2020 ROI Institute Benchmarking Report

By Kylie McLeod

Every few years, ROI Institute conducts a benchmarking study to identify trends of use for the ROI Methodology. These trends provide other practitioners the opportunity to compare their usage of the ROI Methodology to what others are doing. There were many items covered, here are our top six takeaways.

  1. Programs are being evaluated up to Impact and ROI at a much higher rate. While we recommend evaluating 10โ€“20% of your programs up to Level 4, Impact, respondents indicated they evaluate about 37% of their programs at this level. Similarly, we suggest evaluating 5โ€“10% of your programs at Level 5, ROI, but 18% of programs are being evaluated at this level right now. This shows practitioners are taking an aggressive approach to evaluation and pushing their evaluations to the highest levels.
  2. Surveys and questionnaires are still the most frequently used methods for data collection. Respondents indicated they use surveys and questionnaires about 71% percent of the time when collecting data. While these methods can be helpful, we encourageย ROIย Methodology users to also obtain and utilize data that already exist, such as performance records or organizational databases, and use alternatives to surveys, such as action plans and performance contracts.
  3. More credible methods are being used to isolate the effects of programs. According to our users, 34% of studies utilize experimental vs. control group, and 40% use classic trendline analysis. Additionally, some type of mathematical modeling is used 28% of the time. When these methods work, they are highly credible. Estimates are used a fallback with participant estimates being the primary fallback. We recommend that estimates be collected during everyย study, but only analyzed and included as an isolation method when more credible methods cannot be used.
  4. Converting data to money is getting easier. Respondents reported that they utilize standard values accepted within their organization 52% of the time. These values are available, published, and accepted by executives. Survey participants also indicated they use internal or external experts to provide data 45% of the time.
  5. Senior executives are still driving the requirement forย ROIย in most organizations. C-suite executives know thatย ROIย is the ultimate evaluation, and they are pushing their organizations to integrate anย ROIย approach into their processes, programs, projects, and initiatives. We recommend that practitioners be proactive and not wait for their senior executives to push for theย ROI.
  6. The main enabler to successful ROI implementation is support from management.ย You always want to have management on your side as they can make or break the success ofย ROIย implementation. It is not difficult to secure management support for this level of analysis. It is generally seen as a welcome action.

 

View the full report here:

ROI Institute Benchmarking Report 2020