Managing IT Change—Return on Investment (ROI) as a Motivational Tool

• Date: 01 May 2017
• Published date: 01 May 2017
• Author: Thomas R. Weirich,Art Worster,Frank Andera
• DOI: http://doi.org/10.1002/jcaf.22266

58

© 2017 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI 10.1002/jcaf.22266

f

e

a

t

u

r

e

a

r

t

i

c

l

e

Managing IT Change—Return on

Investment (ROI) as a Motivational

Tool

Art Worster, Thomas R. Weirich, and Frank Andera

INTRODUCTION

The concept of

evaluating proposed

capital investments to

establish the antici-

pated financial ben-

efits is certainly noth-

ing new. The financial

analysis of expected

benefits from invest-

ments, whether it

is a new plant, new

product develop-

ment, or many others

is well understood

and widely employed.

There are a variety

of models used to

identify and quantify

anticipated improve-

ments, adjusted for

inflation, as well as

other factors. The

basic concept of ROI

calculations, however,

can also be used

to promote accep-

tance of the overall

program and where

benefits may be

achieved. This article

will present a case

for the use of ROI

concepts to design

and drive the change

management com-

ponent of enterprise

resource planning

(ERP) implementa-

tion programs. Large

change initiatives

require motivating

workers and groups

to accept and align

themselves with cor-

porate goals. This

must also include

how proposed

changes will accom-

plish those goals.

Previous articles in this series have provided examples

for management accountants to understand integrated

business processes and the role that they play. In a

world where enterprise resource planning (ERP) appli-

cations define the operation of integrated business

functions, understanding and interpreting the financial

results becomes a more operational role. In this article,

the authors extend this view to the implementation pro-

gram itself, whether initial implementation or continuing

additions. While ROI calculations are widely understood

for evaluating and managing capital investments, the

role they play in change management is often underval-

ued. While identifying and accurately measuring these

can be challenging, not developing them handicaps

program teams’ ability to engage employees to provide

critical support. This article discusses revenue and cost

functions that are normally affected by the conver-

sion to integrated business processes. Along with this

analysis, how these areas are defined, estimated, and

tracked becomes more important to project success.

Most of the changes discussed in previous articles are

implemented to improve efficiency and effectiveness

of business processes. Taking the time to establish

not only the metric itself, but also the measurement

approach can be a key role that management accoun-

tants play both for executive leadership and for change

management within the implementation program.

© 2017 Wiley Periodicals, Inc.

Editorial Review

This is the tenth installment in a series of articles that have appeared and will appear in the coming issues of JCAF. Art

Worster and his associates, Thomas R. Weirich and Frank Andera, address matters that arise during and after the imple-

mentation of integrated IT applications in a business.