the egyii evolution - Measurable Results and ROI

How to Measure Results and Return on Investment?

Financial organizations and other institutions have invested a lot of money in the training and development of their people, as people are regarded as the most important asset. How many of these programmes have gone into a “big black training hole” with no means of measurement of returns to the business?

Egyii’s Partnership for ROI

Egyii will partner with you to help you design an effective method for calculating Return on Investment (ROI) for your learning and development programmes, however ‘soft’ the skills may be.
For example, there are 5 levels at which a learning and development program can be evaluated. To calculate ROI, all 5 levels of evaluation must be completed.

Level 1:                      Reaction, Satisfaction, and Planned Action
Level 2:                      Learning
Level 3:                      Application and Implementation
Level 4:                      Business Impact
Level 5:                      Return on Investment

Discussion

Level 1 measures satisfaction of programme participants, along with their plans to apply what they have learned. This is usually achieved through an end-of-programme questionnaire, as well as a written Action Plan. While this level of evaluation is important as a measure of participant satisfaction, it does not ensure that participants have learned new skills or knowledge.

Level 2 focuses on what participants learned during the programme, using tests, skill practices, role plays, simulations, group evaluations and other assessment tools. These assessment tools will be decided on when the course is tailored. This measure ensures that the participants have absorbed the program material and know how to use it properly. However, there is no guarantee that they will apply it back on the job.

Level 3 can use a variety of follow-up measures to determine whether participants applied what they learned on the job. The frequency and use of skills is an important measure at this level. However, even though participants may be using the skills on the job, this measure does not ensure that there will be a positive business impact in the organisation.

Level 4 focuses on actual results achieved by the participants as they successfully apply what they have learned. Suggested measures at this level are quality, costs, time, and customer satisfaction. Although the program may produce a measurable business impact, there may still be a concern that the program cost too much.

Level 5 compares the monetary benefits of the program with program costs. It is usually presented as a percentage or cost/benefit ratio.

However beautiful the strategy, you should occasionally look at the results. Sir Winston Churchill