@kris forgive me if there was even the slightest suggestion that we abdicate our responsibility to be accountable for the cost of the services we provide. I just happen to think that client success stories are the most effective way to sell any new product or service. I remember asking a real estate agent once what he thought a house was worth after we had taken the tour and his answer was “whatever you are willing to pay for it”. If clients see real value, I think they’ll pay for it, and a competitive market will ensure that the service eventually becomes affordable to everyone.

@olivier thanks for your comments but I really don’t believe I’ve added anything other than to say “let it go and lets focus on what really matters, our clients”

Engagement” is bullshit. Now let’s get to work.

You may also be interested in this post: http://tinyurl.com/n6ewoj for a different take on the performance payoff question. Thanks for your post.

As a consultant with way-longer time in the executive chair, my first kudos to you is your bold statement that the final word belongs to clients. Indeed.

You write: “The CEO at my previous gig used to say that the only reason he would spend a dollar on I.T was if it either increased revenue, decreased costs or improved communication.” Two of those are the very definition of ROI, and the third is the most important non-$$$ related impact on his mind. He defined value to his organization as 3 distinct elements: ROIr, ROIc, and improved communications. Isn’t that a pretty good illustration that for most CEOs (at least), ROI is pretty clearly defined in terms of value to the org?

What I don’t understand is that while you pepper your post with great examples of ROI as a primary value to execs and end with three brilliant points, you open up the discussion with “unfortunately I have no brilliant insights to add other than to suggest that if we haven’t figured it out by now then the magic bullet probably doesn’t exist.” We HAVE figured it out! ROI is simply what it is. And as far as what matters to your clients, you’ve figured it out as well: Ask them and they’ll tell you. So where’s the question mark? There’s nothing confusing about this.

I wish we could put the ROI debate to rest though since 1. ROI is and always will be what it is: Return on investment, and 2. Each company has unique needs, aspirations and objectives (including but not limited to ROI) that must be understood, mapped out, and plugged into every new program.

Good post though.