Why should we talk about ROI? I truly believe that return-on-investment is an important tool for decision making and most people agree with it. Yet, I see ROI not being used properly as it should be in projects I come across.
To me, ROI is not a throw away term to sell something. There is science behind it. I would even stretch it to “a way of life”.
Actually I never really looked at it very seriously until late last year. When I did, I realised the power behind this concept.
As a consultant at work, I expect my clients to know the value I provide them on projects. I am the best in what I do for them and I know that am worth more than whatever they pay me. That’s why they engage me. I have always provided value beyond the scope and their investment on me. So, this thinking was sensible to me.
But, what about them? Do all my clients know that? Is it reasonable for me to expect them to know that?
The fact of the matter is, I don’t actively show my clients the numbers behind my above mentioned value proposition. This value recognition is important for me as that underpins how I see my contribution towards the projects I work on.
Since I didn’t know for sure that all my clients see the true value I provide in dollar terms, it was important for me to fix it.
So, I set about changing this and putting things out in very clear terms. To do this properly and in simple terms an ROI analysis does the trick. We now do an ROI analysis on all projects that matter and we share this with our clients.
It is really important that we focus our energies and time on important things and theres nothing like an analysis based on ROI of a project from the onset to help us do this right.
ROI is not just for getting the business case done. It should be part of execution. Project managers need to be held accountable for it as well.
I would say the ROI analysis should go even further and be part of ongoing reviews and continuous improvement processes. The benchmarks should be established along side the process enablement roadmap. There is no better universal benchmarking tool than ROI. Net productivity gains in terms of time and dollar value speaks louder than anything else.
What are you doing today to establish value recognition in your projects? Do you want to learn some simple techniques to establish ROI? Call to connect with jEyLaBs and we will show you how we deliver IT solutions with measurable ROI.