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Breaking Down Elements Of Productivity Metrics

Dec 24, 2007
In any company, productivity metrics is a necessity that you just cannot do without. This is because productivity metrics is all about measuring the productivity of employees in a company. Each employee does have his or her own contributions in a company, regardless of the position held. From the management to the staff, and even the HR department, all of these employees have contributions in a company.

However, it is also inevitable that an employee or two would not be as productive as the other employees might be. For whatever reasons there may be, this is indeed something that happens in any company, business, or organization. Thus, it is important to come up with methods of conducting performance appraisal systems to realize the value and worth of all employees in a company. For efficient productivity metrics, research has to be done, both objective and subjective.

There are several questions you would have to answer here. Why do you want to measure the productivity of your employees? You may have a lot of answers for this. The most common one is to weed out the productive employees from the unproductive ones. Also, the goals and objectives of your company or organization can help you answer the part of why here.

The next question to answer here is: what method should be used here? The answer to this question actually pertains to the productivity metrics that you will be implementing. The course of action to undertake here should be properly aligned with the goals and objectives of your company. For this, you would need to outline the goals and objectives so that the proper courses of action can then be determined.

Now, for effective productivity metrics, there are also a number of concepts that need defining. These are because these concepts are vital in the effectiveness of productivity metrics. The concepts are as follows:

Name of the Metric and Metric Description. These identify what it is that needs to be measured.

Measurement Procedure and Measurement Frequency. These pertain to the process on how the metric is to be measured, and how often this process occurs.

Threshold Estimation. This pertains to the thresholds that exist in the whole process, and how these are calculated.

Current Thresholds. These pertain to the normal value range that is currently implemented for the metric.

Target Value and Units. The target value is the best possible value there is for the metric. Units, on the other hand, pertain to the units that are used in measuring the metric.

Let us take the scene of a company's sales staff. The name of the metric here should then be Sales Performance. The metric description here would be the purpose of productivity metrics here, which is to calculate the contribution of each member of the sales staff towards the common goal of company growth and development. The measurement procedure here would then be the formula used by the company in calculating the average sales contributed by each member per month. To get this average, then calculating sales daily would then be required.

Measurement frequency would then be pegged on a daily basis. Threshold estimation should then be the quota each member of the sales staff is expected to hit daily. Current threshold then refers to the current sales hit by each member. Target value would then be the difference between the expected sales and the actual sales hit. By breaking it down into bits, the concept of productivity metrics would then be better explained an implemented.
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