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All projects do not need Level 5 evaluation

The concept of cost-benefit analysis in ROI Methodology® shows the value of the programs, projects and initiatives. The ROI Methodology categorizers evaluation data into 5 levels, starting from level 0 to level 5, they tell the ultimate story of the program success.

A brief explanation of all the levels

0: Input: This level helps you to create the initial planning for your program. It helps in determining the participants, costs, efficiencies of the programs. 

1: Reaction & Planned Action: This level measures participant satisfaction with the program and helps you to capture or plan your actions.

2:  Learning: Every program or initiative has a learning component. The learning measurement takes place during the program and helps in measuring changes in knowledge and skills.

3: Application & Implementation: Measuring application and implementation provide evidence about what exactly the participants and employees have learned from the program, and how well they are implementing it in their workplace.

4:  Business Impact: This Level helps you to connect your program into important business impact measures. To achieve the organizational goals this level helps in improving the business productivity, quality coast and more.

5: Return on Investment (ROI): The ultimate measure for the success of a program or an initiative. This level compares the monetary benefits to the costs.

What we measure at all these level and recommend use in the percentage of programs?

Inputs (100%): Measures inputs into programs including several programs, participants, audience, costs, and efficiencies. 

Reaction (90-100%): Measure reaction to, and satisfaction with, the experience, ambience, content, and value of the program. 

Learning (60-90%): Measures what participants learned in the program — information, knowledge, skills, and contacts (takeaways from the program).

Application and Implementation (30-40%): Measure progress after the program — the use of information, knowledge, skills, and contacts.

Impact (10-20%): Measures changes in business impact variables such as output, quality, time, and cost linked to the program.

ROI(5-10%): Compares the monetary benefits of the business impact measures to the costs of the program.

Examples of programs that do not need to go to a level 5 evaluation

There is no need to evaluate all the programs up to the Level 5 ROI as it can give rise to a situation of over-analyzing the initiative and creating a circumstance which is known as “Paralysis By Analysis”.

We recommend that you go up to a  Level 5 evaluation only for your more expensive and more critical programs. We recommend you to do the Level 5 evaluation for 10 to 15% of your programs. 

Let's have a look into a few examples where we do not need Level 5 Evaluation: 

Mandatory compliance program:  A compliance program is a set of internal policies and procedures set by organization or companies to comply with laws, rules, and regulations. The primary aim of a  compliance program to uphold the business reputation. Compliance programs are created by the compliance team who examines the rules set forth by government bodies. They create a compliance program, implements it throughout the company, and finally enforce adherence to the program. Therefore, such a  program do not need the determination of ROI. 

Statutory training programs: This program is extremely relevant in industries like pharma, large law firms. Evaluating the ROI of a statutory training program is described as ‘essential’ as it ensures the staff know to maintain a healthy and safe working environment for themselves and their colleagues. But you do not need to measure Statutory training programs up to Level 5 ROI as this is a learning program where knowledge is demonstrated. Therefore, you can essentially measure the program up to Application and Implementation. 

Prevention of sexual harassment: Sexual Harassment is a crime and it must be prevented. Whether its sexual harassment in the workplace, society, or in educational institutions a proper program can prevent it. When it comes to the evaluation of prevention of sexual harassment, such a  program can be measured till Level 3 Learning. You do not need to measure such a program from the level of application and implementation as it becomes irrelevant. 

A new hire training program: Organizations have to provide training to new hires so that they can understand the processes and systems within the organization. If you don't provide the training people won't be able to provide or perform the task. Therefore, there is no need to measure the ROI of the newly hired training program. Through their presence and behaviour, you can also gather an idea about their grievances and attachment with your company. This step improves team member involvement and also boost communication amongst the employee and the administration. 

ROI Methodology® helps organization owners to create a program packed with all kinds of information for the learner. It also helps to assess their satisfaction with the training. Evaluating the programs can motivate to apply what they have learned.

Organizations don't have to reinforce program evaluation up to Level 5 for all programs as it can be a time taking and costly process. While Level 5 measurements are important, the results of this level are required for project or programs where there is a need to know the benefits in monetary value.