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Automation ROI Calculator: A Simple Framework

How to estimate impact without building fantasy spreadsheets.

October 12, 20251 min read

ROI conversations are often derailed by overconfident assumptions.

Baseline current effort

Start with real weekly hours, error frequency, and rework costs. Baselines should come from observed operations, not optimistic estimates.

Separate direct and indirect gains

Direct gains include reduced manual hours. Indirect gains include faster response cycles, fewer escalations, and better planning confidence.

Model implementation phases

Include discovery, build, stabilization, and ongoing maintenance costs. A phased model reflects actual project dynamics more accurately.

Use sensitivity ranges

Present conservative, expected, and high-impact scenarios. Decision makers trust bounded estimates more than single-point forecasts.

Tie metrics to business owners

Assign ownership for each KPI after launch. Without accountability, measured ROI drifts from real-world outcomes.

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