August 30, 2015- Recent studies suggest the use of ROI is growing in a variety of areas. For example, in the learning and development arena, a significant area of focus for ROI Institute® in the last two decades, there are signs that ROI is becoming a dominant tool showing the value of programs and projects. A recent study conducted by CLO Magazine’s Business Intelligence Board, involving 335 Chief Learning Officers (CLOs), reveals interesting results describing the current and future use of ROI. According to their 2015 Measurement and Metrics study, 35.6 percent of the CLOs use business impact data to show the impact of the training organization on the broader enterprise; 21.6 percent of the CLOs use ROI data for the same purpose. In terms of planning, 22.6 percent plan to implement ROI in the next 12 months and 9.7 percent plan to implement it in the next 12 to 24 month time frame. Also, 17.3 percent plan to implement it with no particular time frame. This means that almost 50 percent of the CLOs plan to implement ROI in the future. When that number is added to the current use, this suggests that 71.2 percent of CLOs are either using or plan to use ROI in the future. "This is the most dramatic increase in the use and planned use of ROI since we founded ROI Institute twenty-two years ago," explains Dr. Patti Phillips, President and Chief Executive Officer of ROI Institute. "We knew that this would eventually occur, as we have seen steady growth in the last two decades. No doubt, ROI is key when it comes to showing the value of your programs." A study of the Chief Marketing Officer from IBM, shows that in 2015, the number one measure of success is ROI, followed by brand awareness and customer satisfaction. A Successful Meetings magazine study reports that the number one challenge facing meeting and event professionals is measuring the ROI of their events from the perspective of the people who attend them. A variety of publications have taken shots at the Human Resource function in recent months, including a major cover story in Harvard Business Review, "It’s Time to ‘Blow Up’ HR and Start Over." The articles in this issue, and other related articles, suggest that the number one challenge for the Human Resource function is showing the value that it delivers to executives, including the financial ROI. Since the largest investment an organization makes is the cost of employees, the HR function must provide executives with some sense of the ROI for this type of expenditure. "In all of these fields, we support, ROI is becoming the dominant measure of success, and it continues to grow," adds Dr. Jack Phillips, Chairman of ROI Institute. "When executed properly, ROI, showing the costs versus benefits of major programs or projects, is the ultimate level of accountability; a value that the executives fully understand and appreciate". The reason for this surge in ROI use is attributed to several factors: The continuing trend toward ultimate value and accountability. More functions in the organization are asked to show the business value and even the financial ROI for major projects. The competition for funds inside an organization. The function, or department, that shows how funds are best used often gets the most money. Although there are essential needs that must be met keeping the function or department moving, securing additional funds, gaining more support, or increasing commitment, requires a value stream that executives can appreciate and understand. ROI is easy for them to understand. The growing concern for measuring the value of non-capital investments. For years, we had a method of showing the value of investing in capital expenditures, such as buildings, tools, and equipment. Now, the non-capital investments such as Human Resources, Marketing, Quality, and Technology, are the dominant expenditures for organizations. For a typical organization, 80% of expenditures represent the non-capital investments. This trend has shifted from measuring the ROI for capital expenditures to measuring the ROI for non-capital expenditures using the same formula typical finance and accounting. The role of the Chief Financial Officer (CFO) in other functions. Some publications, such as The Economist, have labeled the CFO the most important person behind the Chief Executive Officer (CEO). CFOs have taken the role of monitoring and showing value for the different functions within the organization. The CFO’s number one tool for accountability is often ROI. The shift from faith-based investing to fact-based investing The soft functions such as a public relations project, a leadership development program, a new employee engagement program, a new branding project, a technology leadership initiative, or a business development conference is often assumed to be making a difference. This suggests that it would be difficult to measure and place a monetary value to the project, and even more difficult to connect the particular projects to a business measure. Things have changed. These roadblocks no longer exist, and it is possible to evaluate soft projects credibly with a reasonable amount of resources. Executives want fact-based investing, showing the monetary value of that investment with credible data and conservative processes. The desire to see the value of projects and programs before they are actually implemented. Before the recession, this issue was not so much of a concern. However, since the recession, this is a typical request, particularly if the investment is large. If you are building a four million dollar wellness and fitness center, you need to show the ROI in advance. If you plan to implement a ten million dollar leadership development program, you might have to show the ROI in advance. Forecasting in advance is important, allowing everyone to think about how the project works and how it can delivers results. It is a great exercise and many executives are forcing the issue with the different functions. "Collectively, these forces are driving this important trend and it is refreshing to see this level of accountability. It makes organizations more effective and more efficient improving the image of the function," adds Dr. Jack Phillips, Chairman of ROI Institute. "It is a long time coming, but we think that it’s here now." For more information on ROI and how it works, or for a free guide on how ROI can be used, please contact the ROI Institute, Inc. About the ROI Institute ROI Institute, Inc., founded in 1992 as a service-driven organization, assists professionals in improving programs and processes using the ROI Methodology™ 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 60 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.  By successfully completing this process, individuals are awarded the Certified ROI Professional (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. The post ROI is the Fastest Growing Metric appeared first on ROI Institute.

The latest: Technology is changing how employment tests are administered, while online tools are providing greater reach and convenience.

Read why half of new employees are regretting their decisions to accept job offers, and how hiring managers can change this growing trend.

A new generation of cognitive testing instruments are available that remedy many of the old limitations and offer exciting advantages.

Avoid change resistance and maximize returns on your organization’s talent acquisition investments with this five-point checklist.

The presenters of DDI's webinar "Managing Talent at the Speed of Change: How You Can Win in a VUCA World" answer participant questions.

There are a number of actions organizations can take to increase career pathing clarity among leaders. Read about the 5 keys to success.

Failing to ensure the mid-level have the skills they need to succeed is like asking them to walk a tightrope without a safety net.

Sometimes connections with outside mentors are more valuable than internal coaches. Learn which situations are ideal for external mentors.

Most leaders are pro-diversity. However, when confronted by moments of difference, we react in ways that don’t always match our intent.