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ROI Methodology Overview
ROI Methodology Overview
Asia Ali avatar
Written by Asia Ali
Updated over 3 months ago

For a complete breakdown of the ROI Methodology, check out the full brochure!

The ROI Methodology is a balanced approach to measurement that

captures five levels of outcome data.

1. Evaluation Framework

The V Model provides alignment, connecting needs assessment with evaluation using five levels of data.

2. A Process Model

The 12 steps in the ROI Methodology are logical and systematic, often labeled the enhanced logical framework.

3. Operating Standards and Philosophy

As the process model is used to conduct ROI studies, operating standards, labeled Guiding Principles, are used to ensure consistency and replication of impact studies.

  1. When conducting a higher-level evaluation, collect data at lower levels.

  2. When planning a higher-level evaluation, the previous level of evaluation is not required to be comprehensive.

  3. When collecting and analyzing data, use only the most credible sources.

  4. When analyzing data, select the most conservative alternative for calculations.

  5. Use at least one method to isolate the effects of a project.

  6. If no improvement data are available for a population or from a specific source, assume that little or no improvement has occurred.

  7. Adjust estimates of improvement for potential errors of estimation.

  8. Avoid use of extreme data items and unsupported claims when calculating ROI.

  9. Use only the first year of annual benefits in ROI analysis of short-term solutions

  10. Fully load all costs of a solution, project, or program when analyzing ROI.

  11. Intangible measures are defined as measures that are purposely not converted to monetary values.

  12. Communicate the results of ROI Methodology to all key stakeholders.

4. Applications and Practice

The ROI Methodology is the most used and implemented evaluation system in the world.

The step-by-step process for developing impact and ROI studies for programs, projects, and solutions is being used in the following areas and more:

  • Human Resources/Human Capital

  • Training/Learning/Development

  • Leadership/Coaching/Mentoring

  • Knowledge Management/Transfer

  • Recognition/Incentives/Engagement

  • Work Arrangement/Systems

  • Change Management/Culture

  • Talent Management/Retention

  • Policies/Procedures/Processes

  • Technology/Systems/IT

  • Meetings/Events/Conferences

  • Marketing/Advertisement/Promotion

  • Compliance/Risk Management

5. Implementation

To implement the ROI Methodology and sustain its use for years requires several steps:

  • Set speciflc goals and targets for implementation.

  • Determine speciflc roles and responsibilities for analytics, measurement, and evaluation.

  • Conduct meetings and formal sessions to develop awareness and capability.

  • Establish an internal ROI/analytics network for sharing information (if feasible).

This methodology is designed for these important groups:

Do the Math

Not all programs should be evaluated at every level. What percent of your programs or projects are evaluated at each level now? How does your current evaluation compare to the recommended use? What is your goal?

How does your current system stack up?

Compare your present evaluation system on ten dimensions: Focus of use, Standards, Types of data, Dynamic adjustments, Connectivity, Approach, Conservative nature, Simplicity, Theoretical foundation, Acceptance

ROI Certification

ROI Certification is a globally renowned process focused on measuring the true value of toughto-measure initiatives using the ROI Methodology. Participating in ROI Certification is the most comprehensive way to gain the skills to evaluate your major projects and programs and report the results to drive organizational improvements.

Six Ways to Become Certified

  1. Individual and Team Participation in ROI Certification Workshop

    This standard option requires individuals to attend an ROI Certification workshop. Approximately

  2. Internal ROI Certification

    More organizations are switching to an internal ROI Certification where ROI implementation involves eight or more participants. In addition to cost savings and efficiency, internal certification allows participants in the organization to concentrate on their situation, programs, and projects.

  3. Coaching for ROI Certification

    With this option, an ROI coach will be assigned to participants before they begin the ROICertification workshop. The coach will initiate a series of sessions to guide participants to achieve the CRP quickly.

  4. Three-Day/Two-Day Option for ROI Certification

    For individuals who have attended a two-day ROI workshop, either offered by another organization, such as the Association for Talent Development (ATD), or through ROI Institute’s online academy, a three-day option is available.

  5. Test and Submit

    While there is no coaching or support provided with this option, two steps are necessary to achieve certification. After payment of the registration fee, the individual can take a 75-item test assessing their knowledge of the ROI Methodology.

  6. Guided Self-Study Program

    This option includes a combination of reading assignments, exercises, and online learning offered through ROI Institute.

Certification Objectives

Reaction

Provide participants knowledge and skills that are:

  • Relevant to their job.

  • Important to their current job success.

  • Immediately applicable.

Learning

Enable participants to:

  • Describe the five critical components of a successful evaluation practice.

  • Identify the five levels of evaluation.

  • Explain the twelve steps in the ROI Methodology.

Application

Support participants as they:

  • Build support for the ROI Methodology in their organization.

  • Complete their initial ROI evaluation project.

  • Plan and implement future ROI projects

Impact

Enable participants to realize positive consequences as a result of applying what they learn, such as:

  • Improving program effectiveness.

  • Improving program efficiencies.

  • Expanding successful programs.

Why?

  1. Focused.

    The content is rich with examples, tools, techniques, case studies, and templates to make it easy to collect and analyze powerful data.

  2. Proven.

    The ROI Methodology is built on application and process improvement. Beginning with the first studies in the 1970s, the process has been refined, enhancements have been added, process models have been developed, and an impressive list of applications has been created.

  3. Practical.

    This workshop is not based on the success of another theory, but in practical processes. Mathematics are basic. There are no confusing theories and no time-wasting trivia in this workshop.

  4. Grounded in reality.

    When it comes to analytics and ROI, it is sometimes difficult to stay realistic or relevant. This workshop is based on a proven methodology with standards that are conservative, consistent, and credible.

  5. Cost effective.

    When considering books, workbooks, job aids, skills acquired, five-days of valuable facilitation, online access, virtual support, the right to use materials, and the designation of Certified ROI Professional, this is a bargain.

  6. Endorsed by executives and organizations.

    This methodology has been approved and endorsed by top executives and chief financial officers (CFOs) in many organizations. Sometimes the CFO is involved in implementing this process in an organization. Over two-thirds of the Fortune 500 companies have endorsed this methodology.

  7. Sought-after designation.

    The Certifled ROI Professional (CRP) is now a sought-after designation in many professional fields, particularly the Human Capital area. Since the first five-day certiflcation was conducted in 1995, more than 14,000 managers and professionals have participated in ROI Certification, with 6,000 CRP designations awarded.

  8. Designed and delivered by thought leaders.

    This workshop was designed by the founders of ROI Institute, Jack and Patti Phillips, and is delivered by senior executives of ROI Institute. The workshop is constantly updated.

  9. Immediately applicable.

    The tools, processes, and skills learned in this workshop can be applied immediately. Some participants make adjustments during the workshop, modifying the process, policies, and practices of their respective organizations.

  10. Valuable takeaways.

    Participants have many takeaways, including: four to five books tailored to the participants' industry or application, a detailed workbook with places for notes and actions, models and application guides, 15 to 20 case studies in the area of their interest, at least a dozen articles, archived webinars, templates, and downloadable tools.

Certification Logistics Information

Public Offerings

ROI Certification is held publicly at least 12 times a year in the USA. Every session is usually hosted by an organization.

Internal ROI Certification

In the United States, most certifications are conducted in-house, customized to the client’s type of projects and special needs.

International Offerings

At least 18 ROI Certification sessions are offered in countries outside the United States through our partner network.

Fee

$3,995

Online Support

Participants will be granted access to the ROI Institute members site, where they can access videos, articles, case studies, presentations, assessments, and other tools.

Continuing Professional Education

Continuing education units (CEUs) are available for many professional associations.

Cancellation Policy

For registrants who notify us of their cancellation more than two weeks prior to the workshop, ROI Institute will apply the full amount of their tuition to a future ROI Certification course.

ROI Institute Workshops

This is a sample of the workshops offered by ROI Institute. The number of days listed for each workshop can be customized. These workshops are conducted internally or through associations and learning providers.

The Value of Innovation (Two-Day)

This workshop focuses on the ROI in innovation. It is designed for individuals who are organizing and implementing innovation and creativity projects, funding these projects, and supporting innovation projects.

Connecting Human Resources to Business Results (Two-Day)

This workshop shows how to connect HR to business measures, develop productive relationships with the management team, and show the value for programs, up to and including the financial ROI.

The Bottomline on ROI (One-Day)

This one-day workshop introduces the concept of ROI, the fastest growing metric for evaluating HR, learning, talent development, and performance improvement.

Forecasting ROI (One or Two-Day)

This workshop is designed to show how to forecast impact and ROI before a project is implemented and at different points during the project.

Consulting

ROI Institute consultants provide assistance with assessment, measurement, analytics, and evaluation to individuals and organizations.

Impact Studies

The most basic services are those involving impact studies. This is the basic process through which the ROI Methodology is used and there are a variety of opportunities to help clients in developing impact studies.

Analysis

Needs assessment studies are typical. A performance analysis is often needed to determine the cause of a particular problem or the value of an opportunity and make sure that the problem or opportunity is aligned with the business.

Advice

A variety of advice categories are possible such as planning an ROI study. For example, a one-day meeting with a client to develop the evaluation plan is a very helpful consulting activity. In some cases, the consultant is coaching the client on a variety of issues.

Facilitation

In the facilitation phase, the consultant is facilitating meetings where an evaluation strategy is developed, and ROI implementation is planned, or the ROI progress is reviewed. These are very important strategic-level meetings, often involving the top learning and development or HR person, depending upon the target audience.

Consulting Fees

While it is risky and very difficult to establish consulting fees in different countries and cultures, we will provide some advice that we have included in our book, How to Build a Successful Consulting Practice.

Benefits of ROI

IMPROVE PROJECTS

The number-one benefit of using the ROI Methodology is that projects and programs are improved with the use of results. This is the principle focus of the methodology; data are collected to show how the project should change to increase success.

ENHANCE RELATIONSHIPS

Collecting data to show the value of projects and programs is one of the best ways to enhance relationships and earn a “seat at the table.” To be effective in an organization, users must work with a variety of clients and stakeholders.

IMPROVE IMAGE

When data reveal the success of various projects and programs at the impact and ROI levels, the image begins to change. Some organizational functions have a reputation for not contributing value.

SECURE FUNDING

Additional funds are often attributed directly to the use of the ROI Methodology. Some budgets have increased in the face of budget reductions in other parts of the organization. One tool and small appliance maker reported a two-fold increase in the budget based on the use of ROI.

IMPLEMENT NEW PROJECTS

Some users evaluate a pilot program to determine if that program should be implemented in other areas. Capturing five levels of data creates a much better database for decision making.

BUILD SUPPORT

Support of projects and programs is an area of concern for more project leaders and program directors. Additional support is almost always needed, particularly from middle-level managers.

IMPROVE YOURSELF

Many users report personal success as a result of using the ROI Methodology. Some receive a promotion.

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