RoryMurray's blog


ROR – Personal versus Corporate

The concept of ROR in the corporate and business arena is very well understood – it’s called “Goodwill” .

Ecademy is a great example of a company where goodwill represents a very high proportion of the company’s value – perhaps not surprisingly for a social networking site!


What is ROR….?

The context for Return on Relationships is relatively simple – around us we each have a network of contacts, people we know, like and trust. Beyond this, each of our contacts has their own network, some of which are shared with us (and others) and a few of which may be unique to that person. Anyone who’s a member of LinkedIn will understand this concept through 1st, 2nd and 3rd degree contacts, i.e. Friends (1st), Friends-of-friends (2nd) and Friends-of-friends-of-friends (3rd).


ROR and the importance of Reputation

The previous blog discussed the concept of Return on Relationships “ROR”.

The “old way” of measuring success in business was based on indicators like Return on Investment (ROI) – if you spend $1m on a CRM system, for instance, how long will it take to recover the costs and turn a profit. This concept is well understood and easy for any ‘bean-counter’ to work out.


Is ROR the new ROI.........?

Over the past 100+ years the "West" has moved from economies based mainly on tangible products, from manufacturing and agriculture, to being far more service based, with commodities and products more typically manufactured elsewhere and imported. In turn, our own cultures have become much more reliant on services and knowledge as a tradeable commodity and we are even importing cheap labour to do the jobs we don't want to do and those living comfortably on social welfare can't be bothered to do.

Syndicate content