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Level 1: Reaction

The ROI Methodology

The ROI Methodology is a scalable and systematic approach to program evaluation. Using a process model, five-level framework, and operating standards to capture performance metrics from simple satisfaction scores to financial impact, the methodology enables you to collect appropriate data to report performance of a variety of initiatives and program types. The ROI Methodology generates both qualitative and quantitative data and provides techniques to isolate the effects of the program from other influences – resulting in credible metrics and ROI reports accepted by financial executives and stakeholders.

With over 6,000 organizations using this process, the ROI Methodology is the most used and implemented evaluation system in the world. The ROI Methodology not only provides the capability to evaluate program performance, but also improves the design of programs for optimal impact. A focused, proven and practical approach – the process is grounded in conservative standards and a cost effective approach to evaluation. After completing the exercises and quiz below, proceed to Level 2.


Five Levels of Evaluation Chain of Impact
Five levels of evaluation plus the intangible benefits represent a chain of impact that occurs when participants attend a program, learn, apply their learning, and improve impact measures. The figure below depicts this chain of impact. The chain of impact represents the five levels of evaluation along with a step to isolate the effects of the program. 

A Balanced Set of Measures 

The ROI Methodology categorizes evaluation data info five levels as shown below. These five levels tell the ultimate story of program success.
Level Typical Measures Issue
0 Input Volume, Cost, and Time How many people are involved, their time and cost?
1 Reaction Relevance, Importance, and Necessity How did they react to the program?
2 Learning Skills and Knowledge Acquisition Did participants learn how to make the program successful?
3 Application Extent of Use of the Program Content, Frequency of Use, and Success with Use Did participants implement the program? Was it successful?
4 Impact Productivity, Patient Outcomes, Quality, Cost, Time, Satisfaction, Image, and Stress What was the impact, the consequence of the application?
5 ROI Benefit Cost Ratio and ROI, Expressed as a Percent What was the payoff for investing in this program?

Proceed to Level 2 Learning

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