Saturday, 7 September 2013

How are we doing?

On one of the forums (groups) on LinkedIn there has been  a very interesting discussion recently about the relationship of productivity to profitability.  The relationship is certainly there but it is not necessarily direct or obvious.

One of the reasons that I encourage companies to measure their productivity as well as their profitability is that profitability is a very good measure of how well the company is doing... but productivity is a much better indicator of the future health of the company.

The profitability measure is like taking the temperature; the productivity measure is like a blood test ... it tells you far more, if you have the expertise to interpret it.

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