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Home » Team Building News » How to Calculate Return-on-Investment for Team Building

How to Calculate Return-on-Investment for Team Building

By Dan Hogan ・ Published: November 2, 2022 ・ Last Update: March 11, 2023 ・ 2 minutes to read

Right-Minded Teamwork ROI Calculator

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.

Below is a brief overview of the calculation formula.

Add to Cart and download the entire method, now. It will show you how easy it is to calculate your team-building ROI success.

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.

Add to Cart to see the complete analysis of these assignments.

Click Here to Download the ROI Calculator NOW

Step-by-Step Overview: How it Works

1. Conduct Team-Building

Afterward, quantify the team’s performance within six months in both objective & subjective measures

This number will be the team’s Total Savings or Added Value

2. Ask teammates to…

Estimate how much of the Total Savings/Added Value could be attributed to their previous team-building effort and then ask teammates to determine…

How Confident they are of their estimate

Multiply the two percentages and you will have your Team Building Isolation Variable [TBIV]

3. Gross Team Building ROI amount [GTB-ROI]

Multiply the Total Savings/Added Value amount times the TBIV and that results in your Gross Team Building ROI amount

4. Net Team Building ROI & Percentage [NTB-ROI]

Subtract the Right-Minded Teamwork Facilitation Fee from GTB-ROI and you will now have the Net Team Building ROI number and percentage

Click Here to Download the ROI Calculator NOW

A Narrative Explanation

We will use objective data in this example.

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.

Get Started

In the download materials, you will find examples and instructions that will help you easily apply this method.

Start today.

Click Here to Download the ROI Calculator NOW

Dan Hogan, Certified Master Facilitator

Posted Under: Team Building Facilitation

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Joel S.Our plant moved from a victim culture to an accountable culture where everyone is now pulling together versus pulling apart. This new culture helped us to complete the last outage turnaround in record time.

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