This document provides guidance on using a spreadsheet tool to calculate return on investment (ROI) for projects. It includes sections on navigating between sheets to enter a project name, list benefits and costs, and view the dividend (ROI calculation). Limitations are outlined such as the tool only calculating benefits from allocated resources rather than cashable savings. Instructions are provided on completing the benefits, costs, and dividend sheets to analyze a project's ROI.
This document provides guidance on using a spreadsheet tool to calculate return on investment (ROI) for projects. It includes sections on navigating between sheets to enter a project name, list benefits and costs, and view the dividend (ROI calculation). Limitations are outlined such as the tool only calculating benefits from allocated resources rather than cashable savings. Instructions are provided on completing the benefits, costs, and dividend sheets to analyze a project's ROI.
This document provides guidance on using a spreadsheet tool to calculate return on investment (ROI) for projects. It includes sections on navigating between sheets to enter a project name, list benefits and costs, and view the dividend (ROI calculation). Limitations are outlined such as the tool only calculating benefits from allocated resources rather than cashable savings. Instructions are provided on completing the benefits, costs, and dividend sheets to analyze a project's ROI.
Navigation bar: 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 Navigation bar: $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 Navigation bar: %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 Navigation bar: 'ite: Description How To Guide How To Guide Benefits Benefits Cost Cost Dividend Dividend Dividend Dividend Evidence Evidence