Rethinking Indicators of Project Success in Healthcare

When considering any kind of project, technology investment, or consulting engagement, organizations most often ask about the return on investment (ROI) – rightfully considering whether the cost will result in increased dollars or, at least, a boost in market share or membership, which translates easily into dollars. In the healthcare industry, especially in clinically related markets, as it has become progressively difficult to increase revenue, many have turned to saving on costs, a reverse proposal. While both are still viable strategies, what is forgotten or not often considered, is thinking in terms of value on investment (VOI). This concept was first introduced by industry leader Gartner, Inc., long considered the world’s leading research and advisory firm. Gartner defines VOI as “intangible assets that contribute heavily to an organization’s performance.” These intangible assets include knowledge, processes, the organizational structure, and the ability to collaborate. Organizations and leaders understand ROI as it is clearly measurable and tangible, most often related to cost savings or increased revenue. However, though VOI focuses on the intangible benefits of a project or an activity, it can also be measured and includes ROI, arguably making it a much better indicator of project or activity’s success.