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June 5, 2013

How Do You Measure Productivity?

Filed under: Performance Management — Tags: 6:00 am

Productivity is one of the most important aspects to the life of any organization.  Without productive employees an organization will eventually cease to be.  How do you know if your employees are productive?  How is their productivity measured?

In the manufacturing industry, productivity is directly linked to the number of parts produced in a predetermined amount of time.  Anything above or below the number of parts or the amount of time is the measurement for the employee’s performance.  Pretty simple theory, but since we are not all manufacturers of thingamajigs or widgets, we have to be a little more creative.

For service and knowledge jobs, the metrics are more subjective.  There is not a golden number of customers served in a day that makes a customer service representative a great ambassador for the organization, nor, does the number of lines of code make one a great software developer.  This illustrates that it is not always quantity that tells the story of productivity, but quality is a vital part of measuring service and knowledge jobs.

When serving customers, we want employees to give the customer not only quick and efficient service, but we want to create a superb experience that communicates to them who we are and allows us to build further on our relationship with them.  A software developer may be able to write a shorter code that yields a program far superior to the program using longer code.

Effectiveness, reliability, and impact of the employee’s work, may be additional factors an employer wishes to measure for these types of jobs.  To begin to do this and do it well, executives must define their strategy, develop action plans, and communicate to all employees the desired outcomes.   Since many jobs are unique to certain industries, make sure you dwell on your vision carefully, then skillfully target the metrics you wish to capture so you can see productivity at work.

Source:  Knowledge@Wharton, “Productivity in the Modern Office:  A Matter of Impact”

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