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14 Ideas on How to Measure Productivity to Make Incredible Progress

14 Ideas on How to Measure Productivity to Make Incredible Progress

Everyone has heard the term productivity, people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity”.

In its simplest form, Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls on customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one the output is 2 sales and the input is 10 sales calls 2 ÷ 10 = .2 or 20% productivity. Salesperson two, the output is 3 sales and the input is 10 sales calls 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity – 14 Proven Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify long and short term goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your teams productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break down long term goals into smaller weekly objectives

Your long-term goal might be to get 1,000 new customers in a year. So that’s going to be 20 new customers per week, if you have 5 people on your team then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down you can track each persons productivity week by week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a system

Have you ever noticed that whenever you walk into a McDonald’s, the french fry machine is always to your left? Why is that?

It’s because McDonald’s created a system. They have determined that the most efficient way to setup a kitchen is to always have the french fry machine on the left when you walk in.

You can do the same thing just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity by something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor and fine tune systems to maximize output.

4. Evaluate, evaluate, evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees. But don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and evaluate your employees performance but you’re still not meeting goals, it maybe time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individuals strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees productivity.

5. Use a ratings scale

Having clear and concise objectives for employees is a crucial part of any attempt to increase workplace productivity. So once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendless, how long it took to greet the shopper, employees knowledge of the products or services and just about anything else that’s important to a retail operation.

7. Offer feedback forms 

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences.

8. Track cost effectiveness

This is a great metric to have especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation. Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use self evaluations

Asking your staff to do self evaluations can be a win win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self evaluations is also a good way to make sure that the employees and employers goals are in alignment.

You can try to make use of this self evaluation form.

10. Monitor time management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email and making personal calls all contribute to lower productivity.

The trick is to limit these activities without becoming over-bearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint it is best to have policies and rules that are seen as fair to both sides.

11. Analyze new customer acquisition

Nothing comes free. We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep and existing one”. And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula, Productivity = number of new customers ÷ amount of money spent to acquire those customers.

For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers and your print ad produced 9 new customers.

So let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025 or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022 or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03 or a 3% return on productivity).

From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

12. Utilize peer feedback

This is especially useful when people who work in teams or groups. While self assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average and 50% are average.

So are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

It’s the same in the workplace. Using peer feedback will often times provide a more accurate assessment of a persons ability than a self assessment would.

13. Encourage innovation and don’t penalize failure

When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

Either way, you have gained valuable knowledge and boosted morale by including employees in the decision making process.

14. Use an external evaluator

Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

In consolation with you, they will design a complete analysis of your businesses productivity level. In their final report, they will offer suggestion and recommendations on how to improve productivity.

While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

Final thoughts

These are just a few of the ways you can measure productivity. Some may work for your particular situation, and some may not.

The most important thing to remember when deciding on how to measure productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments and analyzing the results of those adjustments.

The business world is changing fast, having the right tools to track and monitor your productivity can give you the edge over your competition.

Featured photo credit: Unsplash via unsplash.com

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David Carpenter

Lifelong entrepreneur and business owner helping others to realize the American Dream of business ownership

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Last Updated on November 5, 2020

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

Have you gotten into a rut before? Or are you in a rut right now?

You know you’re in a rut when you run out of ideas and inspiration. A rut can manifest as a productivity vacuum and be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. Is it possible to learn how to get out of a rut?

Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, or a student, you will find these useful. Here are 12 of my personal tips to get out of ruts:

1. Work on Small Tasks

When you are in a rut, tackle it by starting small. Clear away your smaller tasks that have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

Whenever I finish doing that, I generate positive momentum, which I bring forward to my work.

If you have a large long-term goal you can’t wait to get started on, break it down into smaller objectives first. This will help each piece feel manageable and help you feel like you’re moving closer to your goal.

You can learn more about goals vs objectives here.

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2. Take a Break From Your Work Desk

When you want to learn how to get out of a rut, get yourself away from your desk and go take a walk. Go to the bathroom, walk around the office, or go out and get a snack. According to research, your productivity is best when you work for 50 minutes to an hour and then take a 15-20 minute break[1].

Your mind may be too bogged down and will need some airing. By walking away from your computer, you may create extra space for new ideas that were hiding behind high stress levels.

3. Upgrade Yourself

Take the down time to upgrade your knowledge and skills. Go to a seminar, read up on a subject of interest, or start learning a new language. Or any of the 42 ways here to improve yourself.

The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college[2]. How’s that for inspiration?

4. Talk to a Friend

Talk to someone and get your mind off work for a while. Relying on a support system is a great way to work on self-care when you’re learning how to get out of a rut.

Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

5. Forget About Trying to Be Perfect

If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies. Perfectionism can lead you to fear failure, which can ultimate hinder you even more if you’re trying to find motivation to work on something new.

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If you allow your perfectionism to fade, soon, a little trickle of inspiration will come, and then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

Learn more about How Not to Let Perfectionism Secretly Screw You Up.

6. Paint a Vision to Work Towards

If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

Think about why you are doing this, and what you are doing it for. What is the ultimate goal or vision you have for your life?

Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action. You can use the power of visualization or even create a vision board if you like to have something to physically remind you of your goals.

7. Read a Book (or Blog)

The things we read are like food for our brain. If you are out of ideas, it’s time to feed your brain with great material.

Here’s a list of 40 books you can start off with. You can also stock your browser with only the feeds of high quality blogs and follow writers who inspire and motivate you. Find something that interests you and start reading.

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8. Have a Quick Nap

If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep[3].

Try a nap if you want to get out of a rut

    One Harvard study found that “whether they took long naps or short naps, participants showed significant improvement on three of the four tests in the study’s cognitive-assessment battery”[4].

    9. Remember Why You Are Doing This

    Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

    What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall your inspiration, and perhaps even journal about it to make it feel more tangible.

    10. Find Some Competition

    When we are learning how to get out of a rut, there’s nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

    Colleagues at work, competitors in the industry, competitors’ products and websites, and networking conventions can all inspire you to get a move on. However, don’t let this throw you back into your perfectionist tendencies or low self-esteem.

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    11. Go Exercise

    Since you are not making headway at work, you might as well spend the time getting into shape and increasing dopamine levels. Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, or whatever type of exercise helps you start to feel better.

    As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

    If you need ideas for a quick workout, check out the video below:

    12. Take a Few Vacation Days

    If you are stuck in a rut, it’s usually a sign that you have been working too long and too hard. It’s time to get a break.

    Beyond the quick tips above, arrange one or two days to take off from work. Don’t check your (work) emails or do anything work-related. Relax, do your favorite activities, and spend time with family members. You will return to your work recharged and ready to start.

    Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest.

    More Tips to Help You Get out of a Rut

    Featured photo credit: Ashkan Forouzani via unsplash.com

    Reference

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