Return on Investment:

How To Guide Version 4r

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Sheet Description
Enter your project
name here
Benefits Enter your list of benefits here and also calculate the potential or
actual financial value of those benefits. Enter data into the
yellow shaded cells only.
Cost Input your project costs here. These should include both start-up
and any ongoing costs. Enter data into the yellow shaded cells
only.
Dividend A summary table showing the potential or actual return on the
investment you made.
Evidence A blan sheet for you to record the raw data behind the benefits
listed on the !enefit sheet.
How do I use this too!
". Enter your project name in the yellow shaded bo#
$. Gather your improvement evidence and enter it into the Evidence sheet if you want to
%optional&
'. (omplete the Bene"it sheets
). (omplete the Cost sheet
*. +iew your ,-I on the Dividend sheet
How do I move around!
.se the /avigation bar at the top of each screen to move between sheets. (lic on the
button for the sheet you want such as0
#imitations
1e have deliberately designed this spreadsheet to be as simple as possible. The
limitations are outlined below. 1e recommend that teams use and interpret the results in
collaboration with their finance colleagues.
(1) The financial benefits sheet shows the benefits from allocated resources. Estimating
actual cashable benefit needs to be done outside of this spreadsheet. Savings from
allocated resources can often be cashed through changes to the capacity or structure of
the system. Allocated resources can alternatively be diverted to other value adding
activity, for eample, reducing outpatients appointments can be converted into additional
discharge rounds.
(!)The spreadsheet allows for the insertion of one benefit percentage value per year. "e
recommend that teams conduct a number of #what if$ scenarios to cover your full
confidence range.
(%) The &epartment of 'ealth(s standard for discounting benefits over time is !), but
this will vary by organisation*industry*pro+ect depending on individual assessments of
pro+ect ris,. -ou can change the default setting of !) on the &ivident sheet.
(.) The spreadsheet does not distinguish between revenue and capital ependiture in
the costs sheet. This is o, for calculating /01 but recognise that you will need to access
funds from separate budgets.
(2) There is no option for intangible benefits.
(3) The spreadsheet does not separate fied and variable costs over time in detail.
How To Guide How To Guide Benefits Benefits Cost Cost Dividend Dividend
How do I use this too!
". Enter your project name in the yellow shaded bo#
$. Gather your improvement evidence and enter it into the Evidence sheet if you want to
%optional&
'. (omplete the Bene"it sheets
). (omplete the Cost sheet
*. +iew your ,-I on the Dividend sheet
How do I move around!
.se the /avigation bar at the top of each screen to move between sheets. (lic on the
button for the sheet you want such as0
#imitations
1e have deliberately designed this spreadsheet to be as simple as possible. The
limitations are outlined below. 1e recommend that teams use and interpret the results in
collaboration with their finance colleagues.
(1) The financial benefits sheet shows the benefits from allocated resources. Estimating
actual cashable benefit needs to be done outside of this spreadsheet. Savings from
allocated resources can often be cashed through changes to the capacity or structure of
the system. Allocated resources can alternatively be diverted to other value adding
activity, for eample, reducing outpatients appointments can be converted into additional
discharge rounds.
(!)The spreadsheet allows for the insertion of one benefit percentage value per year. "e
recommend that teams conduct a number of #what if$ scenarios to cover your full
confidence range.
(%) The &epartment of 'ealth(s standard for discounting benefits over time is !), but
this will vary by organisation*industry*pro+ect depending on individual assessments of
pro+ect ris,. -ou can change the default setting of !) on the &ivident sheet.
(.) The spreadsheet does not distinguish between revenue and capital ependiture in
the costs sheet. This is o, for calculating /01 but recognise that you will need to access
funds from separate budgets.
(2) There is no option for intangible benefits.
(3) The spreadsheet does not separate fied and variable costs over time in detail.
Version 4r
How do I use this too!
". Enter your project name in the yellow shaded bo#
$. Gather your improvement evidence and enter it into the Evidence sheet if you want to
%optional&
'. (omplete the Bene"it sheets
). (omplete the Cost sheet
*. +iew your ,-I on the Dividend sheet
How do I move around!
.se the /avigation bar at the top of each screen to move between sheets. (lic on the
button for the sheet you want such as0
#imitations
1e have deliberately designed this spreadsheet to be as simple as possible. The
limitations are outlined below. 1e recommend that teams use and interpret the results in
collaboration with their finance colleagues.
(1) The financial benefits sheet shows the benefits from allocated resources. Estimating
actual cashable benefit needs to be done outside of this spreadsheet. Savings from
allocated resources can often be cashed through changes to the capacity or structure of
the system. Allocated resources can alternatively be diverted to other value adding
activity, for eample, reducing outpatients appointments can be converted into additional
discharge rounds.
(!)The spreadsheet allows for the insertion of one benefit percentage value per year. "e
recommend that teams conduct a number of #what if$ scenarios to cover your full
confidence range.
(%) The &epartment of 'ealth(s standard for discounting benefits over time is !), but
this will vary by organisation*industry*pro+ect depending on individual assessments of
pro+ect ris,. -ou can change the default setting of !) on the &ivident sheet.
(.) The spreadsheet does not distinguish between revenue and capital ependiture in
the costs sheet. This is o, for calculating /01 but recognise that you will need to access
funds from separate budgets.
(2) There is no option for intangible benefits.
(3) The spreadsheet does not separate fied and variable costs over time in detail.
Cost Cost
Dividend Dividend Evidence Evidence
How do I use this too!
". Enter your project name in the yellow shaded bo#
$. Gather your improvement evidence and enter it into the Evidence sheet if you want to
%optional&
'. (omplete the Bene"it sheets
). (omplete the Cost sheet
*. +iew your ,-I on the Dividend sheet
How do I move around!
.se the /avigation bar at the top of each screen to move between sheets. (lic on the
button for the sheet you want such as0
#imitations
1e have deliberately designed this spreadsheet to be as simple as possible. The
limitations are outlined below. 1e recommend that teams use and interpret the results in
collaboration with their finance colleagues.
(1) The financial benefits sheet shows the benefits from allocated resources. Estimating
actual cashable benefit needs to be done outside of this spreadsheet. Savings from
allocated resources can often be cashed through changes to the capacity or structure of
the system. Allocated resources can alternatively be diverted to other value adding
activity, for eample, reducing outpatients appointments can be converted into additional
discharge rounds.
(!)The spreadsheet allows for the insertion of one benefit percentage value per year. "e
recommend that teams conduct a number of #what if$ scenarios to cover your full
confidence range.
(%) The &epartment of 'ealth(s standard for discounting benefits over time is !), but
this will vary by organisation*industry*pro+ect depending on individual assessments of
pro+ect ris,. -ou can change the default setting of !) on the &ivident sheet.
(.) The spreadsheet does not distinguish between revenue and capital ependiture in
the costs sheet. This is o, for calculating /01 but recognise that you will need to access
funds from separate budgets.
(2) There is no option for intangible benefits.
(3) The spreadsheet does not separate fied and variable costs over time in detail.
Return on Investment:
(alculate the benefits
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$art %ne: %ngoing bene"its
Bene"its B& $atient Cost per unit Total Benefit
" Reduction in length of stay
$ Reduction in waiting for appointment
' Reduction in outsourcing to the private sector
)
*
Bene"its B& Incident or Event Incident Cost Total Benefit
" Reduction in re-admitting patients
$ Reduction in adverse incidents (drugs/infection)
' Reduction in unnecessary procedures
) Reduction in cancelled appointments/procedures or in DNAs
*
Bene"its "or Sta"" Total Benefit
" Reduction in staff sickness
$ Reduction in absence
' Reduction in time spent
)
*
'ota %ngoing Bene"its ()
$art 'wo: %ne*o"" bene"its
Description Value
"
$
'
)
*
'ota %ne*o"" Bene"it ()
Patient Value
before
change
Patient Value
after change
Difference
Per Patient
How Many
Patients Per
Year
Total
Difference
Per Year
No of
Incidents per
year before
change
No of
Incidents per
year after
change
Total
Difference
Per Year
Value Before
in Hours per
onth
Value !fter in
Hours per
onth
Difference In
Hours Per
onth
Nuber of
"taff affected
Total
Difference
Per Year
"alary Hourly
#ate
How To Guide How To Guide Benefits Benefits Cost Cost Dividend Dividend Evidence Evidence
Return on Investment:
(alculate the cost of implementation and maintenance
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%ngoing +aintenance Costs
Costs $er $atient Cost per Patient Total Cost per year
"
$
'
)
*
Cost o" Sta"" $T% "taff
"
$
'
)
*
%ther maintenance costs Total Cost per year
"
$
'
)
*
'ota +aintenance Costs ()
$ro,ect Impementation Costs
Description Total Cost
"
$
'
)
*
'ota Impementation Costs ()
How Many Patients
per year
!nnual "alary
including oncosts
Total "taff costs per
year
How To Guide How To Guide Benefits Benefits Cost Cost Dividend Dividend Evidence Evidence
$'2$343$$.#ls
-ear . -ear / -ear 0 -ear 4 -ear 1 'ota
52 52 52 52 52
6 of total benefit achieved each year
!enefit achieved each year 52 52 52 52 52 52
-ne -ff !enefits 52 52
'ota bene"its achieved () () () () () ()
-ear . -ear / -ear 0 -ear 4 -ear 1 'ota
(ost of implementation 52 52
(ost of 7aintaining (hange 52 52 52 52 52 52
'ota costs () () () () () ()
-ear . -ear / -ear 0 -ear 4 -ear 1 'ota
2nnua Return on Investment ( () () () () () ()
8iscount 9actor:Time Adjustment '.*26 The percentage by which the annual return depreciates per year
Net $resent Vaue ( () The cumulative return e#pressed at today;s value
Bene"it
-ngoing Annual benefit from Bene"it sheet
Cost
Dividend
Return on Investment:
Evidence sheet
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'ite:
Description
How To Guide
How To Guide
Benefits
Benefits
Cost
Cost
Dividend
Dividend
Dividend
Dividend
Evidence
Evidence