Tool

ROI Institute, Inc has worked with more than 5,000 organizations in the last 25 years, helping them show the value of investing in all types of projects and programs. We have also learned what situations create the need for ROI. Consequently, we have developed a self-assessment tool, โ€œAre you ready for ROI?โ€ Click here to take this self-assessment. The scoring and interpretation follow.

Your challenge is to be prepared for these discussions before they occur, or even to prevent them when possible. If you wait for someone to ask you for the value of the budget on a program, it puts you in the undesirable position of having to defend a request. This occurs routinely and, when it does, you are in a defensive position instead of being on the offense. You will also have a short timeline to achieve a successful evaluation, which is almost impossible if you have not started the journey. Additionally, ROI is now on someone elseโ€™s agenda. It should be on your agenda.

The best course of action is to be proactive and get started on the ROI journey or continue to make progress on the journey. This will place you in a much better position to drive the measurement strategy in your organization. If you wait for executives to drive it for you, it could be disastrous.

Develop Serious Evaluation

The first step is usually to get serious about evaluation. This means you must be willing to show the impact of key programs with credible data that can pass the scrutiny of the top executives. Take the most expensive, most important, or the most strategic program and show the ROI. It is best to try it first without the inspection of senior executives. Adjust if itโ€™s not delivering the value so that it does deliver the value in the next offering.

โ€œNo one wants to calculate their ROI under duress,โ€ said Jack Phillips, chairman of ROI Institute. โ€œDoing it ahead of time โ€“ and without senior executives looking over your shoulder โ€“ is a much more desirable position to be in. It will give you the freedom to see what youโ€™re working with and how best to improve your program before top management steps in.โ€

This strategy is best accomplished by getting involved in ROI Certification. There are three more opportunities to attend a certification session this year on the both the east and west coasts. Join us in Atlanta, Charlotte, or Los Angeles.ย Click here for more details on these events. For additional information on how ROI Certification works, click here. In addition, to meet growing demand, there are now six ways to become certified an ROI Certified Professionalยฎ (CRP).ย  Click here for details on the six ways you can become a CRP.

About ROI Institute, Inc.

ROI Institute, Inc., founded in 1992 as a service-driven organization, assists professionals in improving programs and processes using the ROI Methodologyยฎ developed by Dr. Jack J. Phillips and Dr. Patti P. Phillips. This Methodology is the global leader in measurement and evaluation including the use of return on investment (ROI) in non-traditional applications. ROI Institute regularly offers workshops, provides consulting services, publishes books and case studies, and conducts research on the use of measurement and ROI. This makes ROI Institute the leading source of content, tools, and services in measurement, evaluation, and analytics. Working with more than one hundred ROI consultants, ROI Institute applies the ROI Methodology in 20 fields in over 70 countries. ROI Institute authors have written or edited over 100 books, translated into 38 languages. Organizations build internal capability with the help of ROI Institute and its ROI Certification process.ย  By successfully completing this process, individuals are awarded the Certified ROI Professionalยฎ (CRP) designation, which is respected by executives in organizations worldwide. For more information on ROI Institute, please contact info@roiinstitute.net or visit www.roiinstitute.net.

ROI Instituteยฎ, ROI Methodologyยฎ, Certified ROI Professionalยฎ, and ROI Certificationยฎ are registered trademarks owned by ROI Institute, Inc. and are used by others only with written permission of Jack and Patti Phillips.