Some of you have been performing ROI for organizations for years. Some of you may find this to be a new skill. Below is a very short PowerPoint to help you with ROI. Here is one example (please do not use this in your assignments).
- An investment must be made (a number)
- There must be data to show how this investment will make the company money and approximately how much money that would be.
- This figure needs to be turned into a percentage as a return on investment is a percentage.
It is not ROI to simply write something like …”changing from existing toilets to low flow toilets will save about 10% on the water bill”
You would show how much money is saved and the percentage of ROI…. (based upon data and you will have to come up with approximations based upon data).
Here is an example:
How much new low flow toilets cost (research the cost of low flow toilets and cite)
How many toilets are in the facility being considered (actual number this can be counted)
How much it costs to replace existing toilets and low flow toilets (research this cost and cite)
What is the current water bill? (If you can’t get that exact number you can find out through research how much a company with the number of employees pays in water.. (cite any data they give you as “Personal Communication” (see APA for more info). You could look at your current employer determine the number of employees and then ask the accounting department for a figure of what your company pays and then using simple math extrapolate that number to the number of employees that would be affected by your recommendation.
Then you can find research that shows (probably where you got the quote for the low-flow toilets in the first place what percentage of water is saved using low-flow toilets).
Using basic math skills you will come up with an ROI of how much the organization will save using low-flow toilets (after expenses of purchase and instillation).
Remember you can’t cite Google as research…but that does mean you can’t start there…I often Google my questions like “How much does a low flow toilet cost”?
Sample Solution
