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Return on investment

As explained in Think Like a Software Engineering Manager

Return on investment is a financial performance measure comparing the benefit or return generated with the resources invested.

Return on investment (ROI) is a performance measure that compares the resources spent on work with its expected benefits and effects. It helps teams judge success alongside customer satisfaction, delivery, collaboration, and resource use. section 9.2.6

Use ROI as one part of a broader project review:

  • Compare spending with benefits, effects, market reception, and revenue goals. section 9.2.6 section 10.1.5
  • Read ROI alongside budget adherence, customer or product satisfaction, employee satisfaction, innovation, and operational stability. section 10.1.5
  • Treat strong financial results as useful evidence, not the only measure of success. section 9.2.6 section 10.1.5

Project Accessible

Project Accessible met its requirements and timelines while staying within budget. Initial sales exceeded expectations, so the project manager assessed its ROI alongside a customer satisfaction score of 95/100 and employee satisfaction of 70%. section 10.1.5

How Think Like a Software Engineering Manager covers it

How deep it goes
Defines ROI through resources, expected benefits, and effects, but stops short of presenting a formula or calculation method.
Examples
Uses Project Accessible, exceeding sales expectations while meeting requirements, timelines, and budget.
What you can do after
Evaluate project success by comparing resources spent with expected benefits and reviewing complementary outcome measures.
How it connects
Connects ROI with budgeting, revenue goals, customer satisfaction, employee satisfaction, innovation, and operational stability.

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Related concepts

This explainer was generated by Manning's knowledge graph from the text of Think Like a Software Engineering Manager. The section links point to the parts of the book it draws on.