« Confessions of a Plan Documentation Zealot | Main | Global Wellness Programs »



Feed You can follow this conversation by subscribing to the comment feed for this post.

I am puzzled as to the distinction between costs and investments. Both represent expenditures of funds to acquire resources used to provide a product or service at a profit. While the ROI formula treats costs as a reduction in the numerator and captures investments in the denominator, an ROI is improved whenever you reduce either of them without diminishing your realized benefits. No well-managed company spends a dollar of investment more freely than a dollar of cost if the benefit doesn't justify it.

Requiring an ROI or a positive cost/benefit from labor dollars does not diminish or crowd-out strategic conversations. It certainly impacts the content of those discussions and focuses our action on plans that provide returns sooner rather than later.

The comments to this entry are closed.