Deep in budget restraints: return on investment (ROI)

ABSTRACT

The University of Missouri-Columbia's Information and Access Technology (IAT) Services division's InfoTech Training department measures IT training using the return on investment (ROI) methodology. The ROI measurement estimates a campus-wide financial return in staff productivity through more efficient use of software features. In fiscal year 2002 (July 1, 2001 to June 30, 2002), InfoTech Training's program calculated a 218% ROI.Senior IT management uses ROI methodology in part for resource allocation decisions. ROI measurement is particularly crucial during tight budget times and can help justify the investment in training staff, hardware, software, classroom maintenance, and instructional materials.The InfoTech training manager uses ROI to identify inefficient programs in need of redesign or elimination, and identify successful programs in need of expansion. This paper explores the challenges of: Collecting and Analyzing Data and Determining a Return on Investment.

REFERENCES

• 1: Salois, Gene. "Case Studies in the ROI of Training". Chief Learning Officer, March 2003, pp. 41--3, p. 59, and p. 64. Also, http://www.clomedia.com/content/templates/clo_feature.asp?articleid=132&zoneid=31
• 2: Carliner, Saul, Ph.D. "Demonstrating the Effectiveness and Value of Technical Communication Products and Services: A Four-Level Process". Frederickson Communications website (www.fredricksoncommunications.com), August 2001.
• 3: Kirkpatrick, D.L., Evaluating Training Programs: The Four Levels. San Francisco, CA: Berret-Koehler Publishers, 1994.
• 4: American Society of Training & Development (ASTD) Training Outcomes Benchmarking Report, Part II-B Follow-Up Evaluation, 2002.

INDEX TERMS

Primary Classification:
  K. Computing Milieux
  K.3 COMPUTERS AND EDUCATION
      K.3.m Miscellaneous

General Terms:
Documentation, Management, Measurement, Performance

Keywords:
Kirkpatrick's four levels of evaluation, ROI, training