System and Method to Quantify the Economic Value of Performance Management and Training Programs

• US 20140129401A1
• Filed: 11/03/2012
• Published: 05/08/2014
• Est. Priority Date: 11/03/2012
• Status: Abandoned Application

• Current Assignee: Fay Wong, Walter Kruz
• Original Assignee: Fay Wong, Walter Kruz
• Inventors: Kruz, Walter, Wong, Fay
• Application Number:
  US13/668,242
• Publication Number:
  US 20140129401A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method are provided to quantify the monetary effect of risk reduction when calculating the return on investments made on performance management and training programs. The system includes an operational platform comprising one or more computers, computer networks, and databases. The method includes processes that create and quantify risk profiles specific to various business models used to monetize the risk reduction or benefit created by training. This monetary benefit is used to calculate the return on investment on performance management and training programs.

Claims

1. A method to quantify the economic value of training and performance management programs, comprising an operational platform;

said operational platform is a networked computing system comprising one or more computers and databases, and contains an Organization Framework and a Program Framework;

wherein said Organization Framework calculates the economic value of training at the organizational level, and wherein said Program Framework calculates the economic value of training at the individual program level

2. The method according to claim 1, wherein said Organization Framework comprises a Risk Events Identification Module, a Risk Impact Calculation Module, a Risk Reduction Benefit Calculation Module, and a Training Organization Return on Investment (Organization ROI) Calculation Module

3. The method according to claim 2, wherein said Risk Events Identification Module comprises a Risk Events Framework component, a Risk Events Evaluation component, and a Risk Profile component;

wherein said Risk Event Framework component comprises Sets of Referencing Information;

wherein said Risk Event Evaluation component contains a Risk Matrix providing Sets of Evaluating Information for risk events assessment and prioritization;

wherein said Risk Events Identification module enable the creation of Risk Profiles containing Sets of Business Relevant Risk Events

4. The method according to claim 2, wherein said Risk Impact Calculation Module comprises a Risk Events attribute, an Event Impact attribute, an Event Probability attribute, and a Cost of Risk Event attribute;

wherein said Risk Events attribute contains Sets of Business Relevant Risk Events;

wherein said Event Impact attribute contains Sets of Economic Information represents each Risk Event'"'"'s respective economic impact;

wherein said Event Probability attribute contains Sets of Probability Information represents each Risk Event'"'"'s respective Probability of occurring;

wherein said Risk Impact Calculation Module enables the calculation of the said Risk Profile'"'"'s cost of risks

5. The method according to claim 2, wherein said Risk Impact Calculation Module comprises a Total Maximum Liability (TML) calculation component, and a Normal Operation Liability (NOL) calculation component;

wherein said Total Maximum Liability calculation component calculates a Risk Profile'"'"'s Maximum Cost of Risk Event where Worst Case Sets of Probability Information of Event Probability are used for Probability attribute;

wherein said Normal Operation Liability calculation component calculates a Risk Profile'"'"'s Normal Cost of Risk Event

6. The method according to claim 2, wherein said Risk Reduction Benefit Calculation Module comprises a Total Risk Reduction Benefit calculation component, and a Training Contribution calculation component;

wherein said Total Risk Reduction Benefit calculation component calculates the Total Risk Liability SPREAD and estimates a Self-Insured Cost;

wherein said Training Contribution calculation component calculates the Risk Reduction Benefit attributed to Training programs alone;

wherein said Training Contribution calculation component extracts data from the said Total Risk Reduction Benefit calculation component, and process Training Contribution using an apportionment approach

7. The method according to claim 2, wherein said Organization Return on Investment Calculation Module comprises a Training Cost attribute, a Training Benefit attribute, and enable the calculation of Training Organization Return on Investment by comparing the training organization Risk Reduction Benefit and Training Cost

8. The method according to claim 1, wherein said Program Framework comprises a Risk Events Identification module, a Risk Impact Calculation Module, a Risk Reduction Benefit Calculation Module, and a Training Program Return on Investment (Program ROI) Calculation Module

9. The method according to claim 8, wherein said Risk Events Identification module comprises a Risk Events Framework component, a Risk Events Evaluation component, and a Risk Checklist component;

wherein said Risk Event Framework component comprises Sets of Referencing Information;

wherein said Risk Event Evaluation component contains a Risk Matrix providing Sets of Evaluating Information for risk events assessment and prioritization;

wherein said Risk Events Identification Module enables the creation of Risk Checklist containing Set of Business Relevant Risk Events associated with individual performance management and training program

10. The method according to claim 8, wherein said Risk Impact Calculation Module comprises a Risk Events attribute, an Event Impact attribute, an Event Frequency attribute, and a Cost of Risk Event attribute;

wherein said Risk Events attribute contains Sets of Business Relevant Risk Events associated with an individual performance management and training Program;

wherein said Event Impact attribute contains Sets of Economic Information represents each Risk Event'"'"'s respective economic impact;

wherein said Event Frequency attribute contains Sets of Frequency Information represents each Risk Event'"'"'s respective Frequency of occurring;

wherein said Risk Impact Calculation Module enables the calculation of the said Risk Checklist'"'"'s cost of risks

11. The method according to claim 8, wherein said Risk Impact Calculation Module comprises a AS-IS Prior Training calculation component, a TO-BE calculation component, and a AS-IS Post Training Calculation component

12. The method according to claim 8, wherein said Risk Reduction Benefit Calculation Module comprises a Risk Reduction Benefit Forecast (RRB Forecast) calculation component, an Actual Risk Reduction Benefit (Actual RRB) calculation component, and a Training Contribution Calculation component;

wherein said Risk Reduction Benefit Calculation enables the calculation of risk reduction monetary value created by individual training program

13. The method according to claim 8, wherein said Training Program Return on Investment (Program ROI) Calculation Module comprise a Training Cost attribute, a Training Benefit attribute, and enables the calculation of performance management and training Program Return on Investment by comparing the individual Program Risk Reduction Benefit and Program Cost.