Saturday, March 16, 2013

ROI, as in return on investment. is an outcome, an end

Return on investment (ROI) is being is discussed in the executive suites of organisations more than ever before.  And a number of CEO’s of major companies have received their marching orders recently because ROI failed to meet expectations of the board and shareholders.

ROI, as in return on investment. is an outcome, an end.

Focusing on outcomes such as profit and return to shareholders is short term thinking mostly and usually leads to less than possible results.

A few years ago I was privileged to hear Kevin Roberts, the world-wide CEO of Saatchi & Saatchi, and one of my heroes in terms of a real leader, speak about ROI.  Kevin spoke about return on involvement!

How involved are your employees in where you’re going?
What kind of investment are you making in your employees?


To get a return you must first make an investment.  And investing your time, energy, and money in your employees is the greatest investment you need to make.

Many years ago I emceed a function where the famous baker Tom O’Toole was the speaker.  During the Q & A Tom was asked “What if I make all this investment in my people and they leave?”  Tom replied: "What if you don’t and they stay!”

Inspiration and influence really matter because they lead to involvement.

I define leadership as the art of inspiring people to bring everything remarkable that they are (that one-of-a-kind each of us is) to everything they do.  Such inspiration influences people.

Warning: Leadership usually fails without management which I define as the practice of making it simple for people to bring everything remarkable that they are to everything they do.

Leadership is about inspiration and influence.  Management is about systems and processes.  Both are an essential investment you must make.

Long before the end, there is a beginning and a middle.

I hear politicians and business leaders talk all the time about the end results as though they matter above all else.  They don’t.  What really matters is the journey we take together that leads to win/win/win/win/win i.e. a win for individuals, families, communities as much as organisations and countries.

If you want to achieve possibility in your life and work focus on the journey and involving all your stakeholders, particularly your employees.  Return on investment will take care of itself assuming your diligence, care, financial wisdom and ability and willingness to be aiming for long term sustainability rather than quick fixes to satisfy the few people who are, rightly, at the end of the food chain.

Be the difference you want to see in the world.
Ian

Please consider an investment in my Enhancing Their Gifts System.  For as little as $1320 you can inspire, influence and involve your employees to bring everything remarkable that they are to everything they do.  Imagine the difference.  Details here.


2 comments:

  1. Awesome, Ian! In fact, I would add that the ROI is a mere indicator that things are on track, it is a byproduct. It is the human resource that needs to be inspired for a sustained star performance, year after year, in terms other than money.

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  2. Return on investment (ROI) defined, explained, and illustrated with example ... of different ROI outcomes, and wise decision makers will consider both the ROI ... cumulative cash flow and Simple ROI for the investment at the end of each year. gold spot

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