What Investments Do You Measure?
When it comes to our businesses, we often talk about achieving a good rate of return on investment or ROI. We want to know that where we are investing our resources is generating an adequate, even above-average return. In the end, it is what generates our profits. It’s what you might think of as a reward on investment.
Nothing happens, though, without some risk. We weigh the potential risks and rewards (ROI) and most likely will not invest where the potential ROI (reward) doesn’t surpass those risks.
It is about priorities and choices.
We often limit these expectations (and conscious decisions) to where we are investing our money. We equate the idea of investment to what we are spending in terms of cash. This approach extends into our personal lives as well.
The reality is that for most of us, where we are spending our money is not the best place to focus on for determining if we are getting our highest returns. There are at least two other investment areas where, when handled strategically and with a clear intention, we can exponentially grow ourselves and our businesses at a much higher rate.
It’s essential to integrate all these areas into our planning for how we will measure our results overall. The top two places we typically need an adjustment in setting expectations are learning and relationships.
Do you have an investment plan covering these areas for yourself personally and professionally? I encourage you to step back and consider that, as Charlie “Tremendous” Jones taught, where we will be one year from now or five years from now is going to be the result of our learning and relationships. In his teaching, it was “the books you read and people you meet.” Fast-forwarding to how we operate today, it means how we take in information and evolve our philosophies (learning) and our network (relationships).
Here are five things to consider as you take these thoughts further in both areas:
1–The first way to be sure you are getting a maximum return is to honestly assess whether you are investing. We should always check ourselves first and be confident that we are doing our part.
2- The second place we need to check is our expectation or intention. What is the purpose of the relationship or learning? Are you clear about that? Clarity is crucial. A powerful part of how we achieve maximum results is knowing the outcome we seek.
3- Next is reciprocity. This doesn’t mean we should be keeping score. It’s about balance, harmony, give and take. What does the other person need from you? Are you teaching as you learn? Ralph Waldo Emerson observed that “It is one of the most beautiful compensations in life that no man can sincerely try to help another without helping himself.”
4- That brings us to what I call the “E” factor: Emotional and Energy returns. How do you feel about yourself when you’re with someone or learning something new? Is your energy lifted or drained? When we invest in the right relationships and learning, it is empowering, not depleting.
5- The final point is the horizon check: What’s changing for you? What does that make possible for you and your relationships? What might you need to be learning? Being strategic is about living in the moment with your eye on the horizon.
We all have relationships, and we are all learning all the time. That is just part of life. Our perspective about their value and our investment in them delivers those returns (rewards) at their highest level when we’re strategic about it.
What investments do you measure? Perhaps it’s time to expand the list!
