Presenting ROI to Stakeholders: A Guide to Gaining Approval

By presenting ROI effectively, you transform your proposal from a cost to an investment. The key is to balance logic (data-driven evidence) with persuasion (compelling storytelling and strategic alignment).

Step 1: Start with the Big Picture

Set the stage by clarifying your proposal’s objectives:

• What are the goals? (e.g., increase efficiency, reduce costs, improve employee retention)
• Who is the audience? (stakeholders, executives, department heads)
• What is the timeframe? (short-term vs. long-term benefits)
• Example: "This initiative aims to increase employee productivity by 15% over the next year by implementing an advanced communication training program."

• Direct Costs: Program fees, software, tools, materials
• Time Investment: Employee hours, downtime for training
• Additional Expenses: Travel, consultants, external vendors
• Example: "The total cost is R500,000, covering facilitator fees, participant training hours, and course materials."

• Financial Gains: Increased revenue, cost savings, efficiency gains
• Non-Financial Benefits: Employee engagement, better decision-making, stronger team dynamics
• Example: "Employees who undergo leadership training are 22% more productive, leading to an estimated R2M revenue increase over the next two years."
  

• One of the most effective ways to convince stakeholders is by demonstrating a clear return on investment (ROI) in a way that is easy to understand.

• For example, if a training program is expected to increase efficiency and generate an additional R2 million in revenue, and the total investment (including training fees and employee time) is R500,000, the ROI would be:
• (R2,000,000 – R500,000) ÷ R500,000 × 100 = 300% ROI
• By explaining ROI in a straightforward way, you help stakeholders see the value in real business terms, making it easier for them to support your proposal.

• Does it enhance customer experience?
• Does it improve efficiency?
• Does it support digital transformation?
• Example: "This program directly supports our 2025 strategy of improving operational efficiency and reducing employee turnover."

• Case Studies – How similar companies benefited
• Employee Testimonials – First-hand impact
• Before & After Metrics – Show measurable improvements
• Example: "After implementing this program, Company X reduced decision-making time by 30% and improved team collaboration scores."
  

• What were the challenges in previous implementations?
• How will you mitigate risks this time?
• Example: "Last year, we faced adoption resistance, so this time, we’ve included a pre-training awareness campaign to increase buy-in."
  

• What decision needs to be made?
• What’s the timeline for approval?
• What happens next?
• Example: "We recommend launching this initiative in Q2, with a phased implementation to maximize adoption. Approval by March 15th ensures we stay on track."