"Conventional ROI measures what falls inside a defined boundary, focusing on revenue, cost reduction, and productivity ratios, while ignoring the social trust and ecological stability that make these metrics possible."
"A company deploying AI tools may show impressive ROI within its chosen perimeter, but outside that perimeter, the erosion of human connection and the hollowing of meaningful jobs go unmeasured."
"The perimeter problem is structural; conventional ROI is designed to track financial metrics, neglecting the broader impacts on communities, health, and political life."
Humans contribute aspirations, emotions, and sensations to encounters, necessitating a shift to holistic return on values (ROV). Conventional ROI focuses narrowly on financial metrics, ignoring essential factors like social trust and ecological stability. This perimeter problem leads to overlooked consequences, such as erosion of human connection and job meaning. The urgency for holistic ROV arises from agency decay, bond erosion, climate issues, and societal divisions, emphasizing the need for a broader perspective in decision-making.
Read at Psychology Today
Unable to calculate read time
Collection
[
|
...
]