Productivity for Profit

By Kraig Kramers

How can you improve productivity during this ongoing period of economic instability and political uncertainty?

There are a number of ways. For starters, by growing the people-side intrinsically, you improve responsiveness and resilience, whether in improving economic sectors or ones plagued by slowness and negative news.

You may have heard me talk about “What Gets Measured and Managed, Gets Done!” If we measure productivity, and act on those measures, we’ll not only achieve gains and actually know the extent of those gains. And this system lets us try the different things that create the most improvement.

Some measures that will help improve productivity include:

  • Physical volume (like number) per dollars invested;
  • Physical volume per employee and per customer;
  • Sales dollars per total people hours,
  • Gross profit dollars per employee; and
  • Other iterations of the concepts in these measures.

It’s best to track these measurements on T52W (trailing 52-week) charts. Start any new measure this way: Put the first week’s measurements on the chart, add the first plus second week, then divide by two to put on the chart; add first three weeks and divide by three to put on the chart; and so on. The chart will “settle down” toward emulating a true T52W or T12M chart pretty readily.

Hope this grows your bottom-line quickly. I welcome your feedback on improving these tools and tips however you can.

Kraig Kramers is the president and CEO of CEO Tools, Inc., a website that he developed for managers based on his experiences as CEO of eight companies and manager of 16 others, ranging in size from just $1 million in sales annually to $250 million per year. You can e-mail Kramers at info@ceotools.com.
Originally published: Sep 28, 2011

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