Overview ROI: Framework ROI: Logic Model ROI: Model ROI: Framework - PDF document

Measuring Return On Investment (ROI) for State Government Overview • ROI: Framework • ROI: Logic Model • ROI: Model ROI: Framework A performance measure used to evaluate the efficiency of an investment ROI = Impact from program – Impact without program Cost Source: http://www.investopedia.com/terms/r/returnoninvestment.asp#ixzz1oRtDY79y 1

The Seven Principles • Engage stakeholders • Only include what is material • Understand what is changing • Value what matters • Not to over claim • Transparency • Verify results Source: A Guide to Social Return on Investment (2009) ROI: Logic Model Your planned work Your intended work Inputs Activities Outputs Outcomes Situation •What we •What we •Products •Benefits invest do of what of what we do we do Assumptions External Factors Major Components of ROI Framework • Stakeholder • Inputs • Outcomes • Outcome Indicators • Deadweight • Attribution • Drop ‐ off 2

ROI: Model Return ‐ On ‐ Investment (ROI) Return Indicators Investment Outputs Activities • Number of Jobs • Tax revenue generated by obtained. additional wages (income tax) • Training • Salary levels Direct Program • Job Placement Outcomes • Tax revenue generated by • Number off of Costs • On ‐ going Support additional consumer spending public assistance (sales tax) • Budget • State Government savings from decrease in public Net Impact Net Impact = (Indicators) – assistance and public health (Deadweight+Attribution care reliance • Net number of +Drop ‐ off) new jobs • Net Wage • Deadweight: What would have differential happened regardless of the • Net consumer program ROI = Net Impact spending • Attribution : The amount that • Govt. savings Cost other organizations contributed to on public the change assistance • Drop ‐ off: How much of the programs change deteriorates over time Data Required to Calculate State ROI Number of participants in Cohort • Number of participants within cohort completing program • Cost per participant • Average income of cohort upon entering program and one and • two years after completing program Average public assistance collection per participant pre and post ‐ • program Average public health care collection per participant pre and post ‐ • program Incarceration rates pre and post ‐ program • State income and sales tax rates • 3

Questions! Contact Information Arkansas Career Pathways Initiative ICF International Karon J. Rosa, Ed.D. Dominic Modicamore Director of Career Pathways Senior Technical Specialist karonr@adhe.edu dmodicamore@icfi.com 501 ‐ 371 ‐ 2083 703 ‐ 225 ‐ 2289 CLIMB WYOMING Nanette Antwi ‐ Donkor Senior Associate nantwi ‐ donkor@icfi.com Ray Fleming Dinneen 703 ‐ 225 ‐ 2249 Executive Director ray@climbwyoming.org 307 ‐ 778 ‐ 4126 4