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How Process Improvements Affect ROI

Last week we addressed another way to use metrics to avoid a performance black hole: managing the supply chain and its affect on ROI. You can read that blog here.


This week our blog is about how process improvements affect ROI.


Most businesses continuously seek out new methods for improving efficiency and adding value to the organization through various means.

Some of those means include:


One component is identifying the initiatives that will provide the highest level of return on investment (ROI). Before undertaking any project in which you'll measure and evaluate your results, it is important that the stakeholders of the effort agree on how to determine success.

What Will You Measure and How Will You Measure It?

If your goal is to decrease receivables to improve cash flow, you should agree to measurement terms before starting the initiative. You should also agree on who is responsible for the measurement. This ensures that everyone is on the same page.

Choosing ROI Goals

ROI factors can fall into one of two categories: tangible and intangible.


Tangible ROI factors include truly measurable results that are not open to debate or criticism — they offer objective data. Reduced receivables is a tangible ROI factor because the before and after numbers can be measured and verified over time.


Intangible ROI is less scientific, but just as important. Intangible ROI results may include improved employee morale, better flexibility, and increased levels of customer satisfaction. Intangible ROI is not numerically precise, but tools like employee or customer surveys can be applied before and after the process to determine improvements.


Whether you choose tangible, intangible, or both types of ROI factors, agreeing up front on how to measure the results and determine success is the only way to ensure that your innovative process improvements will meet your ROI goals.

Consulting with Southeast Computer Solutions

Southeast Computer Solutions offers a detailed evaluation of your existing business processes, after which they will help you set goals and attain the ROI you're anticipating.


Contact us today to see how our strong team of professionals and skilled project leadership can help you create innovative processes that will work for your company now and in the future.

Measuring and Tracking the Right Things In Your Business eBook

About Southeast Computer Solutions

Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.


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