Nothing will propel an initiative faster from concept to approval
than a compelling Return on Investment (ROI). ROI helps prioritize initiatives
and supporting resources. It is common for ROI to be the primary measure of
success (or failure) for a project.
Leading organizations expect returns from communications solutions to be similar to, or better than, investments into their core business. And rightly so. Voice, data, mobile and cloud services are critical pillars of an organization’s infrastructure. Many organizations find that these services account for their largest non-payroll expense. Maximizing ROI for an investment as large as communications is absolutely vital.
TO MAXIMIZE ROI
What is the secret? The
secret to maximizing ROI is to efficiently maintain an optimized communications
environment. It is not enough to get your environment in perfect order with
all solutions optimized both functionally and financially. Difficult as this
may seem, establishing order is only the beginning.
Waste is created when
organizations hastily invest in “clean-up” efforts to right-size their
environments but fail to implement proper ongoing control measures. As a
result, the situation returns to its pre-project state. Or often worse.
This chart shows a trend of total spend for 24 months following the start of the initial project. The 35 clients in this study represent varying sizes, complexities and industries. For ease of comparison, trends are represented as a percentage of the initial baseline.
Shortly after project completion,
items pop up here and there. Organizations may address the first wave of items
assuming their resources have sufficiently recovered from the stress of the
initial clean-up project. But quickly we see evidence that competing priorities
deplete these resources just as a deluge of new problems emerge.
KEYS TO MAXIMIZING ROI
Maintaining an optimized environment – efficiently – distinguishes
successful initiatives from the rest. The chart below shows a trend of 19
organizations’ costs over the same 24-month period. However, these
organizations implemented automated lifecycle management practices during and
after their initial “clean-up” phase.
Three key characteristics of
ongoing optimization efforts are Visibility, Control and Automation.
Visibility is more than tracking spending and budgets. Effective
visibility includes service inventory and change management, contract terms and
achievement, and trend analysis at the service, location, vendor, and
budget-detail levels. Benchmarking key performance indicators with similar
organizations can provide illuminating perspective for targeting areas of
Control measures allow for continual improvement while protecting
progress. Service inventory controls, for example, ensure quality of service
and compliance. Change management controls eliminate waste while maintaining
centralization of planning, execution and maintenance. From contract management
to budgeting, and approval policies to reconciliation, control measures
maintain standards while further identifying opportunities for improvement.
Automation is a key factor to ensuring adoption of the standards
mentioned. Automation ensures resources can remain focused on making
well-informed decisions on the most impactful initiatives without being
inundated with tedious, repetitive tasks.
With insightful visibility,
proper controls, and process automation, return on investment is maximized. Engaging
in “clean-up” projects alone can generate some short-term gains, but when
carefully evaluated they may not be worth the effort. Make sure clean-up is a
one-time project by taking necessary steps early to protect and grow savings
achieved. Not only will it yield the best results, but it will ensure the
organization is well-positioned for whatever future challenges arise.
Cost Management Group (CMG) focused on delivering the right solutions to meet the growing demands of its clients. Contact us for more information on how CMG can maximize ROI with TEM.
http://costmg.com/wp-content/uploads/2017/09/logo-costmanagementgroup.svg00Neilhttp://costmg.com/wp-content/uploads/2017/09/logo-costmanagementgroup.svgNeil2019-01-24 12:08:182020-10-16 08:21:48The Secret to Maximizing ROI (with TEM)