Return on Time Invested (ROTI) is a metric employed to assess the

productivity Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production proce ...

and efficiency of time spent on a specific activity, project, or product. The concept is similar to

return on investment Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorab ...

(ROI), but instead of

financial capital Financial capital (also simply known as capital or equity in finance, accounting and economics) is any Economic resources, economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their prod ...

, 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 Product management is the business process of planning, developing, launching, and managing a product or service. It includes the entire lifecycle of a product, from ideation to development to go to market. Product managers are responsible for ...

, 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. Return-on-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 ''Harvard Business Review'' (''HBR'') is a general management magazine published by Harvard Business Publishing, a not-for-profit, independent corporation that is an affiliate of Harvard Business School. ''HBR'' is published six times a year ...

have highlighted case studies where businesses improved their efficiency through better time management and ROTI assessments.

References

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