Return on time invested

Return on Time Invested (ROTI) is a metric employed to assess the productivity and efficiency of time spent on a specific activity, project, or product. The concept is similar to return on investment (ROI), but instead of financial capital, ROTI measures the qualitative and quantitative outcomes derived from the time invested. The metric is relevant in contexts where time is a significant resource, including product management, personal productivity, business process optimization, and education or training evaluation.

Calculation

While the specific calculation of ROTI can vary depending on the context, a general formula can be expressed as: ROTI = Total value or Output obtained / Total time invested.

After a meeting

Some organizations use the ROTI method to evaluate meetings.

Areas

Project management

ROTI is a metric used in product management to evaluate the efficiency of time allocation across various tasks and development phases. Product managers employ ROTI calculations to identify areas where time is being used effectively and those that may require optimization. This approach aids in resource allocation and productivity improvement efforts.

Personal productivity

Individuals use ROTI to enhance personal productivity by evaluating how their time is spent on different activities. This helps in prioritizing tasks that offer higher returns on time invested and minimizing time spent on low-value activities. Media outlets like Inc. frequently offer tips on maximizing personal productivity, often referencing the principles behind ROTI.

Business process optimization

Organizations leverage ROTI to improve overall efficiency by analyzing how employee time contributes to business goals. By understanding the ROTI of different processes and functions, organizations can streamline operations and allocate resources more effectively. Reports in Harvard Business Review have highlighted case studies where businesses improved their efficiency through better time management and ROTI assessments.

See also

• Agile software development
• Cost–benefit analysis
• Feedback
• Meeting science
• Opportunity cost
• Pareto principle
• Personal development
• Time-use research
• Time value of money

Further reading

• Tracy, Brian (2007). Time Power: A Proven System for Getting More Done in Less Time Than You Ever Thought Possible. AMACOM. ISBN 978-0814474709.
• Chernev, Alexander (2014). The Marketing Plan Handbook. Cerebellum Press. ISBN 978-1936572397.
• Vaden, Rory (2015). Procrastinate on Purpose: 5 Permissions to Multiply Your Time. Penguin Publishing Group. ISBN 978-0399170638.
• Fryrear, Andrea (2020). Mastering Marketing Agility: Transform Your Marketing Teams and Evolve Your Organization. Berrett-Koehler Publishers. ISBN 978-1523090983.
• Robache, Maxime (2020). Mettre en place et manager le télétravail : 20 outils pour co-construire la performance collective et la qualité de vie. EYROLLES. ISBN 978-2212574937.