Evaluating Return on Investment

Dr. Elling HamsoManaging Partner

European Event ROI Institute

St James Room(next to Fairmont Empress breakfast room)

Monday 17:15 – 18:15

Tuesday 08:00 – 09:0010:15 – 10:45 (coffee break)15:00 – 18:00

Wednesday0800 – 1300

ROI Surgery

• 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

The Phillips ROI 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 Users of the Methodology

• Management Training

• Sales Training

• Team Building

• E-Learning

• Coaching

• Executive Training

• Customer Binding

• Meetings and Events

• Organization Development

• Recruiting Strategies

• Safety & Health Programs

• Self-Directed Teams

• Compensation Strategies

• Technology Implementation

• Quality Six Sigma

• Wellness/Fitness Initiatives

Some Areas of Application

A stakeholder is anyone who would say:

”It is important to me that this meeting is successful and meets my objectives”

Stakeholders

To INFLUENCE* participants

to DO something which adds VALUE to stakeholders

at the lowest possible COST

* or educate, empower, inspire, persuade

The Purpose of Corporate Events

To LEARN something

which enables me to DO something which provides VALUE to me or my company

The ROI of Conference Attendance

Satisfaction & Planned Actions

Learning

Application

Business Impact

ROI

The Event ROI Pyramid

How will you use what you learned?

NoProbably

NotMaybe

Probably Yes

DefinitelyAverage

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

Meet with our insurance brokers to review current policies

12.5% 12.5% 62.5% 0% 12.5% 2.9

Other (specify below) 0% 0% 0% 0% 0% 0.0

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%

• Control groups

• Forecasting methods

• Trend analysis

• Participants’ estimates

• Supervisors’ estimates

• Outside experts

The Solution:The Problem:

OtherInfluences

MeetingImpact

Tota

l m

easu

red

Im

pact

Isolating the effects of the meeting

© Copyright 2004 ROI Institute

Data Analysis

Using control groups to isolate the effects of the meeting

© Copyright 2004 ROI Institute

Retail Merchandise Company – Interactive Selling Skills ProgrammeTwo 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 12,075Control group 10,449Increase due to training 1,626

(ROI was in this case calculated to be 118%)

Data Analysis

Elements influencing sales increase:

Sales training seminarAdvertizing campaignIncentive programmeProduct improvementsOther factorsTotal

Participants’ estimates of factors influencing sales increase following training seminar

Confidence of estimate

Adjusted influence factor

65% (i.e. 6 – 13%) 6%

Influence factor

9%16%

7%49%19%

100%

Data Analysis

ROI estimated to be120% (manufacturer) 320% (UK import agent)

ROI HandbookObjectives; issues; challenges

Session/speakers; contacts;ideas; sales leads; notes

Activities/follow-up

Results; successes; values/savings

Some useful websites:www.eventroi.org European Event ROI Institutewww.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

Books and Resources

5-Day Event ROI Certification Course with Jack Phillips

31 August – 4 September 2009, Brussels, Belgium

1-Day Event ROI CoursesLondon, Amsterdam, Brussels, Dublin, Frankfurt, Dusseldorf, Hamburg, Barcelona, Madrid, Milan, Turin, Copehagen, Stockholm, Helsinki, Warzawa, Tallin. Information and registration on www.eventroi.org

ROI Courses in Europe

In-house Training Courses1 – 3 days staff trainingCustomer Training Courses1-day course with event agency and customersROI Impact StudiesEvaluate the ROI of your eventROI QuickscanReview and report on the potential improvements in ROI for your event

www.eventroi.org

ROI Training & Consulting Services

Best Event Evaluation Awards

Spain, Italy, Belgium, Sweden

International AwardsEIBTM – Best Event Awards

EuBEA - European Best Event Award

Event Evaluation Awards

Contact Details

European Event ROI Institute

Dr. Elling Hamso

Managing Partner

E-mail: elling.hamso@eventroi.org

Telephone: +47 90 12 24 18