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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," said 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, which is 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 percent 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 of 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 second-most important person, only 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 that shows 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 in your function, industry, or organization, please contact ROI Institute, Inc. About 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.

This article was written by ROI Institute President & CEO Patti Phillips in the Association for Talent Development’s Senior Leaders and Executives Blog. Schedule a one-on-one discussion with Patti Phillips by contacting info@roiinstitute.net Today’s business community, and particularly the talent development community, are relying more on analytics to make decisions about programs and projects than ever before. Yet many people still ask: How do we ensure the right measures are taken and that the connection between investment in our people and the results achieved is clear? The answer is clear: through the process of business alignment. Business alignment ensures that investment drives relevant business results. Achieving business alignment requires that programs, projects, and initiatives be positioned for success, and then, evaluated accordingly. There are three phases to business alignment: •  Clarify stakeholder needs •  Develop measurable objectives •  Evaluate accordingly. Clarify stakeholder needs Initial alignment occurs when stakeholder needs are identified, which typically begins with the po­tential payoff for opportunities or problems. These payoff opportunities represent an organization’s opportunity to make money, save money, avoid costs, or to do some greater good. Some payoff opportunities are obvious, such as a $1.5 million cost due to unwanted employee turnover. Other payoff opportunities are not so obvious, like the desire to build a great workplace. Once clear about the potential payoff opportunities, the next step is to identify the specific business measures that, if improved, will position your organization to take advantage of the payoff opportunity. For example, let’s say your company executives want the organization to become a green organization. The next step is to identify the business measures that need to improve to position your company as green. One relevant business measure may be the number of kilowatt-hours used per month. Next, you will need to identify the performance needs, which are those behaviors or actions that if changed will improve the business measures. Using the green example, a performance need associated with kilowatt-hours might be employees leaving their computers on after they leave from work. Then you will need to identify what employees need to know to change their behavior. In our example, one learning need may be that employees need to know the environmental impact associated with leaving computers on overnight. Finally, identify the program, project, or initiative that will address stakeholder needs. By getting clear on the ultimate payoff first and working through the process—from business need, performance need, and learning need, to the solution—you’ve increased your chances of identifying the right investment opportunity given the goal at hand. More important, you’ve also established a basis for the measures to be taken. Develop objectives The second phase of alignment is through the development of objectives. Objectives correspond to stakeholder needs. De­veloping powerful program objectives at multiple levels positions the investment for success. Objectives describe to designers and de­velopers the intent of an initiative, giving them direction concerning which components to include. They also provide facilitators, team leaders, and program managers direction as they assist participants in preparing to change behavior, apply knowledge, and drive business outcomes. Objectives representing stakeholder needs communicate the "what and why" of a program or project to participants. They keep impact objectives in constant focus, re­minding participants of the ultimate reason for investing in a program. Developing objectives that reflect stakeholder needs communicate to stakeholders that the program owner "gets it"—that he or she has paid attention to what is needed to support the organization’s success. Objectives also set the stage for program evaluation, ensuring the right measures are taken and that results important to stake­holders are developed. Developing powerful objectives that reflect stakeholder needs is imperative to achieving business alignment. Evaluate the program The last phase in the alignment process is evaluation, where data are collected and analyzed. The final result is a reporting of the chain of impact that occurs, as people are involved in a program or project. For example, you may have decided to implement a green campaign. Based on the information provided through the campaign, employees report agreement that going green is relevant and important. They indicate they know their role, why turning off their computer is important, and how much money they can save the company. Three months after the campaign, you find that 90 percent of employees report they turn off their computer before leaving work. Upon checking the electric power bill, your organization’s facilities manager reports an average decrease of 5 percent in kilowatt-hours used per month based on three months of data. These findings are directly aligned with the stakeholder needs described earlier. But the question remains: How much of that decrease in kilowatt-hours used is really due to the green campaign? Your decision to answer, or not answer, this question determines the credibility of your results. While some people argue that you can’t isolate the effects of a program on results, we, along with others, argue that you can’t afford not to. There are a variety of ways in which to isolate the effects of investments made in talent—from a control group arrangement and trend line analysis, to forecasting models and estimates adjusted for error. Jack Phillips was first to introduce the practice of isolating the effects of programs on results to the human resources industry in the early 1980s. Today, some consulting practices build their branding campaign around this one crucial step. If you want to ensure that you take the right measures, analyze the right data, and make a clear connection to the business results you purport, follow the three steps to business alignment. Not only will you generate meaningful data, but also you will improve your chances for a positive ROI. You can read more about this process in our ASTD Press book, 10 Steps to Successful Business Alignment. If you want learn more about business alignment and how to isolate the effects of your program on improved business measures, attend our five-day ROI Certification Workshop and gain the capability to measure the return on investment of your organization’s programs. Become a Certified ROI Professional: Download ROI Certification Overview The post Achieving Business Alignment appeared first on ROI Institute.

While culture was once perceived as a vague concept, many organizations are recognizing its importance. The position of chief culture officer (CCO), is held at a number of progressive organizations. The CCO’s primary duty is to focus on maintaining the core parts of the culture that contribute to the organization’s success. While organizational culture is increasingly observed as a critical factor in success, the implications of measurement are also significant. To build a culture of measurement, certain steps need to be taken. High-performing cultures have been associated with strong financial outcomes; however, these cultures also have strong employee motivation and performance. Research has shown that there are specific cultural characteristics directly related to organization effectiveness and outcomes. High-performance organizations tend to have cultures that share five common traits. Empowering Style Leadership: Leaders communicate with respect and lead by example. Employees are empowered to use their judgment to make decisions and take action in their day-to-day jobs. Employees are not present to serve management or reinforce bureaucracy. Leadership is supportive of employees, with focus on helping to support employees so they can focus on caring for customers. Collaborative Environment: This type of environment is inclusive; employees have a sense of belonging, with everyone sharing the responsibilities of identifying problems and coming up with solutions. These types of organizations are highly participatory. Strong Core Values: Values of respect, loyalty, and integrity are embedded in leadership behaviors toward employees, and infuse the organization. Planning: Employees know what the long-term plans are for the company and how to get there. Strategy is well-defined and priorities are clear. Plans are clearly articulated and there are specific measures to assess a plan’s success. Employees know what is important for the organization and what is required to do their jobs effectively. Measurement and Feedback: High-performing organizations not only plan and prioritize what is most important for the business, but also provide indicators and measures to know whether they are hitting the mark or not. Data-driven organizations is another way to describe this environment. Employees receive ongoing feedback so performance is collaboratively assessed as it relates to the business. Organizational cultural characteristics play a pivotal role in organization effectiveness. Measurement and feedback is one of the components of a high-performing culture. There are many benefits for creating a measurement-oriented organization culture. The following are just a few at the top of the list: Measurement cultures lay the foundation for organization learning. Information sharing is leveraged in the organization toward knowledge and growth. Data-driven organizations make this possible. Measurement cultures provide the way for departments to track their progress. Managers have the ability to track progress toward department goals. What happens if the project that is implemented is a flop? Or if needs are not fully met? Tracking along the way allows for modifications if needed to move outcomes in a favorable direction. Measurement cultures make data-driven decisions. The use of the hunch takes second place to making decisions based on data. If a project is not going in the direction it needs to go, then the data will validate this point. And collecting the right data should help pinpoint where things broke down. The Leadership Development Practitioner as a Change Agent Practitioners often view their role as one who influences an individual, group, or organization toward desired change. The change agent plays a significant role in leading the change effort or collaborating with the team assigned to initiating change. Trying to create an environment that is measurement friendly also involves a change agent— someone to lead this effort and manage the change process within an organization. It is important to remember that building a measurement culture should be a strategic change. The change agent must set the stage with the ‘why’ behind building a measurement culture, make sure that the change effort is in sync with what’s important for the organization, and include action planning and feedback to keep the momentum building. Involving people who are senior in the organization also helps because they have the clout necessary to pave the way for building a measurement culture. Identify a System to Routinely Review Measures Adopting a systematic way to plan, collect, analyze, and report on initiatives in the organization sets in motion the process of communicating and reinforcing what is important to the organization, while sending a clear message to key stakeholders as to what needs to change to improve outcomes. This is particularly true when measurement has been planned in advance to collect data points that will tell the story in a comprehensive way. When leadership development programs are aligned with results-based initiatives or what’s important to the organization, it becomes more likely that Leadership Development initiatives are easily measured and supported. The old adage rings true in this context: What gets measured gets done. Adapted from Measuring the Success of Leadership Development: A Step-By-Step Guide for Measuring Impact and Calculating ROI (ATD Press, 2015) by Patti Phillips PhD, Jack Phillips, PhD, CEO/President and Chairman of ROI Institute respectively, and co-author Rebecca Ray, PhD., EVP of The The Conference Board. About the Authors Patti Phillips PhD is president and CEO of ROI Institute, Inc. and renowned expert in measurement and evaluation. She helps organizations in over 60 countries demonstrate the value of investing in programs of all types. Phillips serves on the faculty of the UN System Staff College in Turin, Italy. She is Distinguished Principal Research Fellow for The Conference Board and an ATD Certification Institute CPLP Fellow. An author or editor of more than 50 books, Phillips’ work has been has been featured on CNBC, EuroNews, and over a dozen business journals. Jack Phillips PhD is a world-renowned expert on accountability, measurement, and evaluation. With expertise based on more than 27 years of corporate experience, Phillips has served as training and development manager at two Fortune 500 firms, as senior human resources officer, as a bank president, and as management professor at a major university. He is the author or editor of more than 75 books. SHRM has recognized Phillips for his publications and contribution to the human resources industry. ATD awarded Phillips its highest honor, Distinguished Contribution to Workplace Learning and Development. His work has been featured in the Wall Street Journal, BusinessWeek, and Fortune. Rebecca Ray PhD is executive vice president, knowledge organization and human capital practice lead for The Conference Board. In this role, she has oversight of the research planning and dissemination process for three practice areas: corporate leadership, economics and business development, and human capital. She is the leader of the global human capital practice. This article was published on August 24, 2015 on StrategyDriven.com. View on LinkedIn   The post Measurement Culture & Five Common Traits of High-Performing Organizations appeared first on ROI Institute.

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DDI contributes training to help improve the leadership skills of both Feeding America and local food bank leaders.

Consider this post a teaser for some big news to come. We’re ramping up on a new project that you’ll be quite interested in if you follow this blog. Stay tuned. We’re going to be needing your help…yes, you should be flashing back to the teachers calling on you in class right about now!

LMS’s and content creators benefit from one another. It’s a symbiotic relationship. The problem is that it’s not always (and usually isn’t) clear who will play nicely together. Our latest project is making it easier for you all to find each other and work together. We’ve been compiling a massive list of e-learning companies to see who is likely to play well together. We quickly realized that our unique position (think Switzerland) in the industry means we can share this list with the world and create a valuable resource for everyone. We’re not just publishing a list. We’re providing a searchable, filterable database that makes it easy to find what you want. We’re not going to tell you which vendors you should partner with. It’s not our style. Instead, we’re giving you the most comprehensive data set of e-learning products and vendors available, and the tools to make it useful. When we say "comprehensive data set", we mean it. There are more of these vendors out there than any of you realize. You’re welcome to submit your guesses at eLearningAtlas.com. We’ve hired people to help us do this. They’ll be reaching out to everyone. If you don’t want to wait, email us about your product right now.