Prod Pyramid
6Apr 2017

Productivity Pyramid TM – Employee Coaching Techniques

A CEO of an Employee Assistance Program (EAP) reported that 20%-25% of all people are having some life issue right now. That means many employees are currently struggling with a life issue. Life issues could include: financial problems, a sick child, sick parents, divorce, close relatives untimely death, abuse, etc. If the workplace can help employees cope with these life difficulties, the productivity will increase.

What is the productivity change for an annual employee review system? As a five-year Vistage Chair, we have had several speakers that indicate that an annual review has zero or negative impact on employee productivity.

What I would like you to think about is a personal monthly COACHING session with your direct reports where my productivity pyramid techniques are used to improve their work situation. If monthly coaching sessions are held, how easy do you think it would be to hold an employee accountable? Much easier than an annual review.

There should be rewards for performance. At all levels. Profit sharing, bonuses, and specific milestone accomplished can trigger a reward. The important parts of rewards system are:

A.   Quantifiable

B.   Timely

C.   Performance based

D.   Fair

E.    All participate commensurate to their responsibilities and achievements

A full discussion of rewards is for another article. The full Productivity PyramidTM then looks like this:


There are four Productivity Indexes that can track the productivity of your company. They include:

Productivity Indexes:

  1. Revenue/Full-Time Employee (REV/FTE)
  2. Gross Margin (GM/FTE)
  3. Contribution Margin (CM/FTE)
  4. Net Income (NI/FTE)

Graph this data monthly. Go back one to two years and graph this history with the ongoing month-by-month data. In about 3-6 months from the Productivity PyramidTM implementation, the productivity indexes should go up as illustrated in the graphic below.


prod tracking graph


Chris learned from Dale’s coaching techniques, ways to help increase his employee’s personal buy-in and to increase productivity

Looking for ways to provide growth in his industry, using the principles learned from Dales presentation on Productivity Pyramid, Chris can use techniques he learned to motivate his employees.

Learn more about Business Valuation Principles by Dale S Richards



Preview Dales presentations: Watch Dale In Action Dale S. Richards specializes in management, marketing, operation optimization & business valuation consulting and is a 25+ year turnaround expert. He has implemented success concepts into results in 150+ companies. Dale is a Certified Valuation Analyst (CVA) with NACVA, a Vistage International CEO-Board Chair in Utah and a World and Vistage International Speaker. Visit to learn more about Dale and business valuation services.

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