Overview: Level of urgency, common sense and emotion are three aspects of financial decisions. How does one assure objectivity? Is ROI essential? If so - what does it mean to have an active ROI process vs. a passive ROI process. What help is needed to assure the ROI for current and future projects that you are considering?
The first requirement for a financial decision is relevant data that is current, as accurate as possible and with an understanding of the range of accuracy. These factors need to be weighed against the criticality of the decision for the organization. ROI is less critical for modest decisions but absolutely vital for major ones. Inputs from all areas influenced by the potential decision need to have provided adequate information. Then some sensitivity analysis by varying key data aspects is vital. Finally the leader should ideally get a consensus on the outcome before giving his own opinion of the conclusion.
Are you/companies weighing ROI differently in the times of Covid? If so, how?
The cost component of ROI is being reduced for much of what I do - and yet the time to realize the return may be longer - and potentially smaller - so yes - the ratio may be the same or better - but I am weighing the "opportunity cost" differently.
Noah I love your question regarding social and emotional health and how it relates to ROI and educational decisions.