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2009.08.17

Afraid of ROI?

I recently found disturbing information relating to a form of engagement strategy, recognition programs.

 

Most believe that creating an environment of appreciation in the workplace is a good idea. In fact, most believe that a strong commitment to recognition pays big dividends.

 

But how solid is the business case for this type of engagement strategy? Currently, it appears to be fairly weak. In a survey conducted by Recognition Professionals International, “What is the greatest recognition challenge you face?", the third greatest challenge proved to be “Determining ROI”, with “Lack of Funding” and “No Buy-in from Managers” as the top two. (Hmm, I wonder if proving the value of recognition programs would eliminate the other two challenges!)

 

In another survey participants were asked “Does your company/organization measure the business impact (ROI) of your recognition programs.” Only 21% stated yes.

 

So, why don’t most companies/organizations measure results? You could be fairly confident in assuming that they don’t know how where to start. The Phillips ROI MethodologyTM changes this but we haven’t gotten that message to everyone yet.

 

There is another issue. Many are afraid of ROI. For example, I have gone toe-to-toe with engagement industry veterans regarding the relative merits of measuring ROI. When the debate evolves to the irrational, a lightbulb goes on for me. They’re afraid of ROI- afraid that it is too confusing, too complex and maybe most importantly, afraid that their programs won’t measure up! And heaven forbid that they don’t measure up. For the sponsor, they think the program will be in jeopardy. For the vendor, they fear a loss of sales. If they only knew how to position ROI properly and knew how to address the myths associated.

 

What about you? Are you afraid to measure the results of your engagement programs? Let me know why. I promise to listen.


 

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