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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 January 13, 2020

50 Motivational Quotes for Work to Inspire Success

50 Motivational Quotes for Work to Inspire Success

Let’s face it – no matter how excited you are about a new project or priority in your life, there will always be days when your motivation lags. Days when – despite all the progress you’ve made in the past – it just sounds easier to sit on the couch playing video games than to buckle down and crank out the work needed to meet your goals.

In order to be successful, you must be able to motivate yourself past these humps. Whenever you feel your drive and determination lagging, turn to these motivational quotes for work to provide the extra spark of passion needed to keep you on track.

Quotes about Goal Setting

Whether you’re still in the planning phases of your business or whether you’re plotting a plan of attack to bring about your long-range vision, setting good goals is a critical part of succeeding in business.

Check out these quotes for extra inspiration on how to turn your dreams into reality:

quote-Benjamin-E.-Mays-the-tragedy-in-life-doesnt-lie-in-106113

    “The tragedy in life doesn’t lie in not reaching your goal. The tragedy lies in having no goal to reach.”– Benjamin Mays


    “By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be. Put your future in good hands — your own.”–Mark Victor Hansen


    “Give yourself an even greater challenge than the one you are trying to master and you will develop the powers necessary to overcome the original difficulty.”–William J. Bennett – The Book of Virtues


    “The entrepreneur is essentially a visualizer and actualizer… He can visualize something, and when he visualizes it he sees exactly how to make it happen.”–Robert L. Schwartz

    Quotes about Achieving Excellence in Work

    Once you’ve got your goals together, you’ll need to put in 110% of your effort in order to transform these visions into reality. To increase your motivation to work at a consistently high level, take a look at the following words of wisdom:

    “Excellence is an art won by training and habituation. We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence, then, is not an act but a habit.”–Aristotle


    “If you are going to achieve excellence in big things, you develop the habit in little matters. Excellence is not an exception, it is a prevailing attitude.”–Charles R. Swindoll

    Desire is the key to motivation

      “Desire is the key to motivation, but it’s determination and commitment to an unrelenting pursuit of your goal — a commitment to excellence — that will enable you to attain the success you seek.”–Mario Andretti


      “The secret of joy in work is contained in one word – excellence. To know how to do something well is to enjoy it.”–Pearl Buck


      “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.”–Vince Lombardi

      Quotes about Determination and Persistence

      Since every business or other endeavor is bound to hit some rough patches, it’s often a person’s level of determination and patience that brings about either success or failure. These positive quotes give you an extra boost of encouragement:

      “Enter every activity without giving mental recognition to the possibility of defeat. Concentrate on your strengths, instead of your weaknesses… on your powers, instead of your problems.”–Paul J. Meyer


      “Knowing trees, I understand the meaning of patience. Knowing grass, I can appreciate persistence.”–Hal Borland


      “Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.”–Calvin Coolidge

      quote-Thomas-Fuller-an-invincible-determination-can-accomplish-almost-anything-92190

        “An invincible determination can accomplish almost anything and in this lies the great distinction between great men and little men.”–Thomas Fuller

        Quotes about Leadership

        Whether you use it to engage your employees, to encourage teamwork or motivate others to follow your unique way of thinking, leadership is crucial. Take your leadership cues from these renowned leaders’ famous sayings:

        “The most dangerous leadership myth is that leaders are born — that there is a genetic factor to leadership. This myth asserts that people simply either have certain charismatic qualities or not. That’s nonsense; in fact, the opposite is true. Leaders are made rather than born.” –Warren G. Bennis


        “All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time. This, and not much else, is the essence of leadership.”–John Kenneth Galbraith

        Leadership is not magnetic personality

          “Leadership is not magnetic personality — that can just as well be a glib tongue. It is not ‘making friends and influencing people’ — that is flattery. Leadership is lifting a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations.”–Peter F. Drucker


          “The task of leadership is not to put greatness into people, but to elicit it, for the greatness is there already.”–John Buchan


          “High sentiments always win in the end. The leaders who offer blood, toil, tears and sweat always get more out of their followers than those who offer safety and a good time. When it comes to the pinch, human beings are heroic.”–George Orwell

          Quotes for Success

          Think of success as a holistic process – one which results from the combination of goal-setting, excellence, patience, determination and leadership you prioritize throughout your career. These highly successful people provide you with an excellent source of motivation:

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          “Be patient with yourself. Self-growth is tender; it’s holy ground. There’s no greater investment.”–Stephen Covey


          “Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy.”–Norman Vincent Peale

          Success is the ability to go from one failure to another with no loss of enthusiasm.

            “Success consists of going from failure to failure without loss of enthusiasm.”–Winston Churchill


            “Successful and unsuccessful people do not vary greatly in their abilities. They vary in their desires to reach their potential.”–John Maxwell


            “Would you like me to give you a formula for success? It’s quite simple, really. Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, So go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”– Thomas J. Watson


            “The great successful men of the world have used their imagination.  They think ahead and create their mental picture in all its details, filling in here, adding a little there, altering this a bit and that a bit, but steadily building – steadily building.”–Robert Collier


            “It is a paradoxical but profoundly true and important principle of life that the most likely way to reach a goal is to be aiming not at that goal itself but at some more ambitious goal beyond it.”–Arnold Toynbee

            Sports Quotes for Athletes

            You don’t need to be a Michael Jordan-caliber athlete to draw inspiration from the following quotes. Even if you’re just a recreational player or someone who’s using sports as a means to get back in shape after long periods of inactivity, the following motivational sports quotes will encourage you:

            “My attitude is that if you push me towards something that you think is a weakness, then I will turn that perceived weakness into a strength.”–Michael Jordan


            “Pain is temporary. It may last a minute, or an hour, or a day, or a year, but eventually it will subside and something else will take its place. If I quit, however, it lasts forever.”–Lance Armstrong

            Strength does not come from winning. Your struggles develop your strengths.

              “Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.”–Arnold Schwarzenegger


              “I know what I have to do, and I’m going to do whatever it takes. If I do it, I’ll come out a winner, and it doesn’t matter what anyone else does.”–Florence Griffith Joyner


              “Every time you stay out late; every time you sleep in; every time you miss a workout; every time you don’t give 100% – You make it that much easier for me to beat you.”–Unknown


              “If you are hurt, whether in mind or body, don’t nurse your bruises. Get up and light-heartedly, courageously, good temperedly get ready for the next encounter. This is the only way to take life – this is also ‘playing’ the game!”–Emily Post


              “We must train from the inside out. Using our strengths to attack and nullify any weaknesses. It’s not about denying a weakness may exist but about denying its right to persist.”–Vince McConnell

              Quotes to Motivate Learning

              Committing yourself to pursuing knowledge in a single area is a tremendous endeavor – one that often seems overwhelming given the depth and breadth of information that’s available today. Keep the following motivational quotes in mind if you’re learning:

              “How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and the strong. Because someday in life you will have been all of these.”–George Washington Carver

              quote-William-Arthur-Ward-if-you-can-imagine-it-you-can-36189

                “If you can imagine it, you can achieve it; if you can dream it, you can become it.”–William Arthur Ward


                “It is the mark of an educated mind to be able to entertain a thought without accepting it.”– Aristotle


                “Success is not the key to happiness.Happiness is the key to success.If you love what you are doing, you will be successful.”–Albert Schweitzer


                “Wear your learning, like your watch, in a private pocket: and do not pull it out and strike it, merely to show that you have one.”–Philip Stanhope, 4th Earl of Chesterfield


                “He who asks is a fool for five minutes, but he who does not ask remains a fool forever.”–Chinese Proverb


                “Study while others are sleeping; work while others are loafing; prepare while others are playing; and dream while others are wishing.”–William Arthur Ward


                “Books can be dangerous. The best ones should be labeled ‘This could change your life’.”–Helen Exley


                “A book is like a garden carried in the pocket.”–Chinese Proverb

                All-Time Favorite Positive Quotes

                Finally, whatever your goals are in life, you can’t go wrong by taking the advice of the following famous motivational quotes:

                “Change your thoughts and you change your world.”–Norman Vincent Peale


                “Your time is limited, don’t waste it living someone else’s life. Don’t be trapped by dogma, which is living the result of other people’s thinking. Don’t let the noise of other’s opinion drowned your own inner voice. And most important, have the courage to follow your heart and intuition, they somehow already know what you truly want to become. Everything else is secondary.”–Steve Jobs


                “Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”–Maria Robinson


                “Out of clutter, find Simplicity. From discord, find Harmony. In the middle of difficulty lies Opportunity.”–Albert Einstein


                “Yesterday is not ours to recover, but tomorrow is ours to win or lose.”–Lyndon Johnson

                If we did all the things we are capable of, we would literally astound ourselves.

                  “If we did all the things we are capable of, we would astound ourselves.”–Thomas Edison


                  “You miss 100% of the shots you don’t take.”–Wayne Gretzky


                  “Success is not final, failure is not fatal: it is the courage to continue that counts.”–Winston Churchill


                  “What lies behind us and what lies before us are tiny matters compared to what lies within us.”–Ralph Waldo Emerson

                  Final Thoughts

                  To use these motivational quotes effectively, find the one that speaks to you. Although all of the phrases listed above can be considered “motivational,” only you can decide which one resonates with you most directly.

                  Next, take the quote you’ve settled on and copy it onto small index cards or other pieces of paper that can be stored around your home and workspace.

                  If you’re creative, you can create inspiration boards, signs or other decorative displays featuring your favorite motivational quotes – really, though, the most important thing is that your chosen phrase be accessible in a variety of different places. This will make it easy to access and review whenever you feel your motivation slipping away.

                  More Inspiring Quotes

                  Featured photo credit: Kyle Glenn via unsplash.com

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