How do you determine how well your effort is going? Do you base your determination on past performance (year over year)? Do you benchmark against other similar projects in your area? How do you determine whether you’re succeeding?
I think we’re all guilty sometimes of only looking at our projects through very familiar lenses. And some of us never really pull out a new lense to check out the subtle shifts happening around us. In Raising the Bar Seth Godin points us to a look at a new perspective. A very interesting one. You might check out Gamal Aziz’s (the president of the MGM Grand) approach and determine that you could never do what he’s doing in Vegas. The paragraph I love is this one:
He "breaks down an operation into constituent parts, then calculates the maximum potential revenue that each business or space could generate in a perfect world — that is, if every customer spent the most the market could bear and if traffic reached its physical limits." Then he "subtracts actual sales from that hypothetical number and calls the difference a loss, even if the venue is making money."
Here’s an example of maximizing return on investment. Here’s an example of a commitment to doing the best you can with what you’ve got. With the space you have. With the attention you get. With the time you have.
What if we were that committed to maximizing our return on investment? This has a very good application for the parable of the talents! (Matthew 25:14-30) Talk about commitment to hearing, "good job!" I love it!
You can read the whole article on Aziz’s approach at the MGM Grand here.