Build an ROI Case With Payback
Build a simple ROI and payback case for an operating improvement investment.
Invoice automation costs $120,000. It avoids $32,000 monthly temp labor and $14,800 monthly error credits. The team wants first-year ROI and simple payback. ROI = net return / investment cost; payback = investment cost / monthly net benefit. The common shortcut is counting all freed employee time as cash savings. If the P&L cost does not actually go down or capacity is not redeployed to measurable work, the ROI case is inflated. Monthly benefit $32,000 temp labor + $14,800 error credits = $46,800 monthly hard benefit Use hard benefits first because they can be verified in the P&L or cash…
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