{"id":4906,"date":"2014-10-13T15:27:36","date_gmt":"2014-10-13T20:27:36","guid":{"rendered":"https:\/\/actuationconsulting.com\/?p=4906"},"modified":"2015-06-14T13:23:57","modified_gmt":"2015-06-14T18:23:57","slug":"return-investment-long-demonstrate-return","status":"publish","type":"post","link":"https:\/\/actuationconsulting.com\/return-investment-long-demonstrate-return\/","title":{"rendered":"Return On Investment: How Long Do You Have To Demonstrate A Return?"},"content":{"rendered":"

Last week I wrote a blog post entitled “Return on Investment: Less Important Than Many Think?<\/em><\/a>” As is turns out, less organizations than you might think actively use return on investment (ROI). (Click here to see the table.<\/a>)<\/p>\n

Most of the dialog from\u00a0those\u00a0who commented upon last week’s post centered upon ROI’s use as a measure to examine “the relative value of a potential investment versus other existing or potential products.” Additionally, there appeared to be an emerging consensus that the value of ROI, as a measure, decreases as the product moves further downstream and becomes increasingly tangible.<\/p>\n

This week I want to share one other learning we gleaned from our\u00a0study<\/a>.<\/p>\n

Of the organizations that responded that they did<\/span> actively utilize ROI we asked a follow-on question regarding how long the team had in order to demonstrate a return on investment.<\/p>\n

The Actual Question We Asked and The Responses<\/h2>\n
\"Actuation

ROI<\/p><\/div>\n

For those organizations that do determine\u00a0success by measuring return on investment, how long is the timeline to demonstrate return on investment?<\/strong><\/h3>\n

Results were fairly even for the top three\u00a0responses to this survey question. A return\u00a0on investment was expected in 12 months\u00a0for 35.29% of the respondents. The second\u00a0most frequently given answer was an\u00a0expected three-year ROI, which garnered\u00a026.47% response and coming in at 24.51%\u00a0of response was the indication that ROI was\u00a0expected within 18 months of launch. Almost\u00a014% of respondents were expected to show a return on investment\u00a0as soon as six months\u00a0after launch.<\/p>\n

Conclusion<\/h2>\n

Product professionals are often told by executives that a product needs to show a return in 12 months and the data appears to support our observations about standard practices. However, while 12 months may be the most frequently cited payback period organizations must keep in mind other factors as they set the expected payback period. 12 months may work for a product where the market dynamics are well understood and where customers don’t need to be educated about your product’s unique attributes – but this same payback period may not work for a product entering a new market where the dynamics are likely very different. The data appears to reflect that the organization’s that are actively using ROI are taking market dynamics into account when establishing anticipated payback periods – which is a good thing.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Last week I wrote a blog post entitled “Return on Investment: Less Important Than Many Think?” As is turns out, less organizations than you might think actively use return on …<\/p>\n","protected":false},"author":1,"featured_media":4924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[40,46,281,47,280,282,48,49,50,51,248,53,1,4],"tags":[56,105,154,341,342,182,194,197,200,205,210,308,309,346,344],"class_list":["post-4906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-40","category-product-management","category-product-management-consulting-2","category-product-management-facts","category-product-management-toolkits-2","category-product-management-training-2","category-product-marketing","category-product-owner-2","category-product-teams","category-project-management","category-take-charge-product-management","category-the-study-of-product-team-performance","category-uncategorized","category-updates","tag-actuation-consulting","tag-greg-geracie","tag-product-development","tag-product-management","tag-product-management-facts","tag-product-manager","tag-product-owner","tag-product-team","tag-product-teams-2","tag-project-management-2","tag-project-manager","tag-return-on-investment","tag-roi","tag-take-charge-product-management","tag-the-study-of-product-team-performance"],"yoast_head":"\nReturn On Investment: How Long Do You Have To Demonstrate A Return? - Actuation Consulting<\/title>\n<meta name=\"description\" content=\"Return On Investment: How long do you have to show a return? 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