Return on Investment in Training and Performance Improvement Programs

✍ Scribed by Patricia Pulliam Phillips, Jack J. Phillips, Klaas Toes

• Publisher: Routledge
• Year: 2024
• Tongue: English
• Leaves: 438
• Edition: 3
• Category: Library

✦ Synopsis

The third edition of this bestselling book guides you through a proven, results-based approach to calculating the return on investment in training and performance improvement programs. The ROI Methodology described in the book has evolved into the most used evaluation system in the world.

Patricia Pulliam Phillips, Jack J. Phillips, and Klaas Toes present the ROI Methodology, a user-friendly approach to showing and proving the value of programs, projects, and initiatives. Based on over 40 years of development and refinement, it is a process that meets the demands currently facing training and performance improvement functions. This third edition includes chapters thoroughly detailing the application of the ROI Methodology and new and innovative developments. The book provides examples, case studies and worksheets, and solutions to implementation issues. A case study spans the book and takes the reader through each part of the ROI Methodology. Readers can work through the case, step-by-step, exploring the issues uncovered in the chapter and learn how to apply the process in their own organizations. This book continues to be a primary reference for learning how to utilize ROI to show the contribution of training, education, learning systems, performance improvement, human resources, and change initiatives throughout organizations.

Proven to work as a guide for practitioners, managers, and leaders, the book is also ideal for students of learning and development and performance improvement at graduate and postgraduate levels and individuals involved in executive and professional development programs. A complimentary 500-page book with 25 detailed case studies is available to book purchasers. See the offer on page 384 at the back of the book.

✦ Table of Contents

Cover
Endorsements Page
Half Title
Title Page
Copyright Page
Table of Contents
About the Authors
Preface
Acknowledgments
1 Measuring the Return on Investment in Training and Performance Improvement
Scotland Yard
Shifting from Activity to Results
Why ROI?
Concerns with ROI
Barriers to ROI
Benefits of ROI
ROI Best Practices
Final Thoughts
2 The ROI Methodology
Netherlands Forensic Institute
The ROI Methodology
The Process Model
Operating Standards and Philosophy
Application and Practice
Implementation Issues
Final Thoughts
Introduction to Case Study
Case Study, Part A: Linear Network Systems
3 Collect Data
Renew America Together Civility Leadership Institute
Data Collection Considerations
Questionnaires and Surveys
Tests
Simulations
Informal Tests
Interviews
Focus Groups
Observations
Business Performance Monitoring
Action Planning and Follow‑Up Assignments
Performance Contracts
Data Summary Issues
Final Thoughts
Case Study, Part B: Linear Network Systems
4 Isolate the Effects of Training
Air France–KLM
Preliminary Issues
Control Groups
Trend Line Analysis
Mathematical Modeling
Participant Estimate of Training’s Impact
Supervisor Estimate of Training’s Impact
Management Estimate of Training’s Impact
Customer Input of Training’s Impact
Expert Estimation of Training’s Impact
Calculating the Impact of Other Factors
Using the Techniques
Final Thoughts
Case Study, Part C: Linear Network Systems
5 Convert Data to Monetary Benefits
Fastgroup
Preliminary Issues
Converting Output Data to Contribution
Calculating the Cost of Quality
Converting Employee Time
Using Historical Costs
Using Internal and External Experts’ Input
Using Values from External Databases
Using Estimates from Participants
Using Estimates from Supervisors and Managers
Linking with Other Measures
Using Training and Performance Improvement Team Estimates
Selecting the Appropriate Measures
Accuracy and Credibility of Data
Final Thoughts
Case Study, Part D: Linear Network Systems
6 Capture Costs of the Program
Federal Information Agency
The Importance of Costs
Cost Strategies
Cost Tracking Issues
Major Cost Categories
Cost Accumulation and Estimation
Final Thoughts
Case Study, Part E: Linear Network Systems
7 Calculate the Return on Investment
Florida School Systems
Basic Issues
ROI Interpretation
Case Application
Other ROI Measures
Consequences of Not Training
ROI and the Profit Center
ROI Issues
Final Thoughts
Case Study, Part F: Linear Network Systems
8 Identify Intangible Measures
Kansas City Police
Key Issues
Typical Intangible Measures
Final Thoughts
Case Study, Part G: Linear Network Systems
9 ROI Forecasting
Family Mutual Health and Life Insurance
Why Forecast ROI?
The Trade‑Offs of Forecasting
Pre‑Program ROI Forecasting
Forecasting with a Pilot Program
Forecasting ROI with Reaction Data
Forecasting ROI with Learning Data
Forecasting ROI with Application Data
Forecasting Guidelines
Final Thoughts
Case Study, Part H: Linear Network Systems
10 How to Communicate and Leverage Results
Global Computer Chip Manufacturer
The Importance of Communication
Principles of Communicating Results
Analyzing the Need for Communication
Planning the Communication
Selecting the Audience for Communications
Developing the Information: The Impact Study
Selecting the Communication Media
Communicating the Information
Analyzing Reactions to Communication
Process Improvement is the Key: Black Box Thinking
Influencing Allocation
Final Thoughts
Case Study, Part I: Linear Network Systems
11 Implementation Issues
New Jersey State Police Academy
Overcoming Resistance to ROI
Planning the Implementation
Preparing the Training, Development, and Performance Improvement Team
Initiating the ROI Methodology
Preparing the Management Team
Monitoring Progress and Communicating Results
Cost Savings Approaches
Final Thoughts
Case Study, Part J: Linear Network Systems
Appendix A
Appendix B
About ROI Institute
Complimentary Case Book Opportunity
Index