We all want more efficiency in business, both in terms of certain processes and in terms of the individual employee. It has practically become an obsession of companies: we want more productivity! And this because higher efficiency increases the chances of greater profit.
Every day, great efforts are made to increase the productivity of each department of the company: procedures, training, discussions, plans, coaching, access to various information (books, blogs, applications, tips, etc.).
At the same time, the companies’ obsession to make their activity more efficient also spread to the individual level, productivity becoming a personal concern that went beyond the boundaries of personal life – professional life. And in order to talk about productivity, we have reached the point where, first, it is necessary to start filtering valuable information from those that do not add value.
But What Are The Components Of Productivity? Why Is It Necessary To Take Into Account When We Want To Measure It?
First of all, to be able to measure something you need data, rational information, but also to be aware of the factors that can influence productivity. The easiest way is to have a plan of performance indicators that will be measured (compared to an average) at certain time intervals.
Productivity is influenced by several important factors and it is necessary to pay attention to them, if we want to make objective evaluations, without putting the equal sign between employees, for example, if we want to make an individual and not a group measurement.
Productivity at the individual level is influenced by the following factors, but these can also be generalized at the group level when the tasks do not differ:
The Technology, The Way In Which The Task Task Is Described, The Information Provided In Order To Carry Out The Task– these form the objective and need to be clear and very well defined
Expertise, Skills, Abilities – these are related to the individual capacity of the employee which must be correlated with the complexity of the objective
Attitude, Personal Beliefs, Fears – which are related to the individual effort that the employee wants to train in carrying out the task
Unforeseen Things, Hazards – which fall into the risk category that cannot be controlled
As you can see, productivity can be affected by several variables. The key is to manage to control as many of them to increase the chances of efficiency.
If you want to measure the organizational performance, taking into account the efficiency of the interdepartmental processes and of the employees at the individual level or at the department/subgroup level, we recommend that you consider 4 essential considerations before making a measurement plan:
- Complexity of group analysis
- Inputs from the individual, but also from the group
- Situations that may occur at the time of aggregation
- The need to align the measurements with the company’s objectives
We think it is no longer necessary to mention that employees, working in a team, can generate greater efficiency. We are dealing with an interdependence between the team members, and the dynamics of the teams can affect both positive and negative performance if the communication procedures/processes do not exist or are poorly performed. There are also other companies in which efficiency and teamwork helps them become more creative and that’s how most of the games are born. It takes a whole team to create even online casino games because they may seem like a piece of cake to be created, but there’s a huge team behind them and thanks to their excellent teamwork, they turn out to be interesting and colorful pieces.
Lack of freedom in decision making, unbalanced tasks as complexity, inability of members to cooperate with each other, feeling of inequity or turning into small groups are only part of the harmful effects that can occur due to the lack of working procedures.
To be able to evaluate the efficiency of these processes, the first step is to work on the work procedures assumed by the employees, so as to ensure that they are respected and followed. We talk about rules, deadlines, communication channels, the planning of meetings to make a plan or to clarify situations, how to deal with a hazard, the designation of owners and process managers.
A well-defined process will definitely provide positive effects when it comes to teamwork: cooperation, mutual stimulation in giving more to achieve the goals, abilities and capabilities combined that will ensure that nothing remains uncovered, support and mutual guidance.
The individual evaluation mainly emphasizes the contribution that the employee has within the company (effort, involvement, attitude towards the tasks performed). Generally speaking, measuring productivity requires that absolutely all inputs are taken into account. Therefore, we recommend that the evaluation of the efficiency of an employee should not be restricted only to the individual level, strictly on his individual results.
A 360 assessment for an employee could give you valuable information, beyond its individual results on a set of tasks. Moreover, if we talk about employees who come into contact with the company’s clients, an evaluation of external feedback is required. The analysis of inputs at the general level can help you in developing a career plan for the employee if the results show a better productivity in a certain area of the company.
Also, if the individual evaluations have spectacular results, but at the same time, the group ones have poor results, it is necessary to interview on processes/procedures and to bring them improvements, because it is clear that they do not create the proper framework for having unitary results at company level.
Management plays a very important role in the aggregation of data for generating increased productivity at the organizational level.
If the employees of the company work interdependently or perform different/varied tasks, the aggregation of productivity measurements becomes difficult. It is necessary to identify the inputs and outputs at the group level which may be different from the inputs and outputs at the individual level, so as to create a unique measure for evaluating the productivity of the group .
For example, an objective such as turnover needs partial measurements for each department (including individual measurements for each team member), taking into account the contribution of each team in achieving the figure.
As we mentioned in the paragraphs above, the measurement keys of the individual and team productivity must be selected in such a way as to align the behaviors with the company’s objectives. This applies to any department/division within the company. Strategic planning implies that the objectives set at a certain level of the organization are in line with those set at the next level, so that there are no cross or different goals. An ideal system for measuring the efficiency in the company would align the individual and group behaviors with the general objectives of your business.
We cannot provide you with an ideal solution for measuring efficiency, because it can only be built in accordance with the specifics of the company you run. There are many “turnkey solutions” that, in fact, can only be applied partially, depending on the context of each business. If you consider and find the information above useful, you will be able to start a workable plan for objectively measuring the efficiency of processes and employees, both at the individual level and at the team level. Good luck!