Quantifying Indirect Savings for Comprehensive ROI Assessment PPT

This PPT slide, part of the 24-slide Continuous Improvement: High ROI Initiatives PowerPoint presentation, emphasizes the importance of incorporating all ancillary savings into ROI calculations. It highlights a principle that encourages organizations to quantify indirect savings and communicate these figures to key stakeholders. The opening quote from a Financial Controller underscores the necessity of demonstrating a return on investment to secure approval for expenditures. This sets the tone for the discussion on the complexities of calculating these savings.

The slide identifies a common challenge: teams often have a limited perspective on savings, focusing primarily on direct and immediate returns. This narrow view can overlook significant savings that arise from reduced complexities and streamlined processes. The text suggests that once ancillary savings are properly identified and quantified, they can reveal substantial business benefits.

Further, it points out that savings extend beyond just the cost of goods sold. Other areas, such as reduced utility costs and general overhead expenses, can contribute to the overall financial picture. This broader perspective is essential for a comprehensive understanding of ROI.

The concluding note stresses the need for confirmation that any proposed changes yield positive ancillary savings. It implies that detailed analysis is crucial, as these indirect savings often lie in the finer details of operational adjustments. By addressing these aspects, organizations can foster greater support and collaboration among stakeholders, ultimately enhancing the effectiveness of their initiatives.

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Continuous Improvement ROI Return on Investment