1. How to Use the ROI Methodology in Your Team Coaching Engagements
Presenter:
Javier Carbajo, PCC
Team Coach & Facilitator
Moderator:
George Johnson
Chief Executive Officer

2. What We’ll Cover Today Business Alignment Conversation
Benchmarking data in ROI
Chain of impact of the ROI Methodology
KPIs Examples
Case Study Exec Coaching with Action Planning
Q&A

3. xxx Training Presenter Guide3
Business Alignment
Start Here
End Here
ROI Objectives
Payoff Needs 5 5
ROI
Impact Objectives
Business Needs 4 4
Impact
Application Objectives
Performance Needs 3 3
Application
Initial Analysis
Evaluation
Learning Objectives
Learning Needs 2 2
Learning
Reaction Objectives
Preference Needs 1 1
Reaction
Input Objectives
Input Needs
Input
Business Alignment & Forecasting
Program
The ROI Methodology

4. Facilitating the Business Alignment Conversation…
Why is this an issue?
Who will support the team coaching?
Who will not support the team coaching?
Are there important intangible benefits?
Is this issue critical?
Is it possible to correct it?
How much is it costing us?
Are there multiple solutions?
What happens if we do nothing?
Is there a potential payoff (positive ROI)?
Is this issue linked with strategy?
(From 10 Steps to Successful Business Alignment, Phillips)

5. Measurement in Human Resources
Levels
Category
Current
Status
Goal in 5 Years*
Inputs/Indicators — Number of programs, participants, costs, efficiencies
100% 1
Reaction — Reaction and satisfaction with experience, content, value of program
90-100% 2
Learning — Acquisition of knowledge, skill, information, awareness, insights
30-40%
60-80% 3
Application — Use of knowledge, skill, information, awareness, insights
10%
30% 4
Impact — Changes in business impact measures such as output, quality, time, engagement 5%
10-20% 5
ROI — Compares monetary benefits to cost of program, project, or initiative 1%
5-10%
test
*Target is based on typical number and variety of HR initiatives.

6. Chain of Impact Isolate the Effects of the Program Intangible Benefits
1. Reaction & Planned Action
2. Learning
3. Application & Implementation
Isolate the Effects of the Program
4. Impact
5. ROI
Intangible Benefits

7. Examples of KPIs for ROI
OUTPUT
Completion rate
Units produced
Tons manufactured
Items assembled
New accounts generated
Applications processed
QUALITY
Failure rates
Waste
Error rates
Product defects
Incidents
COSTS
Overhead costs
Operating costs
Turnover costs
Program cost savings
Accident costs
TIME
Cycle time
Overtime
On-time shipments
Processing time

8. Case: Healthcare
Patients seen per team member per day can easily be translated into money with internal experts
If we want to convert patient satisfaction to money we will have to rely on internal experts or better to find an industry study that shows how does it convert to money in this industry
Satisfaction Measure is an Outcome measure
#Patients Seen is an Efficiency measure: Risk is failing to balance satisfaction with efficiency

10. Key Tool for ROI: Action Planning

11. Completed Action Plan

12. Isolating Program Techniques Effects most used by ROI practitioners
Method
Control Groups
Trend Line Analysis
Forecasting Methods
Participant Estimates
Manager Estimates
Expert Input
Customer Input
Benchmarking Data

13. Actual Data Reported — Business Impact from Coaching

14. Calculating ROI
Total Benefits
Total Costs

15. Criteria for Selecting Programs for Level 4 & Level 5 Evaluation
Benchmarking
Life cycle of the program 14%
Linkage of program to operational goals & issues 29%
Importance of program to strategic objectives 50%
Executive interest in the evaluation 48%
Cost of the program 52%
Visibility of the program 45%
Size of target audience 6%
Investment of time required 7%

16. Questions?

17. Thank You!