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The Missing Metric: ROI

Metrics are essential measurements to determine if a project is meeting the established goals of time, delivery and budget constraints.  This may be a bit off the requirements blog norm, but worth the mention.

There has been a change in the market where the ROI (Return on Investment) is not a requirement in the eyes on projects.  Is the ROI forecast replaced by a focus upon the financial burn? Are people considering what was spent to arrive at the solution and counting up the cost after the fact?  It is important to track what was spent and if the project arrived on, under, or over budget.  Some organizations are of the thought, “Just track the burn.”  Financial disaster, monetary suicide, bad judgment, new line of thought; you be the judge.

In these troubled financial times when institutions are trimming the fat and jobs, not laying the foundation of financial success can be the road to financial ruin.  There are some necessary projects where the ROI does not have the deciding impact but when it becomes company standard not to have an ROI there is a backlash to pay.  The focus of the “get the most for the dollars spent with the best solution” is vanishing in some firms because the preverbal purse strings are open.  What happens when the well runs dry?

Is sober financial planning disappearing?  The ROI is a metric norm to follow and it appears it is giving way to the free will spend, spend, spend until it is gone.  There’s a new program to align with without the old metric.  ROI is worth the effort, right?

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