How can you present project profitability analysis to stakeholders?

1 Define your profitability metrics

Before you present your project profitability analysis, you need to define the metrics that you will use to evaluate your projects. Depending on your project goals, scope, and duration, you may choose different profitability metrics, such as net present value (NPV), internal rate of return (IRR), return on investment (ROI), payback period, or profit margin. You should explain the meaning and calculation of each metric, and why you chose it for your project analysis. You should also provide a benchmark or target for each metric, and compare your actual results with it.

2 Summarize your profitability results

Once you have defined your profitability metrics, you should summarize your profitability results for each project and for your overall project portfolio. You can use tables, charts, or graphs to display your profitability results in a visual and easy-to-understand way. You should highlight the key findings and insights from your profitability analysis, such as which projects are most profitable, which projects are underperforming, and what are the main drivers and factors affecting your profitability. You should also provide a brief explanation of the assumptions, limitations, and risks involved in your profitability analysis.

3 Recommend actions for improvement

After you have summarized your profitability results, you should recommend actions for improvement for your projects and your project portfolio. You should provide specific and actionable suggestions for enhancing your project profitability, such as increasing revenues, reducing costs, adjusting scope, extending duration, or reallocating resources. You should also estimate the potential impact of your recommendations on your profitability metrics, and how they align with your project objectives and stakeholder expectations. You should prioritize your recommendations based on their urgency, feasibility, and value.

4 Address stakeholder concerns and questions

When you present your project profitability analysis to stakeholders, you should anticipate and address their concerns and questions. You should prepare for common questions, such as how reliable and accurate your profitability analysis is, how sensitive your profitability results are to changes in assumptions or variables, how your profitability performance compares with industry standards or competitors, and what are the trade-offs and implications of your recommendations. You should answer these questions with confidence and evidence, and show how your profitability analysis supports your project decisions and outcomes.

5 Solicit stakeholder feedback and input

Finally, you should solicit stakeholder feedback and input on your project profitability analysis and your recommendations. You should encourage stakeholder participation and engagement, and ask for their opinions, suggestions, and concerns. You should listen to their feedback and input with respect and openness, and acknowledge their perspectives and interests. You should also address any gaps or disagreements between your profitability analysis and stakeholder expectations, and try to find common ground and solutions. You should thank your stakeholders for their feedback and input, and follow up with them on the next steps and actions.

6 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?