Return on Investment (ROI) Basics

Learning and performance professionals face constant pressure to provide reliable data that proves the value of their interventions. Who and what are the sources of data? What assumptions were made in the analysis? Is the information credible? What are the costs? These and many other questions around return-on-investment (ROI) calculation are difficult to answer authoritatively without a fundamental understanding of the ROI process.

ROI Basics aims to provide this baseline understanding to both novice and experienced learning and performance practitioners. The book carefully walks the reader through the ROI process from the planning stage, to the selection of appropriate programs, to the collection of data, and finally to the mathematical calculations that determine ROI. In addition, the book includes two important chapters often overlooked in the ROI process—communicating results and integrating ROI into an organization’s workplace learning and performance processes. Like all the books in ASTD’s Training Basics series, ROI Basics provides dozens of interactive tips, tools, and exercises along the way to encourage immediate application and promote understanding of the material presented.

About the Authors

Jack J. Phillips is chairman of the ROI Institute based in Chelsea, Alabama, and is the author or editor of more than 30 books and 100 articles. His expertise in measurement and evaluation is based on extensive research and more than 27 years of corporate experience in the aerospace, textile, metal, construction material, and banking industries. Phillips has served as a training and development manager for two Fortune 500 firms, a senior human resources officer, a regional federal savings bank president, and a university management professor.

Patricia P. Phillips is an internationally recognized author, consultant, and researcher. She is President and CEO of the ROI Institute and chairman of The Chelsea Group, an international consulting organization that supports efforts to build accountability into training human resources and performance improvement programs. Ms. Phillips holds a doctorate in international development and a master of arts degree in public and private management. She is certified in ROI evaluation and has been awarded the designation of Certified Performance Technologist. Her most recent book, The Bottomline on ROI won the 2003 ISPI Award of Excellence.