Return On Effort: Can This Formula Improve Your Life?

Posted on May 28, 2016

In the financial world, the DuPont method is used to measure a company’s return on equity (ROE), which is defined as the return on a shareholder’s invested funds. ROE is considered to be one of the best measures when it comes to assessing financial performance.

As clinicians and managers, we operate within resource constraints – and, as a result, anyone working in the public or private system should have a basic understanding of value generation and the economic sustainability of a project.

Understanding economics and the drivers of value generation for patients is useful, because it helps us with optimal allocation of resources for patient care.


Economics in medicine

Smith, R. (2003). What doctors and managers can learn from each other. British Medical Journal, 326(7390), 610.

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  • Huu Kim Le

    Great concept. I try to incorporate similar ideals with everything I do.
    eg. Study group
    ROE = the assets being your group and knowledge gained from study group x efficiency of group x modulation of stress from group environment.

    That is why it is important to look at the following factors in a study group:
    -do I get along with them/good asset? (TPMA and Stress)
    – do the group members contribute equally (OP operational efficiency)
    -do I have a good mix between members that can stay on task (Op)
    vs members that can help put things into context and are calm (decrease stress)
    or do I have anxious members that do not contribute consistently (increase stress)
    -how long the study sessions go on for? (OE)
    -how often do we meet and do we plan ahead what needs to be done (TPMA and OE)

    This can to apply to other areas, journal clubs, ward rounds, meetings, reviewing articles and posting on psych scene.

    And remember to write down your study goals..

    • PsychScene Hub

      Nicely Put ! Sometimes simplification and focusing on two or three key elements provides a greater benefit. We have been taught that complex means good, But sometimes I think its exactly the opposite. Einstein was right when he called simple the highest form of intelligence!