ROI & Benefits Methodology

Core equations

Net benefit = evidenced gross benefit − incremental implementation and operating cost.

ROI = net benefit ÷ total relevant cost × 100.

Payback period = time until cumulative evidenced benefits equal relevant costs.

Measurement rules

Define the baseline, intervention, denominator, measurement period, attributable benefit, implementation cost, ongoing cost and material assumptions. Staff-time savings should not automatically be called cash savings unless capacity is actually released, avoided or redeployed in a documented way.

Benefit reviews

Where appropriate, review at implementation/acceptance and approximately 30, 90, 180 and 365 days. Label each result as measured, client-reported, estimated or modelled and explain material changes in scope or operating conditions.