Return of Investment

Return of Investment

Return of Investment

Below some thoughts on how to calculate the Return Of Investment (ROI) of a 4F learning cycle. 

The Calculation

We call the overall indicator the SmartScore. It shows how well you succeed to optimize both your Time and Energy. The formula is: St = Tt * Et  where:

St = the SmartScore over a given period.

Tt = is the Time (Focus) score, the extent to which your actual time spent corresponds to planned spent.

Et = is the Energy (Fun) score, indicating the overall level of happiness.

The SmartScore shows the extent to whether you did the right things (Focus) with a good energy balance (Fun). Suppose in a certain week everything is going your way, you only have wonderful tasks and things go as planned. In this case both the score on the T and E will be excellent, and therefore the SmartScore will be very good. However, most of the time you will have some disruptions (lowering the T) and frustrating moments (lowering the E). This of course will affect your SmartScore. Also a great week (high E) where you did not work on the right things (low T) will give a poor SmartScore. The same is true for a week where everything worked out as planned (high T) but at the end you feel exhausted (low E). 

ROI: an example

For the calculation we assume there is a direct relationship between your ability to manage yourself with the (long and short time) succes. Suppose one of your team members has a salary of 50,000. After the first cycle the SmartScore is 5.4, which is a normal score. Based on the learnings he/she will take a number of actions to better manage time and energy. If correct this will improve the score. For this example we assume that after four cycles the SmartScore is 6.5. From 5.4 to 6.5 is an improvement of more than 20%. An improvement of 20% can be converted to a gain of 10,000, which is 20% of 50,000. An investment of 500 in 4F leads to a gain of 10.000, which in itself is already quite impressive. However, there is more because a professional who is able to manager herself is less likely to become ill, get a burn-out or start looking for another job. 

Although each case is different, this calculation shows the mechanism how improving your self-management skills with 4F is likely to be extremely profitable.