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Evaluating the Fiscal Effectiveness of ADR Processes: Cost Benefit Analysis (CBA) - Return on Investment (ROI)

Introduction
Alternative dispute resolution (ADR) processes have resulted in positive outcomes for parents, students who receive special education and related services, advocates, school district staff, and others. Persons in dispute are provided opportunities to have their disagreements dealt with promptly. The anxiety of long waits in the due process/litigation system is relieved, often times with low, or no cost, professional services provided to all parties. And perhaps most importantly, ADR has provided a process for effectively mending broken relationships and set a course for positive future interactions.

Organizations that have implemented ADR programs expect results that can be measured. These results can be surveyed using multiple measures that can include: appropriate provision of services, resolutions that are reached in a timely manner, user satisfaction with the process, willingness to use an ADR process in the future if a disagreement occurs again, and other measures of this kind. Another evaluative measure accounts for the effective use of financial resources. Given the high cost and high stakes decision making involved in disagreements in the area of special education, it is appropriate to turn attention to the discussion of developing a fiscal capability model that demonstrates effective use of ADR procedures in both tangible and intangible returns on monies and resources invested by school districts, parents and others.

Cost Benefit Analysis/Return on Investment
Health Care Education Associates of Dana Point California, describe cost benefit analysis as an accounting process that compares money spent with the revenues that money produces or allows the organization to save. Return on investment calculates the results of an intervention in financial terms.

One factor to consider when developing dispute prevention and resolution programs is that ADR processes are an investment. This investment has returned value in the form of user satisfaction and the appropriate provision of special education and related services. Another factor to determine is the extent that ADR processes have returned a financial worth.

Evaluation of ADR procedures at times relies on the reflections and results of those who have received training or have made use of an ADR process such as mediation or early neutral evaluation. These results can help determine whether or not the ADR process was useful. User evaluation measures can include whether or not the parties reached resolution, the fairness of the ADR process, and overall satisfaction. In the area of ADR training, typical evaluation indicators may show whether recipients enjoyed the training, the ease and use of instructional material by the instructors, and whether or not training experts believe that the content is accurate, relevant, and complete. Davidove and Schroeder point out that these indicators may not provide a premise for making strategic decisions.

Pine and Tingley state the key to determining a programs return on investment lies in selecting the desired outcomes to be measured and linking