Show Me the Money_ How to Determine ROI in People, Projects, and Programs

What it’s about

In an era where stakeholders increasingly demand to 'show me the money,' this book provides the most documented and widely used methodology in the world for proving the value of projects and programs across virtually any function—from human resources and learning to technology, Six Sigma, meetings, public policy, and social programs. The Phillips' ROI Methodology guides readers through a comprehensive process: aligning projects with business needs, setting objectives at five levels, collecting reaction, learning, application, and impact data, isolating the effects of the project from other influences, converting data to monetary values, tabulating fully loaded costs, and calculating ROI as a percentage. Fortified with case studies, guiding principles, conservative standards, and practical tips, the book teaches not only how to evaluate completed projects but also how to forecast ROI before launching them. For managers, analysts, consultants, and executives who need credible, balanced data to justify investments and earn a seat at the strategy table, this book demystifies the conversion of hard and soft measures into believable financial results.

The through-line

Who it’s for

A manager, analyst, consultant, or executive responsible for proving the value of projects, programs, and people who wants credible evidence of financial contribution.

The problem

Projects are expensive and often fail to demonstrate their monetary value, leaving stakeholders unconvinced that investments paid off. They feel pressured, skeptical, and fearful that their projects' value cannot be proven or might be exposed as negative.

The plan

1. Align the project with a legitimate business need and set objectives at five levels.
2. Collect reaction, learning, application, and impact data using credible methods.
3. Isolate the effects of the project from other influences.
4. Convert impact data to monetary values and tabulate fully loaded costs.
5. Calculate ROI, report intangibles, and communicate results to stakeholders.

The payoff

Projects deliver demonstrated, credible monetary value compared with costs. · The professional earns respect, a seat at the strategy table, improved support, and justified budgets. · Decisions are based on credible facts rather than opinions or gut feelings.

See our guide

• The Four-S Discipline — One System, Four Capabilities →
• Measure What Matters →
• Study People And Organizations With Scientific Rigor →
• Build a People Analytics Practice →
• The Behavioral Science Underneath It All →
• Build A People Analytics Function →
• Design The Organization And Change It →
• Do Research That Holds Up →
• Design Surveys People Answer Honestly →
• Understand What Drives Individual Performance →

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• Handbook of Regression Modeling in People Analytics →
• An Everyone Culture: Becoming a Deliberately Developmental Organization →
• Apa Handbook Io V2 →
• Armstrongs Handbook of Strategic Human Resource Management Improve Business Performance Through Strategic People Management →
• Beyond Hr Boudreau Ramstad →
• The Differentiated Workforce →
• Drive Pink →

Additional reading

• The Fifth Discipline: The Art and Practice of the Learning Organization · Peter Senge

  Referenced to support the importance of measuring learning (Level 2), as projects are a key way that organizations learn, adapt, and build intellectual capital.

• Freakonomics: A Rogue Economist Explores the Hidden Side of Everything · Steven D. Levitt and Stephen J. Dubner

  Used as a major case study to illustrate the critical need to isolate the effects of a project from other confounding variables to determine its true impact.

• The Wisdom of Crowds · James Surowicki

  Cited to lend credibility to using estimates from groups (participants, managers) as a valid method for isolating impact and converting data to money, showing that collective judgment can be highly accurate.

• The Balanced Scorecard: Translating Strategy into Action · Robert S. Kaplan and David P. Norton

  Referenced to highlight the trend of using scorecards to monitor key business measures, which are often the source for Level 4 (Impact) data in an ROI study.

• Flawless Consulting · Peter Block

  The author's recommendations are cited as a basis for the process of providing feedback on project progress, particularly how to handle both positive and negative data constructively.

Featured in these guides

• The Behavioral Science Underneath It All →Cited source
• Build A People Analytics Function →Cited source
• Measure What Matters →Cited source
• Design The Organization And Change It →Cited source
• Study People And Organizations With Scientific Rigor →Cited source
• Build a People Analytics Practice →Cited source
• Do Research That Holds Up →Cited source
• Design Surveys People Answer Honestly →Cited source
• Understand What Drives Individual Performance →Cited source