ROI Analysis

Team Mission

Our mission is to provide the RDP organization with tools and guidance to aid in essential skill development for RDP professionals. We will create an enterprise process to develop and maintain a strong internal bench of qualified, motivated RDP professionals.

Business Needs Assessment	Program Objectives (samples only)	Evaluation	Evaluation Level
Need to reduce costs associated with turnover, recruitment & selection workforce planning, performance management, orientation & development, career management	ROI of at least 20% at end of first 18 months of initiative, then at least 50% at end of first 36 months	Calculate ROI Cost: program development, implementation, maintenance, upgrade Benefit: turnover reduction, improved recruitment & selection & orientation & development processes, increased employee productivity	5— ROI
Attrition is too high Internal bench is too shallow Motivation can be improved Lack of consistent enterprise processes for employee development * * defining and communicating performance expectations, assessing and filling competency gaps, defining and promoting career path model	Reduce attrition by X% by 2002, 2003, 2004, etc. Increase the internal bench to an average 2 qualified candidates for mgmt positions, 3 qualified for senior individual contributor positions by end of 2002 Increase the diversity of experience of employees by 35% by end of 2002 Increase the % of RDP mgmt placements made by internal candidates to 90% by end of 2002 Develop enterprise-wide processes for developing organizational capabilities	Measure attrition by reason for separation Measure depth of internal bench for categories of positions Measure the diversity of experience for categories of positions Measure the % of RDP mgmt placements made by internal candidates Measure employee satisfaction with career opportunities Measure the availability and variability of processes for employee development	4— Business Impact
Management can improve the definition and communication of performance expectations, the assessment and closing of competency gaps Management can improve the definition and communication of the RDP career path model, the support of employee’s efforts to reach his/her career goals	Achieve agreement amongst at least 90% of RDP employees that their managers are effective in: communicating performance expectations, helping them identify and close performance gaps through assessment and developmental activities, measuring and recognizing progress in closing the gaps. communicating RDP Career Path model and opportunities, coaching them in the development and pursuit of their career goals Achieve 100% utilization by RDP managers of the organizational development processes that this initiative produces	Measure effectiveness of RDP manager’s dialogue sessions in the areas identified under program objectives survey the direct reports using the Likert scale and additional open-ended questions frequency of dialogue sessions focused on performance and career issues Measure the consistency by which RDP managers utilize the processes developed by this initiative	3— On the job application

Sample survey
Manager’s Effectiveness in addressing performance and developmental needs of direct reports and Employee Satisfaction with Career Development

Please use the following scale to indicate your level of agreement with the following statements.

5= I strongly Agree
4= I Agree
3= I am uncertain
2= I Disagree
1= I strongly Disagree

My supervisor clearly describes his/her expectations for my performance in my current role in terms of results to achieve and processes to use. ___
My supervisor clearly describes the competencies he/she believes I need to achieve my performance expectations. ___
My supervisor assists me in assessing any gaps I may have in these competencies. ___
My supervisor helps me close any such gaps through developmental activities and coaching. ___
My supervisor frequently reviews my developmental efforts to assess their effectiveness and to address any additional needs I may have. ___
My supervisor recognizes my successes in achieving my performance expectations. ___
My supervisor recognizes my successes in my developmental efforts to close any competency gaps. ___
My supervisor clearly describes the RDP career path model and what it means to me in terms of:
- the kinds of RDP opportunities available within the enterprise ___
- the process by which candidates for such opportunities are identified and selected ___
- the qualifications expected of candidates for such opportunities ___
- the degree to which I am qualified for such opportunities ___
- the avenues I can pursue to improve my qualifications ___
I am satisfied with the opportunities for professional growth within the enterprise. ___
I am comfortable engaging my supervisor in dialogue over performance and career issues. ___
I believe the RDP career path model makes sense. ___
I believe my supervisor devotes sufficient attention to improving my performance, developing my skills, and addressing my career interests. ___

Your comments:

Measure attrition of RDP employees by reason for separation.
- Focus on reasons surrounding dissatisfaction with current position, opportunities for growth and advancement, awareness of career development philosophy.
- Challenge: accuracy and availability of such data. Reason for resignation often is vague or misrepresented by employee.
- Action: Work with HR Generalist to gather and interpret data. Possibly enhance current exit interview process?
Measure depth of internal bench by number of qualified, motivated individuals to fill RDP management positions.
- Focus on defining qualified and motivated. Need to use the new competency proficiency and career path matrices (subteam #2) as basis.
- Need to define the specific positions for which this is measured.
- Need to define the group who will evaluate the candidates.
- Need to decide whether to report only those who are currently ready or also include those in the pipeline who are expected to be ready within a short time frame (within 12 months?).
- Challenge: getting consensus from the evaluating group on which of the candidates are qualified and motivated. Distinguishing different degrees of being motivated (prefer not to relocate, timing, etc.)
Measure the percentage of RDP management placements made by internal candidates.
Measure employee satisfaction with career opportunities.
- Survey the direct reports
- Challenge: interpreting and reporting the results. Does each survey item get equal weighting?
Measure effectiveness of RDP Managers Dialogue sessions.
- Survey the direct reports
- Frequency of dialogue sessions focused on performance and career issues
Measure distribution of RDP professionals on technical ladders - experience versus position on the ladder.
- Need to define the experience categories (plants vs HQ, plants with different technologies, different roles, etc.)
- Need to consider which variables to capture — time spent in each category of experience? Challenge: capturing such data, available from SAP? Job titles?
- Idea: developing an “experience diversity index” (possibly the number of different experiences divided by years of service x 10? Example: a 10 year employee with 5 different experiences would have a index score of 5; a 10 year employee with only one experience would have a score of 1) Would this capture the appropriateness of the experiences given the current or desired roles? Is more better? Is there an ideal score beyond which is undesirable?
Measure the availability and variability of processes for employee development.