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MEASURING
ROI

Transformations are big undertakings, and measuring return on investment (ROI) accurately and continuously is critical

According to Monitor Deloitte’s 2022 Chief Transformation Officer Study, more than 50% of companies spend 1 - 5% of their annual revenue...

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...with more than 20% investing up to 10% on their transformation programs.

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...And nearly 50% of executives emphasize that demonstrating measurable ROI over a long period of time is critical to success.

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Get in touch to start
your transformation journey today.

GET IN TOUCH
... ...

Conduct a business value assessment of your
Operations, Customers, or Products & Services

TAKE Assessment NOW
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MEASURING
VALUE

Transformation value measurement is often
unstructured and inconsistent

Where Executives Actually Are

75% of organizations don’t measure the impact of their technology transformation investments using a consistent, structured approach


Source: Deloitte Global CIO Survey

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Where Executives Want to Be

Transformation quantification should be strategy-based, top-down, supported with a thoughtful framework, but within it, structured chaos.

Chief Digital Officer

US Financial Services Organization

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Measurement
Challenges

Assessing the true business value of transformation programs is inherently challenging

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BROAD SCOPE
that spans tech, process, and talent across business, functions, and geographies.

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MULTIPLE VALUE DRIVERS
such as productivity, experience, and quality, which need to be accounted for.

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Many intangibles
such as improved customer experience, which are hard to convert to P&L impact.

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Limited data availability, quality and clarity
to conduct detailed, bottom-up analysis.

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Different starting points to transformations
such as business, IT, and automation, which demand quantification flexibility.

Intangible benefits are ultimately going to result in more revenue, but they’re really hard to measure. A big challenge we face is that the Board will often not sign off on that level of investment without very clear benefits that they’re looking to deliver.

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Chief Transformation Officer
US Consumer Products Organization

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VALUE
METHODOLOGY

Deloitte’s business value assessment methodology consists of four components — type of value, source of value, target outcomes, and value metrics

SOURCE OF VALUE

TARGET OUTCOMES
(SAMPLE)

VALUE METRICS
(SAMPLE)

SOURCE OF VALUE

  • Enabling functions (e.g., Finance, HR, Legal, Supply Chain, IT)

TARGET OUTCOMES (SAMPLE)

  • Streamlined global operating model
  • Standardization of end-to-end processes
  • Improved global fulfillment

VALUE METRICS (SAMPLE)

  • Avg. on-time deployment / fulfillment rate
  • Avg. billing accuracy
  • Contract review cycle time
  • % of total activities that are automated (out of those that can be automated)

SOURCE OF VALUE

TARGET OUTCOMES
(SAMPLE)

VALUE METRICS
(SAMPLE)

SOURCE OF VALUE

  • Product development, R&D, Engineering

TARGET OUTCOMES (SAMPLE)

  • Agile and balanced product portfolio
  • Digitization of product development
  • Improved new product/feature quality and reliability

VALUE METRICS (SAMPLE)

  • % of portfolio dedicated to core vs. adjacent vs. transformational products
  • Avg. time to market for new products
  • Product development budget (as % of revenue)
  • Avg. customer renewal rate

SOURCE OF VALUE

TARGET OUTCOMES
(SAMPLE)

VALUE METRICS
(SAMPLE)

SOURCE OF VALUE

  • Sales, Marketing, Customer success

TARGET OUTCOMES (SAMPLE)

  • 360-degree view of the customer
  • Exceptional customer self-service platform
  • Enhanced sales enablement

VALUE METRICS (SAMPLE)

  • Avg. time from lead-to-close
  • Avg. cycle time from configure-to-quote
  • Avg. revenue per quota-bearing sales rep
  • Avg % of time that salesforce is customer-facing
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VALUE
TRANSFORM

With our transformation business value assessment tool — ValueTransform — you can quickly, and confidently, estimate “art of the possible” program value

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TARGET OUTCOMES

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FINANCIAL IMPACTS

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METRICS /
BENCHMARKS

TRANSFORMATION
VALUE

TARGET OUTCOMES

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Over 80 client-tested enterprise-wide transformation “plays”

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FINANCIAL IMPACTS

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More than 200 financial outcome equations enable the rapid quantification and prioritization of initiatives using proven benchmarks along with client inputs

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METRICS /
BENCHMARKS

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Over 700 KPIs— operational, product, and customer-centric— to support benefit calculation and enable in-depth benchmarking across functions

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TRANSFORMATION
VALUE

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  • Revenue Growth
  • Cost Savings
  • Working Capital Improvements
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QUANTIFY
PROGRAM
VALUE

Deloitte’s ValueTransform tool is the “swiss army knife” of quantifying transformation program value

Rapid

Rapid, evidence-based, “art of the possible” transformation value estimates (revenue, cost, and working capital) for various types of transformations

Quantification

Quantification of transformation programs of varying scope (technology-led, business-led, data-led) and scale (single function or enterprise-wide)

Measurable

Measurable financial impact of not just tangibles, but also intangibles, such as improved customer experience and employee engagement

Board-Ready

Board-ready transformation business cases and KPI dashboards

$1B

With ValueTransform, we supported a global technology client to rapidly develop a $1B enterprise-wide transformation business case for its business and operating model redesign, encompassing 30 initiatives across 12 functions.

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START HERE

This rapid diagnostic is intended for Software & Services B2B Tech Companies. Stay tuned for diagnostics for additional industries.

Learn

Read more about Deloitte’s recent perspectives on transformation value and transformation KPI design

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Article

Digital transformation investments: the art and science of measuring the value

READ
...

Report

A better way to estimate technology’s impact on enterprise value

READ
...

Article

How the wrong KPIs doom digital transformation

READ
...

STUDY

Monitor Deloitte’s 2022 Chief Transformation Officer Study

READ

Get to know the team — contact us.

Anne Kwan

Anne Kwan

Sponsor, Deloitte’s Chief
Transformation Officer Program
Principal

annkwan@deloitte.com
Cristina Stefanita

Cristina Stefanita

Lead, Deloitte’s Chief
Transformation Officer Program
Principal

cstefanita@deloitte.com
Amit Patel

Amit Patel

Product Manager, ValueTransform
Senior Manager

ampatel@deloitte.com

Ready to start a discussion?

Get in touch with Deloitte's US Transformation Leadership team

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