How can you measure the ROI of strategic thinking initiatives that leverage CPS?

1 Define your objectives and indicators

To measure the ROI of strategic thinking initiatives that leverage CPS, you need to start by defining your objectives and indicators. What are the specific outcomes and benefits that you want to achieve by applying strategic thinking and CPS to your situation? How will you know if you have achieved them? What are the key performance indicators (KPIs) that you will use to track and evaluate your progress and results? For example, your objectives could be to increase customer satisfaction, market share, or revenue. Your indicators could be customer feedback, sales data, or profit margins.

2 Collect and analyze data

Next, you need to collect and analyze data that relates to your objectives and indicators. You can use various methods and sources to gather data, such as surveys, interviews, observations, experiments, or reports. You should collect data before, during, and after your strategic thinking initiative to measure the baseline, the process, and the impact. You should also compare your data with relevant benchmarks, such as industry standards, competitors, or best practices. For example, you could survey your customers before and after implementing a new product or service that you developed using CPS and compare their satisfaction ratings with the average in your sector.

3 Calculate and communicate ROI

Finally, you need to calculate and communicate the ROI of your strategic thinking initiative that leverages CPS. You can use a simple formula to calculate the ROI: (benefit - cost) / cost x 100%. The benefit is the value of the outcome or benefit that you achieved by applying strategic thinking and CPS. The cost is the amount of resources that you invested in the initiative, such as time, money, or personnel. You should also consider the intangible benefits and costs, such as improved skills, morale, or reputation, or potential risks, challenges, or trade-offs. For example, you could calculate the ROI of a new product or service by subtracting the development and marketing costs from the revenue generated and dividing it by the development and marketing costs. You should also communicate your ROI to your stakeholders, such as your team, your boss, or your clients, using clear and compelling evidence, stories, and visuals.

Strategic thinking initiatives that leverage CPS can help you create value, innovate, and adapt to changing environments. By measuring the ROI of these initiatives, you can demonstrate their effectiveness, justify their investment, and identify areas for improvement.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?