Re-Thinking ROI for Office 365: Stop Trying to Save Time
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My keynote from the DEX 2019 Conference in Sydney on September 19, 2019. I argued that the traditional ways of thinking about ROI are flawed and miss the real value of Office 365. I offered several ways for re-thinking the real value. Enjoy.
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Re-Thinking ROI for Office 365: Stop Trying to Save Time
- 1. Re-Thinking ROI for Office 365: Stop Trying to Save Time Michael Sampson Research Consultant Silverside
- 3. 1 The Usual Story (6) 2 Re-Thinking ROI (6) 3 Conclusions (3)
- 4. Part 1. The Usual Story 6 Observations
- 5. Observation 1. The usual story hasn’t changed over the past 10-20 years.
- 6. Lotus Notes 1996 Perceived Organisational Efficiency Saves time Get more work done React quicker to market changes Speed decision making
- 7. Lotus Notes 1996 Perceived Organisational Effectiveness Respond more appropriately to change Facilitates innovation Improves decision quality Which products/services to market?
- 8. Polycom 2008 Reduced Real Estate Costs
- 10. David Coleman 2010 Reduced Employee Turnover Financial Services Firm (16,353) Voluntary turnover @ 13.1% Profit per employee $36,514 Collaboration = 23% lower turnover Reduced profit loss = $18 million System cost = $5 million ROI is 3.6x
- 13. Observation 2. The core assumption about time saved is flawed.
- 14. Forrester report on Office 365 from 2011 Fully-worked example Funded by Microsoft
- 19. Observation 3. The production line mindset doesn’t work for Office 365.
- 20. Production Line Mindset 1 2 3 4 5 1 2 3 4 5 Tasks units are fixed in Quantity and Quality 1 Human skill/capacity is fixed 2
- 22. The Office 365 Reality Chaotic variation 1 2 3 4 1 2 3 1 2 3 4 5 6 7 8 9 1 2
- 24. Observation 4. Time saved and travel reductions are about current ways of working.
- 25. Forrester Consulting on O365 2011Time Saved 53.2% Less Travel 16.8% 70.0%
- 26. What you claim as the benefit denotes your frame of reference.
- 28. Observation 5. More of X doesn’t mean better because of X (the quantity fallacy).
- 29. more meetings meetingsmore mindless discussion useless chatter alignmentbetter clarity collaboration
- 30. more email unclear requestsmore cya cc: and bcc: pontification communicationbetter informed action clarity chat in Teams
- 31. more news items stuff to readmore info.overload corporate speak alignmentbetter insight for action clarity on intent
- 32. Observation 6. Don’t demand for Office 365 what you don’t demand elsewhere.
- 33. Coffee gets you going. $18/week = $936/year
- 34. Train, car or bus gets you there. $30-$120/week = $3,900/year
- 35. Office 365 gives you the world. $55/month = $660/year
- 36. employee value leveraged Technology Value Added (TVA) percentage coverage of tasks x cost of tools to create value = TVA
- 38. TVA (Travel to Office/Annual) $60,000 100%x $3,900 = 15x
- 39. TVA (Office 365 E5/Annual) $60,000 85%x $660 = 77x
- 40. Technology Value Added (TVA) Coffee Train/Bus/Car Office 365 47x 15x 77x
- 41. Part 1. The usual story hasn’t changed over the past 10-20 years. The core assumption about time saved is flawed. The production line mindset doesn’t work for Office 365. Time saved and travel reductions are about current ways of working. More of X doesn’t mean better because of X (the quantity fallacy). Don’t demand for Office 365 what you don’t demand elsewhere.
- 42. Part 2. Re-Thinking ROI 6 Principles
- 43. New Principle 1. Calculate your baseline cost comparison for Office 365. Doing nothing is not free. Cost is real—out of budget everyday.
- 44. Forrester Consulting on O365 2011 72% cheaper than on-premises
- 45. New Principle 2. Hold two contradictory ideas as true simultaneously.
- 46. The technology of Office 365 is Irrelevant Irrelevant • It’s not the technology that makes the difference; it’s how you use it. • The technology most easily reinforces current patterns, not transformation.
- 47. The technology of Office 365 is Indispensable Indispensable • Technology creates new opportunities for change. • Without the enablement of technology, you can’t make the change.
- 48. New Principle 3. Start from business value and work backwards.
- 49. Digital Tools Practices and Processes What Do Tasks Organisation Structure Where/When Get work Report Corporate Culture How Norms Attitudes Business Model Why Value given Value gained Reimagining Toolkit (2015)
- 50. Office 365 (Yammer) Less Email, More Open Interaction Direct Practices and Processes Discussions across departments Indirect Organisation Structure Less “them” More “us” Indirect Corporate Culture Where we hire talent, how we staff projects Indirect Business Model
- 51. Office 365 (Microsoft Teams) Team Collaboration Day-to-Day Practices and Processes Virtual Teams, Best-Fit Talent Pathway Organisation Structure Better Together Pathway Corporate Culture Best Talent, Location Independent Outcome Business Model
- 52. Alzheimer’s Research. Hundreds of billion of dollars in research. Following the existing research assumptions. 47 million people today 141 million by 2050. “No closer today than 20 years ago.” Office 365 Day-to-DayROI Minutes saved, Reduced travel Practices and Processes
- 53. Cross- fertilization between disciplines Outcome Alzheimer’s Research. Ethnobotanist. Different approach / mindset / assumption. Cross-fertilisation plus structured process. Connecting the dots. ROI Save 141 million people Business Model
- 54. New Principle 4. Strategically allocate “minutes saved.”
- 55. Where did my day go? Attempt to capture your “minutes saved” at the end of the day Practices and Processes Office 365
- 56. 15% strategic allocation Given that: [1] using Office 365 will save 1 hour/day Therefore: [2] what’s the best place to invest 1 hour? Corporate Culture PrincipleROI It Depends {1 hour}
- 57. New Principle 5. Confer super-powers with Office 365.
- 58. Be anywhere for a meeting. Teams Meetings.
- 59. Work on any team. Microsoft Teams.
- 60. Know what’s going on. Delve.
- 61. See hidden trends in data. Power BI.
- 62. Be in multiple places at once. Discussion Threads (Yammer, Teams)
- 63. Be wise beyond your years. Yammer.
- 64. New Principle 6. Help people embrace the new world of work with Office 365.
- 65. New World of Work Fluidity in job design (task auctions) Fractionalisation of work Greater change/unpredictability Location agnostic Cross-functional collaboration Virtual teams Constant learning
- 68. New World of Work Fluidity in job design Fractionalisation of work Greater change Location agnostic Cross-functional collaboration Virtual teams Constant learning Office 365/Microsoft 365 … Microsoft Teams Yammer Teams, OneDrive, Intune Teams, SharePoint Teams, Teams Meetings Yammer
- 69. New World of Work Fluidity in job design Fractionalisation of work Greater change Location agnostic Cross-functional collaboration Virtual teams Constant learning Office 365/Microsoft 365 … Microsoft Teams Yammer Teams, OneDrive, Intune Teams, SharePoint Teams, Teams Meetings Yammer Security (MCAS, MDATP)
- 70. Office 365 for People Master new relevant skills Connect with others pushing the boundaries Create career leverage
- 71. Part 2. Calculate your baseline cost comparison for Office 365. Hold two contradictory ideas as true simultaneously. Start from business value and work backwards. Strategically allocate “minutes saved.” Confer super-powerswith Office 365. Help people embrace the new world of work with Office 365.
- 73. Takeaway 1. If you’re fighting over ROI, you’re doing Office 365 wrong.
- 74. Takeaway 2. Transforming beyond work practice delivers the real ROI.
- 75. Takeaway 3. Equip people with super-powers for the new world of work.
- 76. www.silverside.com eBook Office 365 and ROI michaelsampson.net Book/PDF User Adoption Strategies (2012) michaelsampson.net Book/PDF Re-Imagining Productive Work with Office 365 (2016) Code: dex2019 Code: dex2019
Editor's Notes
- Leap of faith