The Art of Balancing LOE and ROI: Because No One Likes Wasting Time (or Money)

This article is part of “pulling back the coaching curtain.” I share different perspectives and lessons learned with my clients from our coaching work together.

The topic of how to balance the level of effort (LOE) with the return on investment (ROI) arises frequently with clients in roles from manager to c-suite.

Ah, the eternal struggle of work: how much effort should you put in to get the results you want without overcommitting, under-delivering, or—worst of all—wasting time, energy, and resources? Whether you’re launching a new business initiative, revamping your technology, or just trying to justify your 3-hour “brainstorming lunch,” aligning LOE with ROI is a skill worth mastering.

If you’ve ever felt like you were putting Olympic-level effort into a project and receiving Little League-level results then you need a better strategy. So, let’s break down why getting this balance right matters and how you can avoid common pitfalls while maximizing success.

Why LOE vs. ROI Matters

Let’s face it, we’ve all been there. You’re presented with a shiny new project, a dazzling idea that promises to revolutionize everything. You’re swept away by the enthusiasm, the promises of improvements, the sheer audacity of it all. Before you know it, you’re knee-deep in spreadsheets, pulling all-nighters, and sacrificing your personal life at the altar of this glorious endeavor. Or, your employees are knee-deep in spreadsheets, pulling all-nighters, and sacrificing their personal lives at the altar of this glorious endeavor. Then, after months of blood, sweat, and tears (and muttering profanity), you realize… it’s a dud. A beautiful, meticulously crafted dud, but a dud nonetheless.

This is the tragic tale of misaligned LOE and ROI. If you invest too much in a project or program that offers little return, you’re wasting energy and resources. If you put too little effort into something with high potential, you’re missing out on potentially major gains. The sweet spot is that magical place where your effort and resources match the expected benefits like a perfectly paired wine and cheese.

This is the power of aligning LOE with ROI.

Here are some things to avoid and some tips for success…

Things to Avoid

Over-engineering a solution for a non-existent or small problem: I’ve lived this on numerous occasions. Usually relating to technology changes. You spend countless hours developing a complex algorithm to automate a task that could be handled with a simple macro. Or you insist on a customized build when off-the-shelf will work. It’s like using a nuclear-powered blender to make a smoothie. Sure, it’ll get the job done, but was it really worth the collateral damage?
Underestimating the effort required for a high-value project: The opposite of engineering. You think, “Oh, this will be a quick and easy win!” You allocate a minuscule budget and a skeleton crew, only to discover that you’ve stumbled into a bureaucratic black hole of epic proportions. I’ve often seen this occur when leaders have the mindset of cutting corners or saving costs. Not only are projects underfunded but they are under-resourced or not resourced with those who have the level of subject matter expertise for success. It’s like trying to build a skyscraper with a toothpick and some glue. And without a skilled architect.
Vanity projects don’t always make you look good: As the song goes… you’re so vain you probably think this project is about you…oh wait…close enough. These are the pet projects of senior executives, the ones that exist solely to stroke egos and boost resumes. They’re often based on gut feelings, shiny objects, and wishful thinking, rather than cold, hard data. You pour resources into them, hoping for a miracle, but they ultimately end up as expensive footnotes in the company’s history. It’s like buying a solid gold paperweight – impressive, but ultimately useless.
Ignoring ROI metrics: If you don’t measure success, how will you know if your effort was worth it? When I’m leading a change effort, I often get asked by clients to develop “tangible” metrics or KPIs for success. I recommend a balance of some quantitative and some quantitative. Some metrics need to be focused on the people such as training and adoption. Metrics should also align with those that already exist to prevent redundancy and confusion. Be thoughtful. Be balanced. Be fair.
The perfectionist trap: Spending 80 hours fine-tuning a report that no one will read past the summary page – hard pass. Attention to detail is important. I get it. I’m a detail-oriented and somewhat OCD, Virgo. But perfect is also the enemy of great. This is especially true when striving for perfection on things that don’t provide the highest level of ROI, or often, any ROI.
Jumping in without a plan: If your project strategy is “let’s just see what happens,” then expect ROI to be “not much.” Nuff said. It’s not enough to have a strategy, even if it’s a good one, you need to communicate the strategy and strive for buy-in and commitment. If you don’t communicate the strategy and desired benefits in a timely and effective way to your project stakeholders, you’re ROI will also tank.
Being Penny Wise, Pound Foolish: This one drives me insane. Supposedly saving money on crucial resources only to spend double fixing the resulting mess. Like I’ve told those who tried this approach and failed and are interested in my services, sure I can help, but it’ll cost you double for mop up. Yes, budgets are necessary and exist for a reason. However, budgets need to be realistic. Not inflated, but realistic. Do your homework. Anticipate roadblocks. Involve or hire the right skilled resources from the beginning and let them do their thing.

Tips for Success

Start with the “Why”: Clearly define what success looks like before you begin. If the goal is to increase leads by 20%, structure your effort accordingly. Before you even think about the “how,” ask yourself “why?” Why are we doing this project? What problem are we solving? What value are we creating? Who are we creating value for? If you can’t articulate a clear and compelling “why,” then you shouldn’t be doing it at all.
Use the 80/20 Rule: Short and sweet…identify the 20% of efforts that will drive 80% of the results, then align and focus on those.
Leverage what’s already available: Leverage resources available. Instead of reinventing the wheel, see if there are existing tools, strategies, or people that can get the job done faster.
Become a data detective: Don’t rely on gut feelings or hunches. Use data to inform your decisions. Conduct thorough research, analyze market trends, and track your key metrics. Track progress with specific, measurable indicators. If it’s not working, adjust before wasting more effort.
Know when to pivot: It’s ok to course correct. Let me say that again, it’s ok to course correct. If you’re halfway through a project and realize things are not going as planned, pause, evaluate, and make changes. If data informs you that the project is not worth it, don’t fall into the sunk-cost fallacy—cut your losses and move on. However, always take time for a retrospective and identify lessons learned that can be applied to future projects.
Learn from others: Research similar projects and case studies. If someone else figured out a winning formula, borrow it and adapt it. Better yet, borrow them and assign them to your project. Success doesn’t always have to be created from scratch.
Ask for feedback and act on it: You may be unaware that the LOE is not aligned to achieve the ROI for certain stakeholder groups or within certain project workstreams. It’s imperative to have feedback mechanisms in place so stakeholders can share if they feel misalignment and suggest ways to achieve realignment and achieve results.
Get an outside perspective: Sometimes you’re too close to a project to see the obvious. Or you may not have the experience to successfully achieve results. Ask an objective party to share their subject matter expertise and if your effort-to-outcome ratio makes sense. This is often my role when working with clients. I provide a data-informed perspective. A neutral and outside perspective. I also provide a blunt and transparent perspective.
Don’t forget the human element: While data and metrics are important, don’t forget the human element. Invest in your team, provide them with the resources they need, and create a culture of collaboration, learning, and innovation. As a leadership coach and change and transformation specialist my work is focused on, people. So, I’ll refrain from my soapbox on this one. You can read more of my thoughts on this here, here, and here.
Have a sense of humor: My clients often provide me feedback regarding my ability to maintain a sense of levity even during times of unsettling change. It’s like a quote a like goes, just because you were given a cactus doesn’t mean you have to make things worse by sitting on it. Things will go wrong. You’ll overestimate effort sometimes and underestimate ROI. Or vice versa. Continue to support your people. Laugh, learn, and do better next time.

The key is to find that perfect balance where effort meets results in a way that maximizes returns without unnecessary strain. It’s about making smart choices and prioritizing wisely. Too much effort, and you burn out. Too little, and you get nothing worthwhile. But when you hit the sweet spot? That’s where the magic happens.

So the next time you’re staring down a new project, ask yourself: Is my effort level in line with my expected return? If not, tweak, adjust, and optimize – or hire me.

About Scott Span, MSOD, CSM: is CEO at Tolero Solutions. As a people strategist, leadership coach, and change and transformation specialist, his work is focused on people. Through his consulting and training work he supports clients to survive and thrive through change and transition and create people-focused cultures and a great employee experience. Through his coaching work, he supports people willing to dig deeper to identify and overcome what’s holding them back, change behaviors, accelerate performance and achieve their goals.

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