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Keeping Your Eyes on the Prize

· 5 min read

Why Business Analysts Must Regularly Revisit ROI

In the fast-paced world of business transformation, it's easy to get lost in the weeds. Project deadlines loom, requirements multiply, and stakeholders make ever-changing demands. Amid this chaos, business analysts often lose sight of the most fundamental question: Why are we doing this in the first place?

The answer always circles back to ROI – Return on Investment. Yet surprisingly, many BAs rarely revisit ROI calculations after the initial business case. This oversight can lead projects down a dangerous path, disconnected from their original purpose and value proposition.

When Projects Lose Their North Star​

It happens all too often - months into implementation, team morale starts to drop, scope expands uncontrollably, and executives begin questioning the entire endeavor.

What typically goes wrong? Teams lose touch with their ROI compass.

When revisiting original business cases, we frequently discover that projects have drifted significantly from their core value drivers. Perhaps the primary ROI justification was based on projected time savings or error reduction, but teams become fixated on implementing advanced features that, while technically impressive, contribute minimally to these core benefits.

By realigning efforts with the original ROI drivers, teams can refocus their energy on the features that deliver the greatest value. This realignment helps get projects back on track to deliver the projected benefits that justified the investment in the first place.

A Simple Tool for ROI-Centric Analysis​

To help BAs maintain this crucial focus on ROI, I've developed a prototype calculator tool. While still in its early stages (version 0.1), it provides a structured approach to quantifying and tracking the financial impact of business solutions.

The tool calculates time savings, error reduction benefits, efficiency improvements, and projected revenue increases against implementation costs. More importantly, it creates a shared understanding of value that keeps stakeholders aligned throughout the project lifecycle.

Beyond the Tool: An Algorithm for ROI-Focused Business Analysis​

While tools can support ROI analysis, the real challenge is establishing the right mindset and process. Here's a practical algorithm for BAs to integrate ROI thinking throughout the project lifecycle:

1. Establish Baseline Metrics (Pre-Project Phase)​

  • Key Question: "What specific pain points cost the business money today?"
  • Timing: Before requirements gathering begins
  • Action: Document specific metrics (time spent, error rates, lost opportunities) in their current state
  • Output: Quantified baseline measurements with financial values attached
  • Key Question: "How does each requirement directly contribute to our ROI targets?"
  • Timing: During requirements workshops and prioritization sessions
  • Action: Score each requirement based on its contribution to identified value drivers
  • Output: Requirements prioritized by ROI impact, not just technical complexity or stakeholder influence

3. Re-evaluate ROI at Transition Points (Throughout Implementation)​

  • Key Question: "Are we still on track to deliver the financial benefits we promised?"
  • Timing: At the end of each sprint/phase and before any major scope changes
  • Action: Recalculate projected ROI based on current project trajectory
  • Output: Updated ROI forecast with recommendations for course correction if needed

4. Validate ROI Assumptions with Real Data (Implementation Phase)​

  • Key Question: "What early evidence confirms or challenges our ROI assumptions?"
  • Timing: As soon as any part of the solution is used, even in a limited capacity
  • Action: Gather actual performance metrics from early adopters or pilot implementations
  • Output: Validated ROI projections based on real-world usage, not just estimates

5. Document Realized Benefits (Post-Implementation)​

  • Key Question: "What actual value have we delivered against our promise?"
  • Timing: 30, 90, and 180 days post-implementation
  • Action: Measure actual metrics against baseline and projected improvements
  • Output: Benefits realization report with lessons learned for future projects

Walking the Path with Your Customer​

The most successful BAs don't just calculate ROI – they make it a living part of the conversation with stakeholders. They understand that ROI isn't just about numbers; it's about accountability, alignment, and mutual success.

Every status meeting should reinforce the connection between current activities and ultimate business value. When stakeholders request changes, the discussion should naturally flow to ROI impact. When project challenges arise, decisions should be guided by what best preserves the core value proposition.

This approach transforms the BA from a requirements collector into a true value guardian – someone who walks alongside the customer throughout the journey, keeping everyone focused on the prize.

Conclusion: Make ROI Your Constant Companion​

Projects fail not because teams can't execute but because they lose sight of why they're executing in the first place. By making ROI a regular part of your BA practice – whether through tools like our prototype calculator or through disciplined application of the algorithm outlined above – you establish a clear line of sight between daily activities and business value.

Remember: The most dangerous words in any project are "we'll worry about ROI later." Later never comes. Make ROI your constant companion, and you'll dramatically increase your chances of delivering solutions that truly matter.

Have you experienced projects that lost sight of their ROI? What techniques do you use to keep stakeholders focused on value?