We are pleased to bring you a guest blog post today from Dr. Patti Phillips, president and CEO of the ROI Institute, Inc., the leading source of ROI competency building, implementation support, networking, and research. She is also chair and CEO of The Chelsea Group, Inc., an international consulting organization supporting organizations and their efforts to build accountability into their training, human resources, and performance improvement programs with a primary focus on building accountability in public sector organizations. Her husband, Dr. Jack J. Phillips, chairman of the ROI Institute, Inc., and a world-renowned expert on accountability, measurement, and evaluation, will be leading a workshop at SkillSoft's 2012 Annual Perspectives User Conference – “Show Me the Money: How to Determine ROI in People, Projects, and Programs.” This interactive workshop will introduce the concept of ROI ultimate accountability as participants are exposed to the ROI Process.
By Patti Phillips, Ph.D., President and CEO, ROI Institute, Inc.
Today’s business community is relying more on data about programs and projects than ever before. Yet, many people still ask:
How do we ensure the right measures are taken and that the connection between investment in our people and the results achieved is clear?
We do it through the process of business alignment.
Business Alignment
Business alignment is the process of ensuring that investment drives relevant business results. Achieving business alignment requires that programs, projects, and initiatives be positioned for success, and then, evaluated accordingly. There are three phases to business alignment:
- Clarify stakeholder needs
- Develop measurable objectives
- Evaluate accordingly.
Clarify Stakeholder Needs
Initial alignment occurs when stakeholder needs are identified, which begins with potential payoff for opportunities or problems. These payoff opportunities represent an organization’s opportunity to make money, save money, and/or avoid costs. Some payoff opportunities are obvious, such as a $1.5 million cost due to unwanted employee turnover. Other payoff opportunities are not so obvious, like the desire to become a great place to work.