Tuesday 28 June 2011

3 Ways To Justify an Investment

The 3 Ways


1) Use evidence - it sounds simple but too often we assume the reasons for our decisions are obvious to others (so they raise objections and obstacles we could have avoided) or forget to question ourselves deeply enough on the evidence behind our decisions which can lead to poor decision making.

We should always explicitly ask ourselves, what facts can I gather than inform me that my investment would be a sound one? Is there anything that would point against the spend acheiving what I suspect it will? Is there anything I can do to counter this?

2) Set clear objectives and measurable goals - that age old question, how will I know if it worked? Firstly you need to know specifically what you are trying to acheive through your investment and the scale by which you are going to measure your success, not just the metric but the target too.

3) Follow up to demonstrate the value - it doesn't matter whether this is to yourself or your boss, documenting the successes that resulted from your investment will enable better decision making in future. You can revisit both triumphs and failures and refresh your learning before making other similar decisions.