Summarize the below reading and include how it relates to project management as a whole.

The ROI Model

Any model used must provide a systematic approach to calculating ROI. It should be prepared on a life-cycle basis or step-by-step approach similar to an EPM methodology. Just like with EPM, there is an essential criterion that must exist for any model to work effectively.

Because criteria are considered essential, any ROI methodology should meet the vast majority of, if not all, criteria. The bad news is that most ROI processes do not generally meet all of these criteria. A typical model is shown inFigure 11-1. The definitions of the levels inFigure 11-1are shown inTable 11-1.

Data Analysis Tabulate Program Planning Data Collection Cost Reporting Develop Business Convert Reaction/ Return on Evaluation Learning Application Data to Reach Satisfaction Impact Investment Level 2 Level 3 Monetary Conclusion Plans and Level 1 Level 4 Level 5 and Baseline Data Value Generate Report Isolate Identify Transmit Effects of Intangible Information Program Benefits to Target Groups