Seven Steps to Ensure a Positive ROI

One of the biggest barriers to implementing ROI is the fear of a negative outcome. No one wants to face the disappointment, or even horror, of a program or project that delivers less monetary value than it costs. Traditionally, there's a perception that funders, supporters, or sponsors of such a program may want to discontinue it. In reality, sponsors may continue to support the program, especially if you take a proactive approach and present the ROI data upfront. Remember, a negative ROI offers valuable lessons. The reasons behind it are usually clear, and with the right adjustments, the ROI can turn positive.

Follow these seven steps to design for positive results:

1. Start with the Business Measure

Begin with a business need, an impact measure recorded in organizational records. If you start with a business measure, you can end with a business measure.

2. Select the Best Solution

Occasionally, the wrong solution—or at least not the most optimal one—is implemented. If that's the case, the program won't deliver a positive ROI, or the ROI may be less than what it should be.

3. Expect the Success You Need

Define the ultimate success of the program as business impact and develop objectives for reaction, learning, application, and impact. Share these objectives with all stakeholders, including participants.

4. Have the Right People Involved

This is usually not a problem, but it can be surprising when participants don't have the opportunity to use the skills from the program. If 20% or more of your participants are in positions where they can't apply what they've learned, it's a serious blow to the program and can result in a negative ROI.

5. Design for Impact and ROI

Provide application and impact objectives to all stakeholders, designers, and developers. Use these objectives to create tools, templates, and processes that deliver business impact results. Facilitators should teach for positive impact, and managers should influence application and impact. Ensure the team delivers the needed impact.

6. Look for Early Signs of Disappointment

Negative ROI usually shows early signs through participant reactions. If participants don't see the value, significant learning isn't generated, or skills aren't applied quickly, adjustments are needed to ensure impact.

7. Examine the Costs of the Program

Expensive programs demand more impact to achieve a positive ROI. For example, virtual reality is costly and must produce more learning, which leads to greater application and impact. Avoid unnecessary costs, but remember that sometimes a more expensive program can deliver a higher ROI than a cheaper one.

By following these steps, you can significantly increase the likelihood of a positive ROI. Let us know if you would like to see a case study demonstrating a positive ROI in action.