Return on Investment:

How To Guide
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How To Guide

Version 4r
Benefits

Cost

How do I use this too

Enter your project

name here

Sheet
Benefits

Cost

Dividend

Evidence

Dividend

1. Enter your project nam

Description

2. Gather your improvem

(optional)

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.

3. Complete the

Input your project costs here. These should include both startup and any ongoing costs. Enter data into the yellow shaded
cells only.

5. View your ROI on the

A summary table showing the potential or actual return on the

investment you made.
A blank sheet for you to record the raw data behind the benefits
listed on the Benefit sheet.

4. Complete the

How do I move aroun

Use the Navigation bar a

button for the sheet you

Limitations

We have deliberately des

limitations are outlined b
collaboration with their fin

(1) The financial benefits sh

cashable benefit needs to b
can often be cashed throug
resources can alternatively
outpatients appointments
(2)The spreadsheet allows
recommend that teams co
range.

(3) The Department of Hea

vary by organisation/indus
can change the default sett

(4) The spreadsheet does n

sheet. This is ok for calcula
separate budgets.

(5) There is no option for in

(6) The spreadsheet does n

(6) The spreadsheet does n

Version 4r
ividend

Evidence

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
Cost
button for the sheet you want such as:

Limitations
We 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 Healths standard for discounting benefits over time is 2%, but this will
vary by organisation/industry/project depending on individual assessments of project risk. You
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.
The spreadsheet does not separate fixed and variable costs over time in detail.

The spreadsheet does not separate fixed and variable costs over time in detail.

Return on Investment:
Calculate the benefits
Navigation bar:

How To Guide

Benefits

Cost

Dividend

Evidence

Part One: Ongoing benefits

Benefits By Patient
1 Reduction in length of stay
2 Reduction in waiting for appointment
3 Reduction in outsourcing to the private sector
4
5

1
2
3
4
5

Benefits By Incident or Event

Reduction in re-admitting patients
Reduction in adverse incidents (drugs/infection)
Reduction in unnecessary procedures
Reduction in cancelled appointments/procedures or in DNAs

Benefits for Staff

1 Reduction in staff sickness
2 Reduction in absence
3 Reduction in time spent
4
5

How Many
Total
Patient Value Patient Value Difference Per Patients Per Difference Per
before change after change
Patient
Year
Year
Cost per unit

No of
No of
Incidents per Incidents per
year before
year after
change
change

Part Two: One-off benefits

Value

1
2
3
4
5
Total One-off Benefit

Total
Difference Per
Year
Incident Cost Total Benefit

Value Before Value After in Difference In

Total
in Hours per
Hours per
Hours Per
Number of Difference Per Salary Hourly
month
month
month
Staff affected
Year
Rate
Total Benefit

Total Ongoing Benefits

Description

Total Benefit

Return on Investment:
Calculate the cost of implementation and maintenance
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Benefits

Cost

Dividend

Evidence

Ongoing Maintenance Costs

Costs Per Patient

Cost per Patient

How Many Patients

per year

Total Cost per year

WTE Staff

Annual Salary
including oncosts

Total Staff costs per

year

1
2
3
4
5

Cost of Staff
1
2
3
4
5
Other maintenance costs

Total Cost per year

1
2
3
4
5
Total Maintenance Costs

Project Implementation Costs

Description

Total Cost

1
2
3
4
5
Total Implementation Costs

Benefit
Year 1
0

Year 2
0

Year 3
0

Year 4
0

Year 5
0

Total

0
0
0

0
0
0

Year 1
0
0
0

Year 2

Year 3

Year 4

Year 5

0
0

0
0

0
0

0
0

Total
0
0
0

Annual Return on Investment

Year 1
0

Year 2
0

Year 3
0

Year 4
0

Year 5
0

Total
0

Discount Factor/Time Adjustment

3.50%

Ongoing Annual benefit from Benefit sheet

% of total benefit achieved each year
Benefit achieved each year
One Off Benefits
Total benefits achieved

Cost
Cost of implementation
Cost of Maintaining Change
Total costs

Dividend

Net Present Value

253493629.xls.ms_office

The percentage by which the annual return depreciates per year

The cumulative return expressed at today's value

Return on Investment:
Evidence sheet
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Title:
Description

How To Guide

Benefits

Cost

Dividend

ividend

Evidence