Continual Service Improvement (CSI) Practice Exam

What does value on investment (VOI) measure?

1. The overall cost of an investment

2. The expected benefit of an investment

3. The risks involved in an investment

4. The historical performance of previous investments

The correct answer is: The expected benefit of an investment

Value on Investment (VOI) primarily measures the expected benefit of an investment. This concept goes beyond the traditional metrics of return on investment (ROI), which typically focuses on financial returns, by emphasizing the broader benefits that an investment delivers. VOI considers qualitative aspects such as improved service quality, customer satisfaction, and business alignment with strategic goals. In the context of service management and continual service improvement, assessing the expected benefit helps organizations make informed decisions about which initiatives to pursue or programs to continue. By looking at the anticipated outcomes, including both tangible and intangible benefits, organizations can prioritize their investments based on the value they expect to achieve, ultimately leading to improved service quality and efficiency. The other options do not encapsulate the essence of VOI as effectively. While understanding costs, risks, and historical performance are important for a comprehensive investment analysis, these components do not reflect the core idea of measuring the anticipated value generated from that investment. Each of these aspects can inform decision-making but does not define the expected benefits, which is the essence of VOI.