1.6 What are Pitfalls of ROI of SPI?

The pitfalls of ROI of SPI are quite numerous . It is easy to believe that ROI is more than just the application of a few basic equations if you haven't done your homework. Unfortunately, many believe that the ROI of SPI and SPI economics are a nonessential part of their continuing SPI journey. Similarly, some people feel that ROI does not apply to them, their situation, or to the field of SPI. A few well-placed individuals think that there is no room for ROI principles in an ad hoc, immature organization. Oftentimes, key SPI leaders believe that their software organization has to be performing at world-class levels before using ROI principles. Too many people think ROI is a farce, all ROI studies are a bunch of lies, and ROI authors are snake oil salesmen . SPI is often perceived as too difficult and immeasurable, but SPI is worthy in spite of its impossibility . Some believe organizations must embark on a multiyear, multimillion-dollar ROI study by itinerant measurement scholars. Some feel that organizations cannot perform an early, top-down ROI analysis of their portfolio of software assets due to immaturity.

The exact opposite of these common pitfalls for the ROI of SPI is remarkably true. The formulas for SPI are amazingly simple. SPI economics should be your first concern, not your last. ROI is an indispensable tool in the field of SPI. ROI is the perfect tool for low-maturity organizations. ROI is a stepping-stone to high maturity, not vice versa. ROI of SPI is a simple fact. SPI without ROI is not SPI. ROI can and should be a quick, easy, and cost-effective exercise. Performing an early, top-down ROI analysis of your portfolio of software assets is the ideal approach to strategic planning.