Capturing the value created by people
If you are serious about productivity, then you will have measures in place to capture the value creation of your people or, at least, you think you do…
The fact is that most of the measures organisations employ don’t track productivity at all. Instead, we find organisations using measures for completely erroneous reasons. If you take the time to ask the question, “why have you selected those measures to report on?’, the answer is usually a function of one or more of three things:
1. that’s all we can capture
2. we think that’s what the end user wants to see; or
3. that’s what we have always measured
That simply is not good enough in an age where it is easier than ever to measure the contribution people make to productivity. Performance measures must capture the value of the service being provided.
The thing is, of course, is ‘value’ can be a vague concept for many people. We may well be able to tell you with relative ease what we do but when asked why, or how we contribute to the organisation’s performance there can be a lot of head scratching.
The easiest way to determine value is often to look at it from a different point of view. Rather than trying to determine how each activity contributes to productivity, it’s often more practical to ask which activities would have the greatest adverse impact should they fail to be delivered.
This approach allows us to identify the core activities that generate value for the organisation and, therefore, what aspects need to be monitored to ensure that value is not eroded. By articulating the value that is lost when activities are not performed, we can determine how productivity should truly be measured and we can take steps to ensure that we finally begin to capture the value created by our people.