Whether you are in sales, administration, management or any other professional capacity, knowing your ROI is important. “ROI” stands for return on investment and is a term used to measure whether the cost for a new procedure or technology is worth the return it will give to an organization’s overall bottom line.
However, when labeled as PERSONAL ROI, we are looking at the overall costs of how you use your time, a highly valuable and non-renewable commodity.
Let’s say I charged my clients $100 per hour for individual coaching. If I spent 2 hours a week filing, that would essentially cost me $200 in potential earnings. In a month, that’s $800 and in a year…well, lets just say we’re talking thousands! And what about the time I spend on my bank statements or other administrative tasks?
My time, and money, are actually best spent focusing on what I excel at and believe me, it’s not balancing a checkbook!
Let’s not forget that costs don’t always involve cash. Extra hours spent on a particular work project effects other things that are important to you, like your family life, spiritual well-being or physical stability. These human costs are more difficult to quantify but, I would suggest, far more valuable than any task that is waiting to be done.
Action – Calculate your average hourly income, whether through commission or salary. For 2 weeks, keep track of everything you do. Using your calculations, measure Personal ROI and see what and where you can balance out some of these costs, at all levels.
EVERYTHING you do costs something. Know what it’s costing and you will make more effective choices with your time, energy and resources.
(Originally broadcast February 7, 2008)