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Commercial drive - Lesson 5: your reflections

Welcome to the online community learning space for the lesson: Making the business case. Use this forum to discuss the community reflective activity in the lesson. Read the contributions of others, ‘liking’ those you find helpful and add your unique reflections to the conversation by replying to this post. Click here to return to the lesson page at any time.

Community reflective activity:
How is the phrase “Return On Investment” interpreted in your organisation and what is your role in demonstrating ROI?  

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  • In my last employment I didn’t have too many opportunities to be involved in strategy and use ROI to demonstrate the benefits or loss of changes, projects and similar. However, in many occasion it would happen to be involved in finalising ideas that would show how ROI reflects on. I did have opportunity to implement new travel management that would automatise many processes and in terms of ROI would mean that the cost of the time of more senior management to just go through processes of approval will be a lot lower and much better for the business. The case was made of me having demonstrated abilities of the automatisation by a supplier, creating a business plan, implementation and costs of it. And having a meeting with COO and CFO to demonstrate benefits and agree on implementation.
    I do hope that in my new workplace I get more opportunities to be involved in more strategic HRM. The role will include implementing new P&Ps, benefits and L&D strategies within the business. And this course together with my LEVEL 5 diploma will help me become more business savvy with the appropriate approach and business language.

  • In reply to Marija:

    I have used Return on Expectations where qualitative rather than numeric measures may be more appropriate in proposing a business case, such as leadership or coaching at senior management levels The measures may be improved staff satisfaction or leader development behaviours assessed by peers and others.
  • My previous role in retail was all about quantitative ROI - I was accountable for all KPIs & the scorecard, evaluated quarterly & annually with a P&L to scrutinise monthly. There were some qualitative measures too, including surveys results, which also came under scrutiny with a drive to improve upon & maintain these too
  • When we want to change some thing or implement something new, it is common to see what benefits that new thing is giving for us. As far as inputs and outputs can be measured in financial terms there is no difficulty in measuring Return On Investment" (ROI). Of Course, ROI is important and every organization looks for it. Systematic approach to ROI is difficulty some times. Following are the examples:

    1. When you need to invest some thousands of dollars to improve the safety of the employee, it does improves the safety. But, in coming future the benefit in financial terms can't be calculated exactly. Putting the benefits (Outcome) in financial terms is a challenge here. 
    2. Last year our organization involved 31 junior and senior management staff in 2 training programs, THE ONE MINUTE MANAGER and SITUATIONAL LEADERSHIP. We know know what is invested in terms of money and man-hours. The outcome we expect is a qualitative change in having better conversations, goals setting among line managers and other staff. Measuring this change is a challenge.

    I am still a student in this area. Taken the above challenges for this year.