How to Rightsize any Organization—the Mathematics Involved

Step One

In the organization we are using for an example (a real organization in Europe), we have 3,000 employees. All the work is done each year—so how many hours are worked?

Most CEOs and CFOs will come up with the same answer.

Working hours per week 40 × weeks in a year 52 × Number of workers 3,000 = 6,240,000 hours

So, we have an assumption that all the work is being done by our 3,000 employees and we pay for and it takes 6,240,000 hours.

 

Step Two

To get a more accurate figure, we know (page 69) that we need to calculate work done by using Prime Working Days formula PWD.

PWD 226 days × Hours worked per day 8 hours × Number of employees 3,000 = 5,424,000 hours actually worked. ...

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