ROI: The Basics of Proving Your Value - Meetings Today · 2011-06-29 · Social Media . Presented...
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Presented by ROI: The Basics of Proving Your Value Patti Phillips, Ph.D.
Transcript of ROI: The Basics of Proving Your Value - Meetings Today · 2011-06-29 · Social Media . Presented...
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ROI: The Basics of Proving Your Value
Patti Phillips, Ph.D.
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Today’s Webinar is worth the following credit toward the CMP
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Wednesday, July 27, 2011
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Patti Phillips, Ph.D.
Today’s Speakers
Session Objectives
Demonstrate the value of meetings, conventions, incentives and events
Identify tools that will help you demonstrate ROI
Communicate the importance of showing ROI
Access tools and information to further ROI reporting efforts
Why do you do what you do?
A. Entertain
B. Educate
C. Improve Performance
D. Contribute to the bottom line
What CEO Want v What CEOs Get
N=96 CEOs of Fortune 500 and Large Private Companies ROI Institute, Inc.
Measure of Success How many want it?
How many get it?
Reaction to an event 22% 53%
Learning that comes out of an event 28% 32%
Changes in behavior and performance as a results of an event
61% 11%
Business impact as a results of an event
96% 8%
Return on investing in an event (ROI) 74% 4%
ROI Myths (aka ‘reasons for the gap’)
Too complex for most users
Too expensive
No need to pursue it if senior management isn’t asking for it
Passing fad
Involves only one type of data
Only reflects past performance – doesn’t help with future planning
Not always possible to isolate the influence of other factors
ROI Myths
Rarely used by organizations Cannot be easily replicated Too subjective, therefore not a credible process Not possible for soft issues – only sales and
production Only good for corporate meetings Appropriate only for large meetings No standards for the ROI process
ROI Myths (aka ‘reasons for the gap’)
BCR =
ROI =
Meeting Benefits
Meeting Costs
Net Meeting Benefits
Meeting Costs X 100
ROI Defined
BCR = benefit-cost ratio; ROI = return on investment
$750,000
$425,000 BCR =
$750,000 - $425,000
$425,000 ROI = X 100
Try it!
What did you get?
A. BCR = 2; ROI = 200%
B. BCR = 1.76; ROI = 176%
C. BCR = 1.76; ROI = 76%
D. None of the above
$750,000
$425,000 BCR =
$750,000 - $425,000
$425,000 ROI = X 100 = 76%
= 1.76:1
Try it!
Levels of
Evaluation Measurement Focus
0. Inputs and Indicators
The input into the meeting in terms of
scope, volume, efficiencies, costs Participants, hours, costs, timing
1. Reaction & Perceived
Value
Reaction to the meeting, including the
perceived value
Relevance, importance, usefulness,
appropriateness, intent to use,
motivation to take action
2. Learning &
Confidence
Learning to use the content and
materials, including the contacts made
through networking
Skills, knowledge, capacity,
competencies, confidence, contacts
3. Application &
Implementation
Use of content and materials in the work
environment, including follow-up with
relevant contacts
Extent of use, task completion,
frequency of use, actions completed,
success with use, barriers to use,
enablers to use
4. Impact and
Consequences
The consequences of the use of the
content, materials and follow-up with
contacts
Productivity, revenue, quality, time,
efficiency, customer satisfaction,
employee engagement
Typical Measures
5. ROI Comparison of monetary benefits from
meeting to meeting costs
Benefit-cost ratio (BCR), ROI%, payback
period
Develop evaluation plans and
baseline data
Evaluation Planning Data Collection
Collect data during meeting
LEVEL 1:
REACTION AND
PERCIEVED VALUE
LEVEL 2:
LEARNING
Collect data after meeting
LEVEL 3: APPLICATION
AND
IMPLEMENTATION
LEVEL 4:
IMPACT AND
CONSEQUENCES
Develop objectives
of meeting or
event
Tabulate costs
of meeting or event
Isolate the effects of the meeting or
event
Convert data to monetary
value
Calculate the return on investment
Generate impact study
Data Analysis
Identify intangible measures
LEVEL 5: ROI
INTANGIBLE
BENEFITS
1. Report the complete story
2. Conserve resources
3. Use the most credible sources
4. Choose the most conservative alternatives
5. Isolate the effects of meeting and event
6. No data no improvement
7. Adjust estimates for error
8. Throw out the extreme and unsupported
9. Use first year benefits for short-term meetings and events
10.Include fully-loaded costs
11.Report intangible benefits
12.Communicate results to all stakeholders
Standards prevent you from guessing!
Reaction
Learning
Application
Impact
ROI
Isolate the effects of the program
Inputs
Intangible benefits
• Life cycle of the meeting or event
• Linkage of meeting to operational goals and issues
• Importance of meeting to strategic objectives
• Top administrator interest in the evaluation
• Cost of the meeting
• Visibility of the meeting
• Size of target audience
• Investment of time required
When selecting meetings to evaluate to ROI, consider the following:
Why is ROI important?
Justify spending
Improve the planning process
Improve the quality of meetings
Improve the procurement process
Gain support for meetings and events
Tell the complete story of meeting success
Give CEOs the data they want
Maximum Use
$ High ROI $
Success with ROI is directly related to the extent to which results are used for process improvement!
Calculate the ROI on the ROI
Friday, July 22 and Saturday, July 23, 2011
9:00 AM - 5:00 PM
Two-day ROI Workshop facilitated by Patti Phillips
www.mpiweb.org
www.meetingsfocus.com
www.roiinstitute.net
Tools and Resources
Down Hall Country House Hotel, Hatfield Heath, London For more information visit: www.eventroi.org
Event ROI Institute’s 3rd annual ROI Week
5-9 September 2011
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program. Thanks to our presenters for volunteering to field all of
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Takeaways
Wednesday, July 27, 2011
1:00 p.m. EDT/12:00 p.m. CDT
11:00 a.m. MDT/10:00 a.m. PDT
www.meetingsfocus.com/webinars
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A series of 2-night, 3-day Hosted Buyer programs in key U.S. cities.
August 28-30: Naples, FL – The Naples Beach Hotel & Golf Club
October 23-25: Palm Springs, CA – The Parker, Palm Springs
For more information visit: www.meetingsfocus.com/LiveEvents
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Thank you for joining us for
“ROI: The Basics of Proving Your Value”
This webinar is worth the following credit toward CMP certification through CIC.
Strategic Event Planning Process: 1 hour
To receive CEU credits for this webinar:
Download the webinar handouts from the drop-down menu on the left
hand side of your screen
Print out this slide from the handouts
Include the printout with your CMP application form
CMP Credit Instructions
