I have experienced productivity improvements of 20% to 200%!!! with the Productivity PyramidTM methodology. There are four Productivity Indexes that can track the productivity of your company. They include:
- Revenue/Full Time Employee (REV/FTE)
- Gross Margin (GM/FTE)
- Contribution Margin (CM/FTE)
- 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.
PRODUCTIVITY INDEXES EXAMPLE GRAPH
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ABOUT 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 www.successbiznow.com to learn more about Dale and business valuation services.