11. ROI & VALUE REALIZATION
Project Name: [Your Project Name]
Owner/Lead: [Your Name]
Created: [MM/DD/YYYY]
Status: [Planning / In Progress / On Hold / Completed]
Overview
This document defines how ROI will be measured, financial projections, break-even analysis, and value realization tracking. It ensures the project delivers measurable business value.
Connections: Uses Sections 1, 2, 6; Feeds into Sections 11 (Governance), 12 (Lessons Learned)
ROI Formula
ROI = (Net Value - Investment Cost) / Investment Cost × 100%
Where:
- Net Value = Total benefits - Ongoing costs
- Investment Cost = Development + Infrastructure + Tools + Personnel
Investment Costs
Development Costs
| Category | Amount | Duration | Total | Notes |
|---|---|---|---|---|
| Personnel | $[X] | [X] months | $[X] | Team salaries |
| Infrastructure | $[X] | [X] months | $[X] | Cloud, hosting |
| Tools & Services | $[X] | [X] months | $[X] | Third-party services |
| Contingency | $[X] | $[X] | 15-20% buffer | |
| Total Investment | $[X] |
Ongoing Costs (Annual)
| Category | Annual Cost | Notes |
|---|---|---|
| Infrastructure | $[X] | Scaling with usage |
| Tools & Services | $[X] | Licenses, APIs |
| Maintenance | $[X] | 20% of development cost |
| Support | $[X] | Customer support |
| Total Ongoing | $[X] |
Business Value Metrics
Revenue Generation
Direct Revenue:
- Subscription revenue: $[X]/month
- Transaction fees: $[X]/month
- Enterprise licenses: $[X]/month
- Total Monthly Revenue: $[X]
Revenue Projections:
| Month | Revenue | Cumulative | Notes |
|---|---|---|---|
| Month 1 | $[X] | $[X] | Launch month |
| Month 3 | $[X] | $[X] | Early adoption |
| Month 6 | $[X] | $[X] | Growth phase |
| Month 12 | $[X] | $[X] | Maturity |
Cost Savings
Efficiency Gains:
- Reduced manual work: [X] hours/week × $[X]/hour = $[X]/week
- Automated processes: $[X]/month
- Reduced errors: $[X]/month
- Total Monthly Savings: $[X]
Strategic Value
Market Position:
- Competitive advantage: [Description]
- Market share increase: [X]%
- Brand value: [Description]
Ecosystem Impact:
- Developer adoption: [X] developers
- Community growth: [X] members
- Partnership opportunities: [X] partners
30-60-90 Day ROI Tracking
30-Day Targets
Investment: $[X]
Expected Value:
- Users: [X]
- Revenue: $[X]
- Cost Savings: $[X]
- Total Value: $[X]
- ROI: [X]%
Success Criteria:
- MVP launched
- Initial users onboarded
- Revenue stream initiated
60-Day Targets
Cumulative Investment: $[X]
Expected Value:
- Users: [X]
- Revenue: $[X]
- Cost Savings: $[X]
- Total Value: $[X]
- ROI: [X]%
Success Criteria:
- User growth: [X]% month-over-month
- Revenue growth: [X]% month-over-month
- Product-market fit indicators positive
90-Day Targets
Cumulative Investment: $[X]
Expected Value:
- Users: [X]
- Revenue: $[X]
- Cost Savings: $[X]
- Total Value: $[X]
- ROI: [X]%
Success Criteria:
- Sustainable growth trajectory
- Positive unit economics
- Break-even achieved (if applicable)
Break-Even Analysis
Break-Even Point Calculation
Fixed Costs: $[X]/month
Variable Costs per Unit: $[X]
Revenue per Unit: $[X]
Contribution Margin: $[X] (Revenue - Variable Cost)
Break-Even Units = Fixed Costs / Contribution Margin = [X] units
Break-Even Timeline: [X] months from launch
Break-Even Scenarios
| Scenario | Break-Even Units | Timeline | Probability |
|---|---|---|---|
| Optimistic | [X] | [X] months | 25% |
| Realistic | [X] | [X] months | 50% |
| Pessimistic | [X] | [X] months | 25% |
Value Realization Timeline
Phase 1: Foundation (Months 1-2)
Investment: $[X]
Value: Infrastructure ready, team productive
ROI: Negative (investment phase)
Phase 2: MVP Launch (Month 3)
Investment: $[X]
Value: Initial users, first revenue
ROI: [X]% (early returns)
Phase 3: Growth (Months 4-6)
Investment: $[X]
Value: User growth, revenue scaling
ROI: [X]% (positive trajectory)
Phase 4: Maturity (Months 7-12)
Investment: $[X]
Value: Sustainable operations, profitability
ROI: [X]% (target achieved)
Unit Economics
Customer Acquisition Cost (CAC)
CAC = Marketing & Sales Costs / New Customers Acquired
- Marketing spend: $[X]/month
- Sales team cost: $[X]/month
- New customers: [X]/month
- CAC: $[X]
Customer Lifetime Value (LTV)
LTV = Average Revenue per User × Gross Margin % × Average Customer Lifespan
- ARPU: $[X]/month
- Gross Margin: [X]%
- Average Lifespan: [X] months
- LTV: $[X]
LTV/CAC Ratio
LTV/CAC = $[X] / $[X] = [X]
Target: >3:1 (healthy)
Current: [X]:1
Status: [Healthy/Needs Improvement]
Financial Sensitivity Analysis
What-If Scenarios
Scenario 1: 20% Lower Revenue
- Impact on ROI: [X]%
- Impact on Break-Even: [X] months delay
- Mitigation: [Actions]
Scenario 2: 20% Higher Costs
- Impact on ROI: [X]%
- Impact on Break-Even: [X] months delay
- Mitigation: [Actions]
Scenario 3: 50% Slower User Growth
- Impact on ROI: [X]%
- Impact on Break-Even: [X] months delay
- Mitigation: [Actions]
Value Tracking Dashboard
Monthly Value Metrics
| Metric | Target | Actual | Variance | Status |
|---|---|---|---|---|
| Revenue | $[X] | $[X] | [X]% | [✓/✗] |
| Users | [X] | [X] | [X]% | [✓/✗] |
| CAC | $[X] | $[X] | [X]% | [✓/✗] |
| LTV | $[X] | $[X] | [X]% | [✓/✗] |
| LTV/CAC | [X]:1 | [X]:1 | [X]% | [✓/✗] |
| ROI | [X]% | [X]% | [X]% | [✓/✗] |
Success Criteria
ROI Success:
- Break-even achieved by [Date]
- LTV/CAC ratio >3:1
- Positive ROI by Month 6
- Unit economics positive
- Value realization on track
Last Updated: [Date]
Next Review: [Date]
Owner: [Name]