Transcript Document

Evaluating Return on
Investment
Dr. Elling Hamso
Managing Partner
European Event ROI Institute
ROI Surgery
St James Room
(next to Fairmont Empress breakfast room)
Monday
17:15 – 18:15
Tuesday
08:00 – 09:00
10:15 – 10:45 (coffee break)
15:00 – 18:00
Wednesday
0800 – 1300
The Phillips ROI Methodology
• Refined over a 20-year period
• Thousands of ROI studies conducted every year
• 100 case studies published
• 3 000 individuals certified
• 50 books written to support the model
• Adopted by hundreds of organizations in more
than 40 countries
Some Users of the Methodology
 AT&T
 Coca Cola
 General Motors
 Hewlett Packard
 Hilton Hotels
 Motorola
 PricewaterhouseCoopers
 Shell Oil
 Singapore Airlines
 US Department of Defense
 NASA
 Government of Italy
 Government Canada
Some Areas of Application
• Management Training
• Sales Training
• Team Building
• Organization Development
• Recruiting Strategies
• Safety & Health Programs
• E-Learning
• Coaching
• Executive Training
• Self-Directed Teams
• Compensation Strategies
• Technology Implementation
• Customer Binding
• Meetings and Events
• Quality Six Sigma
• Wellness/Fitness
Initiatives
Stakeholders
A stakeholder is anyone who would say:
”It is important to me that this meeting is
successful and meets my objectives”
The Purpose of Corporate Events
To INFLUENCE* participants
to DO something
which adds VALUE to stakeholders
at the lowest possible COST
* or educate, empower, inspire, persuade
The ROI of Conference Attendance
To LEARN something
which enables me to DO something
which provides VALUE to me or my company
The Event ROI Pyramid
ROI
Business Impact
Application
Learning
Satisfaction & Planned
Actions
How will you use what you learned?
No
Probably
Not
Maybe
Probably
Yes
Definitely
Average
Score
Discuss with my colleagues
0%
0%
0%
37.5%
62.5%
4.6
Review risk management
procedures in my organisation
0%
0%
0%
50%
50%
4.5
Conduct formal risk assessments
before major events
0%
0%
50%
37.5%
12.5%
3.6
Review how we check on
suppliers’ safety procedures
0%
12.5%
12.5%
62.5
12.5
3.8
12.5%
12.5%
62.5%
0%
12.5%
2.9
0%
0%
0%
0%
0%
0.0
Meet with our insurance brokers
to review current policies
Other (specify below)
Do you know the basic principles of how to assess risk?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100
%
Avg
BEFORE the seminar
0
2
0
4
2
2
4
0
0
0
0
40%
AFTER the seminar
0
0
0
0
0
0
0
4
2
2
6
87%
Do you feel comfortable with leading a risk assessment exercise
for a major event?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100
%
Avg
BEFORE the seminar
2
2
2
2
0
4
2
0
0
0
0
31%
AFTER the seminar
0
0
0
0
2
4
0
0
4
2
2
70%
Could you draw a matrix for classification fo different types of risk?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100
%
Avg
BEFORE the seminar
6
2
2
2
2
0
0
0
0
0
0
14%
AFTER the seminar
0
0
0
0
2
4
0
2
2
0
4
70%
Could you list the four different risk management alternatives?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100
%
Avg
BEFORE the seminar
8
2
0
2
0
2
0
0
0
0
0
13%
AFTER the seminar
0
0
0
0
0
2
6
2
0
0
4
71%
Data Analysis
Isolating the effects of the meeting
Total measured Impact
The Problem:
Other
Influences
Meeting
Impact
The Solution:
• Control groups
• Forecasting methods
• Trend analysis
• Participants’ estimates
• Supervisors’ estimates
• Outside experts
© Copyright 2004 ROI Institute
Data Analysis
Using control groups to isolate
the effects of the meeting
Retail
Merchandise
Company
Interactive Selling Skills Programme
Two
groups
of 3 stores
matched–on:
•Store size
•Store location (median houshold income in the area)
•Customer traffic levels
•Previous store perfomance
Weekly sales 3 months after training ($)
Trained group
Control group
Increase due to training
12,075
10,449
1,626
(ROI was in this case calculated to be 118%)
© Copyright 2004 ROI Institute
Data Analysis
Participants’ estimates of factors influencing sales
increase following training seminar
Elements influencing
sales increase:
Sales training seminar
Advertizing campaign
Incentive programme
Product improvements
Other factors
Total
Influence
factor
9%
16%
7%
49%
19%
100%
Confidence of
estimate
Adjusted
influence factor
65% (i.e. 6 – 13%)
6%
ROI estimated to be120% (manufacturer) 320% (UK import agent)
ROI Handbook
Objectives;
issues;
challenges
Session/speakers;
contacts;ideas;
sales leads; notes
Activities/
follow-up
Results;
successes;
values/savings
Books and Resources
Some useful websites:
www.eventroi.org European Event ROI Institute
www.roiinstitute.net ROI Institute, Inc.
Books:
“Proving the Value of Meetings & Events” Jack J. Phillips, Monica Myhill and
James B. McDonough, available from www.eventroi.org
”Measuring the Return on Investment in Meetings and Events” Jack J. Phillips
and Terri Brining, available from www.amazon.com
“Return on Investment in Training and Performance Improvement Programs”
Jack J. Phillips, available from major booksellers and www.amazon.com
”Show me the Money” Jack J. Phillips, available from major booksellers and
www.amazon.com
ROI Courses in Europe
5-Day Event ROI Certification Course with Jack Phillips
31 August – 4 September 2009, Brussels, Belgium
1-Day Event ROI Courses
London, Amsterdam, Brussels, Dublin, Frankfurt,
Dusseldorf, Hamburg, Barcelona, Madrid, Milan, Turin,
Copehagen, Stockholm, Helsinki, Warzawa, Tallin.
Information and registration on www.eventroi.org
ROI Training & Consulting Services
In-house Training Courses
1 – 3 days staff training
Customer Training Courses
1-day course with event agency and customers
ROI Impact Studies
Evaluate the ROI of your event
ROI Quickscan
Review and report on the potential improvements in ROI for
your event
www.eventroi.org
Event Evaluation Awards
Best Event Evaluation Awards
Spain, Italy, Belgium, Sweden
International Awards
EIBTM – Best Event Awards
EuBEA - European Best Event Award
Contact Details
European Event ROI Institute
Dr. Elling Hamso
Managing Partner
E-mail: [email protected]
Telephone: +47 90 12 24 18