Happy ROO Year!

 

                                            

By Kaz Muddell and Iggy Pintado

Source image: reprinted with permission of The Big Issue Australia.

Recently, we saw an article that intrigued us. Despite all the best intentions, most people that make new year resolutions to get healthier, fitter and lose excess weight at the beginning of January, will inevitably fall off their respective programs before the end of the month. Wow.

The assumption is that these people spend their well-earned cash ‘investing’ in gym memberships, personal trainers, nutritionists, diet regimes and group exercise classes. In making this investment in their promised better health, they don’t plan to be receiving any direct financial return on their money.

Recently, the term Return On Outcome (ROO) has come into social thinking. It proposes that a return on outcome is a qualifiable, subjective measure of an investment based on the outcome realised, and not a quantitative, objective measure of investment based on a monetary return.

Assuming that most people aren’t expecting a quantifiable return on their health investments, we asked ourselves, what criteria do people use to outlay their cash for the promise of better health. And why do most of them give up within a month so easily?

Since 2006, Kaz Muddell has been helping people of all ages and fitness levels improve their quality of life. Her Mind Body Motion business offers personal and virtual training and group classes. This is her practical perspective.

When a client signs up with her for personal training or to attend a group class, they don’t expect a financial return on their investment, although they do expect to “get their money’s worth”. By investing their funds, they expect to lose weight, improve their fitness, go down a dress size and so on. Their goals are not financially quantifiable, but they can envisage a return on outcome.

Short term results are possible, but not sustainable. Becoming healthy is not an overnight process. It takes dedication and an investment of time and their best return on their desired outcomes will be through long-term adoption of disciplined and habitual practices.

Exercise isn’t just about what you look like or how fit you are. Exercise is also about quality of life in the forms of improved mobility, building strength to reduce injury in the future, endurance, and improved mental wellbeing. 

Kaz works with people of all ages, and many are over 60. The outcome for these people is to be able to participate in the hobbies they enjoy, many of which are physical such as gardening, walking, playing with their grandchildren, or snow skiing. The desired outcome is to have the strength and mobility to enjoy these activities, and have a lower risk of injury whilst doing so.

The return on outcome can also vary depending on whether the person chooses to attend a gym or to work with a personal trainer. This can often be the catalyst as to whether they keep going, even if they don’t achieve their goals in the short term. 

Surrounding yourself with like-minded people creates a social atmosphere as well as providing some level of accountability. Regardless of what option you choose, it’s always more motivating to work with others and have someone challenge you, hold you accountable to your commitment, and it’s more enjoyable.

The original premise of return on outcome was to challenge the notion that everything has a return on investment (ROI). This is a clear example of how some personal investments do not have a direct ROI. Instead, people realise a return on outcome based on more qualifiable outcomes.

Therefore, it’s proposed that commencing this year, considering the return on outcome (ROO) on both personal and business decisions should be more duly considered.

 So, for now, have a Happy ROO Year!