The Value of Innovation

Chapter 15Forecasting Value, Including ROI

Lars Rienhold, CEO, is proud of the accomplishments of Family Mutual Health and Life Insurance Company (FMI), which has enjoyed a rich history of serving families throughout North America for almost 80 years. With a focus on health and life insurance products, FMI is regarded as a very innovative and low-cost health insurance provider. Top executives are proud of their cost control efforts and the low prices they can offer. Company advertisements regularly highlight their low-cost approach, quality of service and ethical practices. [1]

Lars is a man of considerable and contagious personality, continually trying to offer affordable health and life insurance policies, provide excellent customer service, and be a responsible citizen. As part of this effort, Lars wanted to ensure that FMI was doing all it could to help the environment. While FMI’s carbon footprint is relatively low compared to manufacturing companies, its headquarters was located in a congested area where employees had high commute times. This is having an impact on the environment.

During a recent trip to Calgary, Canada, he saw a television report about a local company that had implemented a work-at-home program. The report presented the actual amount of carbon emissions that had been prevented with this project. Lars thought that FMI should be able to implement a similar program, with the possibility of employees working from home. He brought this idea to Melissa Lufkin, ...