What are the best ways to measure the ROI of workflow improvements?

2 Collect and analyze data

The second step to measuring the ROI of workflow improvements is to collect and analyze data. You need to have a baseline data set that shows the current state of your workflow before you implement any changes. This will help you compare and contrast the results of your workflow improvements. You also need to collect data during and after the implementation of your workflow improvements. This will help you monitor and evaluate the impact and effectiveness of your changes. You can use various tools and methods to collect and analyze data, such as surveys, interviews, observations, or software.

3 Calculate the ROI

The third step to measuring the ROI of workflow improvements is to calculate the ROI. The ROI is a ratio that compares the benefits and costs of your workflow improvements. It shows how much value you gain from your investment. The basic formula for calculating the ROI is:

ROI = (Benefits - Costs) / Costs x 100%

The benefits are the positive outcomes of your workflow improvements, such as increased revenue, reduced waste, or improved quality. The costs are the negative outcomes of your workflow improvements, such as expenses, risks, or trade-offs. You need to assign a monetary value to both the benefits and costs of your workflow improvements. This can be challenging, as some benefits and costs may be intangible or difficult to measure. You may need to use estimates, assumptions, or proxies to quantify them.

4 Interpret and communicate the results

The fourth step to measuring the ROI of workflow improvements is to interpret and communicate the results. You need to understand what the ROI means and how it relates to your goals and metrics. You also need to communicate the results to your stakeholders, such as managers, employees, or customers. You need to present the results in a clear, concise, and compelling way, using charts, graphs, or reports. You need to highlight the main findings, insights, and recommendations of your ROI analysis. You also need to address any limitations, challenges, or uncertainties of your ROI analysis.

6 Learn from best practices and case studies

The sixth step to measuring the ROI of workflow improvements is to learn from best practices and case studies. You need to benchmark your workflow improvements against the industry standards and best practices. You also need to learn from the experiences and examples of other organizations that have implemented and measured workflow improvements. You need to seek inspiration, guidance, and advice from experts and peers in your field. You also need to share your own successes and challenges with workflow improvements and ROI measurement with others.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?