(Successful Change Management -11 Elements Cont. 7)

ROI

In addition to understanding the adoption and usage of measurements of  project benefits, you can determine the return on investment (ROI)

ROI is defined as

(source: Prosci, 2023f)

In calculating ROI, you need to modify the people-side benefit contribution which includes buy-in and commitment to change management.

Expected benefits can be divided into

- dependent on adoption and usage 

- independent of adoption and usage.

An example: a new software program can lower maintenance and licence costs (independent benefits) while, if it is used proficiently to produce more accurate and timely data, increasing performance and reducing errors (dependant benefits).

The independent side, like technical components, are easier to measure than the dependent side.

General comments

1. The more dependent project benefits are on adoption and usage, the larger the contribution change management makes. Need to consider the following factors:
- number of employees impacted
- type of work impacted
- single or multiple locations impacted
- amount of departure from the status quo
- type of change ( incremental or disruptive)
- degree of familiarity with the new ways.

For example, comparing a computer hardware upgrade and process optimisation, the latter has more issues around adoption and usage than the former, thus the change management has potentially a greater impact on the latter

.2.  Type of data that needs collecting
- what are expected benefits of the project?
- what happens if no one adopts and uses?

3. Use more indicators, eg side benefit contribution and coefficient