7

Implementing and Sustaining ROI

Even the best-designed process, model, or technique is worthless unless it is effectively and efficiently integrated into the organization. Change is not permanent for many reasons, one of which is resistance. As it relates to the use of the ROI Methodology, some of this resistance is based on fear and misunderstanding. Some is real, based on actual barriers and obstacles. Although the ROI process presented in this book is a step-by-step, methodical, and simplistic procedure, it can fail if it is not integrated properly, fully accepted, and supported by those who must make it work within the organization. This chapter focuses on some of the most effective means of overcoming resistance to implementing the ROI process in an organization.

THE IMPORTANCE OF SUSTAINING THE USE OF ROI

There is resistance with any new process or change. It may be especially great when implementing a process as complex as ROI. To implement ROI and sustain it as an important accountability tool, the resistance must be minimized or removed. Here are four reasons to have a plan.

Resistance is always present. Sometimes there are good reasons for resistance, but often it exists for the wrong reasons. It is important to sort out both kinds of resistance and try to dispel the myths. When legitimate barriers are the basis for resistance, the challenge is to minimize or remove them completely.

Implementation is key. As with any process, effective implementation is key to its success. This occurs when the new technique, tool, or process is integrated into the routine framework. Without effective implementation, even the best process will fail. A process that is never removed from the shelf will never be understood, supported, or improved. Clear-cut steps must be in place for designing a comprehensive implementation process that will overcome resistance.

Implementation requires consistency. Consistency is an important consideration as the ROI process is implemented. With consistency comes accuracy and reliability. The only way to make sure consistency is achieved is to follow clearly defined processes and procedures each time the ROI Methodology is used. Proper, effective implementation will ensure that this occurs.

Implementation requires efficiency. Cost control and efficiency will be significant considerations in any major undertaking, and the ROI Methodology is no exception. During implementation, tasks must be completed efficiently and effectively. Doing so will help ensure that process costs are kept to a minimum, that time is used economically, and that the process remains affordable.

IMPLEMENTING THE PROCESS: OVERCOMING RESISTANCE

Resistance shows up in a variety of ways, including comments, remarks, actions, or behaviors. The following is a list of comments that indicate an open resistance to the ROI process:

•  It costs too much.

•  It takes too much time.

•  Who is asking for this?

•  This is not in my job description.

•  I did not have input on this.

•  I do not understand this.

•  What happens when the results are negative?

•  How can we be consistent with this?

•  The ROI looks too subjective.

•  Our managers will not support this.

•  ROI is too narrowly focused.

•  This is not practical.

Each comment signals an issue that must be resolved or addressed in some way. A few are based on realistic barriers, whereas others are based on myths that must be dispelled. Resistance to the process may reflect underlying concerns. For example, owners of programs may fear losing control of the programs, while others may feel vulnerable to whatever actions may follow if the program is not successful. Still others may be concerned about any process that brings change or requires additional effort.

Practitioners may resist the ROI process and openly make comments similar to those listed, and it may take evidence of tangible and intangible benefits to convince them that it is in their best interest to make the project a success. Although most clients want to see the results of the program, they may have concerns about the information they are asked to provide and about whether their personal performance is being judged while the project is undergoing evaluation. Participants may express the same fears.

The challenge is to implement the methodology systematically and consistently so that it becomes normal business behavior and part of a routine and standard process built into projects. The implementation necessary to overcome resistance covers a variety of areas. Exhibit 7-1 shows the actions outlined in this chapter, which are presented as building blocks to overcoming resistance. They are all necessary to build the proper base or framework to dispel myths and remove or minimize barriers. The remainder of this chapter presents specific strategies and techniques devoted to each building block. They apply equally to the employee engagement team and the client organization, and no attempt is made to separate the two.

EXHIBIT 7-1. Building Blocks for Overcoming Resistance

ASSESSING THE CLIMATE

As a first step toward implementation, some organizations assess the current climate for achieving results. One way to do this is to develop a survey to determine the current perspectives of the employee engagement team and other stakeholders. A special instrument is available for this at ROI Institute (www.roiinstitute.net). Another way is to conduct interviews with key stakeholders to determine their willingness to follow the program through to ROI. With an awareness of the current status, the employee engagement team can plan for significant changes and pinpoint particular issues that need support as the ROI process is implemented.

DEVELOPING ROLES AND RESPONSIBILITIES

Defining and detailing specific roles and responsibilities for different groups and individuals addresses many of the resistance factors and helps pave a smooth path for implementation.

Identifying a Champion

As an early step in the process, one or more individuals should be designated as the internal leader or champion for the ROI Methodology. As in most change efforts, someone must take responsibility for ensuring that the process is implemented successfully. This leader serves as a champion for ROI and is usually the one who understands the process best and sees vast potential for its contribution. More important, this leader is willing to teach others and will work to sustain sponsorship.

Develop the ROI Leader

In a project to improve employee engagement, the ROI leader is usually a member of the employee engagement team who has the responsibility for evaluation. For large organizations, the ROI leader may be part of HR. This person will either hold a full-time position on a larger program team or a part-time position on a smaller team. Client organizations may also have an ROI leader who pursues the ROI Methodology from the client’s perspective. The typical job title for a full-time ROI leader is manager or director of analytics or measurement and evaluation. Some organizations assign this responsibility to a team and empower it to lead the ROI effort.

In preparation for this assignment, individuals usually receive special training that builds specific skills and knowledge of the ROI process. The role of the implementation leader is quite broad and serves many specialized duties. In some organizations, the implementation leader can take on many roles, ranging from diagnostician to problem solver to communicator.

Leading the ROI process is a difficult and challenging assignment that requires unique skills. Fortunately, programs that teach these skills are available. For example, ROI Institute offers a program that is designed to certify individuals who will be assuming leadership roles in the implementation of the ROI Methodology. This certification is built around 10 specific skill sets linked to successful ROI implementation, focusing on the critical areas of data collection, isolating the effects of the project, converting data to monetary value, presenting evaluation data, and building capability. This process is quite comprehensive but may be necessary to build the skills needed for taking on this challenging assignment.

Establishing a Task Force

Making the ROI Methodology work well may require the use of a task force. A task force usually comprises a group of individuals from different parts of the project or client team who are willing to develop the ROI Methodology and implement it in the organization. The selection of the task force may involve volunteers, or participation may be mandatory depending on specific job responsibilities. The task force should represent the cross section necessary for accomplishing any stated goals. Task forces have the additional advantage of bringing more people into the process and developing more ownership of and support for the ROI Methodology. The task force must be large enough to cover the key areas, but not so large that it becomes too cumbersome to function. Six to 12 members is a good size.

Assigning Responsibilities

Determining specific responsibilities is critical because confusion can arise when individuals are unclear about their specific assignments in the ROI process. Responsibilities apply to two areas. The first is the measurement and evaluation responsibility of the entire employee engagement team. Everyone involved in the program will have some responsibility for measurement and evaluation. These responsibilities may include providing input on designing instruments, planning specific evaluations, analyzing data, and interpreting the results. Typical responsibilities include:

•  ensuring that the initial analysis or diagnosis for the project includes specific business impact measures

•  developing specific application and business impact objectives for the project

•  keeping the organization or team members focused on application and impact objectives

•  communicating rationale and reasons for evaluation

•  assisting in follow-up activities to capture application and business impact data

•  providing assistance for data collection, data analysis, and reporting.

Although involving each member of the employee engagement team in all these activities may not be appropriate, each individual should have at least one responsibility as part of his routine job duties. This assignment of responsibility keeps the ROI Methodology from being disjointed and separated during projects. More important, it brings accountability to those directly involved in implementation.

The assignment of responsibilities for evaluation requires attention throughout the evaluation process. Although the team must be assigned specific responsibilities during an evaluation, requiring others to serve in support functions to help with data collection is not unusual. These responsibilities are defined when a particular evaluation strategy is developed and approved.

ESTABLISHING GOALS AND PLANS

Establishing goals, targets, and objectives is critical to the implementation, particularly when several evaluations are planned. The establishment of goals can include detailed planning documents for the overall process and for individual ROI projects.

Setting Evaluation Targets

Establishing specific targets for evaluation levels is an important way to make progress with measurement and evaluation. As emphasized throughout this book, not every program should be evaluated to the ROI level. Knowing in advance to which level the program will be evaluated helps in planning what measures will be needed and how detailed the evaluation must be at each level. Exhibit 7-2 presents an example of the targets set for evaluation at each level from one of the largest telecommunications companies in the world. Targets should be set early in the process, with the full support of the entire team. If practical and feasible, the targets should also have the approval of key managers—particularly the senior management team.

EXHIBIT 7-2. Evaluation Targets in a Large Organization

Level	Target*
Level 1, Reaction	100%
Level 2, Learning	80%
Level 3, Application and Implementation	30%
Level 4, Business Impact	10%
Level 5, ROI	5%

* Percent of HR programs evaluated at this level.

Developing a Plan for Implementation

An important part of implementation is establishing a timetable for the complete implementation of the ROI process. This document becomes a master plan for completion of the different elements presented earlier. Beginning with forming a team and concluding with meeting the targets previously described, this schedule is a project plan for transitioning from the present situation to the desired future situation. Items on the schedule include developing specific ROI projects, building staff skills, developing policy, and teaching managers the process. Exhibit 7-3 shows an example of a plan for implementing ROI in HR for a large petroleum company. The more detailed the document, the more useful it becomes. The project plan is a living, long-range document that should be reviewed frequently and adjusted as necessary. More important, those engaged in work on the ROI Methodology should always be familiar with it.

REVISING OR DEVELOPING GUIDELINES AND PROCEDURES

Another part of planning is revising or developing the organization’s policy or guidelines on measurement and evaluation. The guidelines document contains information developed specifically for the measurement and evaluation process. It is created with input from the team and key managers or stakeholders, and may be addressed during internal workshops designed to build measurement and evaluation skills. This statement addresses critical matters that will influence the effectiveness of the measurement and evaluation process. These may include adopting the five-level framework presented in this book, requiring Level 3 and 4 objectives for some or all programs, and defining responsibilities for the employee engagement team.

EXHIBIT 7-3. ROI Implementation Plan for a Large Petroleum Company

Guidelines are important because they provide structure and direction for the team and others who work closely with the ROI Methodology. These individuals keep the process clearly focused, and enable the group to establish goals for evaluation. Guidelines also provide an opportunity to communicate basic requirements and fundamentals of performance and accountability. More than anything, they serve as learning tools to teach others, especially when they are developed collaboratively. If guidelines are developed in isolation, the team and management will be denied their sense of ownership, rendering them neither effective nor useful.

Procedures for measurement and evaluation are important for showing how to use the tools and techniques, guide the design process, provide consistency in the ROI process, ensure that appropriate methods are used, and place the proper emphasis on each of the areas. The procedures are more technical than the guidelines and often include detailed steps showing how the process is undertaken and developed. They often include specific forms, instruments, and tools necessary to facilitate the process.

PREPARING THE TEAM

Employee engagement team members may see evaluation as an unnecessary intrusion into their responsibilities that absorbs precious time and stifles creative freedom. The cartoon character Pogo perhaps characterized it best when he said, “We have met the enemy, and he is us.” Several issues must be addressed when preparing the employee engagement team for ROI implementation.

Involving the Employee Engagement Team

For each key issue or major decision regarding ROI implementation, involve the team in the process. As evaluation guidelines are prepared and procedures are developed, team input is essential. It will be more difficult for the team to resist if they helped design and develop the ROI process. Convene meetings, brainstorming sessions, and task forces to involve the team in every phase of developing the framework and supporting documents for ROI.

Using ROI as a Learning and Process Improvement Tool

One reason the employee engagement team may resist the ROI process is fear of failure, because the program’s effectiveness will be fully exposed, putting the reputation of the team on the line. To overcome this, the ROI Methodology should be clearly positioned as a tool for learning and process improvement, not a tool for evaluating project team performance (at least not during the early years of project implementation). Team members will not be interested in developing a process that may reflect unfavorably on their performance.

Evaluators can learn as much from failures as from success. If the program is not working, it is best to find out quickly so that issues can be understood firsthand, not from others. If the program is ineffective and not producing the desired results, the failure will eventually be discovered by clients and the management group (if they are not aware of it already). A lack of results will make managers less supportive of immediate and future projects. If the weaknesses are identified and adjustments made quickly, not only can more effective projects be developed, but the credibility of and respect for project implementation can also be enhanced.

Teaching the Team

The employee engagement team usually has inadequate skills in measurement and evaluation, because these areas are not always a formal part of the team’s or evaluator’s job preparation. Consequently, the employee engagement team leader must learn ROI Methodology and its systematic steps; the evaluator must learn to develop an evaluation strategy and a specific plan to collect and analyze data from the evaluation and interpret results from data analysis.

INITIATING ROI STUDIES

The first tangible evidence of the value of using the ROI Methodology may be seen at the initiation of the first employee engagement program for which an ROI calculation is planned. Because of this, it is important to identify appropriate programs and keep them on track.

Selecting the Initial Project

It is critical that appropriate employee engagement programs be selected for ROI analysis. Only certain types of projects qualify for comprehensive, detailed analysis. The characteristics of programs that are suitable for analysis were presented in chapter 3.

Developing the Planning Documents

Perhaps the two most useful ROI documents are the data collection plan and the ROI analysis plan. The data collection plan shows what data will be collected, the methods used, the sources, the timing, and the assignment of responsibilities. The ROI analysis plan shows how specific analyses will be conducted, including how to isolate the effects of the project and how to convert data to monetary values. Each evaluator should know how to develop these plans. Please refer to chapter 4 for more details.

Status meetings should be conducted to report progress and discuss critical issues with appropriate team members. These meetings keep the employee engagement team focused on the critical issues, generate the best ideas for addressing problems and barriers, and build a knowledge base for better implementation of future evaluations. In essence, the meetings serve three major purposes: reporting progress, learning, and planning.

PREPARING THE CLIENTS AND EXECUTIVES

Perhaps no group is more important to the ROI process than the management team that must allocate resources for the employee engagement program and then support its implementation. In addition, the management team often provides input to and assistance for the ROI process. Preparing, training, and developing the management team should be carefully planned and executed.

One effective approach for preparing executives and managers for the ROI process is to conduct a briefing on ROI. Varying in duration from one hour to half a day, this type of practical briefing can provide critical information and enhance support for ROI use. Managers leave these briefings with greater appreciation of ROI and its potential impact on projects, as well as a clearer understanding of their role in the process. More important, they often renew their commitment to react to and use the data collected by the ROI Methodology.

A strong, dynamic relationship between the employee engagement team and key managers is essential for successful implementation of the ROI Methodology. There must be a productive partnership that requires each party to understand the concerns, problems, and opportunities of the other. Developing a beneficial relationship is a long-term process that must be deliberately planned for and initiated by key employee engagement team members. The decision to commit resources and support an intervention may be based on the effectiveness of this relationship.

REMOVING OBSTACLES

As the ROI Methodology is implemented, obstacles to its progress will inevitably crop up. The obstacles are based on concerns discussed in this chapter, some of which may be valid, others of which may be based on unrealistic fears or misunderstandings.

Dispelling Myths

As part of the implementation, attempts should be made to dispel the myths and remove or minimize the barriers or obstacles. Much of the controversy regarding ROI stems from misunderstandings about what the process can and cannot do, and how it can or should be implemented in an organization. Some of the biggest misunderstandings include:

•  ROI is too complex for most users.

•  ROI is expensive and consumes too many critical resources.

•  If senior management does not require ROI, there is no need to pursue it.

•  ROI is a passing fad.

•  ROI is only one type of data.

•  ROI is not future-oriented; it only reflects past performance.

•  ROI is rarely used by organizations.

•  The ROI Methodology cannot be easily replicated.

•  ROI is not a credible process; it is too subjective.

•  ROI cannot be used with soft projects.

•  Isolating the influence of other factors is not always possible.

•  ROI is only appropriate for large organizations.

•  No standards exist for the ROI Methodology.

Delivering Bad News

One of the most difficult obstacles to overcome is receiving inadequate, insufficient, or disappointing news. The time to think about bad news is early in the process, but without losing sight of its value. In essence, bad news means that things can change, they need to change, and the situation can improve. The team simply needs to be convinced that good news can be found in a bad-news situation. Here is some advice to follow when delivering bad news:

•  Never fail to recognize the power to learn and improve with a negative study.

•  Look for red flags along the way.

•  Lower outcome expectations with key stakeholders along the way.

•  Look for data everywhere.

•  Never alter the standards.

•  Remain objective throughout the process.

•  Prepare the team for the bad news.

•  Consider different scenarios.

•  Find out what went wrong.

•  Adjust the story line to: “Now we have data that show how to make this program more successful.” In an odd way, this puts a positive spin on data that are less than positive.

Using the Data

It is unfortunately too often the case that programs are evaluated and significant data are collected, but no action is taken. Failure to use data is a tremendous obstacle because the team has a tendency to move on to the next project or issue and focus on other priorities. Exhibit 7-4 shows how the different levels of data can be used to improve projects. It is critical that the data be used—the data were essentially the justification for undertaking the evaluation in the first place. Failure to use the data may mean that the entire evaluation was a waste.

There are many reasons for collecting the data and using them after collection. These can become action items for the team to ensure that changes and adjustments are made. In addition, the client or sponsor must act to ensure that the uses of data are appropriately addressed.

EXHIBIT 7-4. Use of Evaluation Data

MONITORING PROGRESS

A final element of the implementation process is monitoring the overall progress made and communicating that progress. Although often overlooked, an effective communication plan can help keep the implementation on target and let others know what the ROI Methodology is accomplishing. The elements of a communication plan were discussed in chapter 6.

The initial schedule for implementation of ROI is based on key events or milestones. Routine progress reports should be developed to communicate the status of these events or milestones. Reports are usually developed at six-month intervals, but may be more frequent for short-term projects. Two target audiences, the employee engagement team and senior managers, are critical for progress reporting. All team members should be kept informed of the progress, and senior managers should know the extent to which ROI is being implemented and how it is working within the organization.

FINAL THOUGHTS

Even the best model or process will die if it is not used and sustained. This chapter explored the implementation of the ROI process. If not approached in a systematic, logical, and planned way, the ROI process will not be an integral part of the employee engagement evaluation efforts, and accountability will suffer. This chapter presented the different elements that must be considered and issues that must be addressed to ensure that implementation is smooth and uneventful. Smooth implementation is the most effective means of overcoming resistance to ROI. The result provides a complete integration of ROI as a mainstream component of major projects.

The first part of this book outlined the relevant steps necessary to use the ROI Methodology with employee engagement programs. In the next part we share case studies illustrating how the ROI process was applied to different employee engagement programs.