How do I use the project ROI calculations?
Modified on: Wed, 10 Oct, 2018 at 8:12 AM
If desired, your circle can use Return on Investment (ROI) calculations, similar to those used in Agile software development projects, to evaluate the benefit of the circles projects.
ROI comparisons are typically used as a planning tool to evaluate what projects have more value than others, and consequently to determine where circle members might focus their energy.
CalculationWhat's required to be useful is for all projects in the circle to be evaluated based on their effort and value relative to each other. There are two data points that need to be entered in order for GlassFrog to determine your circle's ROI for the project, as in the example below.
- This is an estimate of the value to the organization of completing this project. It is typically entered by the Lead Link or another role accountable for prioritizing work.
- You can estimate this field in a specific unit (e.g., value in dollars), however we recommend using a relative "unitless" estimate for example a "2" means that the project has twice the value of another project estimated at "1".
- This is an estimate of the effort required to complete the project. It is typically entered by the Role-filler who will do the work.
- You can estimate this field in a specific unit (e.g., time in days), however in most cases we recommend using "unitless" relative estimates - e.g., a "3" means three times the effort of another project estimated as a "1".
ROIGlassFrog will automatically calculate the ROI once the Value and Effort information has been entered.
Members EffortsOnce your circle has established ROI values for all existing projects, circle members can use this information to see the relative value of these projects to help them determine where to spend their efforts.
Note that the ROI can be viewed across the circle by looking at the project search view:
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