Conquering the mighty ROI
How do you help your staff understand the principles and value of using return on investment (ROI) to guide the work of your business? I find this subject fascinating especially with Public Sector and Charities where funds are limited.
ROI is something that gets talked about a lot in business meetings. However, in any meeting or team some people will get it and some won’t. I think that encouraging more staff to think about and use ROI ideas to guide their work is really important for business growth. The question is how to do this? To really make a difference, your work on ROI needs to be adequately recorded and communicated with staff across your business and with other key stakeholders such as partners and suppliers. Using ROI as a way to guide your investments and grow your market intelligence requires that ROI principles are embedded in the culture of the business.
Return on investment is, on the face of it, quite a simple concept. It represents the financial benefit you gain from making an investment. Basically, it’s a measure of what you get back compared to what you put in. So why do we find it so challenging? The struggle can be simply knowing what figures to use and how to use them to make the calculation. Having that information at your fingertips makes a big difference.
Here at SmartApprove we think we’ve provided a tool which can help you crack this thorny issue. We’ve provided a simple template to help you and your staff structure your ROI and do the calculations for you. Give it a try and let us know what you think.
Leave a comment below and we can share our experiences. I’d be really interested to find out how you do things within your business so we can learn from each other.