Quick Summary7 Steps to Building a Business Case for Team Building
Calculating Team Building R.O.I.
Step 1: Identify Situations
Focusing on the past year, please identify 3 specific situations, events or circumstances involving members of your team that could have been handled more effectively. Pinpoint the impact on business and results:
* reduced efficiency and effectiveness in decision-making
* increased costs
* difficulty in completing an initiative
Step 2: Situational Analysis
For each situation, identify what it cost the company in terms of:
* time and money to resolve the situation
* opportunity cost (examples: customers or business opportunities lost due to poor decision making or because the team did not work cohesively)
* quantify time lost by multiplying time vs. the salaries of the parties involved in the situation
Step 3: Pinpoint Indirect Costs
Factor in indirect costs of situations such as negative impact on morale, turnover & and productivity, customer, & revenue losses due to poor decision-making or the erosion of team cohesion.
Step 4: Identify & Calculate Value of Opportunities
Identify opportunities that can be generated by more cohesive teamwork and pinpoint their value. For example, pinpoint a specific piece of business that was generated by improved teamwork and track the results in hard dollar value.
Step 5: Assess Total Impact
Add up the amount that would have been saved or generated if the team had been able to work together more cohesively.
Step 6: Calculate Proposed Investment in Team Building
Use these figures to:
determine time and budget requirements
determine what it would be worthwhile to invest in team building
set time and budget parameters
Step 7: Compare cost & time benefits to proposed investment
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