ROI Implementation in Indian Companies - A Study

Dear Friends

Grateful to share that recently we completed a survey to check has implemented ROI process. The reality is ROI is not even a considered. Many of the companies do not even have the data.

Companies studied - 41 large scale companies, multinational companies, public sector undertakings, private companies.

Out of these 16 companies have sent their HR / training personnel to uprade their skills in the ROI area,

The objectives of the study are

•        To understand the extent to which participants who upgraded their ROI skills were able to implement the ROI process in their company.
• .      Identify the barriers and enablers to implement the ROI process.
• .      Recommendations to make HR and training a profit center. 

   Table 1 shows the company and the industry profile of the participating companies.

Table 1: Company and Industry Profile

Industry	Companies Surveyed	No. of Companies	No. of Participants
Pharmaceutical	5	3	6
Chemical and paint	3	1	1
Business process outsourcing	4	1	4
Chemical	2	1	2
Power	4	2	5
Banking and Finance	5	2	2
Automobile	6	2	3
Insurance	5	1	2
Oil	5	2
Packaging	2	1	1
Total	41	16	24

RESULTS

Table 2 shows the confidence level of the participants to apply the concepts learnt.

Table 2: Participant’s Reaction vs. Confidence Level

	Confidence Level %
Concepts	Less than 60	60 to 70	70 to 80	More than 80
Objective setting	20	30	40	10
Making action plan	35	30	30	5
Collect reaction data			10	90
Collect learning data			10	90
Monitor and collect application data		60	20	20
Measure impact	15	80
Calculate ROI	50	40	10
Use of Isolating techniques	70	20	5	5
Design questionnaires	15	20	60	5

Rating as per the ROI implementation is given below

1. 90 percent and above = Fully implemented
2. 75% to 90% = Above average implementation
3. 65% to 75% = Average implementation
4. 55% to 65% = Below average implementation
5. 55% to 65% = Tried but failed
6. Below 55% = Did not attempt
7. Did not get any information from the participant

 Table 3 depicts the data integration summary of the companies who attempted the implementation of the ROI process.

Table 3: Data Integration Summary

Company	Reaction	Learning	Application	Impact	ROI
Pharmaceuticals 1	A	B	D	F	NA
Chemical and paint	A	C	G	F	NA
Business Process Outsourcing	A	A	B	C	-
Chemical	A	F	F	G	NA
Power	A	B	B	B	96 %
Finance	A	C	G	F	NA
Automotive	A	C	G	F	NA
Packaging	A	C	F	F	NA
Energy	A	C	F	F	NA
Pharmaceuticals 2	A	B	C	D	-

Hope that next year we do this survey, we get more data and the company's willingness to implement the ROI process.

Grateful to all those who participated in the survey.

With Gratitude

Sonali

www.exponentialadvisory.co.in