Return on management

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The term Return on Management ( German  yield on the management use ) denotes a model to measure the return of by a manager in a company time used and attention. Like Return on Equity and Return on Assets , the ROM measures the return on an investment from a limited resource. It is mainly used for the self-control of a manager.

formula

The return on management is defined as:

ROM = productive energy of an organization / management time and attention

interpretation

The ROM describes how well a manager succeeds in making optimal use of his two resources, time and attention. In contrast to the related economic indicators, the ROM is not a quantitative indicator , but a qualitative measure. The ROM is larger, the larger the numerator (see fraction calculation ) and the smaller the denominator.

literature

  • R. Simons, A. Dávila: How high is your return on management? In: Harvard Business Review. 1998, pp. 69-80.