Nothing gets us into the Business Improvement spirit quite like increasing profits and learning How to Calculate Return on Investment. Making changes in your processes is an easy way to save time, money and ensure you aren't leaking money all over the company.
Topics: Increasing ROI
There’s perhaps no three words that are sweeter to a business person’s ears than ‘Return on Investment’ or ROI.
Many entrepreneurs get into business with high hopes of climbing that money tree, shaking it until they make their profits and then watering and nurturing it until it’s time to harvest those profits all over again.
In your pursuit of that magical ROI however, you may have neglected the cow of Business Process Management in favour of the magic beans that may come from chasing the more lucrative option. And sure, who doesn’t like the sound of a magic beanstalk growing in their business backyard? However, I would humbly suggest that you can have the magic beans, the cow and milk it too.
A recent Gartner research note states that 80% of organisations conducting business process management (BPM) projects will experience an internal rate of return better than 15%.
Of the 20 companies who responded to their survey, 55% had returns in the $100,000 to $500,000 range per BPM project.