Financing Business Excellence

Business Excellence initiatives do have their associated cost and like everything else in the business world, must have a proven RoI (Return on Investment) in financial terms. The projected dollar return anticipated from an excellence initiative must by itself justify the budgeted dollar cost associated with it. On certain occasions, however, the benefits may be highly subjective (like improve market image) and translating them to a dollar value may be difficult. In such cases a notional dollar value can still be assigned. Formal decision making techniques such as Grid Analysis, Cost Benefit Analysis, etc. can also be applied in such cases. The decision analysis would consider financial impact as one of the decision factors with (probably) the highest weightage. The decision analysis would then try to select one action from the following: 1. Maintain status quo - organization should not go ahead with the excellence initiative 2. Change - organization should go ahead with the excellence initiative And if the answer is 2. Change, then change the organization must.