The Use and Abuse of ROI in ISD and Performance Improvement Communities

ROI – Return on Investment

Return on Investment – is too often abused – being used “after the fact/investment” to prove the value – whether forecasted in advance or not. That’s not its utility.

That’s Gotcha Management – used by those who don’t understand what ROI is and isn’t – and/or have some other agenda.

ROI is a tool for decision making – “where” to invest when there are more alternatives than there are resources for – but even ROI needs to be augmented with a Risk Assessment.

The 10 Minute Video

Learn the Language of Business

At the heart of every set of business-speak – is Finance. That’s how score is kept.

You cannot play any game, especially the game of business – without understanding how score is kept.

Learn more at:

http://www.investopedia.com/

Great site with many resources for climbing this learning curve!

And please don’t get caught by your CFO misusing a term that they’ve been using since before graduating from school. Especially in any semi-public forum.

That would not be good.

Late Addition…

Beware Vague Learning Jargon

Jack J. Phillips and Patti P. Phillips –  6/8/11 in TM Magazine online – here.

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