Long-gone are the times of endless (and excessive) spending – on both a personal and corporate level. As we tighten up our pocketbooks and purse strings, corporations are also analyzing the ways they spend money – specifically as it relates to training, development, and documentation. While some view this as threatening (“They’re cutting my budget so much I can’t do anything!”), I think this is a much needed shift in corporate culture. As professionals, we should be responsible for showing how our efforts impact bottom-line business. So how exactly do we do that?
First, we have to get past the notion that ROI, or Return on Investment, metrics are a bad thing. ROI, in essence, is what justifies our positions as leaders within our fields. I think the fear of change is behind most people’s aversion to ROI. If looked at from a positive light, gathering metrics that show the program’s you’re implementing have a direct impact on the business gives you (and your department) tremendous power. Now, you not only have the ability to implement training programs, but you have a way to measure a program’s success. Imagine walking into an executive committee meeting with a new idea and being able to justify it with hard metrics (actual dollars & hours saved) and soft metrics (employee satisfaction and growth). See the power of ROI?
“Ok, ok,” you say, “That’s a nice ideal, but how do you actually measure those things?” Here’s where it takes some creativity and lots of planning. At the outset of the project, you MUST determine what you’re going to measure. ROI figures will not be accurate unless you figure this out before you even start. You have to take a snapshot of the business BEFORE the training program or documentation project is initiated so you have a baseline.
Then, you must keep track of the costs (effort as well as dollars) it took to implement the program. Sometimes this is straightforward. Other times, you have to look creatively at how to collect this data. Once your development is done, you must have a solid plan in place for the roll-out of your new program. Document your plan and your progress (you can use this later to help you structure other programs.) This roll-out plan should also get factored into the overall “cost” of the project.
Finally, you have to wait and measure. I know; this is always the hardest part! Because of the nature of training and documentation, cost benefits are not realized overnight. Sometimes it takes weeks, most times it takes months, and for some projects it takes years. Be prepared and ensure your management team is prepared to take the time needed to accurately gauge whether your program was successful.
As your program becomes part of your company’s culture, continue taking baseline measurements at regular intervals. Are your metrics different one month, three months, nine months after the implementation? Taking periodic measurements not only helps you chart savings, it also allows you to continue to tweak your program according to the business climate. (Again, be sure to keep track of development costs.) When you reach the end of your measurement term, take your final measurements then analyze the impact the program had on the business, both hard benefits and soft benefits. Was your program successful? Hopefully, the answer is yes and you’re able to see real cost-savings as well as tangible soft benefits.
By viewing ROI as a welcome opportunity to demonstrate your department’s value to the company, you empower yourself (and your employees) to have a bigger impact on the business. Embracing ROI helps eliminate unwarranted fear and replace it with the confidence needed to support the programs you’re passionate about. You also demonstrate that you are committed to being fiscally responsible to your team as well as the business as a whole. With all those benefits, how could you not want to show the Return on Investment for the projects you currently have going?