Guiding Principles

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Prove the Value, Impact and ROI of Programs, Projects & Improvement Initiatives

To ensure consistency and replication of evaluation studies, operating standards are applied in the evaluation process. The standards in the ROI Methodology are called Guiding Principles and are listed below:

1 When a higher-level evaluation is conducted, data must be collected at lower levels.
2 When an evaluation is planned for a higher level, the previous level of evaluation does not need to be comprehensive.
3 When collecting and analyzing data, use only the most credible sources.
4 When analyzing data, choose the most conservative alternatives for calculations.
5 At least one method must be used to isolate the effects of the solution.
6 If no improvement data are available for a population or from a specific source, it is assumed that no improvement has occurred.
7 Estimates of improvements should be adjusted for the potential error of the estimate.
8 Extreme data items and unsupported claims should not be used in ROI calculations.
9 Only the first year of benefits (annual) should be used in the ROI analysis of short-term solutions.
10 Costs of the solution should be fully-loaded for ROI
11 Intangible measures are defined as measures that are purposely not converted to monetary
12 The results from the ROI Methodology must be communicated to all key stakeholders.