In praise of ROI
Why are organizations overly concerned with realizing a beneficial return from their projects? Because projects are fundamentally financial investments. As such, organizations expect to receive something of value--ranging from profits to knowledge to customer loyalty--that can improve the organization's overall health, wealth, and capacity to compete in today's markets. This article describes three reasons why project managers must deliver projects that provide their clients with a return on their investment (ROI). In doing so, it identifies the reason companies operate, noting in particular why public sector organizations exist. It also explains why organizations should evaluate all project investments, including those implemented to meet legal and regulatory mandates.