Assignment

On
“Best Way to Utilize Productivity Metrics”
MASTER OF BUSINESS ADMINISTRATION
Session 2019-2020
Submitted to: Submitted by:
Mrs. Sonu Kumari Mansi
Assistant Professor MBA Sem 4th
Department of Management 200161
Studies, PIET

PANIPAT INSTITUTE OF ENGINEERING &

TECHNOLOGY, SAMALKHA

AFFILIATED TO KURUKSHETRA UNIVERSITY,

KURUKSHETRA
We often talk about improving productivity in a business, but what does
that mean? How do you measure productivity?
Understanding and measuring employee productivity is one of the most importance aspects of
job management. Team members are encouraged to improve their own personal productivity,
and this is often tied to performance incentives. One of a main benefits of tracking time with
an application like WorkflowMax is the ability to easily view productivity stats for different
jobs and team members. Each employee can review their hours worked and the amount of
time they spend on each project, and gain benchmarks from which they can improve.

But is this a valuable tool for business, or is it placing emphasis on the wrong metrics? Are
we so worried about how fast we work, how many units we push, how many calls we answer,
that we neglect other important factors?

Every company wants to be more productive.

Measuring your productivity metrics is key. Your numbers tell you if your strategy is
working or not. Those metrics are your early warning system if you start to get off track.

Measuring your remote team’s productivity is even more important if your team works
remotely. Metrics give you more visibility into how your team operates.

Here’s the bottom line.

If you want to get more done and make more money with the resources you have right now,
you want to improve team productivity.

What are productivity metrics?

Productivity metrics are data points that tell you whether or not you’re meeting your
productivity goals. These numbers help you understand what kind of results your team
generates from the work they do.

Monitoring your productivity metrics can help you answer questions like these:

 What types of projects created the most value and profit for our efforts?
 What projects are more expensive than they should be?
 What teams need better tools and resources to do their jobs effectively?
 Where should we focus our efforts to make the most money?

Productivity metrics are part of your key performance indicators (KPIs). They give you clues
into how your business and your employees are performing.
Just like you track things like average order value and revenue per customer to tell you if
your strategy works, you track productivity numbers to tell you if your team is healthy.

Different Types of Productivity Metrics with Examples

Here are some more specific metrics to consider for your business: -

1.) E-commerce productivity metrics

Online store owners are often great at tracking and optimizing marketing campaigns,
but they overlook all the back-office positions that keep that store running.
Even if you use a SaaS platform like Shopify, every online merchant need someone to
maintain their website.
You should track the time and financial investment needed to keep your site running
smoothly. Pay attention to website performance. Cart abandonments and pages or
categories with low conversion rates might be a hint that there’s a problem with your
website.
The more sales you make, the more customers will contact you looking for help.
Service is a big expense for e-commerce merchants, so merchants should pay special
attention to their metrics.

2.) Sales productivity metrics

For sales teams, one common way to measure productivity is to calculate the revenue
per salesperson. It’s a good metric because it measures results. Revenue per
salesperson is directly related to the reason you have them on payroll.
If you pay based on commission, you need to know this number. That might not work
for all types of sales teams, though.
Another option is to track outbound calls or customer contacts. This type of
productivity metric focuses on the actions a salesperson takes instead of the results of
the action.

You can use both types of metrics — actions and results — to give you a more
complete picture of productivity.
3.) Productivity metrics in agile
 Agile teams work in a structured, but flexible environment. Work is divided into
projects and tasks with clear steps.
This structure creates some clear ways you can track productivity.

Agile productivity metrics include tracking cycle time, planned-to-done ratios, and
escaped defects. These are excellent developer productivity metrics, but they apply to
other agile teams, too.
Cycle time tells you how long it takes to complete a task. Measure it by tracking start
and completion dates. If you start a task on March 1 and finish it on March 21, the
cycle time is 20 days.
Compare your cycle time with project estimates to see if tasks take the time that they
should. If tasks often take longer than you expect, you probably have some
productivity drains like imbalanced workloads or problems with the workflow.

4.) Customer service metrics

We already talked about customer service for e-commerce teams. Now, let’s take a
step back and discuss some high-level metrics that apply to most support teams.
Customer service is productive when they help all customers quickly and effectively.
They should be able to solve problems and encourage customers to make another
purchase.
Your productivity metrics should align with your main customer service goals.
Most companies measure the number of tickets closed or calls taken. They also
measure the time it takes to reach a resolution.
If your support is phone-based, it’s wise to measure call times, time customers spend
on hold, and how many times customers call in before their issue is resolved.
Chat-based support works a little differently. These teams often measure the time it
takes from a customer submission to a resolution and the number of tickets completed
in a day.
Watch your customer service ratings for another measure of quality. Teams that focus
too much on call time and number of completed tickets can accidentally encourage
 their agents to rush customers off the phone or end chats too early. Make sure your
team has the freedom to do a great job for as many customers as possible.

Ways to Calculate Productivity

Productivity measurements should be based on data, not just observations.

1.) Find the right data

You probably have access to most of the data you need to get accurate productivity
measurements.
 Work hour
 Task completion
 Time spends on each task
 Overall revenue
 Quality scores

With this data, you have all the raw information to calculate productivity. You know
the quantity of tasks completed.

Data points like these can give you a picture of your team’s productivity.

On top of the raw data, productivity calculations help you understand how your whole
team is doing. e quality of completed work, and the efficiency of the hours that went
into that work.