Measurement & Performance · Financial metrics
Return on Investment
ROI · Financial metric
You need to connect metrics and data to outcomes and management decisions.
Why use it
Connect measurement to actual outcomes and management decisions.
How to apply
- Define the specific management situation and desired outcome.
- Gather the minimum facts, constraints, and perspectives needed to use the tool.
- Apply Return on Investment, make key assumptions explicit, and compare the result with realistic alternatives.
- Record the decision, next owner or action, and a testable criterion for the next step.
Output
A clearer metric system and management conclusion.