We'll give you a strategy for demonstrating records management's ROI based on hard and soft dollar revenue flows, reduced risk and improved long-term returns.

A recent survey of OnRecord readers identified three main sources of hard and soft dollar return on investment for records management initiatives:

• Savings on physical storage space
• Staff productivity gains
• Reduced risk exposure

We'll examine these three objectives in light of basic ROI principles, focussing on those records management approaches which can help optimize that investment over time.

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You'll find out how to:

• Define ROI for RM
• Calculate ROI
• Reduce cash outflow with storage savings
• Increase cash in-flow with business efficiency
• Realize soft dollar savings through risk avoidance
• Plan for the long term

This guide provides practical tips for quantifying RM's value as a corporate financial investment, even during times of financial hardship and uncertainty. In ROI terms, a penny saved truly is a penny earned, and improved efficiencies will help an organization survive or even thrive in the face of shrinking resources.

By freeing up revenue and effort otherwise expended on manual tasks and redundant workflow, an organization can redeploy those resources into tasks which more directly support its operational mandate. Effective records management also directly decreases organizational risk: a slightly softer return that is nonetheless necessary for operational continuity. The sum total of increased operational output, cost savings and better managed risk over both short and long terms, translates into direct ROI for any organization, whether it is a commercial enterprise seeking to add fiscal value for shareholders or a government agency or non-profit organization trying to better serve its target population.