It’s now 2019 – and we’re now back from holiday breaks and assessing where to prioritize our time and resources. For many, budgets have now green lights and it’s “all hands on deck” to plan and implement the strategies that have been approved. However, it can be overwhelming to figure out where to start.
TMSA offers you an effective business tool we call the “ROI Estimator” to best assess the return on your investment – factoring in the ease and cost of implementation as well as the productivity return you’ll experience. If you routinely use this tool, you’re guaranteed to be able to make quicker decisions on which priorities to focus on based upon your budget, time and resources available, deadlines, and other important factors.
Here’s how it works:
Step 1. Generate an easy grid similar to the graphic above. Label the left-hand axis “Ease/Cost of Implementation” of the initiative. Then create the upper left-hand box to be identified as “Easy,” and the lower left-hand box to be identified as “Difficult.” On the baseline axis, incorporate the label “Productivity Return.” Then identify the lower left-hand box to be identified as “Low,” and the lower right-hand box to be identified as “High.”
Step 2. Now that you’ve created the ROI Estimator for your initiative, develop a list in each of the quadrants of the grid:
- Under the two “Ease/Cost of Implementation” boxes to the left, list the factors in the initiative that will make it easy or difficult to implement (key factors include your time or staff time, financial investment required, etc.)
- Under the two “Productivity Return” boxes to the right, list the factors in the initiative that will give low or high return in terms of your expected productivity gains.
Step 3: Assess the strength of each list that presents the strongest business case. If the initiative indicates the ease and cost of implementation is positive and the productivity return you’ll experience I high (in the upper right-hand quadrant), the initiative is a good one to initiate.
This practical process on how to assess the return on investment of your project is brought to you by Brian Everett, CEO of the Transportation Marketing & Sales Association.
Interested in learning more?
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