roi calculator v5r
Post on 16-Apr-2017
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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 blank sheet for you to record the raw data behind the benefits listed on the Benefit sheet.
How do I use this tool?1. Enter your project name in the yellow shaded box
2. Gather your improvement evidence and enter it into the Evidence sheet if you want to (optional)
3. Complete the Benefit sheets
4. Complete the Cost sheet
5. View your ROI on the Dividend sheet
How do I move around?Use the Navigation bar at the top of each screen to move between sheets. Click on the button for the sheet you want such as:
LimitationsWe have deliberately designed this spreadsheet to be as simple as possible. The limitations are outlined below. We 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 example, reducing outpatients appointments can be converted into additional discharge rounds.
(2)The spreadsheet allows for the insertion of one benefit percentage value per year. We recommend that teams conduct a number of “what if” scenarios to cover your full confidence range.
(3) The Department of Health’s standard for discounting benefits over time is 2%, but this will vary by organisation/industry/project depending on individual assessments of project risk. You can change the default setting of 2% on the Divident sheet.
(4) The spreadsheet does not distinguish between revenue and capital expenditure in the costs sheet. This is ok for calculating ROI but recognise that you will need to access funds from separate budgets.
(5) There is no option for intangible benefits.
(6) The spreadsheet does not separate fixed and variable costs over time in detail.
How To GuideHow To Guide BenefitsBenefits CostCost DividendDividend
How do I use this tool?1. Enter your project name in the yellow shaded box
2. Gather your improvement evidence and enter it into the Evidence sheet if you want to (optional)
3. Complete the Benefit sheets
4. Complete the Cost sheet
5. View your ROI on the Dividend sheet
How do I move around?Use the Navigation bar at the top of each screen to move between sheets. Click on the button for the sheet you want such as:
LimitationsWe have deliberately designed this spreadsheet to be as simple as possible. The limitations are outlined below. We 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 example, reducing outpatients appointments can be converted into additional discharge rounds.
(2)The spreadsheet allows for the insertion of one benefit percentage value per year. We recommend that teams conduct a number of “what if” scenarios to cover your full confidence range.
(3) The Department of Health’s standard for discounting benefits over time is 2%, but this will vary by organisation/industry/project depending on individual assessments of project risk. You can change the default setting of 2% on the Divident sheet.
(4) The spreadsheet does not distinguish between revenue and capital expenditure in the costs sheet. This is ok for calculating ROI but recognise that you will need to access funds from separate budgets.
(5) There is no option for intangible benefits.
(6) The spreadsheet does not separate fixed and variable costs over time in detail.
Version 4r
How do I use this tool?1. Enter your project name in the yellow shaded box
2. Gather your improvement evidence and enter it into the Evidence sheet if you want to (optional)
3. Complete the Benefit sheets
4. Complete the Cost sheet
5. View your ROI on the Dividend sheet
How do I move around?Use the Navigation bar at the top of each screen to move between sheets. Click on the button for the sheet you want such as:
LimitationsWe have deliberately designed this spreadsheet to be as simple as possible. The limitations are outlined below. We 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 example, reducing outpatients appointments can be converted into additional discharge rounds.
(2)The spreadsheet allows for the insertion of one benefit percentage value per year. We recommend that teams conduct a number of “what if” scenarios to cover your full confidence range.
(3) The Department of Health’s standard for discounting benefits over time is 2%, but this will vary by organisation/industry/project depending on individual assessments of project risk. You can change the default setting of 2% on the Divident sheet.
(4) The spreadsheet does not distinguish between revenue and capital expenditure in the costs sheet. This is ok for calculating ROI but recognise that you will need to access funds from separate budgets.
(5) There is no option for intangible benefits.
(6) The spreadsheet does not separate fixed and variable costs over time in detail.
CostCost
DividendDividend EvidenceEvidence
How do I use this tool?1. Enter your project name in the yellow shaded box
2. Gather your improvement evidence and enter it into the Evidence sheet if you want to (optional)
3. Complete the Benefit sheets
4. Complete the Cost sheet
5. View your ROI on the Dividend sheet
How do I move around?Use the Navigation bar at the top of each screen to move between sheets. Click on the button for the sheet you want such as:
LimitationsWe have deliberately designed this spreadsheet to be as simple as possible. The limitations are outlined below. We 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 example, reducing outpatients appointments can be converted into additional discharge rounds.
(2)The spreadsheet allows for the insertion of one benefit percentage value per year. We recommend that teams conduct a number of “what if” scenarios to cover your full confidence range.
(3) The Department of Health’s standard for discounting benefits over time is 2%, but this will vary by organisation/industry/project depending on individual assessments of project risk. You can change the default setting of 2% on the Divident sheet.
(4) The spreadsheet does not distinguish between revenue and capital expenditure in the costs sheet. This is ok for calculating ROI but recognise that you will need to access funds from separate budgets.
(5) There is no option for intangible benefits.
(6) The spreadsheet does not separate fixed and variable costs over time in detail.
Return on Investment: Calculate the benefits
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Part One: Ongoing benefits
Benefits By Patient Cost per unit Total Benefit 1 Reduction in length of stay2 Reduction in waiting for appointment3 Reduction in outsourcing to the private sector45
Benefits By Incident or Event Incident Cost Total Benefit1 Reduction in re-admitting patients2 Reduction in adverse incidents (drugs/infection)3 Reduction in unnecessary procedures4 Reduction in cancelled appointments/procedures or in DNAs5
Benefits for Staff Total Benefit1 Reduction in staff sickness2 Reduction in absence3 Reduction in time spent45
Total Ongoing Benefits £0
Part Two: One-off benefitsDescription Value
12345
Total One-off Benefit £0
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
month
Value After in Hours per
month
Difference In Hours Per
monthNumber of
Staff affected
Total Difference Per Year
Salary Hourly Rate
How To GuideHow To Guide BenefitsBenefits CostCost DividendDividend EvidenceEvidence
Return on Investment: Calculate the cost of implementation and maintenance
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Ongoing Maintenance Costs
Costs Per Patient Cost per Patient Total Cost per year12345
Cost of Staff WTE Staff12345
Other maintenance costs Total Cost per year12345
Total Maintenance Costs £0
Project Implementation CostsDescription Total Cost
12345
Total Implementation Costs £0
How Many Patients per year
Annual Salary including oncosts
Total Staff costs per year
How To GuideHow To Guide BenefitsBenefits CostCost DividendDividend EvidenceEvidence
230297922.xls
Year 1 Year 2 Year 3 Year 4 Year 5 Total£0 £0 £0 £0 £0
% of total benefit achieved each year
Benefit achieved each year £0 £0 £0 £0 £0 £0One Off Benefits £0 £0Total benefits achieved £0 £0 £0 £0 £0 £0
Year 1 Year 2 Year 3 Year 4 Year 5 TotalCost of implementation £0 £0Cost of Maintaining Change £0 £0 £0 £0 £0 £0Total costs £0 £0 £0 £0 £0 £0
Year 1 Year 2 Year 3 Year 4 Year 5 TotalAnnual Return on Investment £ £0 £0 £0 £0 £0 £0
Discount Factor/Time Adjustment 3.50% The percentage by which the annual return depreciates per year
Net Present Value £ £0 The cumulative return expressed at today's value
Benefit
Ongoing Annual benefit from Benefit sheet
Cost
Dividend
Return on Investment: Evidence sheet
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Title:Description
How To GuideHow To Guide BenefitsBenefits CostCost DividendDividend
DividendDividend EvidenceEvidence
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