ROI Forecast

To assist in the decision-making process, a Return on Investment (ROI) forecasting tool

was used to support the need for a coaching and mentoring intervention. Beginning at Levels 1

and 2, the ROI forecasting process commenced with selecting three subject-matter experts (SMEs)

to undergo a job task analysis: the training coordinator, a case manager supervisor and a case

manager who made minimum case termination errors. Because of employment longevity, the

selected SMEs were ideal for providing valuable insight on the required knowledge, skills and

abilities to perform effectively in their positions. Using job descriptions, two one-hour meetings

were held with these SMEs to complete a job task analysis for each of the three positions. After

categorizing the accountabilities of each position, the key accountability groups were given a

weight using a simplistic front-end estimation strategy—totaling 100 percent—based on

relevance to the case termination process and time spent performing each duty. Table 1 depicts

the outcome of accountability estimations.

Table 1

Job Task Analysis and Estimate Weights

ESTIMATE
ACCOUNTABILITY GROUP
WEIGHT
(listed in order of relevance)
PERCENTAGE
Group A
• Providing work-task guidance to other case
manager
50
• Delegating work assignments
• Ensuring timely completion and accuracy of
work assignments
Group B
• Training
25
• Serving on improvement teams as subject-
matter expert
Group C 25
• Providing customer service
 Walden | Coaching/Mentoring Interventions

• Processing correspondence
• Providing judicial administrative support
TOTAL PERCENTANGE 100

To correlate skills with job task accountability, the participants is part one’s training

session assessed skills and developmental needs for the coaching and mentoring intervention.

Estimate weights were also designated to the following skills:

1. Active listening skills

2. Time management skills

3. Communication skills

4. Training skills

5. Interpersonal skills

To determine the percentage of estimate weight per skill, each accountability group was divided

by the number of skills identified. Using 50% estimate weight for Accountability Group A, for

example, yields: 50% (accountability estimate weight) ÷ 5 (skills) = 10% estimate weight per

skill. As summarized in Appendix A, a Level 3 assessment of the abilities of case manager—

using a 5-scale Likert-like survey instrument with the following rating indicators:

1. Beginner (05% proficiency)

2. Novice (25% proficiency)

3. Skilled (50% proficiency)

4. Advanced (85% proficiency)

5. Expert (100% proficiency).

Data were collected through surveys presented at the end the first part of the coaching and

mentoring training sessions.

2
 Walden | Coaching/Mentoring Interventions

Referencing the case studies provided by Phillips and Zuniga (2008), and for brevity

purposes, the Level 4 impact of a skill gap was calculated using the median calculation that

represents an individual case manager (employee)-value as oppose to all twenty five case

managers (see defined in the ROI section of this report). For example, the median salary of case

managers is $40,000. If a case manager is 100 percent proficient in performing data entry for

case termination reporting, then an assumption of the value of a case manager is estimated at

approximately is $56,000 (40 percent of the median salary, or $16,000, which represents an

estimate the market rate value equal to employee wages and benefits) (Payscale for Employers,

2009). The following provides a demonstration of calculating the difference between a case

manager’s skill level and the target skill level, the skill gap is multiplied by the skill value to

determine the cost of the skill gap.

Salary and benefits = $56,000

Providing work guidance = 10% percent weight.

If case manager X rated a “3” on time management (50% proficiency), then:

$56,000 x 10% skill weight = $5,600 (the value of case manager with excellent

time management skills)

$5,600 x 50% rating = $2,800 (the dollar amount of the gap from the desired

performance).

ROI forecast assumptions of the effectiveness of a coaching and mentoring intervention

for case manager X, an individual case manager were calculated using the total program cost

estimations provided in Appendix B. Assuming that case manager X rated at a "3" (Skilled) or

50% of desired performance. After completing coaching and mentoring training, and possibly

becoming a coach, coachee, mentor or mentee, it was estimated that case manager X would

3
 Walden | Coaching/Mentoring Interventions

progress to a "4" (Advanced) or 85% of desired performance (35% improvement). Thus,

estimated case manager (employee)-value of the coaching and mentoring intervention is $3,360:

Proficiency after intervention: 85% x $5,600 = $ 4,760

Proficiency before intervention: 50% x $2,800 = $ 1,400

Benefit 4760 - 1400 = $ 3,360

Total Costs for 25 case managers =$14,200

Cost per person = $ 568

Net gain =$ 2,792

Yielding a forecasted 491% ROI indicates a good return of investment resulting from case

manager X’s participation in coaching and mentoring programs. For example,

BCR = Benefit/Cost
= 3360/568
BCR = $5.92

ROI = Benefit/Cost x 100

= 2792 x 100
568
ROI = 491%

Because of the high ROI percentage, the above-discussed Level 4 projection is a better forecast

of impact for calculating the value of performance behavioral changes caused by benefits the

case managers received from coaching and mentoring interventions because the impact data

collected during various phases pre-implementation. The most convincing evaluation of Level 4,

however, would probably result from post-implementation impact data collected at Level 3

(Phillips & Zuniga, 2008).

4
 Walden | Coaching/Mentoring Interventions

References

Phillips, J.J., & Zuniga, L. (2008). Costs and ROI: Evaluating at the ultimate level –
measurement and evaluation series. San Francisco, CA: Pfeiffer.

Payscale for Employers (2009). Market rate report. Paralegals – salary by skills, Richmond,
VA., United States. Seattle, WA: Payscale, Inc.

5
 Walden | Coaching/Mentoring Interventions
Appendices
Appendix A: Objectives and Data Collection Plan
Evaluation Purpose: Case Termination e-Learning Modules and SMEs Coaching and Mentoring Classroom Training
Program: Improving Case Termination Event Process Responsibility: Intervention Team Members Date: May 2, 2010
Data Collection
Level Broad Program Objective(s) Measures Method/ Data Sources Timing Responsibilities
Instruments
REACTION/
SATISFACTION *Usability and 12-question Likert-like
Behavioral Changes Surveys and Informal
Ascertain whether Employees and At the end of each Supervisor and Project
1 80 to 100% of interviews of at least Supervisors training session manager
Positive Reaction to e-learning self- attendees/users like 50% of participating
pace learning module – 80 to 100 the interventions case managers
percent participation rate
LEARNING *Understanding; 10-question closed-
ended questionnaire, Case Managers, Weekly reviews
Knowledge 25% or Project manager and
Supervisors,
2 more reduction in Informal interviews via and periodic
Statisticians, unit supervisors
Employee understanding case termination email, telephone and assessments
reports
error rate in-person
APPLICATION/
IMPLEMENTATION One to three
10-question Likert-like
*Level of re-training Unit reports, months post-
survey, Personal Input Project manager, training
3 and behavioral users and training and after
Use and effectiveness of Training changes from users and SMEs, supervisors manager, supervisors
distribution of job
and job aids to decrease case statistical data reports
aids
termination error rate
BUSINESS IMPACT
Comprehension of job
standards and Supervisors, project
Case termination error rate Unit reports,
*Behavioral change, expectations
4 Supervisors, Every 3 to 4 months manager, training
reduction to less than 5 percent for knowledge Case managers manager
Ease of usage of case
all case managers management programs

ROI Baseline Data: Evaluation of performance standards and expectations.

95% (or less than 5%) of case
Comments: *Effective implementation results to reaching desired performance and employee growth and development
5 managers make no case
opportunities.
termination errors while
performing data entry tasks
 2006 ROI Institute. All rights reserved

6
 Walden | Coaching/Mentoring Interventions

Appendix B: Cost Estimating Worksheet

Cost Estimating Worksheet

Analysis Costs Total

Salaries and Employee Benefits (No. of People x Average Salary x Employee
Benefits Factor x No. of Hours on Project) (5 x $60,000 x 12.5% x 3) (not
considered for pre-program ROI Forecast) N/A
Meals, Travel, and Incidental Expenses N/A
Office Supplies and Expenses $2,000
Printing and Reproduction $1,000
Outside Services (External Expert Consultant/Estimates) $1,000
Equipment Expenses $ 500
Registration Fees N/A
Other Miscellaneous Expenses N/A
Total Analysis Cost N/A
Development Costs $4,500
Total
Meals, Travel, and Incidental Expenses N/A
Office Supplies and Expenses N/A
Program Materials and Supplies $2,000
Printing and Reproduction $1,500
Outside Services $ 700
Equipment Expenses N/A
Other Miscellaneous Expenses N/A
Total Development Costs N//A
Delivery Costs $4,200
Participant Costs, Salaries & Employee Benefits: No. of Participants X Avg. Total
salary X Employee benefits factor X Hours or Days of training time (not
considered for pre-program ROI Forecast)
Meals, Travel, and Accommodations (No. of participants X Avg. daily expenses N/A
X Days of training)
Program Materials and Supplies N/A
Participant Replacement Costs (if applicable) $2,500
Lost Production (Explain Basis) N/A
Facilitator Costs N/A
Salaries and Benefits N/A N/A
Meals, Travel, and Incidental Expenses N/A
Outside Services (Expert Consultant – Introductory/Overview Presentation) $3,000
Facility Costs N/A
Facilities Rental N/A $3,000
Facilities Expense Allocation N/A
Equipment Expenses
Other Miscellaneous Expenses N/A
Total Delivery Costs $5,500
Operations/Maintenance (included in Court’s comprehensive operations N/A
budget)
Evaluation Costs (included in Court’s comprehensive operations budget) ____N/A____
General Overhead Allocation N/A
TOTAL PROGRAM COSTS N/A
$14,200
Total

©2006 ROI Institute, Inc.