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Hub You - Intranet Portal - Business Case ROI
It is not unusual for one to make many mistakes in direct marketing. It is thus necessary to know what the reasons are and learn how to avoid direct marketing mistakes. The first mistake to avoid is that very often you will fail to identify your target market as well as your main audience.The key in direct marketing is to make sure to identify your target audience and know them well. You should learn what is hot for them and what will induce them to react positively to your product.Once you have a target audience in mind make sure that you avoid the most common mistake in direct marketing: Having errors in your mailing. You need to research your list as well as the products you are offering along with their prices. You should include as many people on your list and target them as tightly a
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the be
Many people believe that the main reason for representatives leaving their organisation is that of money in that they leave for a bigger salary. In fact, the biggest reason why people leave organisations is that the role they are doing is no longer offering any challenge or excitement. The second reason is due to the behaviour and capability of the immediate line manager. More often than not, the two are strongly linked with the manager taking little interest in the representative’s development and as such the representative feels under valued and bored due to the lack of attention and challenge.Often the blame is laid at the manager’s door, but the representative must take a share of the responsibility also. The trouble usually arises when expectations are not laid out “on the table” with both
In these post-dot-com days of the 21st Century, the hype attached to IT is well and truly over. The modern Board is deeply suspicious of large IT projects with questionable benefits and a long-term payback period.
The good news is that a world-class portal implementation has the power to completely transform your organisation and touch everyone, from the office of your CEO to the lady in the canteen.
First a little on Costs
Sorry, but the cost of the software is only a relatively small part of the overall bill; with other major costs in hardware, process change and integration activities. Your first (and major) portal project is (in terms of cost) more an infrastructure investment than it is an application.
As a rough rule of thumb (for a user base >10,000), budget for ?250 per desktop to put in the essentials (including portal and content management solutions). If you are also integrating to (and exposing) your ERP or CRM systems, add ?150.
Direct Benefits
Based on my experience, Direct Benefits (those that you can directly bake into line budgets and make an individual directorate accountable for realising) are only 20-25% of the total prize and will not generally cover the portal implementation costs by themselves. Direct benefits include reduced printing and distribution costs, decommissioning legacy intranets and FTE savings in operational areas (including IT development & support, Finance & Procurement ledger processing and HR employee services).
Soft Benefits include improved employee satisfaction, better communication and corporate belonging, the importance of which should not be under-estimated in your business case. After all, there is always an emotional, as well as a rational, reason for every purchasing decision.
However, the bulk of portal benefits are Indirect Benefits, where time saved in line areas leads to (for example) reduced call times in call centres, higher sales, faster time to market for new products, fewer failed projects and so on. Benefits realisation is the issue with such benefits. After all, you can't fire 10 minutes of a person a day! The time they have saved is real - ultimately saving cost and driving sales - but it cannot be readily tracked to either.
Making the Business Case: A 10 Step Approach
In the Business Case and ROI chapter of my (free to access) Intranet Portal Guide, I outline a 10 step approach to making the portal business case.
1) Seek External Legitimacy
Consider using a leading consulting firm to lend weight to the business case. They can bring with them experience (from having done it before elsewhere), a knowledgebase (of facts and figures about the benefits other companies have achieved) and a fresh perspective on your organisation, valued by executives.
2) Benchmark other Organisations
I have included in my guide details of public-domain benefit claims from early UK & US portal adopters, including British Airways, BP, Ford Motors Company, IBM, Bell South, Dow, Cisco and BT. Showing your Board that others have delivered real benefits lessens the feeling that their decision is a ‘leap of faith’.
3) Collect Hard Metrics
Direct benefits may be only 15-25% of your total benefits, so work hard to identify savings in Intranet & Collaborative decommissioning; Print, Postage & Distribution Costs, Processing Manpower reductions; and Third Party expenditure savings.
4) Use a Comprehensive Time Survey
In my guide, I suggest that you survey several hundred (representative) users to establish how much time per day they expect to save by using key portal functionality. This will help you to put a financial value on indirect benefits. I outline 10 sample questions and provide benchmark results you could expect to see.
5) Build a Wall of Benefits
When you are trying to build an ROI based on indirect benefits, you can expect those benefits to be challenged vigorously. By having literally hundreds of individual line items and a big overall total, you improve your chances of surviving the Finance ‘Red Pen’. In my guide, I outline 101 benefit ideas to get you going.
6) Link to the Strategic Agenda
Tie the investment closely to the Strategic Agenda of your organisation. If there is another key initiative currently grabbing all the attention at board level (e.g. CRM or ERP) then make sure your portal case complements, or ideally completes, that strategic picture. Use camouflage if necessary, as all is fair in love and war!
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the ben
During my 25 years as an advertising consultant, I had many husband and wife business teams as clients. In my mind, it was the good, the bad, and the ugly. I wasn’t necessarily referring to their physical attributes. But it usually did not lead to a positive outcome. Not that all of these type of partnerships are doomed, but the majority were less than successful. The reasons are varied and easy to enumerate here: You have a vested interest in the spouse, first, before work. It’s hard to separate business and leisure. How can you tell your spouse they made a bad business decision? If you have an argument at work, do you bring it home? You have no chance to escape talking about the job or company. Even if you say it’s work-rel
Soft Benefits include improved employee satisfaction, better communication and corporate belonging, the importance of which should not be under-estimated in your business case. After all, there is always an emotional, as well as a rational, reason for every purchasing decision.
However, the bulk of portal benefits are Indirect Benefits, where time saved in line areas leads to (for example) reduced call times in call centres, higher sales, faster time to market for new products, fewer failed projects and so on. Benefits realisation is the issue with such benefits. After all, you can't fire 10 minutes of a person a day! The time they have saved is real - ultimately saving cost and driving sales - but it cannot be readily tracked to either.
Making the Business Case: A 10 Step Approach
In the Business Case and ROI chapter of my (free to access) Intranet Portal Guide, I outline a 10 step approach to making the portal business case.
1) Seek External Legitimacy
Consider using a leading consulting firm to lend weight to the business case. They can bring with them experience (from having done it before elsewhere), a knowledgebase (of facts and figures about the benefits other companies have achieved) and a fresh perspective on your organisation, valued by executives.
2) Benchmark other Organisations
I have included in my guide details of public-domain benefit claims from early UK & US portal adopters, including British Airways, BP, Ford Motors Company, IBM, Bell South, Dow, Cisco and BT. Showing your Board that others have delivered real benefits lessens the feeling that their decision is a ‘leap of faith’.
3) Collect Hard Metrics
Direct benefits may be only 15-25% of your total benefits, so work hard to identify savings in Intranet & Collaborative decommissioning; Print, Postage & Distribution Costs, Processing Manpower reductions; and Third Party expenditure savings.
4) Use a Comprehensive Time Survey
In my guide, I suggest that you survey several hundred (representative) users to establish how much time per day they expect to save by using key portal functionality. This will help you to put a financial value on indirect benefits. I outline 10 sample questions and provide benchmark results you could expect to see.
5) Build a Wall of Benefits
When you are trying to build an ROI based on indirect benefits, you can expect those benefits to be challenged vigorously. By having literally hundreds of individual line items and a big overall total, you improve your chances of surviving the Finance ‘Red Pen’. In my guide, I outline 101 benefit ideas to get you going.
6) Link to the Strategic Agenda
Tie the investment closely to the Strategic Agenda of your organisation. If there is another key initiative currently grabbing all the attention at board level (e.g. CRM or ERP) then make sure your portal case complements, or ideally completes, that strategic picture. Use camouflage if necessary, as all is fair in love and war!
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the be
Supervising close friends rarely works because the dynamics of the two relationships contradict one another. Friendships are based on mutuality. Friends reveal intimate secrets to each other and make themselves vulnerable. This completely contradicts the relationship of a manager and employee.Managers are in a superior-subordinate relationship with employees. It is not possible to simultaneously be a person’s superior and be his peer. Ultimately, your friendship or your ability to supervise will suffer. According to the U.S. Department of Labor, the average job lasts about three years. A good friend lasts a lifetime. Good employees are hard to find but good life-long friends are even harder to find, so don’t hire your friends.The situation differs if you developed a friendship with coworke
In the Business Case and ROI chapter of my (free to access) Intranet Portal Guide, I outline a 10 step approach to making the portal business case.
1) Seek External Legitimacy
Consider using a leading consulting firm to lend weight to the business case. They can bring with them experience (from having done it before elsewhere), a knowledgebase (of facts and figures about the benefits other companies have achieved) and a fresh perspective on your organisation, valued by executives.
2) Benchmark other Organisations
I have included in my guide details of public-domain benefit claims from early UK & US portal adopters, including British Airways, BP, Ford Motors Company, IBM, Bell South, Dow, Cisco and BT. Showing your Board that others have delivered real benefits lessens the feeling that their decision is a ‘leap of faith’.
3) Collect Hard Metrics
Direct benefits may be only 15-25% of your total benefits, so work hard to identify savings in Intranet & Collaborative decommissioning; Print, Postage & Distribution Costs, Processing Manpower reductions; and Third Party expenditure savings.
4) Use a Comprehensive Time Survey
In my guide, I suggest that you survey several hundred (representative) users to establish how much time per day they expect to save by using key portal functionality. This will help you to put a financial value on indirect benefits. I outline 10 sample questions and provide benchmark results you could expect to see.
5) Build a Wall of Benefits
When you are trying to build an ROI based on indirect benefits, you can expect those benefits to be challenged vigorously. By having literally hundreds of individual line items and a big overall total, you improve your chances of surviving the Finance ‘Red Pen’. In my guide, I outline 101 benefit ideas to get you going.
6) Link to the Strategic Agenda
Tie the investment closely to the Strategic Agenda of your organisation. If there is another key initiative currently grabbing all the attention at board level (e.g. CRM or ERP) then make sure your portal case complements, or ideally completes, that strategic picture. Use camouflage if necessary, as all is fair in love and war!
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the be
Women tend to feel guilty if they decide they would like to leave or change jobs. This may happen when they reach a certain age, usually around the time their youngest child moves out of the house or if they find themselves divorced or widowed. These women are usually mid-way through their lives and they make excuses as to why they should not or cannot start a new career at this time in their life. There are seven myths about this phenomenon and there are good reasons why women can choose to make any changes they want to in their present situations.I am too old to change careers. That is simply not true. Men and women today generally have several careers throughout their working lives. There is no reason to let you age deter you from following your dreams.I will lose
4) Use a Comprehensive Time Survey
In my guide, I suggest that you survey several hundred (representative) users to establish how much time per day they expect to save by using key portal functionality. This will help you to put a financial value on indirect benefits. I outline 10 sample questions and provide benchmark results you could expect to see.
5) Build a Wall of Benefits
When you are trying to build an ROI based on indirect benefits, you can expect those benefits to be challenged vigorously. By having literally hundreds of individual line items and a big overall total, you improve your chances of surviving the Finance ‘Red Pen’. In my guide, I outline 101 benefit ideas to get you going.
6) Link to the Strategic Agenda
Tie the investment closely to the Strategic Agenda of your organisation. If there is another key initiative currently grabbing all the attention at board level (e.g. CRM or ERP) then make sure your portal case complements, or ideally completes, that strategic picture. Use camouflage if necessary, as all is fair in love and war!
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the be
Today's society has created an environment that requires business owners to be armed with numerous tools. Many employers currently spend little time verifying the accuracy of employment applications and the cost of not doing normal due diligence can be staggering.Consider:An HVAC company recently paid $750,000 to a customer who was raped by a service technician. His employment application indicated no criminal convictions and the employer did not perform a complete background check. An employee who had previously been convicted of passing bad checks forged signatures contracts. The court judged his employer negligent and awarded $175,000.After driving for a telephone company for only a week, an employee was involved in a traffic accident. The jury learned that the company never sa
7) Identify 2-3 Killer Apps
That will focus the attention (and support) of key sponsors. Look for win-win apps, where the user loves using them but the provider department also extracts key benefits. For example, a self-service HR application where the employee can keep their details up-to-date easily and the company can reduce employee service heads.
8) Use a Cost Avoidance Argument
Your investment will reduce future project costs. After all, a portal is essentially a free infrastructure, a free user interface, a free user client with pre-built security & authentication and a free development framework. HP and others have saved up to 20% on development costs, post-implementation. You could too, so raid the budgets of other approved projects!
9) Consider Larger Scope
Could you make your case if you include internet and extranet in scope? An extranet allows you to securely expose part of your intranet to selected third parties, including B2B customers, suppliers, regulators and government agencies. The incremental cost is quite low, once your intranet platform is there, but the benefits can be large!
10) Use Innovative Phasing
Most companies budget on an annual cycle and are under huge pressure from investors to deliver short-term profitability. The bitter pill of portal costs might be easier to swallow if you spread the implementation over a two-year period.
Conclusions
Making the business case for a corporate Intranet Portal will not be easy. You will need all your reserves of patience, cunning and good old-fashioned hard work. Good luck and don’t forget to check my guide for more detail, help and tools.
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