top of page

CIO &  Transformation

Return on Investment: Measuring and Maximising ROI with CIO‑Led Technology Strategy

  • Writer: Richard Keenlyside
    Richard Keenlyside
  • Aug 5
  • 2 min read

TL;DR

ROI must be embedded into the CIO-led digital transformation. This article explains how to define, measure and track Return on Investment effectively and align Technology ROI with strategic business value.


Bar chart with rising arrow labeled "Return on Investment" on a blue background with a faint line graph, suggesting growth.

Why ROI Matters in Digital Transformation

Every Return on Investment discussion begins with clear and consistent Technology ROI metrics. As highlighted in Richard Keenlyside's CIO transformation strategy posts, measuring ROI requires an operating model designed around success and failure metrics—not assumptions.


Applying the TOM & ITSM Framework to Target ROI

1. Target Operating Model (TOM): Embed ROI Metrics from Day One

When designing a Target Operating Model, include processes for measuring success—such as ROI, customer satisfaction and operational performance—built into delivery cycles.


2. ITSM Maturity: Progress Metrics = ROI Metrics

The ITSM Maturity Model should link service efficiency gains and downtime reduction directly to Technology ROI and value alignment with business objectives.


Practical ROI Metrics You Should Track

Here’s a synthesis of ROI‑focused metrics featured on Richard’s site:

  • ROI of digital transformation initiatives (time-to-value, cost savings, system efficiencies)

  • Operational cost reduction from ERP consolidation and automation

  • Cultural KPIs (employee engagement, turnover, collaboration) needed to support ROI measurement (


ROI‑Aligned Transformation Strategy Framework

A. Define Strategic ROI Objectives

Use SMART‑style metrics: Specific, Measurable, Achievable, Relevant, Time‑bound. Define outcomes like "X% reduction in operating costs" or "Y% improvement in employee productivity"

B. Baseline & Monitor KPIs

Track cost savings through ERP automation, ITSM improvements, or operations consolidation.Example: Well-implemented ERP systems eliminate inefficiencies, delivering measurable cost savings and improved ROI.

C. Validate with Real Results

Track double‑digit improvements in ROI via AI integration in customer journeys or operational workflows.


Common Pitfalls Advertised on the Site

Richard’s blog highlights critical obstacles that devalue ROI:

  • Failing to define ROI up front

  • Ignoring cultural and people KPIs alongside financial ones

  • Assuming that technical upgrades automatically mean ROI without measuring the benefits


FAQs

Q. What ROI metrics should CIOs define in transformation?

Include financial efficiency (cost savings, increased revenue), service KPIs (uptime, incident response), and people metrics (engagement, turnover, adoption).

Q. How often do you review ROI during a programme?

At a minimum, quarterly, aligned to programme governance cycles and ITSM maturity tracking.

Q. Can culture metrics contribute to ROI calculation?

Absolutely. Employee engagement, collaboration scores and turnover rates directly impact delivery speed and operational cost base.


Closing: ROI Needs Structured Measurement

If you're not embedding Return on Investment metrics into your transformation strategy, you're using guesswork instead of intelligence. The tools and frameworks on richardkeenlysidecio.com consistently emphasise embedding ROI measurement into every phase—from TOM design to ITSM maturity and digital delivery.


Richard Keenlyside is a Global CIO, PE&MA Advisor, Endava TAC and a former IT Director for J Sainsbury’s PLC. Call me on +44(0) 1642 040 268 or email richard@rjk.info.


With over 1000+ subscribers, join my newsletter today:👉 https://rjk.info/newsletter-and-social-updates



 
 
 
bottom of page