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1. Measuring the
Success of
Organization
Development
Lizette Zuniga, Ph.D.
Director, ROI Implementation
ROI Institute
www.roiinstitute.net

2. Goals of this Session
1. Identify best practices in ROI and Human
Capital Analytics
2. Using abbreviated organization culture
assessment tool, rate the organization
culture in which you work
3. Using an organization culture case study,
align OD intervention with business
4. Using a case study, apply ROI methodology
to measure the impact of an OD intervention

3. Maximizing Results: Best Practices for
ROI and Human Capital Analytics
Business Alignment Analytics Maturity
Predictive Analytics
What could happen?
Prescriptive Analytics
What should happen? What is
the best course of action?
Aspirational Experienced Transformed
1-3 Communicating Results
Descriptive Analytics
Describes what happened.
Descriptive Analytics
Describes what happened.
Predictive Analytics
What could happen?
Prescriptive Analytics
What should happen? What is
the best course of action?
Use analytics to justify
actions.
Building upon aspirational
level and use data to make
decisions.
Uses advanced rigor in data
analysis to guide future
strategy

4. Predict the BEST outcome
By providing the right intervention in
the most effective way, building the
necessary capability, and by
removing barriers or obstacles from
their path, business measures are
more likely to improve and
ultimately impact the bottom line.
1-4 Communicating Results

5. OD defined as a planned intervention of
change for group, team, or organization
to improve organization.
Organization
Development (OD)
Examples – change management, team
building, 360 feedback, organization
culture assessment and learning.

6. What is culture?

7. “Organizational culture is the way
we do things around here.”
- Burke & Litwin, 1995

8. Culture is the collective values,
assumptions, beliefs and paradigms
that create the expected and
accepted behaviors of the
organization.

9. For Example…
Hierarchical vs. Empowered
Risk Avoiders vs. Risk Takers
Reactive vs. Proactive
Sales Driven vs. Profit Driven
Cautious vs. Innovative

10. How does an organization
behave?
•How to make decisions
•How to organize resources
•How to supervise people
•and so on...

11. Organization
Culture Assessment
Complete Capstone
Organization Culture
Abbreviated Profile
Refer to your handout.

12. Agua Case Study
• Large manufacturing organization
• International customer base
• Aggressive growth strategy
• Needs– error rates, time to fulfill customer
orders, leadership pool, business change,
turnover, customer satisfaction

13. Diagnostics
• Quantitative
– *Organization Culture Assessment
– *Leadership Awareness Index
– Key Performance Metrics
• Qualitative
– Interviews
*Results are as strong as your instrument.

14. Agua Culture Analysis
• Leadership –
autocratic
• Planning – unclear
priorities
• Decision Making –
slow process

15. Agua Culture Analysis
• Leadership – autocratic
• Planning – unclear priorities
• Decision Making – slow process

16. Agua OD Interventions
• Formed a Guiding Coalition
• Held Master Action Planning Sessions
– 3 sub-groups
1. Focused on business needs
2. Succession planning
3. Communication and change
• Provided Leadership Development – leaders
tasked with leading teams in new way

17. Levels of
Evaluation Measurement Focus Typical Measures

18. Application Objectives
Targets for leadership and organization behaviors
Learning Objectives
Targets for learning organization behaviors
OD Intervention
Learning Needs
Payoff Needs
investment for OD Intervention
Need to learn new high performing behaviors
Preference Needs
Relevant to their job, time spent in planning sessions was
value add
Learning
Business Alignment and Forecasting The ROI Process Model
ROI
Impact
Measurement
and Evaluation
Reaction
Application
Reaction Objectives
Participants satisfied with intervention, find it relevant
Performance Needs
Organization behaviors not aligned with high performing
Impact Objectives
Identify targets
for each metric
Business Needs
Quality, Costs, Time, Revenue, HR and Customer Metrics
ROI Objectives
Target ROI
5
4
3
2
5
4
3
2
1 1
Initial
Analysis
Align OD Intervention
Using V-Model

19. Application Objectives
Targets for leadership and organization behaviors
Learning Objectives
Targets for learning organization behaviors
OD Intervention
Learning Needs
Payoff Needs
investment for OD Intervention
Need to learn new high performing behaviors
Preference Needs
Relevant to their job, time spent in planning sessions was
value add
Business Alignment and Forecasting The ROI Process Model
Calculate ROI
Application
ROI
360° Assessment, Master Action Plan
Measurement
and Evaluation
Reaction
Survey
Learning
Increase Knowledge/skills item on Course
Evaluation
Impact
Pre versus post measures
Reaction Objectives
Participants satisfied with intervention, find it relevant
Performance Needs
Organization behaviors not aligned with high performing
Impact Objectives
Identify targets
for each metric
Business Needs
Quality, Costs, Time, Revenue, HR and Customer Metrics
ROI Objectives
Target ROI
5
4
3
2
5
4
3
2
1 1
Initial
Analysis
Align OD Intervention
Using V-Model

20. Agua Data Collection Method
MMeeaassuurree TTooooll
SSaattiissffaaccttiioonn QQuueessttiioonnnnaaiirree
LLeeaarrnniinngg QQuueessttiioonnnnaaiirree
BBeehhaavviioorr CChhaannggee MMaasstteerr AAccttiioonn PPllaann,, 336600°° FFeeeeddbbaacckk
BBuussiinneessss IImmppaacctt QQuuaalliittyy,, CCuussttoommeerr SSaattiissffaaccttiioonn aanndd HHRR MMeettrriiccss
RReettuurrnn oonn IInnvveessttmmeenntt MMoonneettaarryy bbeenneeffiittss aanndd pprroojjeecctt ccoossttss

21. Impact Measures
Level 4 Metric Baseline Six Months Later One Year Later
Time to Order 31 18 6
Error Rates 35 per 100 24 per 100 7 per 100
Customer
Satisfaction
60% - meet needs
45% - committed
N/A 82% - meet needs
68% - committed
Turnover 655 299 275
Promotions 5% 8% 18%

22. Monetary Value for Error Rates
• $750 per error x 28 (change) = $21,000 (monthly)
• $21,000 x 12 (months) = $252,000 annual
• $252,000 x 92% (estimate %) = $231,840
Isolation estimates collected from Guiding Coalition:
1.Estimates of contributing factors
2.Confidence in estimate
3.Values are then averaged

23. Monetary Value for Turnover
• $3,200 per turnover x 380 (change) =
$1,216,000
• $1,216,000 x 85% estimate = $1,033,600

24. Combined Monetized Benefits
Measure Annual
Change
Unit Value Annual
Improvement
Value
Confidence
%
Adjustments
based on
Confidence
Error Rates 336 $750 $252,000 92% $231,840
Turnover 380 $3,200 $1,216,000 85% $1,033,600

25. Project Costs
Cost of Item Cost
Diagnostics $12,000
Strategic Planning Sessions $112,000
Leadership Development $550,000
360° Feedback $25,500
Program Materials $22,000
Overhead $1,500
Facilities, food and refreshments $8,000
Communication $5,000
Participant salaries (time involved) $95,000
Evaluation Costs $18,500
TOTAL $849,000

26. ROI % =
RROOII RReessuullttss
*Net Benefits
Costs
*Net = Benefits - Costs
Costs = $849,000
Benefits = $1,265,440
x 100
Now it’s your turn!
Calculate the ROI.

27. ROI =
RROOII RReessuullttss
$1,265,440 - $849,000
$849,000
49% ROI

28. AAssssuummppttiioonnss
• High turnover in tight labor market impacts
required hiring numbers
• People leave their jobs because of supervisor
• Estimates used in isolating the effects are
credible way to determine contribution from
intervention

29. Conclusions
• Preliminary findings indicate that the
intervention appears to be impacting turnover
and error rates in favorable way
• Marked decrease in problems with filling
customer orders on time
• Customer satisfaction increased
• Improvement observed in communication and
problem solving

30. • Provided with the case study, participants
were instructed to brainstorm

31. Group 1
 Smile Sheet
— Why are you here?
— Was this helpful / useful?
— Are you motivated to take action?
— Will you use what you learned?
— Rate the importance of your current work?

32. Group 2
 Learning
— Pre-training vs. Post-training scoring
 Time on (Learning curve)
— Assessment during training
 Confidence
 Readiness
 Competencies
— Understanding key resources
— Self knowledge
 Knowing when I need help
 Knowing enough to self correct

33. Group 3
 Leadership Behavior
— Before and after
— Decision making process
 Time
 # ppi involved
 Implementation success?
— Change metrics from cultural assessment
— Before and after interviews / survey
 Managers and up
 Managers and down
— GAPS! Map (RR)

34. Internal Measures
– Customer Satisfaction
Group 4
• On time orders / deliveries
• Reduced returns / re-do’s
• Surveys
• Referrals
– Quality
– Staff morale
• Impact of engagement
• How they are engaged
External Measures
– What is most important to
the customer?
– What are you willing to do if
you are satisfied?

35. Group 5
 R/I
— R =
 Savings
 Profit
 Productivity
 Personnel Turnover
 Staff and Customer satisfaction
— Intangibles
 Goodwill
 Morale
 Identity
 Loyalty
— I =
 Direct cost – consultant
 Participation
 Supplies
 Facilities
 Opportunities