# Return on Investment

A measure of the value an investment returns relative to its cost, used to justify and compare initiatives.

**Acronym:** ROI

Return on Investment (ROI) compares the benefit an initiative produces to what it cost, giving a common yardstick for approving and prioritizing work. It is central to the business case and to demonstrating an initiative’s worth after delivery.

Meaningful ROI depends on tracing benefits from strategic intent all the way to P&L impact, so the return claimed is the return actually realized.

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