Most of you have associated the acronym, ROI, with return on investment.
ROI also means return on inactivity.
What does it cost you if you wait? If you don’t act? If you sit on the fence waiting for the situation to resolve itself and don’t make a decision? This ROI is ALWAYS negative and usually NOT the result you want. Not making a decision often involves not making a decision about your employees.
Return on inactivity can be incredibly costly.
One owner had a manager who he knew had problems and was not performing. There were questions about his abilities, yet nothing was done. Then the owner got a call from one of his major clients who told him that he didn’t want that manager on his jobs and proceeded to explain the problems that this manager had ignored.
This was a huge wakeup call and a very expensive ROI (return on inactivity). After the dust settled and he hired another manager, his comment was, “I should have fired him sooner.”
Another owner hired a very competent controller. However, she was dominant, abrasive, and not a good fit for the company culture. Everything had to be done her way. As a result, she caused a lot of problems with the entire management staff and constantly pushed back on established procedures.
She left after a screaming match with the owner.
Now there is a new controller who fits into the company culture and produces accurate financial statements.
Again, the comment, “I should have gotten rid of her sooner.”
Don’t let the regret of waiting cost you a lot of money, headaches, customers, or cash.
If you know it is the right thing to let someone go, estimate the cost of inaction.
Is it worth it?
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Ruth King is well known as “The Profitability Master.” She is passionate about helping small business owners become profitable and stay profitable. For over 40 years she has coached, trained, and helped contractors and others achieve the business growth and goals they wanted to achieve.
Contact Ruth by emailing ruthking@hvacchannel.tv.
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