Six Steps To Achieve Positive ROI

Return On Investment (ROI) is a key performance indicator used by businesses to measure the profitability of programs, services, and projects. ROI provides information to a business related to the success or failure of their programs/projects. Instead of relying on guesswork, you can use a proven Methodology to determine your Return On Investment. 

ROI Methodology® includes a systematic approach of planning, analyzing, and optimizing data collected by the business owners and determining the success of a program. Also, ROI Methodology helps business owners to analyze their initiatives through proper surveys. The Methodology also includes methods to preserve your findings so that you can use it in the future. 

Mentioned below are six steps that you can follow to create a positive ROI for your business:

• Always start with WHY: Organizations only pursue programs that have a connection to the business. Therefore, whenever you are starting a program or service, start it with finding the "WHY." The first step to the ROI Methodology. Begin with questions like what is the need for the program? Is the program worth doing? What are the stakeholder's needs? Will the program add to the productivity of your business or organization?

• Ensure its feasibility: After determining the business needs, focus on possible ways to improve the business measures. Identify the cause of the problems and start addressing the opportunities. You can address questions like, what changes will make the program more favorable for learning? What measures can one take as part of the program that will enable success?

• Expect success with objectives: Based on the initial analysis, you can start setting program objectives. Program objectives enable business owners to increase the productivity of the programs and meet demands. They help set the right expectations, for the right target audience, at the right time, with the right subject matter. ROI Methodology suggests developing objectives based on five levels - Reaction, Learning, Application, Impact, and ROI.

• Design for Application and Impact: Designing for application and impact is about creating a culture that fosters implementation and experimentation as well. Business owners must not stop at just providing the learning to the participants. They must also ensure that learnings are applied. Also, the programs must produce the right results and impact. Focusing on Application and Impact will help create action plans that will help to attain positive results. Communicate the action plan requirement early and also try to identify at least one impact measure. In this step, describe the action planning process and allow time to develop a plan. You can use templates to design the correct application and impact of your business program. 

• Measure Application and Impact: Using statistics, data analysis, questionnaires, surveys, and interviews can help you Measure Application and Impact. The impact analysis will help you to identify the expected benefits from your business program. There are various methods to Measure Application and Impact, like asking participants to isolate the effects of the program and share their confidence for the estimates. You can also use sampling as a method to measure application and impact. Or you can create control groups within the organization to look at the change that the groups bring. 

• Use process improvement techniques: You can use the Black Box Thinking technique to increase funding for future programs. It is a technique that helps to track and store every record of data so that it is available for use at a later point in time. Whether the data you have collected is delivering results or not, you can reserve the information collected for future use. If you have similar projects in the future, you know what steps to take and which ones to avoid for a positive ROI.

Using the above steps, you can determine the effectiveness of your business programs and decide whether it is helping you to meet your business goals. You can also use these techniques when you implement a project for your clients or customers. It will help you showcase the positive ROI for the investment made by the client.

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