Well, you are confused as to which option is better for you to work on from among the various options available.
- Whether it is worth working on this project or not?
- Whether it will pay off the efforts and money that I put in?
- Whether I will get the desired results if I start working on it?
- Whether investing in this software will be beneficial to me and to my company?
Are the above questions bothering you too much to take the next step and make a decision? If yes, you have come to the right place.
Many times it happens with top leaders, business owners, and managers that out of various options which one is worth working on so that they get maximum ROI.
When you have multiple ideas for improvement from your team or you have to decide whether you should go with the software which requires heavy investment it becomes difficult to know in advance whether it will give you the maximum ROI or not.
How to take the right decision from various options!
There are two ways you must consider before making any decision or before making any investment in a project. Let us understand is with the help of the following Matrix.
1. Cost vs Impact Priority
The first comparison you must do is between the cost of implementation of a project and its impact on your organization.
The above image shows you 4 quadrants comparing cost vs impact.
Quadrant 1: Low-Cost High Impact
Quadrant 1 signifies that the cost involved in the option that you are considering is low and its impact is high. This means it will give you better ROI as compared to the investment. If your option is falling under this quadrant you should give 1st priority to it. Ignore the rest of the options for now.
Quadrant 2: Low-Cost Low Impact
Projects falling under this quadrant should be given 2nd priority where the cost is low but the impact is also low.
Quadrant 3: High-Cost High Impact
Such projects are generally considered by management and decision has to be taken at a strategic level.
Quadrant 4: High-Cost Low Impact
It is obvious from this quadrant that the high cost of low-impact projects should be ignored. There is no reason to take up these projects and they do not give you sufficient ROI. These projects may lead to losses for your organization.
2. Ease of Implementation vs Impact Priority
The second comparison you must do is between the ease of implementation of a project and its impact on your organization. This means how easy it is to implement the project. Do you really have consensus and buy-in from the people at ground level who are actually going to implement and adapt to the new methods or system?
The above image shows you 4 quadrants comparing ease of implementation vs impact.
Quadrant 1: Easy Implementation – High Impact
Quadrant 1 signifies that it is easy to implement the new methods you are considering and its impact is high. This means it will give you better ROI as compared to the efforts required in implementing the new methods or system. If your option is falling under this quadrant you should give 1st priority to it. Ignore the rest of the options for now.
Quadrant 2: Easy Implementation – Low Impact
Projects falling under this quadrant should be given 2nd priority where the implementation is easy but the impact is also low.
Quadrant 3: Hard Implementation – High Impact
Projects falling under this quadrant require concerned people to be involved. You must share the purpose with all the concerned people/stakeholders for such projects and gain consensus from them before really starting with the execution. Failing will lead your project to suffer and it will get either delay missing the deadlines or may never complete putting you in a losing situation. such projects are generally considered by management and decision has to be taken at a strategic level.
Quadrant 4: Hard Implementation – Low Impact
It is obvious from this quadrant that the implementation requires too much effort and it has a low impact at the same time. It is not wise to take up such projects. There is no reason to take up these projects and they do not give you sufficient ROI. Working on such project will lead your team members to get frustrated and dissatisfied. These projects may lead to losses for your organization.
Tip to Pick Project from various options
Look at the tree in the above picture. It clearly shows that you much grab the low-hanging fruits first. This means that the projects that you are picking either should have no or low cost, implementation is easy, and a fairly higher impact. These are quick wins. Generally, this is called Just do it ideas.
