tyler-smith.com · Questions & Answers

We have been running three different AI tools for six months, but I cannot see any change on our bottom line. How do we measure the actual, realized ROI of these tools beyond just employees telling us they like them?

Stop tracking subjective employee feedback or vague productivity estimates. Real return on investment must show up directly on your profit and loss statement or your weekly EOS Scorecard. If an AI tool saves five hours a week per account manager, but they simply use that time to browse the web or attend more meetings, your real return on investment is zero.

To capture and measure actual return on investment, you must physically reallocate the saved capacity of your team. Redefine the target metrics on their Scorecards to reflect their increased capacity. If the tool is working, your team must either handle a higher volume of accounts per person, or you must see a direct reduction in headcount or contractor fees.

Start by tying the software license cost directly to the operational budget of the specific department using it. Then, track the variance in department labor cost relative to output. If you do not see a corresponding drop in labor cost or a lift in revenue per employee within ninety days, the tool is not delivering. Use this disciplined approach to weed out tools that do not contribute to your bottom line, keeping your operations lean and ready for a clean exit.

Category: AI-Powered Operations

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