De-Mystifying ROI Calculation for SharePoint
- 1. De-Mystifying ROI Calculation for SharePoint Sarah Haase, The SharePoint Librarian @sarahhaase http://sarahlhaase.wordpress.com/
- 2. Collaboration & Search Engineer Technical writer CMS/KM implementation & support Information architect Librarian User adoption enthusiast Code-free SharePoint solution builder Author
- 3. • Reduce email • Focus on • Leverage all Community development Information architecture dependency structured knowledge data assets • Provide just- Process optimization in-time • Incorporate • Build tools information taxonomies people want for efficient to use • Build retrieval automated • Folksonomies workflow • Focus on lists, (tagging for processes not libraries the masses)
- 4. Businesses shouldn’t be run via spreadsheets stored on shared drives.
- 5. Left to their own devices, well-intentioned people will live in information chaos.
- 6. Your SharePoint solution isn’t complete until you’ve measured its effectiveness.
- 7. ROI is meaningless without context.
- 8. Agenda • What is ROI? • What does good ROI look like? • Units of measure & common methodologies • Building your valuation roadmap
- 9. What is ROI?
- 10. ROI is… • A cool acronym • A method of quantifying benefits reaped • A way to “feel good” about an investment • A way to offset opportunity costs • A method for validating good decisions • An afterthought
- 11. TYPICAL measurements Number of sites Successful upgrade Business adoption and site collections Percentage of “business critical” Space consumption Business reliance docs stored in SharePoint
- 12. BETTER measurements Shortened Quantifiable Quantifiable business drop in user drop in processes confusion “hunting” time Use in place of Successful Actual dollar expensive replacement of savings alternatives legacy systems
- 13. The hard part is… people don’t understand how to make the leap in their organization
- 14. Quantitative ROI Qualitative ROI Money Emotional -Increased revenue -Improved employee morale -Eliminated tools -Elimination of unpopular tasks -Increased productivity -Reduced user confusion -Lowered overhead per sale -Happier customers Time Evolution of work -Streamlined business processes -Ability to focus on higher-value tasks -Just-in-time (JIT) information -More automation, fewer mistakes -Less rework -Simplify the “hairball” -Faster time-to-market -Reduce employee turnover
- 16. For most for-profit companies, cash is king. In some cases, SharePoint may (in and of itself) be a revenue stream. But for many of us, SharePoint represents “soft money”—aka money that we can avoid spending on a variety of other tools. Or money we can save by lowering our overhead costs and decreasing our time-to-market.
- 17. Tool elimination example Expenditure $800,000 • “Proof of concept” $700,000 – Speed to Market $600,000 – Low / No Cost $500,000 – Leveraged existing platform $400,000 – Minimal infrastructure cost $300,000 – Leverage existing resources $200,000 – Quick to deploy & modify $100,000 $0 New Sharepoint Application
- 18. TIME savings
- 19. Base formula Time to # of Hourly Process complete iterations $$$ rate cost 1 iteration
- 20. Base formula Time to # of Hourly Process complete iterations $$$ rate cost 1 iteration 15 minutes $650 4 hours x 52 times/year x $50/hour = $10,400
- 21. “Before” process cost Cost savings “After” (ROI) process cost
- 22. Evolution of work & Emotional ROI
- 23. Key “emotional” factors • Push content to the right people at the right time • Eliminate the “soul crushing” work • Don’t make them have 45 windows open at once • Make your employees & customers happy • Personal measure of “What’s in it for me?” • Ability to focus on higher value-add tasks • Don’t take it away!
- 24. User stories Surveys SharePoint usage metrics Interviews Serious anecdotes
- 25. - Sue Hanley A Practical Framework for SharePoint Metrics http://www.susanhanley.com/white-papers.htm
- 27. Step 1: Find what is needed • Ask questions: – What do we value? – How do we work? (aka how formal are we?) – What matters to management? – What does “good” look like? – How do we talk about our successes & failures? • Find examples of success and backtrack
- 28. Step 2: Plant your stake Define Pick a focus checkpoints on area your route Build a Define your timeline & plan role for delivery Determine Garner support training needs
- 29. Step 3: Take baseline measurements
- 30. Step 4: Define success criterion From the general To the specific Reduce duplicate storage of content Eliminate 15GB in duplicated storage within 6 months Reduce time it takes to complete a business process Reduce weekly overhead of XXX process by 15% Generate value Generate $250,000 in BPR savings within 1 year
- 31. Step 5: Calculate your ROI • Be consistent • Answer the “What’s in it for me?” question • Phrase your success in real $$$ • Unite quantitative & qualitative metrics for a richer experience • Add up all the ROI for every project • Think about your delivery mechanism
- 32. Step 6: Spread the word • Money talks • Build your elevator speech • Partner, don’t conquer • Don’t forget the higher-ups
- 33. Sarah Haase, The SharePoint Librarian @sarahhaase http://sarahlhaase.wordpress.com/ [email protected]