Here is an ROI Formula that will help you achieve that goal.
Below is a brief overview of the calculation formula.
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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.
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Step-by-Step Overview: How it Works
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
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]
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
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
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
In the download materials, you will find examples and instructions that will help you easily apply this method.