Can You Measure Your ROR?

Do you see the need to invest in relationships?


Tommy Spaulding, founder and president of Spaulding Companies—a leadership development, speaking, training and executive coaching firm—says when it comes to decision-making, leaders can grow their teams and organizations when they choose to invest in relationships.

Every leader has heard of ROI, or return on investment. When it comes to training, projects and change initiatives, leaders measure whether the ROI will be worth it. But Tommy takes a different approach that he says should matter more to leaders than ROI: ROR, or return on relationships. 

Learn about this concept by listening to Tommy’s insights in this video.

Every company in America, Fortune 500, S&P, small, little mom and pop company, they're trained, they're built, they're wired to focus on the most important three letters -- ROI (return on investment). You hear that word all the time. What's my return on my investment? Shareholder value, creating wealth, it's the most important thing.

And I'm not disagreeing with that, but I think there's three letters that come before ROI, and I call it ROR. I wrote a whole chapter in my book. It's called . . . it's not, just you know, my first book, and it really talks about ROR and ROR stands for "return on relationships". And return on relationships is really quite simple. If you build a culture, an organization, where you value deep, meaningful, authentic, genuine, heartfelt relationships with your customers and your clients, and your employees, and your shareholders, everyone involved the organization, if you truly believe that those relationships should be authentic and servant minded, then you're going to drive ROI.

If you just focus on ROI and not even think about ROR, you might be successful in the short term. You might have bottom line results in the short run. But long term success, the passing on the legacy, you'll never get there unless you invest in your people because especially the Millennials. The Millennials have taught us. What the Millennials have done they've humbled us all, because they don't work for it. They don't work for jerks. They don't work for narcissists. They don't work for companies that don't have a mission beyond profits. They just won't. And they're the next work force.

So if you don't engage them, and embrace their philosophies of purpose and passion and people, you're a dinosaur. If your leader does not embrace those philosophies of love and giving and humility and authenticity and purpose and putting people before profits, then no one else in the organization is going to follow.

Tommy Spaulding

Tommy Spaulding is the founder and president of Spaulding Companies, a leadership development, speaking, training, and executive coaching firm based in Denver, Colorado. A renowned speaker on leadership, Tommy has spoken to hundreds o...

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