Here is the standard ROI formula we will be using:<\/strong><\/p>\n ROI <\/b>= <\/strong>Net Profit<\/b> (Gain from Investment \u2013 Cost of Investment) \/ Cost of <\/strong>Investment<\/b> x <\/strong>100<\/strong><\/p>\n Open a new tab at the top of your screen and go to your LinkedIn \u201cHome\u201d page. Look at the following:<\/p>\n We have to assign a value (the same unit) to both profit and cost. We must apply an arbitrary unit, but you can think of this number in terms of \u201cvalue\u201d or dollars. Using an arbitrary value for this LinkedIn exercise<\/span><\/i> is fine, since ROI\u2019s are used to determine worth, dollars or value, it is for our understanding only. Here are the terms we will use:<\/strong><\/p>\n Cost of investment<\/strong> (The value of the time you worked on increasing your profile)<\/strong><\/p>\n Gain from Investment<\/strong> (The total<\/i> money, goodwill, clients, value, etc\u2026 you gained from the time invested)<\/strong><\/p>\n Net Profit<\/strong> (Gain from Investment \u2013 Cost of investment)<\/strong><\/p>\n **************************************************************************************************<\/strong><\/p>\n Example #1:<\/strong><\/p>\n ROI <\/b>= <\/strong>Net Profit<\/b> (Gain from Investment \u2013 Cost of Investment) \/ Cost of <\/strong>Investment<\/b> x <\/strong>100<\/strong><\/strong><\/p>\n When you first saw your profile views over 300, you thought, \u201cThis is great! I did nothing and got a great return and got a couple of new leads!\u201d But you didn\u2019t know exactly how great<\/i> until you ran the numbers. Now you have a baseline<\/i> to compare to in the future. So for a little effort, you got a good return on your investment.<\/strong><\/p>\n **************************************************************************************************<\/strong><\/p>\n Example #2:<\/strong><\/strong><\/strong><\/p>\n ROI <\/b>= <\/strong>Net Profit<\/b> (Gain from Investment \u2013 Cost of Investment) \/ Cost of <\/strong>Investment<\/b> x <\/strong>100<\/strong><\/strong><\/p>\n When you first saw your profile views climb over 1000, you thought, \u201cThis is great! All that extra work was worth the effort!\u201d That was until you were sleeping on the couch, your kids didn\u2019t recognize you and you received no leads for all your hard work\u201d. After doing the math, you can see this was not a good investment? Definitely not L<\/strong><\/p>\n **************************************************************************************************<\/p>\n Now let\u2019s calculate the ROI for your Teacher Evaluations: Here is our 1st<\/sup> example: (actual values may differ for evaluators. Understand this is a hypothetical<\/span><\/i> situation, but I am sure some points will hit home.)<\/strong><\/p>\n Teacher Observation Example #1:<\/strong><\/strong><\/p>\n – You performed 100 formal Teacher Observations this year, in addition to multiple weekly informal (graded) walk-throughs.<\/p>\n – Teachers are usually a little nervous, in fact many of them appeared almost apprehensive<\/i> of the process.<\/p>\n – You were quite and sat in the back. To be honest, you didn\u2019t even see entire observations as you spent most of your time typing and checking off boxes on your IPad. The new program seemed like a good idea, but you find it does distract from observing as you weren\u2019t even watching entire lessons. In fact you think, “Do I really need to be checking so many boxes? This should be easier.”<\/p>\n – Post-obs were routine. You showed teachers where they were coming up short \u2013 even the experienced teachers \u2013 and said how you are confident they will improve. Pluses were pointed out, but no matter how many times you observe them, they routinely demonstrate deficits in their teaching. Will they never get it right?<\/p>\n – No one said anything to you \u201cpro or con\u201d days or weeks after their observations. A lot of time goes into these observations with the intention of developing teachers, yet you failed to hear one comment about how the observation assist in their development or growth. This surprised you. Wouldn\u2019t you think teachers would be thankful for the guidance you provided?<\/p>\n – The end of the year came and went without much of a bang. Gone were the years filled with pre-summer tears and hugs like you were sending your first-born off to college. It seemed as if they couldn\u2019t get out that door quick enough!<\/p>\n – Student scores did not increase appreciably, in fact some departments even showed a drop in the number of students reaching proficiency. You found this unusual because these were the departments that were most frequently observed and where maximum effort was put forth to have them correct deficiencies in teacher skills and competence.<\/strong><\/strong><\/p>\n – You rate this a 500<\/span>, since you failed to witness much change in the performance of your staff.<\/i> <\/i><\/strong><\/strong><\/strong><\/p>\n – You spent 50% of your day (and thus 50% of your year) observing staff and teachers. This took away from the time you would have rather interacted and supported them in more personal ways, but there just wasn\u2019t enough time in the day.<\/p>\n – Your paperwork load was typically heavy. Even though the AP\u2019s were able to pick up a good deal of the slack, you wanted to observe as many teachers as you could since their growth fall on your shoulders.<\/p>\n – <\/strong>So you rate this a 2000<\/span>. The value is high because the investment was so great.<\/i> Lots of time invested \u2013 do the teachers even r<\/i>ealize how much? This took up so much time, yet with little to show for it. You left the building every day like a giant weight was being lifted from your shoulders \u2013 and very tired. Family life? If there is time, maybe…<\/i><\/strong><\/p>\n ROI <\/b>= <\/strong>Net Profit<\/b> (Gain from Investment \u2013 Cost of Investment) \/ Cost of <\/strong>Investment<\/b> x <\/strong>100<\/strong><\/strong><\/p>\n Your ROI is low, but having taught math, you know that if the variables change, then the outcome can change as well. Time to try something different\u2026<\/p>\n Teacher Observation Example #2:<\/strong><\/strong><\/p>\n – You performed 50 formal Teacher Observations this year, in addition to dozens of weekly \u201czero-stakes\u201d walk-throughs.<\/p>\n – Teachers and students were always happy to see you coming in. They all greeted you with a big, \u201cGood Morning Mrs. A!\u201d<\/strong><\/p>\n – You complimented both teachers and students (teachers are nervous when a principal enters the room so these new informal walk-throughs help them to feel at ease) and you could see their appreciation immediately \ud83d\ude42<\/p>\n – You began a formal program of inter-visitations for teachers this year. If successful, you hope to eliminate formal observations all together \u2013 part of how you are seeking to have teachers become more self-actualized instead of having to \u201cbe told\u201d what to do for each successive evaluation. They loved the idea and were able to see \u201cmodeling\u201d at its best through colleagues\u2019 work. One half of these evaluations were \u201cself-generated\u201d, the other half were \u201cpeer-generated.<\/strong><\/p>\n – Your teachers thank you at the end of the year for making it such a great experience for their growth and the students\u2019 successes. They shower you with accolades.<\/p>\n – You rate this a 1000<\/span>, since you know how hard it can be for a principal to build trust in their staff and it paid off BIG based on how they showed their appreciation. You did this by allowing them to learn <\/i>by inter-visiting with colleagues and to see for themselves <\/i>the same mistakes you saw, but allowed the teachers to correct on their own.<\/i><\/p>\n – You spent only about 20% of your day observing and being visible to staff and teachers. This is down from about 50% last year.<\/p>\n – Your paperwork load was reduced as the informal walk-throughs required substantially less time to document and discuss later on.<\/p>\n – So you rate this a 500<\/span>. The value is low because the investment was so little.<\/i> You spent much less time than last year accomplishing the same tasks with improved results. You left work feeling a little lighter and so you enjoyed your family more when you were home.<\/i><\/strong><\/p>\n ROI <\/b>= <\/strong>Net Profit<\/b> (Gain from Investment \u2013 Cost of Investment) \/ Cost of <\/strong>Investment<\/b> x <\/strong>100<\/strong><\/strong><\/p>\n When you decided to change your approach to observing teachers you were unsure how it would go over, but WOW, what a surprise! The atmosphere in the school was brighter, students seemed more engaged since you were spending more time with them in their environments. You didn\u2019t the idea of using a random factor for the value, but at least now you have a baseline from which to gauge the program for next year. Less effort, increased ROI Success!<\/p>\n Try it. Do the math for this past year and see what your numbers tell you. Use any value for \u201cworth\u201d that you like. If you have questions, please ask.<\/p>\n http:\/\/thebusinessofschool.org\u00a0\u00a0 Teacher Practice Management Consulting<\/p>\n Please register on the blog for the latest updates \u2013 and let\u2019s get ready for September <\/p>\n","protected":false},"excerpt":{"rendered":" ROI \u2013 Return on Investment. In business, the term “return on investment” (ROI) is used to measure the \u201crate of return\u201d on money invested in a commercial venture that will decide whether or not to continue down that particular road. … Continue reading \n
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