1 / 48

Master Measurement Model for Improved ROI in Incentive Programs

Explore the master measurement model by Melissa Van Dyke to enhance incentive program ROI through step-by-step performance measurement, dollar values, and vital elements for effective results. Learn to calculate ROI and boost performance with practical examples and essential insights for transforming measurement strategies. Advance your understanding of measuring performance, predicting impact, and achieving financial success in incentive programs.

roseberry
Télécharger la présentation

Master Measurement Model for Improved ROI in Incentive Programs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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”

More Related