Take the Guesswork Out of Measuring ROI for Sales Training

Page 1 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com

What’s the poten=al ROI from . . . (pick one and brainstorm)

  #1 -‐ A fabulous haircut?   #2 -‐ A really nice new pair of shoes?   #3 -‐ Brushing your teeth?   #4 -‐ Snow skiing lessons?   #5 -‐ Dinner and movie with your significant other???

Good News: You’re already a measurement expert!


ASTD State of the Industry Reports

2004 Study Notes: Included 213 organiza=ons represen=ng the broadest range of size and industry. Considered by ASTD to accurately represent “the U.S. norm.”

Companies measuring at “Level 5 ROI” were included in the category “Level 4 Results.”

2005 Study Notes: Included 18 Fortune 500 companies par=cipa=ng in ASTD’s Benchmarking Forum. These organiza=ons represent the largest and most complex global learning organiza=ons.

ASTD Study #1

31% 14%

8%

74%

0%

20%

40%

60%

80%

100%

Level 1 ReacKon

Level 2 Learning

Level 3 Behavior

Level 4 Results

Level 5 ROI

ASTD Study #2

53.9%

22.9% 7.6%

2.1%

91.3%

0%

20%

40%

60%

80%

100%

Level 1 ReacKon

Level 2 Learning

Level 3 Behavior

Level 4 Results

Level 5 ROI

Page 3 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com © 2010 Beyond ROI, Inc. • www.getBeyondROI.com

Bersin Research: Most Valuable Measures?


What is Measured Now?

Bersin & Associates © November 2006


Desired vs. Actual Measurement…


Is there funding for measurement?

82% say, “We should spend more – or much more on measurement”


“You’ve always known that well designed

well implemented training can

change lives and grow the business…”

Now you can prove it.®


Who do we work with? Over 800 assessment and measurement projects completed with…


Why measure Power Messaging?

  Reason #1: Capture Business Results from Power Messaging –  how are we growing people? –  how are we growing the business?

  Reason #2: Accountability for Execu=on –  for actually using new knowledge, skills, and process –  for manager involvement

  Reason #3: Feedback for Coaching to Power Messaging –  simple –  relevant –  ac=onable


The Science: What do we measure?

Effect “How much does

it help?” Linked to…

Cause “How much is it used?”

Leading Indicators (surveys)

  use of 19 Power Messaging skills, processes, and tools

  5 coaching ac=vi=es

  9 support and reinforcement ac=vi=es

Lagging Indicators (your metrics)

  Success Stories – with actual customers

  Pipeline growth

  Performance against plan

  Deal size, Margin, Volume, etc.


How do we get them to be honest?



Leading Indicators: How much are they using it?

Overall Power Messaging Applica=on: 70.1% (excluding Coaching)

82% return (92 of 112)


Leading Indicators: Most used Power Messaging skills?

82% return (92 of 112)


Leading Indicators: Least used Power Messaging skills?

82% return (92 of 112)


What about the “Lagging Indicators?”




Leading Indicators (surveys)

  use of 19 Power Messaging skills, processes, and tools

  5 coaching ac=vi=es

  9 support and reinforcement ac=vi=es

Lagging Indicators (your metrics)

  Success Stories – with actual customers

  Pipeline growth

  Performance against plan

  Deal size, Margin, Volume, etc.


Lagging Indicators: 64% Provided Success Stories (59 of 92 parKcipants)

PercepKons of Value in the Success Story: “Overall, how much did your use of the principles, tools, and skills from Power Messaging contribute to your SUCCESS in this par=cular sales situa=on?”


Reality Check®: Success Story Summary

Number of Stories

Closed Business

New OpportuniKes

Impact of Power Messaging on Success

Total Factored Value

4 $9,200,000 $11,450,000 “made all the difference” -‐ 100% $20,650,000

21 $19,718,000 $69,600,000 “made a significant difference” -‐ 75% $66,988,500

19 $21,250,000 $51,790,000 “made some difference” -‐ 50% $36,520,000

3 $1,250,000 $2,500,000 “made a likle difference” -‐ 25% $937,500

1 $0 $200,000 “made no difference, or worse” -‐ 0% $0

48 $51,418,000 $135,540,000 $125,096,000

Financial Impact: A total of $51,418,000 in closed business and $135,540,000 in new poten=al business was reported in 48 success stories with specific examples of how Power Messaging was used in the sales process.


Reality Check®: Success Story Summary

How were Success Stories captured? Similar to a behavioral interview, the RealityCheck success stories enable par=cipants to provide a single specific example of a =me when they used Power Messaging with an actual customer.

What do the numbers mean? Success Stories are simply a way to LINK applica=on and results. Because we asked about only one opportunity per par=cipant, these totals do NOT represent the full impact of the Power Messaging program.

Totals were gathered according to these conservaKve standards:

 If a range of values was provided in the success story, we used the lowest number (e.g., one par=cipant reported “35K -‐ 100K closed” then $35,000 was counted).  If we did not see clear evidence of the Power Messaging principles, skills, and strategies in the RealityCheck™ success stories, the revenue was NOT included.  We encourage you to do a “spot check” on a handful of success stories to verify the closed and poten=al revenue amounts provided by par=cipants to verify accuracy.


Comparisons: Leading and Lagging Indicators




  Comparison #1 – How does coaching impact Power Messaging usage?

  Comparison #2 – How does higher Power Messaging usage correlate with larger sales?

  Comparison #3 – How does higher Power Messaging usage correlate new opportuniKes?


Comparison #1: by Coaching . . .

PowerView QuesKon: “Your mastery of Power Messaging skills and principles will con=nue to improve over =me, especially when you apply them regularly with a helpful coach, and take advantage of the available reinforcement content.”

82% return (92 of 112)


Comparison #1: Coaching and Skill ApplicaKon Basis for Comparison: Coaching Ac=vity (5 items) compared to each par=cipant’s applica=on of Power Messaging skills (19 items). Both scales run from 0-‐100% of the =me.

StaKsKcal Significance: The rela=onship between manager involvement and skill usage is sta=s=cally significant, where Student’s T-‐test = 6.119, confidence interval of p < 0.028 @ 84 d.f. (two-‐tailed test, type 1 error, 95% confidence interval).


Comparison #1b: Coaching and Skill ApplicaKon Basis for Comparison: Coaching Ac=vity (5 items) compared to each par=cipant’s applica=on of Power Messaging skills (18 items). Both scales run from 0-‐100% of the =me.

StaKsKcal Significance: The rela=onship between manager involvement and skill usage is sta=s=cally significant, where Student’s T-‐test = 6.638, confidence interval of p < 0.01 @ 86 d.f. (one-‐tailed test, type 1 error).


0% 25% 50% 75% 100%

“Always” “Never” “Some=mes” “Rarely” “Frequently”

Num

ber of Par=cipants

“Low Adopters”

“High Adopters”

Comparison #2: by Skill ApplicaKon . . .


Comparison #2: Skill ApplicaKon and Closed Business Basis for Comparison: We compared par=cipants with “above” vs. “below average” applica=on of 19 Power Messaging skills to closed business, as captured in in 48 Success Stories.

StaKsKcal Significance: The rela=onship between skill usage and closed business is sta=s=cally significant, where Student’s T-‐test = 3.426, confidence interval of p < 0.002 @ 28 d.f. (two-‐tailed test, type 1 error, 95% confidence interval).


Comparison #3: Skill ApplicaKon and New OpportuniKes Basis for Comparison: We compared par=cipants with “above” vs. “below average” applica=on of 19 Power Messaging skills to new opportuni=es, as captured in in 48 Success Stories.

StaKsKcal Significance: The rela=onship between skill usage and new opportuni=es is sta=s=cally significant, where Student’s T-‐test = 4.882, confidence interval of p < .01 @ 44 d.f. (two-‐tailed test, type 1 error, 95% confidence interval).


Comments: How will Power Messaging impact your Career?

  “Power Messaging (Corporate Visions) is not just a course that you take like a SPIN selling or any other sales course we have all taken. This is something that if you truly embrace it will change not only you, but your customers and anyone you deal with in life. I am not the same Account Manager I was before this course and I am on a different Career path than I was before (In a Good Way).”

  “Best training and program we have ever had and used -‐ very pracPcal and relevant. Can only make me a beQer salesperson.”

  “It has definitely made me a beQer sales rep in the eyes of my customers. Larger sales. I feel it was the best applicable training I have received in 5 years.”

  “It just creates a whole new way of thinking as I prepare for and execute meePngs with customers. I think it helps us think outside the box and posiPon ourselves different that our compePPon in life and sales. I think it helps us see the whole picture in all that we do.”


ADDITIONAL RESULTS Appendix A


Overall PercepKons of Power Messaging: Value

Overall Value of Power Messaging: “Overall, how VALUABLE are the principles, techniques, and skills in Power Messaging to you in your role?”

82% return (92 of 112)


Overall PercepKons of Power Messaging: PracKcality

Overall PracKcality of Power Messaging: “Overall, how PRACTICAL are the Power Messaging tools and messages to you in your role?”

82% return (92 of 112)


Industries we’ve gonen to know:

  high-‐tech   telecom   financial and business services   energy and petrochemical   manufacturing   consumer packaged goods   pharmaceu=cals   medical equipment

  transporta=on   insurance   media   commercial real estate   M&A, venture capital   churches, schools, and prisons