Here is the five-level evaluation framework that Jack developed. The graphic also shows the measurement focus and typical measures for each level.

Input, called Level 0, was added to the original four levels created by Katzell. Jack added Level 0 to reposition program costs as investments. This addition does not reflect a new level of evaluation results. It represents the activities that drive results. Level 0 program costs have always existed. They represent the program or project activities and all associated costs.

The five levels of evaluation include all possible types of results that occur from a program. Level 0, Input represents the investment that organizations make in programs. This level of activity is the starting point of the chain of impact that occurs as people are involved in programs. You will notice how the measurement focus and typical measures are all program costs that we want to show are really investments when compared to the improved impact and the ROI the program delivered to the organization.

The ROI Methodology process contains twelve steps divided into four process phases. Plan the Evaluation has three steps—with one step providing a bridge to the second phase of data collection. Collect Data has two steps that should look familiar—they are the first four levels of our levels of evaluation. The Analyze Data phase is about making the impact data we collected credible. You will notice five steps at this phase, including the ROI calculation. The last phase of Optimize Results is how we report the results of our evaluation effort and turn the results into process improvement to make the program better and enhance our reputations as professionals. Professionals who are worth investing in because of the value we add to the organization.

The evaluation planning phase begins at the organization level. We start by asking, “Why?”to make sure whatever solution we create is aligned with the business. We want to determine if there is a problem worth fixing or an opportunity worth pursuing. When we say worth, we are saying that we expect a greater benefit from acting than the cost of acting. That benefit can be monetary or non-monetary. To be more direct, we ask if the results of taking action will help us make money, save money, avoid costs, improve some type of satisfaction measures, or provide something good for society. If you are a nonprofit, you would not use the term making money. You would use the term improving margin, which is the same thing. Your margin funds your mission. This decision will typically be made at the executive level, as they call the shots at this level

The next question we must answer is, “What are the business measures that tell us there is a problem worth solving or an opportunity worth pursuing?” There are two types of business measures—hard and soft. Hard business measures are classified as either cost, quality, output, or time. We want to improve quality and output. We also want to decrease or avoid costs and reduce the amount of time it takes to get something done. Soft measures are classified as leadership, client services, image or reputation, employee development or advancement, work climate and satisfaction, and initiative and innovation.