ROI Calculator

Context

Budgets are limited and projects are evaluated on merits. There are more project contenders than budget available, and the most serious business cases receive more attention.

ROI Evaluation is usually a retrospective process for documenting the extent of return on a financial investment associated with various non-capital projects (training, change initiative, new procedure or change in business model). Realistically, most organizations cannot wait to obtain retrospective information to conclude on the ROI of a given project. Developing a robust projection of the anticipated ROI would help manage risks and support a sound decision process. The ROI Calculator is a simple tool created to obtain a credible ROI estimate for a given project.
 

Benefits

  • Speaking the business language of the executives
  • Visualizing the project’s expected impact on the organization performance
  • Documenting the expected contributions (return)
  • Earning respect of senior management by demonstrating the project’s payoff


It automatically calculates the following numbers:

  • Benefit/cost ratio
  • ROI %
  • Payback period

 

How does it work?

Under the guidance of a certified ROI professional, the pillars of the project’s execution are identified.

1. Confirming the expected outcomes associated with the project
2. From a list, the most meaningful benefits from the project’s impact are first selected.
3. The minimal impact expected is estimated and includes all the possible costs.
4. The calculator links all the factors to estimate the anticipated ROI.

Main users

  • Human resources specialists
  • Organizational development specialists
  • Brand managers
  • Training specialists
  • External education providers

 

Following a short consultation, the tool is adapted to the project’s reality which enables the modification of various factors until a suitable scenario is found.