Return on Investment

Return on Investment in Team Building Programs

Teams, not the motivational title we toss around in business, but true blue teams share three characteristics:

They have shared aspirations – a common goal
They have measurable performance – FiveSTAR TPI
They have joint accountability – sharing successes and failures alike

Teamwork is simply doing more, faster, efficiently.  Effective teamwork is essential for an organization to realize its high-performance potential.  You want to see a return on your investment in a team building program, yet you may be unsure how to measure that return. 

So how do we measure ROI?  In general terms, internal rate of return is the return per year on an original investment considering all cost and benefits over a given investment period. Here is a simple example:

An old kettle takes 3 minutes to boil
Kettle is used by employee 4 times a day
Employee waits by kettle
Employee average salary is $50,000
——————————————————————————————
New and improved kettle cost $45
Life of new kettle is one year
New kettle takes 1 minute to boil

That’s 8 minutes saved every working day (every employee)! That’s 29 hours a year at a savings of $725 on a $45 investment. 

Now imagine applying this formula with the old kettle representing anything that impedes productivity:

Untrusting Environment
Poor communication
Operating in silos
Avoidance of conflict
Lack of Commitment/accountability
Absenteeism
Rework
Separate agendas

VS.

A Culture of Trust and Candor
Seeking and sharing information
Interdependency
Open/honest problem solving
Motivated/supportive
Self actualization/quality of life
Efficiency/productivity
Common goals

Time and again our clients engage with TeamBuilders WorldWide because they are confident that our programs add value and produce results.  Our FiveSTAR Five Point promise guarantees you measurable results on your program; results that produce a return on your investment.