As a team leader or team-building facilitator, you want to demonstrate that YOUR team-building efforts are profitable.
Here is an ROI Formula that will help you achieve that goal.
Show your successful results to your senior leadership team as well as your team-building clients.
Actual Examples – from Right-Minded Teamwork
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.
A Narrative Explanation
Let’s say that 3 team improvement projects were created, implemented, and completed within six months of beginning the team-building effort. And let’s say those projects produced combined Savings and/or Added Value of $300,000. Using that figure, we can calculate the team building ROI by using team member estimations.
Let’s say that team members estimated that 75% of the $300,000 could be attributed to the team-building effort and that they were 85% confident in their estimation.
With these two figures, we can calculate the Team Building Isolation Variable by multiplying 75% X 85% to get 64%.
Now, we multiply 64% X $300,000 = $192,00 which determines the Gross Team Building ROI amount.
And finally, we subtract Right-Minded Teamwork fees: $192,000 – $45,000 = $147,000 or 326% which is your team’s Net Team Building ROI and percentage
In the download materials, you will find examples and instructions that will help you easily apply this method.