How Have You Translated Squishy OD Interventions into Tangible Benefits/Financial Terms?
[Jamie was the winner of our special January giveaway. The was the first installment of the new OD Network Business Acumen webinar series, presented by ODLG member Julia Geisman of Millennium Learning, Inc., who also deserves thanks for getting ODLG this prize.]
I wanted to share some key learning’s from Julia Geisman’s webinar on "Understanding ROI: Measuring the Value of Your OD Interventions".
First, Why Bother? Translating OD/Learning interventions from an expense to an investment can accomplish the following:
*Gain management support
*Justify the OD budget
*Create a direct link between OD and business initiatives.
The key challenge is transforming “squishy” OD program initiatives into hard data that translates to financial terms. For example, a program to increase employee performance is important why? Well, to increase productivity. By what per cent? Answer: by increasing revenues by 5 percent. OK, so what is the dollar amount of 5 precent of revenues? Now, what is the intervention going to cost and does the outcome/benefit outweigh the cost and effort? Julia has some powerful yet easy to understand and communicate (ie: can be explained to other in 2 minutes or less) calculations for demonstrating cost vs. benefit.
Julia has a knack for drilling down into the business impact of an intervention by asking why, why, why until the “bottom line result” of the intervention is uncovered.
Have you translated OD interventions into dollars and helped clients or internal folks understand the cost/benefits of your work? What’s your approach?
Principal, Employee Performance Solutions