Measure value and realize return on investment

This article describes a common goal for Power Platform—measuring value and realizing return on investment. It follows a structured framework that includes defining clear objectives, measurable key results, and actionable initiatives. This article aims to guide you in creating your own vision for Power Platform adoption.

Vision

Measuring value and realizing return on investment (ROI) is a common vision for Power Platform adoption because it ensures that the platform's initiatives are aligned with the organization's strategic goals and deliver tangible benefits.

By focusing on ROI, organizations can prioritize projects that provide the most significant impact, optimize resource allocation, and justify investments in the platform. This approach fosters a culture of accountability and continuous improvement, where success is measured not just by the completion of projects but by the value they bring to the business. Regularly tracking and reporting on ROI helps maintain transparency, build stakeholder confidence, and drive informed decision-making, ultimately leading to more effective and efficient use of Power Platform.

Objectives

Objectives are the key themes or focus areas that the strategy aims to achieve. They are broad, overarching goals that align with the organizational vision and priorities. Objectives provide direction and set the stage for the initiatives and key results. Objectives help ensure that everyone in the organization understands what the strategy aims to accomplish and why it's important.

Typical objectives for measuring value and realizing return of investment include:

• Cultivate a value mindset: Foster a culture that prioritizes return on investment (ROI) in all Power Platform initiatives. Encourage stakeholders to think critically about the financial and strategic benefits of their projects.
• Prioritize value/impact-first delivery: Emphasize the importance of delivering projects that provide significant value and impact. Prioritize initiatives that align with business goals and demonstrate clear benefits.
• Understand ROI and its significance: Ensure all team members have a solid understanding of ROI and its importance. Provide training and resources to help them grasp how their work contributes to the overall financial health of the organization.
• Establish processes for predictable cost and ROI management: Implement processes to manage costs and ROI predictably. Use tools and methodologies that allow for accurate forecasting and tracking of expenses and returns.
• Monitor data and value: Establish a routine for reporting data and value metrics. Regularly share insights and performance indicators with stakeholders to maintain transparency and drive informed decision-making.
• Optimize business value: Continuously seek ways to enhance the overall business value derived from Power Platform projects. Identify opportunities for improvement and implement best practices to maximize returns.
• Share Power Platform value: Develop a structured process for evaluating and documenting the ROI and value of Power Platform initiatives. Create comprehensive reports that highlight successes, challenges, and lessons learned.
• Define KPIs and categories for success stories: Identify the KPIs and categories that are used to create success stories. Ensure these metrics are relevant, measurable, and aligned with business objectives. Use these stories to inspire and guide future projects.
• Define initiatives with pilot groups to drive case studies that demonstrate tangible ROI: Validate the ROI of Power Platform initiatives through pilot projects.
• Start using the Business Value Toolkit: Use the Business Value Toolkit to enhance ROI measurement and reporting.

Measurable key results

Key results are specific, quantifiable outcomes that indicate progress towards achieving the strategic objectives. They provide clear benchmarks for success and help in tracking performance. Defining key results is necessary because they offer a way to measure the effectiveness of the initiatives and ensure that the objectives are met. Key results should be realistic, time-bound, and directly linked to the objectives.

Typical key results, aligned with some of the objectives, for measuring value and realizing return on investment include:

• Establish a process for determining platform ROI, ensuring a clear method for measuring potential and achieved value for apps and enablement work, with a ___% accuracy rate.
• Develop a process for value quantification and ROI, evaluate developed solutions to validate results, and publish headlines to sponsors, achieving a ___% success rate.
• Integrate ROI understanding and data gathering into the critical app process, with ___% of critical apps incorporating these elements.
• Increase the understanding of ROI measurement and the number of shared artifacts by ___%.
• Implement the ROI process for all enterprise solutions, with ___% of solutions following the process.
• Ensure ROI measurement for all enterprise solutions and basic ROI knowledge across the organization, with ___% of employees demonstrating this knowledge.
• Capture success stories that showcase business value (metrics) for built apps and automations to drive the value of the platform, with ___% of stories highlighting measurable metrics.
• Publish captured stories to enhance the perception of value, aiming for a ___% increase in positive perception.
• Improve business time to value in a measurable way, reducing time by ___%. Save costs and innovate more without compromising quality, achieving a cost reduction of ___%.

Key initiatives

Initiatives are the specific actions or projects that need to be implemented to achieve the objectives. They outline what needs to be done in the immediate term, in the next year, and in the next three years. Initiatives provide a roadmap for action and ensure that there's a clear plan to reach the objectives. Initiatives should be actionable, prioritized, and aligned with the key results.

Typical initiatives, aligned with some of the objectives, for measuring value and realizing return on investment include:

• Establish and monitor impactful KPIs:
  • Identify key metrics that reflect the financial and strategic benefits of Power Platform projects.
  • Implement tools and processes for tracking these metrics in real time.
  • Regularly review and update metrics to ensure they remain relevant and aligned with business goals.
  • Define the KPIs that are used to measure the success of Power Platform initiatives.
  • Develop a methodology for calculating ROI and tracking costs.
  • Implement tools and processes for collecting and analyzing data on KPIs, ROI, and costs.
• Understand ROI and its significance:
  • Develop comprehensive documentation that outlines the methodology for ROI calculation.
  • Include examples and case studies to illustrate the application of these guidelines.
  • Distribute the guidelines to all relevant stakeholders and provide training sessions to ensure understanding.
• Share Power Platform value:
  • Create a standardized reporting template that includes key metrics, insights, and recommendations.
  • Schedule regular reporting intervals (for example, monthly, quarterly) to maintain transparency and accountability.
  • Use the reports to inform decision-making and drive continuous improvement.
• Define initiatives with pilot groups to drive case studies that demonstrate tangible ROI:
  • Select pilot groups that represent a cross-section of the organization.
  • Define specific initiatives for these groups to implement, focusing on high-value areas.
  • Document the outcomes and develop detailed case studies that highlight the tangible ROI achieved.
• Define KPIs and categories for success stories:
  • Collect and document success stories from various Power Platform initiatives.
  • Highlight the ROI and value delivered by these projects.
  • Communicate these stories through internal newsletters, presentations, and the Maker Portal.
• Start using the Business Value Toolkit:
  • Familiarize stakeholders with the toolkit and its components.
  • Integrate the toolkit into existing processes for measuring and reporting ROI.
  • Use the toolkit to identify opportunities for optimizing business value.
• Establish processes for predictable cost and ROI management:
  • Define the licensing requirements for different user groups and use cases.
  • Establish a cost attribution or chargeback model to allocate expenses fairly.
  • Communicate the strategy to all stakeholders and provide guidance on its implementation.