Saturday, August 8, 2009

Blog 4

RETURN ON INVESTMENT


"Even if you are on the right track, you'll get run over if you just sit there."
--Will Rogers--


Training For Dummies (ISBN 0-7645-5985-0) - suggested reading


Image can be quantified


Example: the Tylenol tampering incident. Proper intervention by full recall of products saved the company's reputation and enhanced trust in the product. The sealed caps and full accountability stance led the industry, justifying the investment.



Business impact can be measured


Projection, forecast, prediction: estimated benefit of intervention


Loaded salary: base salary plus benefits


A dissatisfied customer will tell 28 people about their bad experience


Customer mortality costs affect the bottom line


Customer attraction costs improve the bottom line


Intangibles can be quantified



Courtesy of Dr. Ackerman


Benchmarking - using another company's product quality as a goal



Likability factor - hard to quantify


Example: Nordstrom's customer service policy - 'the customer is always right'
The store allowed the return of a car tire that was not purchased at the store in exchange for store credit. They then tracked the store purchasing of the individual and family. The amounts purchased far exceeded the amount of the exchange plus a repeat customer was gained, justifying the investment.

Practice Exercise - ROI

Columbus Sulpher Company considered implementing a two-day workshop to decrease data entry errors of Form #1492. By reducing rework of data entry, Dr. Cristopher estimated an annual savings of $40,000.

An outside vendor offered to sell Columbus Sulphur Co. the two-day workshop materials and usage rights for $10,000, for one year only. Costs for delivery, loaded salaries of attndees, and other miscellaneous expenses would be $6000. The total costs of the one-year program investments would be $16,000.

Before making a decision on whether they should purchase the workshop for one year, upper management requested cost-benefit projections.
_______________________________________________________
Calculate the following:

ROI Annual Savings $40,000
Average Investment 16,000 %


Cost/Benefit Total Benefits $40,000
Ratio Progam Cost 16,000 Ratio

Payback Total Investment $16,000
Period Annual Savings 40,000 Yr Months
_______________________________________________________

Companies will look at the bottom line - return on investment - only, unless they are in a position where there is a problem and the other evaluation level can be more helpful

Some companies are getting away from using evaluation level one

Experimental Bias - the favoring of certain outcomes over others

Mandated Training - when training is mandated to the learner, instructors should be sensitive to this and take measures to prepare the student for instruction by identifying and accomodating student needs for specific training, hours, break periods, etc.

Measure and quantify proposed changes to the organization

90 Second Evaluation
This course was very interesting and also very applicable to my job. I like that the course was about application of the subjects learned. The lessons I found to be the most useful to my learning of assessment were:

1. The ADDIE model. Though I had a brief intro to this in the first course, it was good to go back and do a thouough review and expansion on this.

2. The levels of assessment. This was an entirely new concept that I felt filled in some of the blanks and added to the ADDIE model.

3. The levels of evaluation. I also had a brief intro to this, but this course expanded my knowledge of this topic and explained in detail how it is applied. I appreciate the application focus and extra time spent on this.

4. New concepts. The Pygmalion effect, the Hawthorne effect and the Primacy Recency effect just to name a few were outstanding to learn. Real college stuff.

5. Building rubrics. This is something that I feel is outstanding because it standardizes evaluation at a deeper level than just a checklist.

"Chaotic action is preferable to organized inaction."
--Will Rogers