When implementing a new system, an estimate of the quantifiable justification for the new system is usually requested. When it comes to justifying the implementation of a project management solution, the numbers can get tricky to calculate. However, it is still relatively simple to determine whether your company is at the breaking point and could benefit from improving its project management processes.
When determining actual ROI, there are many things to consider, including quantifiable improvements and possible benefits, which are real but more difficult to quantify.
- Capture more billable time
- Decrease in non-strategic project acceptance
- Improved allocation of resources
- Increased budget accuracy
- Reduction on cost overruns
- Reduction in project failure rate
- Reduction in project delivery time
- Increased chance of winning bids
- Decreased time required to create reports
- Decreased time spent updating statuses
- Improved handling of change requests
- Increased accuracy in expense reporting
- Improved morale
- Increased accountability
- More-accurate expense reporting
It is challenging to determine the actual ROI, but the numbers and considerations above can help you create a more-accurate estimated ROI projection. Numbers can be adjusted based on the actual profit margin of your company, which may be above or below the average. Lexem’s optimization model can help establish benchmarks and metrics to track project management improvements.