Do you know the total value that your program creates for all its stakeholders? Beyond the financial benefits of increased revenue and/or reduced costs, what other benefits does your program create for all the people and organizations that impact and are impacted by your program? Can you measure it?
Every program creates more value than just the financial benefits usually measured. There are also non-financial benefits. Because non-financial benefits are harder, but not impossible, to measure, they tend to be ignored, and therefore the value shown to be created by the program is only a subset of the total value created. This is where we come in. We can measure the total value created by your program for all its stakeholders.
What is Total Value
Value is created when material changes are derived as a result of a program, an initiative or a set of activities. Total Value, also known as social value, or total return on investment (TROI), is the total social, economic, and environmental value created by a program for all its stakeholders, that is, the people and/or organizations that affect or are affected by the program. It is the total return on investment of a program. It includes the cumulative changes, both positive and negative, that arise from an organization’s work and initiatives. While economic value only provides a measurement of financial value, total value also includes the non-financial value created that is usually not measured and, therefore, not accounted for. But we can account for it.
The Benefits of Measuring Total Value
There are many benefits of measuring the total value created by a program. Measuring total value is critical to understanding just how much total value, financial and non-financial, a program creates for its stakeholders and how it creates that value. It shows at what point a program’s total value starts to exceed its total investment. It is useful for comparing the relative value of multiple programs within the same organization and for comparing the relative value of the same type of program across organizations. Total value, therefore, shows how effective a program is, how efficiently the program is implemented, and how best to implement the program.
We use the Total Return on Investment framework to measure the total value created by a program. We identify the stakeholders affected by a program, and discover what is important to them and what they want to see as a result of the program. Then we measure the outcomes of the program and calculate the Total Return of Investment for the entire program and by stakeholder using social accounting principles and cost-benefit analyses. TROI is calculated as a ratio that shows just how much value is created per unit of investment. Though it is expressed in financial terms, it is a measurement of both the financial and non-financial value, including the social and environmental benefits as well, created by your program.
Once we have concluded our analyses, we will prepare and deliver a report to you on our findings. Our Total Return On Investment report will include an executive summary of what the TROI of your program is and an explanation of what that ratio means. It will indicate just how much total value your program has created for its stakeholders. The report will also include a discussion of how that value was created, where and why. We will show just how effective, efficient and successful your program is. We will also suggest recommendations and next steps to make the program even better and to create even more value for you and your stakeholders.
Fees & Timeline
Our fees and timeline are dependent on the scope of the program. Contact Us for more information.
We look forward to a productive and rewarding collaboration. Thank you for your business.