BELIEVING IN RETURN ON OUTCOME

Reposted from www.returnonoutcome

Many small businesses start with some great ideas that are not always sound. Developing a strategic plan that drives a measurable positive return on investment (ROI) is usually the goal.?

However, is it possible to consider qualitative return on outcomes (ROO) that deliver a favourable result?

Some businesses rely on the adage featured in the 1989 movie, Field of Dreams. The film is the story of a farmer who while walking through his cornfield one evening, hears a voice whispering, "If you build it, they will come."?

He sees a vision of a baseball diamond in the cornfield and meets a baseballer who appears in the middle of the field. Believing in him, his wife lets him plough part of their corn crop to build a baseball field, at risk of financial hardship for their farm.

The baseballer reappears, asking if others can play, and returns with players. His wife’s brother can't see the players and warns them that they will go bankrupt and offers to buy their land, so they can realise some ROI.

After a soul-searching trip, the farmer arrives back at the farm, where they witness various all-star players fielding a team. The wife’s brother returns demanding that the farmer sells the farm, or the bank will foreclose. The wife insists that people will pay to watch the games and that "people will come" to relive their childhood innocence.?

The final scene (spoiler alert) ends with hundreds of cars seen approaching the field, fulfilling the prophecy that people will watch the game.

Sometimes concepts don’t work and it’s better to stick to core business planning activities. But you do need to bounce them off trusted advisors, not necessarily just your long-term accountant.?

Fresh ideas usually come from people who are working with many others.

Some might say that Field of Dreams is a fable for Return on Outcome. So does having faith in a commercial idea work in the real world? In 2012, Facebook’s Mark Zuckerberg bought photo sharing platform Instagram for $1 billion that at the time had 13 employees and had not generated any revenue. Instagram today has over one billion users and contributes over $20 billion to Facebook's annual revenue.

John Golinelli from Biz Generation Australia advocates the need for wider thinking assistance and balanced outcomes that result in long-term positive consequences for small businesses. John says “We place a lot of value in ROO. There are ways and means around most challenges, it’s a question of how lateral thinking professionals can assist you in a practical manner.”