INSOURCES BLOG

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JackPattiIn recent years, we have witnessed change in organisational accountability, especially toward investment in training, programs, and projects.

Employers and government are concerned about the value of their investment on vocational education and training. Today, this concern translates into financial impact, the actual monetary contribution from a training program.

Although monetary value is a critical concern, it is the comparison of this value with the project costs that captures stakeholders' attention— and translates to ROI. "Show me the money" is the familiar response from individuals asked to invest (or continue to invest) in major projects (including training programs). At times, this response is appropriate.

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surveyA survey sets out to: describe, compare, explain, or predict a condition, behavior, or outcome. It provides trainers and managers information they need to make decisions about programs, projects, people, and initiatives. How much you should invest in a survey to accomplish these purposes depends on the value of the information derived from that survey.

Regardless of the type of survey instrument you plan to employ, there are certain characteristics surveys must meet. They are:

  • measurable survey objectives
  • sound research design
  • effective survey question design
  • sound sampling strategy, when needed
  • effective survey response strategy
  • meaningful data summary
  • effective data display and reporting.

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JackPattiToday's executives must show accountability for their investments. Many executives have found that actually measuring the return on investment on a few selected, significant, high-profile programs is an excellent way to show fiscal responsibility for key projects and initiatives. Our best guess is that about 30 to 40% of executives are using ROI as a tool to evaluate non-capital investments. Yet, according to the Corporate Executive Board in their major benchmarking efforts, almost 80% of organizations want to use ROI in the future. This gap of actual use versus desired use underscores the misunderstandings and misconceptions of ROI as a legitimate part of the measurement mix for the C-Suite Executives.

For two decades we have been assisting organizations with this important issue. In the last ten years we have kept track of the many questions that are often asked about ROI in conferences, workshops, and consulting assignments.

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