Reply To: Natalie Jill Intro

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Natalie Minh

Hi Pedro,

Without knowing the details of the project discussed, I always ignore the emotional aspect of the decision making and focus on the math.  Are there other projects that have a higher ROI?  When judging a project, I look at the ROI in the “good times”, ROI in the “bad times” , and ROI during “average times”.  Then do the same math on all of your other options.  I ran this analysis on a few large projects for Fortune 500s and we realised that we held onto a poor performing project because we felt that we invested so much into it already.  Reality was that the poor performing project only had a 5% ROI in good times and was completely underwater in bad times.  Wasn't worth the long run effort.  We also compare ROI to the cost of funds = what would the bank pay you if they held your cash in a CD?  That would be like 2-3% in today's markets.  So in other words, if your project cannot out perform a CD, get out of there.

Natalie Minh