ROI for the Public Good

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ROI for the Public Good

• Patti Phillips, Ph.D.

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The ROI calculation is simple.
BCR Program Benefits Program Costs
ROI Net Program Benefits Program Costs
X 100
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Try it!
175,000 80,000 175,000 - 80,000 80,000
BCR
???
2.19 or 2.191

• ???

ROI
X 100
119
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If the BCR is 11 then the ROI is
0
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If the BCR is .25 then the ROI is
-75
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To make it work requires more than a couple of
numbers!
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The evaluation framework categorizes program
results.
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Needs Program Assessment Objectives Evaluation
ROI Objectives Impact Objectives Applicat
ion Objectives Learning Objectives Satisfa
ction Objectives
Potential Payoffs Business Needs
Performance Needs Skills /
Knowledge Needs Preferences
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ROI Business Impact Application Learni
ng Reaction
5
4
4
3
3
2
2
1
1
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The ROI Process
Evaluation Planning
Data Collection
LEVEL 3 APPLICATION/ IMPLEMENTATION
LEVEL 1 REACTION, SATISFACTION, AND PLANNED
ACTIONS
Develop Objective of Program(s)
Collect Data After Implementation
Develop Evaluation Plans and Baseline Data
Collect Data During Program Implementation
LEVEL 4 BUSINESS IMPACT
LEVEL 2 LEARNING
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Tabulate Costs of Program
Data Analysis
Reporting
Generate Impact Study
Convert Data To Monetary Value
Calculate the Return On Investment
Isolate the Effects
LEVEL 5 ROI
Identify Intangible Measures
INTANGIBLE BENEFITS
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• Operating Standards
• Report the complete story
• Conserve resources
• Keep it credible
• Keep it conservative
• Give credit where credit is due
• Make no assumptions for non-respondents
• Adjust for error in estimates
• Omit the extremes
• Report first year benefits only
• Account for all costs
• Report intangible benefits
• Communicate and use your evaluation data

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The Complete Story of Program Success
Reaction Planned Action
Learning Confidence
Application Implementation
Isolate the Effects of the Program
Impact
ROI
Intangible Benefits
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Multiple Stakeholder Perspective
Reaction Planned Action
Learning
Application Implementation
Organization Impact
Stakeholder 2 Impact
Stakeholder 3 Impact
ROI Intangibles
ROI Intangibles
ROI Intangibles
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Initial steps to develop your strategy
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How do you make ROI work?
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1.6 million costs due to falsely rejected
syringes False rejects is a
problem Inspectors are incorrectly Identifying
syringes as unacceptable Deficiency in
skills to recognize unacceptable
syringes One-day workshop and introduction
to new job aid
5 4 3 2 1
5 4 3 2 1
ROI of at least 25 Reduce false rejects
10 within six months Follow the five step
process utilize job identify barriers. Underst
and five-step process and job aid know the
difference between acceptable and unacceptable
syringes Program receives favorable rating of 4
out of 5 on relevance participants intend to
use job aid
Calculate the ROI Monitor false reject for six
months Participant estimates for
isolation. Follow-up questionnaire to
participants to check frequency of skill
application and barriers 3 months post
Unscheduled audits over 6 mo. Demonstration
learning assessment Reaction questionnaire at
the end of program
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5 4 3 2 1
5 4 3 2 1

• Program costs compared to monetary benefits
• Monitor performance
• Compare to group not participating
• Monitor performance records
• Self report via questionnaire
• Verbal acknowledgement obtained by judge and
  parole
• officer

• 17.1 million costs due
• to drug-related offensives
• Recidivism of drug related offenders
• Offenders continue to
• engage in drug-related crimes after incarceration
• Do not take it seriously
• Do not understand consequences
• Do not know of support system

• 11 BCR / 0 ROI
• Reduce of re-arrests
• Reduce of convictions
• Increase time period of re-arrests or convictions
• Engage in treatment early
• Attend treatment sessions
• Appear in status hearings
• Eliminate drug use
• Identify barriers to participating.
• Understand costs and benefits of participation
• Understand program process and requirements
• Understand consequences of not participating
• Recognize program as relevant/important to their
  success