Calculating Return On Investment (ROI)

The highlighted information on this page refers to functionality not yet generally available. It is available only in the Preview Sandbox environment.

Understanding the Return on Investment (ROI) of a Project

Return On Investment (ROI) is a metric in Workfront that allows portfolio managers to quickly see how the project is performing against the original Planned Benefit and Budgeted Cost of the project.

ROI is calculated using the following formula:

Project ROI = [(Project Planned Benefit - Project Budgeted Cost) / Project Budgeted Cost] x 100

The following fields can affect the ROI of a project:

  • Planned Benefit: This is a manual entry specified by the Project Owner when completing the Project Info area of the Business Case. 
    For more information about the Planned Benefit of a project, see the "Project Info" section in "Creating a Business Case."
  • Budgeted Cost: This is the total cost associated with the project as estimated when you first launch the project. 
    here are two different Budgeted Cost values depending on which Budgeted Labor Cost is used for their calculation: 
    • The Budgeted Cost uses the Budgeted Labor Cost value which is calculated in the Resource Budgeting area of the Business Case and it takes into account the hours budgeted for your job roles in the Resource Planner and the Cost per Hour rate of each job role.
      The Budgeted Cost affects the Net Value of the project. 
    • The Legacy Budgeted Cost uses the Legacy Budgeted Labor Cost value which is calculated in the Legacy Resource Estimates area of the Business Case and it takes into account the hours estimated for your job roles in the Capacity Planner and the Cost per Hour rate of each job role.
      The Legacy Budgeted Cost affects the Legacy Net Value of the project. 
      For more information about how the Budgeted Cost is calculated, see "Calculating Budgeted Cost."

Locating the Return on Investment (ROI) of a Project

You can view the ROI value for a project in the following areas in Workfront:

  • In a Project report when you add the ROI field to the columns of the report
    For more information about building reports in Workfront, see "Creating a Report."
  • In the Portfolio Optimizer if the project is associated with a portfolio
    NOTE The total of all project Legacy ROI values results in the ROI of the portfolio.
    (update note at production) 

    The ROI in the Portfolio Optimizer differs depending on your environment::
    • Production: The new Portfolio Optimizer and the Legacy Portfolio Optimizer display the Legacy ROI.
    • Preview: The Portfolio Optimizer displays the ROI. The Legacy Portfolio Optimizer displays the Legacy ROI.
      For information about the Portfolio Optimizer, see "Understanding the Portfolio Optimizer."
This article last updated on 2018-05-17 16:16:02 UTC