The other way to measure the effectiveness of a PPP is through value for money, or return on investment (ROI)-that is, how great was the desired effect per dollar spent? Value for money is an essential metric because it allows partners to compare a PPP against the opportunity cost of the resources allocated to it. In other words, what other programs could have been financed instead with the money spent on a given PPP? PPPs with good ROI will have an outsized impact per dollar. However, because PPPs are generally used to address such large challenges, it is essential to measure the ROI of a PPP on a reasonably long timeline, often five or more years. The arrangement may vary according to different strategies, product portfolios, and revenue streams.
Of course, dollars are not the only resource spent on PPPs. Human resources and political capital are also highly relevant resources in determining the "investment" spent on a PPP. There are numerous currencies that should be analyzed in an ROI context, and it's important to analyze the PPP from more than just a "per-dollar" perspective.