Measuring ROI in Environment, Health, and Safety

<p>Preface xxi</p>
<p>List of Authors xxxi</p>
<p>1 Environment, Health and Safety is Everywhere 1</p>
<p>1.1 The New Role of EHS 2</p>
<p>1.2 Environmental Initiatives 2</p>
<p>1.3 Safety Initiatives 6</p>
<p>1.4 Health and Fitness 13</p>
<p>1.5 Managing Change in EHS 17</p>
<p>1.6 Final Thoughts 19</p>
<p>2 Is It Worth It? 21</p>
<p>2.1 EHS Killers 22</p>
<p>2.2 Value Redefi ned 28</p>
<p>2.3 Why Now? 31</p>
<p>2.4 EHS Chain of Impact 35</p>
<p>2.5 Shortcomings of Current Measurement and Evaluation Systems 38</p>
<p>2.6 EHS Leadership: A Requirement for Success 43</p>
<p>2.7 Challenges Along the Way 44</p>
<p>2.8 Final Thoughts 47</p>
<p>3 Investing in Environment, Safety and Health Initiatives 49</p>
<p>3.1 Overview 49</p>
<p>3.2 Strategy 1: Avoid the Investment 50</p>
<p>3.3 Strategy 2: Invest the Minimum 55</p>
<p>3.4 Strategy 3: Invest with the Rest 58</p>
<p>3.5 Strategy 4: Invest Until It Hurts 62</p>
<p>3.6 Strategy 5: Invest as Long as there is Payoff 66</p>
<p>3.7 Final Thoughts 70</p>
<p>4 The ROI Methodology: A Tool to Measure and Improve 73</p>
<p>4.1 A Brief Overview 74</p>
<p>4.2 Results Framework 74</p>
<p>4.3 Results Framework and Business Alignment 79</p>
<p>4.4 Benefi ts of Developing the Chain of Impact 82</p>
<p>4.5 The ROI Process Model 83</p>
<p>4.6 Operating Standards and Philosophy 96</p>
<p>4.7 Case Application and Practice 96</p>
<p>4.8 Implementation 97</p>
<p>4.9 Benefi ts of Applying the ROI Methodology 98</p>
<p>4.10 Final Thoughts 101</p>
<p>5 Project Positioning 103</p>
<p>5.1 Creating Business Alignment 104</p>
<p>5.2 Determining Payoff Needs 107</p>
<p>5.3 Determining Business Needs 111</p>
<p>5.4 Determining Performance Needs 118</p>
<p>5.5 Determining Learning Needs 120</p>
<p>5.6 Determining Preference Needs 121</p>
<p>5.7 Developing Objectives for EHS Projects and Programs 122</p>
<p>5.8 Case Study Examples 126</p>
<p>5.9 Final Thoughts 134</p>
<p>6 Measuring Reaction and Learning 135</p>
<p>6.1 Why Measure Reaction? 135</p>
<p>6.2 Sources of Data for Measuring Reaction 138</p>
<p>6.3 Areas of Feedback 139</p>
<p>6.4 Data Collection Timing for Measuring Reaction 140</p>
<p>6.5 Data Collection Methods for Measuring Reaction 141</p>
<p>6.6 Use of Reaction Data 142</p>
<p>6.7 Why Measure Learning? 143</p>
<p>6.8 Challenges and Benefi ts of Measuring Learning 144</p>
<p>6.9 Learning Measurement Issues 146</p>
<p>6.10 Data Collection Methods for Measuring Learning 147</p>
<p>6.11 Use of Learning Data 149</p>
<p>6.12 Final Thoughts 150</p>
<p>7 Measuring Application, Implementation and Impact 151</p>
<p>7.1 Why Measure Application and Implementation? 152</p>
<p>7.2 Application Measurement Issues 153</p>
<p>7.3 Data Collection Methods for Measuring Application 157</p>
<p>7.4 Barriers to Application 159</p>
<p>7.5 Use of Application Data 160</p>
<p>7.6 Why Measure Impact? 160</p>
<p>7.7 Impact Measurement Issues 161</p>
<p>7.8 Data Collection Methods for Measuring Impact 165</p>
<p>7.9 Considerations for Selecting Data Collection Methods 169</p>
<p>7.10 Measuring the Hard to Measure 172</p>
<p>7.11 Final Thoughts 173</p>
<p>8 Isolating the Impact of EHS Projects 175</p>
<p>8.1 Why the Concern About Isolating Project Impact? 176</p>
<p>8.2 Preliminary Issues 179</p>
<p>8.3 Methods to Isolate the Impact of Projects 181</p>
<p>8.4 Considerations When Selecting Isolation Methods 198</p>
<p>8.5 Final Thoughts 199</p>
<p>9 Converting Impact Data to Money 201</p>
<p>9.1 Why the Concern About Converting Data to Monetary Values? 202</p>
<p>9.2 Five Steps to Convert Data to Money 204</p>
<p>9.3 The Five Steps to Convert Data in Practice 206</p>
<p>9.4 Methods to Convert Impact Measures to Money 207</p>
<p>9.5 Considerations When Selecting Data Conversion Methods 215</p>
<p>9.6 Intangible Benefi ts of EHS Projects 219</p>
<p>9.7 Final Thoughts 226</p>
<p>10 Calculating the ROI 227</p>
<p>10.1 Why the Concern About Project Costs? 228</p>
<p>10.2 Fundamental Cost Issues 229</p>
<p>10.3 Fully Loaded Cost Profi le 233</p>
<p>10.4 Cost Classifi cations 235</p>
<p>10.5 The ROI Calculation 236</p>
<p>10.6 ROI Misuse 238</p>
<p>10.7 ROI Targets 240</p>
<p>10.8 Intangibles Revisited 241</p>
<p>10.9 Other ROI Measures 241</p>
<p>10.10 Final Thoughts 243</p>
<p>11 Reporting Results 245</p>
<p>11.1 Why the Concern About Communicating Results? 246</p>
<p>11.2 Principles of Communicating Results 247</p>
<p>11.3 The Process for Communicating Results 250</p>
<p>11.4 The EHS Scorecard 261</p>
<p>11.5 Final Thoughts 268</p>
<p>12 Implementing and Sustaining ROI 271</p>
<p>12.1 The Concern About Implementing and Sustaining ROI 272</p>
<p>12.2 Implementing the Process: Overcoming Resistance 273</p>
<p>12.3 Assessing the Climate 274</p>
<p>12.4 Developing Roles and Responsibilities 274</p>
<p>12.5 Establishing Goals and Plans 278</p>
<p>12.6 Revising or Developing Policies and Guidelines 279</p>
<p>12.7 Preparing the Project Team 280</p>
<p>12.8 Initiating ROI Projects 282</p>
<p>12.9 Preparing Sponsors and Management Team 283</p>
<p>12.10 Removing Obstacles 284</p>
<p>12.11 Monitoring Progress 286</p>
<p>12.12 Final Thoughts 287</p>
<p>13 Measuring ROI in Safety Management for Project Leaders 291</p>
<p>13.1 Background 291</p>
<p>13.2 Why Evaluate this Program? 294</p>
<p>13.3 The ROI Process 295</p>
<p>13.4 Planning for Evaluation 297</p>
<p>13.5 Data Collection Plan 297</p>
<p>13.6 ROI Analysis Plan 297</p>
<p>13.7 Action Planning: A Key to ROI Analysis 300</p>
<p>13.8 ROI Forecast with Reaction Data 303</p>
<p>13.9 Improving Response Rates 305</p>
<p>13.10 Results 306</p>
<p>13.11 Communication Strategy 316</p>
<p>13.12 Lessons Learned 316</p>
<p>13.13 Discussion Questions 317</p>
<p>14 Measuring ROI in a Modular/Reusable Safety Railing System 319</p>
<p>14.1 Background 320</p>
<p>14.2 Problem Defi nition 321</p>
<p>14.3 Project Background 322</p>
<p>14.4 Business Alignment 323</p>
<p>14.5 Evaluation Methodology 323</p>
<p>14.6 Evaluation Results 328</p>
<p>14.7 Communication Strategy 336</p>
<p>14.8 Lessons Learned 336</p>
<p>14.9 Questions For Discussion 337</p>
<p>15 Measuring ROI in an Ergonomics–Based Risk Management Intervention 339</p>
<p>15.1 Background 339</p>
<p>15.2 Evaluation Methodology 343</p>
<p>15.3 Evaluation Results 350</p>
<p>15.4 Communication Strategy 356</p>
<p>15.5 Lessons Learned 356</p>
<p>16 Measuring ROI in Stress Management 361</p>
<p>16.1 Background 361</p>
<p>16.2 Why ROI? 365</p>
<p>16.3 Program Results 373</p>
<p>16.4 Communication Strategies 384</p>
<p>16.5 Policy and Practice Implications 385</p>
<p>16.6 Questions for Discussion 385</p>
<p>17 Measuring ROI in a Safety Incentive Program 387</p>
<p>17.1 Background 387</p>
<p>17.2 The Solution 389</p>
<p>17.3 Data Collection and Analysis 391</p>
<p>17.4 Data Interpretation and Conclusion 393</p>
<p>17.5 Calculating the Return on Investment 394</p>
<p>17.6 Communication of Results 395</p>
<p>17.7 Questions for Discussion 396</p>
<p>18 Measuring ROI in a Job Safety Training Program at a Major Food Retailer 397</p>
<p>18.1 Background 398</p>
<p>18.2 Evaluation Methodology 400</p>
<p>18.3 Calculating ROI 406</p>
<p>18.4 Barriers and Enablers 408</p>
<p>18.5 Communication Plan 409</p>
<p>18.6 Conclusion 411</p>
<p>18.7 About the Author 411</p>
<p>19 Measuring ROI in a Work–at–Home Program 413</p>
<p>19.1 FMI: PART A 414</p>
<p>19.2 FMI: PART B 421</p>
<p>19.3 FMI: PART C 424</p>
<p>19.4 FMI: PART D 427</p>
<p>19.5 FMI: PART E 428</p>
<p>19.6 FMI: PART F 432</p>
<p>19.7 Questions for Discussion 440</p>
<p>19.8 FMI: PART G 440</p>
<p>19.9 Questions for Discussion 442</p>
<p>Index 443</p>