It can be easy to measure success from your sales and marketing efforts but do you know your ROI for your business efforts that can’t be tracked directly by a hard dollar amount? Your operations are a prime example of this. Hiring the right operations leadership such as a Director of Operations (DOO) is essential to the health and success of your business but it can be hard to determine if your hiring decision is actually benefiting your business.
Hiring a DOO definitely yields a return, but it tends to be difficult to link it directly to your balance sheet. However, you can track your DOO hire ROI in terms of Efficiency, Stress, and Time (EST). Taking a pulse on these areas of your business before and after you hire your DOO can be done through an EST audit.
Let’s break down these areas and how to run an EST audit so you know when to hire a DOO and how to measure your DOO hire ROI.
Return on Efficiency
Your operations workload can be burdensome and taxing on your CEO who typically oversees your operations prior to hiring a DOO. When the workload becomes too much for your CEO, it warrants hiring a DOO. Since your DOO won’t be bringing in revenue, you have to measure your ROI for hiring them by how much more efficient your operations team becomes.
You can measure your efficiency ROI by looking at both your qualitative and quantitative data. If your team is getting more done in less time and your CEO has more time for their executive duties then your DOO hire has a positive qualitative ROI. This will flow into your profit margins as getting more done and a more satisfied CEO leads to more financial success through increased revenue strategy like developing new products and services and improving current offerings
Return on Stress
Too much stress on your CEO leads to poor quality of mental health which can lead to burnout. A burnt-out executive can lead to a stressful company culture and can lead to team members quitting which only further increases the stress on those who stay. This can negatively impact your team, your brand, and ultimately your revenue. When your CEO is stressed and maxed out on mental and physical capacity, then it’s time to hire a DOO.
You can measure your stress ROI from your DOO hire through qualitative means such as the culture and mindset of your team. Talk with your CEO before you make your hire, during your DOO’s training process, and after your DOO is fully in charge of your operations team. If your operations team and your CEO become increasingly more relaxed and satisfied, and your operations culture goes from tense to calm then your DOO hire is ROI positive.
Return on Time
One of the biggest ROIs you will see from hiring a DOO is the amount of time you give back to your CEO. Every CEO wants to spend their extra time differently. Some will want more vacations while others will just want to be more productive during their workday.
As you prepare to hire your DOO, ask your CEO how much time they are currently spending on operations and what they would like to do with their extra hours. Meet with your CEO after your DOO is onboarded, trained, and independently running your operations team. If they are spending their time more efficiently and doing what they want with their extra hours then you know your DOO hire has a positive ROI.
Need a Fractional DOO?
A fractional DOO is a great way to ensure your operations leadership needs are met without the heavy price tag of a full-time DOO. Mountain Cane Media offers custom fractional DOO services to meet your operations needs in as little as ten hours a week. Visit us today to learn more about how our fractional DOO services can boost your EST ROI.