Determining and Communicating Project Value Return on Investment (ROI) – ROI Value Modeling for Decision Making

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Spring 2017 Course

Date: Wednesday, May 24, 2017

Time: 8:30 am – 5:00 pm

Decision date: Monday, May 15, 2017

Early Registration Date deadline: Tuesday, May 9, 2017

Before Early Registration Date:

Members $220
Non-members $245

After Early Registration Date:

Members $245
Non-members $265

WHERE: Crowne Plaza Hotel
15 Middlesex Canal Park Drive
Woburn, MA 01801

Phone 781-245-5405


If paying by check, the check must be received before the appropriate dates for Early Registration and Decision Dates.

Make Checks payable and send to:
IEEE Boston Section
One Centre Street, Suite 203
Wakefield, MA 01880

Determining and Communicating Project Value Return on Investment (ROI)

Speaker: Robin Goldsmith, President, GoPro Management

Course Overview:

Companies are demanding reliable financial measures of proposed projects’ value. Yet, project managers often don’t know how to identify, calculate, or communicate a project’s REAL ROI™ (Return on Investment). Traditional ROI calculations increasingly are being criticized for telling only part of the necessary story. The difficulty afflicts all types of projects but often is greatest in areas like IT, where benefits may seem intangible and frequent overruns impact estimates’ credibility. This interactive workshop reveals 22 pitfalls that render common ROI determinations meaningless and shows instead how to identify full-story key effects on revenue and expense variables, reliably quantify tangible and intangible costs and benefits, and convincingly communicate the business value of project investments. Exercises enhance learning by allowing participants to practice applying practical techniques to a real case.

Participants will learn:

* The financial information that business decision makers need and demand.
* ROI and related calculations, strengths, weaknesses, and common pitfalls.
* Using ROI Value Modeling™ and Problem Pyramid™ to fully identify relevant costs and benefits.
* Quantifying intangibles, risk, flexibility, and opportunity.
* Professionally presenting credible business value measurements so people pay attention.

WHO SHOULD ATTEND: This course has been designed for business, systems, and project managers as well as analysts, implementers, users, and others who must know the return on project investments.

Project Manager role with regard to ROI
Situations demanding ROI, their issues
Difficulty of making convincing arguments
Linking ROI to the business case
Value Modeling™ Relationship Diagram
Investment vs. expense
Justification vs. objective analysis
Meanings of “It costs too much”
Total Cost of Ownership (TCO)
Factors other than cost to be considered
Costs and benefits, revenues vs. expenses
Return on Investment (ROI) calculations
Net present value, discounted cash flow Payback period, annualized return
Internal rate of return (IRR), hurdle rate
‘Telling the story’ not just ROI calculations
Failing to quantify ‘intangibles’ and risk
Scenario approach to showing benefits
Mistakenly thinking ROI does not apply

Why it’s important to find the benefits first
Treacy’s model of 5 revenue categories
Problem Pyramid™ to find requirements
Decision variable clarification chain
Putting a dollar value on intangibles
Opportunity, innovation, and flexibility
Mandates, project with no apparent benefits
Problem Pyramid™ ties costs to value
Basing costs on implementation of design
Business case framework
Basic formula for estimating costs
Main causes of poor estimates
Top-down vs. bottom-up techniques
Risks that afflict ROI calculations
Three measurable ways to address risks
Best-, worst-, most-likely-case scenarios
Sources of parameter sizing assumptions
Defining a reasonable scenario for success
Getting reliable cost and revenue amounts

Single vs. multiple scenario presentation
Applying apples vs. apples, when you can’t
Scenario assumptions and parameters
No change vs. proposed scenarios’ ROIs
Measuring intangibles’ monetary effects
Continual, step-wise, and one-time changes
Percentage-likelihood impact adjustments
Presenting with spreadsheets
ROI Value Dashboard™ modeling tool
Caution about commercial ROI calculators
Using value modeling to improve decisions
Dashboard and scorecard-type notification
Capturing, calibrating with project actuals
Adjusting appropriately during project