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...
...with more than 20% investing up to 10% on their transformation programs.
...And nearly 50% of executives emphasize that demonstrating measurable ROI over a long period of time is critical to success.
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
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
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
.png)
Measurement
Challenges
Assessing the true business value of transformation programs is inherently challenging
BROAD SCOPE
that spans tech, process, and talent across business, functions, and geographies.
.png)
MULTIPLE VALUE DRIVERS
such as productivity, experience, and quality, which need to be accounted for.
.png)
Many intangibles
such as improved customer experience, which are hard to convert to P&L impact.
.png)
Limited data availability, quality and clarity
to conduct detailed, bottom-up analysis.
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.”
Chief Transformation Officer
US Consumer Products Organization
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)
Product-focused
Value generated
from designing, developing, and delivering new products and services
Value generated from designing, developing, and delivering new products and services
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
VALUE
TRANSFORM
With our transformation business value assessment tool — ValueTransform — you can quickly, and confidently, estimate “art of the possible” program value
.svg.svg)
TARGET OUTCOMES
FINANCIAL IMPACTS
METRICS /
BENCHMARKS
TRANSFORMATION
VALUE
TARGET OUTCOMES
Over 80 client-tested enterprise-wide transformation “plays”
FINANCIAL IMPACTS
More than 200 financial outcome equations enable the rapid quantification and prioritization of initiatives using proven benchmarks along with client inputs
METRICS /
BENCHMARKS
Over 700 KPIs— operational, product, and customer-centric— to support benefit calculation and enable in-depth benchmarking across functions
TRANSFORMATION
VALUE
- Revenue Growth
- Cost Savings
- Working Capital Improvements
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.
START HERE
Your data-driven transformation value
assessment journey starts here!
5-MIN SURVEY
Diagnose
Take a short ValueTransform diagnostic and explore opportunity areas for your organization.
.png)
.png)
.png)
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
Get to know the team — contact us.
.png)
Cristina Stefanita
Lead, Deloitte’s Chief
Transformation Officer Program
Principal
Ready to start a discussion?
Get in touch with Deloitte's US Transformation Leadership team
