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Melissa Van Dyke, President Incentive Research Foundation

Transforming Measurement: Improving ROI in Incentive Programs. Melissa Van Dyke, President Incentive Research Foundation. “The Way We Were”. The Master Measurement model - 2002 benefit and feedback reports. Master Measurement Model. Step by Step Measure Performance Dollar Values

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Melissa Van Dyke, President Incentive Research Foundation

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  1. Transforming Measurement: Improving ROI in Incentive Programs MelissaVanDyke, President Incentive Research Foundation

  2. “The Way We Were” The Master Measurement model - 2002 benefit and feedback reports

  3. Master Measurement Model • Step by Step • Measure Performance • Dollar Values • Program Budgets

  4. Vital Elements • Base Data • New Data • New/Base Data • Weights • Weighted Results

  5. Measuring Performance: 3 Tenets • Balance • Weight • Criticality

  6. Proposed Family of Measures • Weighted calls per rep 25% • Total service cost per weighed call 25%* • Time between visits 20% • Customer satisfaction survey scores. 20% • Time to complete paperwork 10%* * A decrease means improvements for this measure

  7. PERFORMNCE REPORT Critical: Total Weighted Result, 102.5. Performancerose 2.5%

  8. Benefit Report: Moving to Financial Data

  9. Current State: Simple ROI Absenteeism Example

  10. SIMPLE ROI Set Goal Monetize Benefit Set Budget Calculate ROI

  11. Example • Set Goal: • Improve Absenteeism Index by 8% • Monetize Benefit (Collaborate!) • 10 absences a week lead to $5000 in overtime and wasted management effort • 1 % change in index = $10,000 cost savings • Establish Program Budget/Cost • Calculate Program Benefit and ROI

  12. Calculate ROI Benefit = ((New Data - Base Data) * $ Per Unit Improvement) ROI= (Program Benefit - Program Cost)/ (Program Cost)

  13. Calculate ROI Benefit = (98-90) * $10,000) = $80,000 ROI= (80,000- 50,000)/50,000 = 60%

  14. Safety Courtesy Show Effectiveness More than Just Tasks:Disney Recognizes 4 Attributes

  15. Immediate Future IRF MMM Tool

  16. Missing Elements of MMM Adverse Impact Causality Confidence

  17. Real Time Walk Through of Phase I IRF tool. http://www.myvirtualpartner.net/irf/

  18. Near/Distant Future Linkage and Targeting

  19. Additional Considerations Linkage Targeting

  20. Lessons From HR & Human Capital Management Linkage & Predictive Analysis

  21. Lessons From HR & Human Capital Management

  22. Lessons From HR & Human Capital Management Measuring and Predicting the Impact of Human Capital Investments

  23. Stages of Measurement

  24. 10 Measurement Principles • Number and “ease” of measures: 2 to 5, not complex • Baseline data • Involvement • Targeting • Linkage • Causality • Predictive analysis • Unintended Consequences • Conservative financial assumptions • Demonstrating ROI

  25. FUTURE?

  26. Give us “The One Big Thing”

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