Friday, March 19, 2010

Adding Value or Time to Act!!!

Is there a way to measure the contribution of every employee towards the revenue of a company? I know it's a very ideal thing & not really easy to achieve. At the same time, I feel if it can be done, it will be the best motivator for every employee. Imagine, at the end of every month, you get a report stating - "Company earned $1000 this month & your contribution is $10". I know, it's not as simple as I put here. If a company is relatively small, such things can be feasible. When companies grow, it really is a challenge to do such calculation. Moreover, in product companies, where the fruit is often realized few years after the actual work put in, it is in fact just next to impossible.

The reason why I am feeling the importance of this is as follows. Large companies add lots of fat over a period of time without realizing that those fats are actually making it difficult to move ahead. In large companies, you often find lot of teams who actually add very limited value to organization, yet they exist for ages. I am sure, if we can have a quantitaive measurement of employee's contribution, it will be easy to recognize the fat over a period of time & take necessary actions on time to keep the company lean & agile!!!

One piece of advice - Wherever you may be working, ask yourself this simple question - "How is your work adding value to the organization?". If you are not satisfied with the answer, it's probably !!!Time to ACT!!!

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