The ROI Team-Building Calculator provides a formula for team leaders and facilitators to demonstrate the profitability of their team-building efforts to senior leadership and clients.
It translates the success of team improvement projects into a verifiable financial return on investment.
The ROI Calculation Formula
The calculator uses a straightforward formula based on project value and team estimations to determine the Net Team Building ROI:
- Determine Project Value: Identify the combined Savings and/or Added Value produced by team improvement projects within a specific timeframe (e.g., six months).
- Calculate the Team Building Isolation Variable: This variable quantifies the portion of the project value directly attributable to the team-building effort.
- Attribution % (Team members estimate what % of the value was due to team building)
- Confidence % (Team members estimate their confidence level in the attribution)
- Formula: Attribution x Confidence = Isolation Variable
- Calculate Gross Team Building ROI:
- Formula: Project Value x Isolation Variable = Gross Team Building ROI Amount
- Calculate Net Team Building ROI:
- Formula: Gross Team Building ROI Amount – RMT Fees = Net Team Building ROI
Examples
Energy Company: Large-Scale Organizational Change Project
- Net Team-Building Training ROI = $2,540,000 or 847%
ABC Company: An Intact Team of 9 Teammates
- Net Team-Building ROI = $273,350 or 1,093%
- Read this team’s story here.
Action
FREE: download materials and instructions that will help you easily apply this method.
