How to Improve ROI in One Year
You can use these CEO strategic steps to learn how to get more of a return on your investments in one year or less.
If you’re a CEO, you’re under a lot of pressure to maximize the return on your investment for every dollar that you spend. When you think about challenging yourself and your staff to make a huge impact on ROI in a 12 month time period, it may see like an impossible task.
Part of this is understanding what you’re spending now, and what you’re making in return. Where are you spending the most? Is that also where you’re making the most? Find out the activities that take place on a daily basis, and tie them directly to your return on investment at that 12 month point.
Make sure that your operating plan is aligned with your business strategy and objectives. Also, make sure you’re communicating this to your team, holding them accountable and giving them a lot of opportunities to evaluate their daily activities in relation to the value that they add to your profit and loss statement, and the overall value to the organization.
How to improve ROI in one year: invest in your employees
Communicating a set ROI goal for the next 12 month period should be the number one priority for a CEO who wants to see results. These are the people who will ultimately bring this goal to fruition or let it rot. Even as a CEO, you do not have the power or influence that the bulk of your employees do, especially over the individual (and collective) work they accomplish. But you can influence how they perform by investing in their training and professional education.
Another way to invest in your employees is by giving them more responsibility, more pressure to do good work. Hold them accountable for mistakes, and encourage them to self-evaluate.
How to improve ROI in one year: align business strategy with operations
Your employees understand how to complete their daily work routines. But with a plan to drastically increase ROI in 12 months, there are some things that might have to change.
Clear communication with your senior level managers and their involvement in the planning process will immensely align strategy with operations. Next you can combine resources together for everyone to access and work to create a sense of “mission” within your teams.
How to improve ROI in one year: invest your human capital (time) with your teams
People say that time is the most valuable (and costly) investment. You’ve lost and found five dollars in your pocket, under the couch, and in the laundry many times. But you never get back the five minutes you spend watching TV. It’s there, and then it’s gone. If you align your thinking to these terms when you consider your use of time, both at work and home, you begin to realize how valuable that time really is.
Making yourself available to your ground level and B level employees will also benefit them in terms of focus. People want to feel valued and appreciated. They want to know that you, as the CEO, understand their contribution to the company. Investing your time in their day can create good will, which, in turn, can improve productivity.
12 months is not a very long time; keep track of your day to day activities
Just remember that your results will likely be a direct reflection of the daily activities you and your employees will engage in throughout the year. Small steps eventually add up. So keep your eyes peeled to teach others enthusiasm and also to listen when they are speaking about their ideas and plans.
At SophiaThink, we specialize in a whole circle approach to business consulting. This includes strategic planning, organizational development, revenue optimization, change management, and the measurement required to measure every single one of your goals to receive maximum ROI. Schedule a free 30-minute call so we can audit your current situation and get you started on the right path today