The ROI Hang Up
In a professional landscape of annoying jargon, ROI (Return on Investment for anyone who’s taken shelter under a rock for the past few decades) might be the most overused acronym of all. Everyone from CEOs to Directors to entry level associates understand the need and importance of determining just how much you can expect to “get back” from an expenditure of time, money or resources of any kind. And by no means is the concern misdirected- any business with a focus on growth or profitability can’t just blindly spend its resources.
Developing metrics for measuring ROI is not only a productive exercise, but a necessary one. But this is where the conversation gets a bit hairy, because ROI is rarely guaranteed. There are no magic crystal balls that give businesses the ability to assess the probability or levels of ROI. If there was, the business world would be nothing short of predictable, stable, and quite frankly, maybe a little boring!
That said however, ROI is still the buzzword du jour and because investable resources are limited and must be spent wisely, it’s a concept that continues to hold significant importance and priority in consumers’ decision making processes. To illustrate, let me share a personal experience about a flooded basement that has been the bane of my existence over the last two months.