T0-5 Estimating the Financial Impact of an Intranet Enhancement

One of the purposes of an intranet is to speed of work, including reducing time wasted in hunting for documents and information.

In one of CCLFI’s clients, we developed and installed an intranet enhancement, uploaded documents often needed, and provided users training. CCLFI asked the following questions to the staff members:

Before installation:

  • Approximately what percent of your time do you use every day looking for documents and information in relation to your work? (=T1)

Six months after installation:

  • Approximately what percent of your time do you use every day looking for documents and information in relation to your work? (=T2)
  • Approximately what percent of the hunting time you saved do you attribute to your use of the intranet enhancement? (=f)

If P = total annual payroll, then an estimate of financial impact is (“ave” suffix means “average over all staff”):

Financial Impact of Reduced Hunting Time = P x f x (T2ave – T1ave) pesos per year

Percentage Increase in Productive Time (due to faster retrieval of information using the intranet enhancement) = f x (1 – T1ave)/(1 – T2ave) percent

Cheers!

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2 Responses to “T0-5 Estimating the Financial Impact of an Intranet Enhancement”

  1. Jürgen Says:

    Hi,
    through a Google-Notification I came across your blog. Thank you for the post. I have a question regarding the presented method: Does the clients management support the method, does the management believe it?

    I think it’s great news, when staff says, that an intranet upgrade really saved time and boosted productivity. What a compliment! We often discuss which figures are really useful to document ROI of an intranet. IMHO indicators should be taken as such. They might not provide absolute truth but a sentiment, a tendency.

    cheers and keep up your blog

  2. apintalisayon Says:

    Dear Jürgen,

    The management of this organization was our client, so they understand and appreciate the potential benefit from an intranet from the beginning of the project.

    Thank you for your supportive comment Jürgen.

    Apin

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