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Are you measuring productivity?

magifying-glass-for-chartsToday’s WSJ article touting the leap in productivity is a good reminder that metrics based on unit inputs/outputs is a very valuable tool. Make sure that you’re not just measuring revenue, margins and profits … but measuring them against “unit” metrics like headcount and hours worked. If you watch those trends, you’ll gain much greater insight about the productivity of your organization.

Capturing and studying trends like Revenue/Headcount or Revenue/Hours Worked will supplement your current reporting metrics and help you monitor whether your organization’s size and the “inputs” you’re using to build your business are tracking with the current level of sales and margin levels. It’s a simple tool but one which will help you manage the scale of your organization.

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