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Why Return on Investment (ROI) isn't Working, and How to Fix It
Make ROI Work for IT Project Selection
If you're currently using ROI (Return on Investment) for IT project selection -- or for any other kind of project selection - then there's a good chance that you're selecting the wrong projects. It's not because the concept of ROI is flawed; it's because of the process used to calculate and compare ROI in most companies.
ROI is the most common and popular method for project ranking, both in IT and elsewhere. But ROI isn’t working correctly in most companies, and as a result, businesses are making bad project decisions. This 5-page white paper:
- Explains the six common problems that most companies encounter when they use ROI for project decisions; you're sure to recognize at least a few of them from your experiences in your own company.
- Gives you eight techniques that you can utilize to fix the problems and make ROI a more reliable measurement.
- Reveals the the most important and underutilized IT project ranking secret. Use this measurement criterion together with ROI to give you maximum alignment between business and IT objectives.
Make sure your company is spending its IT money wisely and focusing on the projects that are most important for your company. Read this white paper and find out how.
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Note: this white paper is substantially the same as Chapter 5 in my book Boiling the IT Frog.
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“Harwell is one of those rare individuals who has both great vision and the ability to get things done. His leadership, forward thinking and deep understanding of technology resulted in several state-of-art business applications that have gone on to become mission critical systems at Ceridian.”
– Robert Bazzini, President of Bazzini Consulting and former VP and GM at Ceridian Corporation |
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About the Author
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| Harwell Thrasher has spent over 30 years working in and around IT organizations: as a developer of information systems, as a manager of software development groups, and as a technology vice-president. Harwell has worked for major companies, including Digital Equipment Corporation (now part of Hewlett-Packard) and Ceridian Corporation (originally called Control Data Corporation). He's done technology due diligence for over twenty corporate acquisitions in the United States, Canada, the U.K., and Switzerland. He's been a speaker at the Microsoft CIO Summit, and at meetings of numerous technical and non-technical societies. He's seen systems come and go, organizations succeed and fail, and leaders make a difference or get fired. He's seen the difference between mediocre IT and effective IT. Now you can benefit from his experience. |
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