Measuring the return on investment (ROI) of a project Business Process Management (BPM) is essential for evaluating its effectiveness and value for the business.
To measure this ROI, it is important to follow a structured methodology.
The 6 key steps to calculate ROI
1- Definition of Objectives
Decide clearly The objectives of the BPM project and associated indicators. These goals must be specific, measurable, achievable, attainable, relevant and time-bound (SMART criteria).
Among these objectives and KPIs, we can remember:
⏳ Treatment time:
- KPI : Average time to complete a task or process.
- Objective : Reduce order processing time by 30% in 6 months.
💲 Cost per transaction
- KPI : The total cost associated with completing a specific transaction or process.
- Objective : Reduce the cost per transaction by 20% by the end of the fiscal year
✖️ Error rate
- KPI : Percentage of errors or defects in processes.
- Objective : Reduce the error rate in the billing process by 50% in the next 3 months.
😍 Customer satisfaction
- KPI : Customer satisfaction score measured by surveys or customer feedback.
- Objective : Improve customer satisfaction with the after-sales service process, reaching an average score of 8/10 over the next 12 months.
✅ Compliance rate:
- KPI : Percentage of compliance with standards and regulations.
- Objective : Achieve 100% compliance with data security standards in all relevant processes by the next audit.
💹 Employee productivity
- KPI : The amount of work done per employee over a period of time.
- Objective : Increase employee productivity by 15% by optimizing workflows by the end of the year.
🚦 Process completion rate
- KPI : Percentage of processes successfully completed without interruptions or restarts.
- Objective : Improve the process completion rate to 95% by eliminating bottlenecks in the next 6 months.
⛷️ System adoption rate
- KPI : Level of use of BPM tools and systems by employees.
- Objective : Achieve an adoption rate of the new BPM platform of 80% among the users concerned within 4 months following deployment.
2- Identification and quantification of costs
Calculate all costs associated with the project, including initial costs (purchase of BPM software, equipment, consulting) and operational costs (maintenance, licenses, training).
3- Risk analysis
Evaluate the potential risks associated with the project and their possible impact on ROI. This can include implementation delays, cost overruns, and changes in the business environment.
4- Follow-up and adjustment
After the implementation of the project, continuously monitor performance against defined KPIs. Adjust processes as needed to maximize ROI.
5-Report and communication
Prepare detailed reports on ROI and project performance for stakeholders. Use this information to justify future investments in BPM projects.
6- Periodic reassessment
ROI should be reassessed periodically to take into account changes in costs, benefits, and business environment. This ensures that the project continues to provide added value.
Determine the right indicators, respect a rigorous calculation method
These steps provide a framework for systematically measuring the return on investment of BPM initiatives, allowing for informed decisions and optimizing business resources.
Calculating the ROI of a BPM project is not just a question of numbers. It is a strategic approach that makes it possible to make informed decisions, optimize resources and maximize value for the business. By identifying the right KPIs and rigorously applying the ROI calculation, the CTO can justify its investments in BPM projects and chart a path to continuous improvement and sustainable success.
