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The Engineering Leader’s Guide to Measuring ROI

The engineering organization is one of the most important resources that any company can invest in. Engineering leaders understand this intuitively, and CEOs often speak of their investments in R&D as competitive differentiators. But why is it that you find yourself speaking to the costs of engineering, but rarely the returns on it? There’s an opportunity to change this, and it starts with learning how to effectively communicate your team’s impact.

Other department leaders use some form of return on investment (ROI) as a benchmark for deciding how their teams will focus their time and energy, but the concept of ROI is not commonly applied to engineering teams. Why? Calculating ROI for engineering teams is seen as difficult, and in some cases it can be.

This guide covers how engineering can adopt the ROI calculation, the benefits that can be seen from measuring ROI across various areas, and how to use ROI to make better informed strategic decisions.

In this guide you will learn:

  • How engineering can calculate ROI
  • How to leverage the ROI calculation to measure the impact of your engineering team
  • How to calculate ROI to inform strategic decision making
  • The creative applications of ROI within engineering organizations