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Jack and Patti Phillips Workplace Learning and Performance Institute | ROI in the Public Sector
Return
on Investment (ROI) in the Public Sector
Importance of ROI
- Accountability
for proving value to customers, taxpayers, and stakeholders.
- Programs
implemented in public-sector organizations have shifted
from an activity-based process to a results-based process.
- The
President's vision for public sector reform is guided by
three principles. Public Sector should be:
- citizen-centered,
not bureaucracy-centered
- results-oriented
- market-based,
actively promoting (rather than stifling) innovation through
competition
In recent
years, programs implemented in public sector organizations
have shifted from an activity-based process to a results-based
process. Previously, the activity-driven paradigm was based
on the desire to have an abundance of programs—with
many activities—consuming all available resources. Even
the reporting of results was based on the number of programs,
hours, participants, costs, and content. Today, public sector
programming is moving to a results-based paradigm (Phillips
2002). Programs are only initiated when specific needs are
identified and a variety of processes are utilized to ensure
a linkage to outcomes in every phase of the program—up
to and including reporting the results based on the actual
contribution of the program. Sometimes, this shift requires
measuring the return on investment (ROI) in the program.
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