Investment and ROI

There are three types of projects: compliance, strategic, and ROI based. Compliance projects are dictated by regulation and must be scheduled to stay in business. Strategic projects are projects required to establish or maintain a competitive advantage. These projects are selected by the senior management team. Scheduling will depend on the perceived threat or opportunity. ROI projects may or may not be strategic. In general, the highest ROI projects should be scheduled first. However, they must have a positive impact on the bottom line of the company. To effectively schedule these projects requires an ROI process and a process that ensures the continued participation of the business units. Unless these processes are rigorously followed, important opportunities will be missed and strategic projects will not be vetted.