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Killer Analytics: Top 20 Metrics Missing from your Balance Sheet by Mark Graham Brown

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Chapter 19

The Distraction Index

WHY AN ORGANIZATION MIGHT TRACK THIS
Questions Answered
  • Are employees doing what I hired them to do?
  • Are employees engaged in their jobs?
  • Are employees being utilized to achieve the greatest value?
  • Are employees focused on achieving key results most of the time?
Why Is This Information Important?
The single biggest cost in many organizations today is people. Between salaries, benefits, vacations, and bonuses, personnel is a huge line item on most balance sheets. As with any expenditure, it is important to track what value is derived from these costs. Organizations spend a lot of time and money making sure they hire the best and brightest, but they rarely have any data on whether those employees and managers are spending time on valuable activities. Distractions are also a key factor in employee engagement. Being allowed the time to focus on completing your job responsibilities has a lot to do with one’s job satisfaction.
Start-ups are almost always lean and focused on a few key activities that really matter, like marketing, manufacturing, and delivery. If you have a good product or service and watch your numbers carefully, the company grows and becomes more prosperous. The people you hired in the beginning are now bosses of hundreds or thousands of people and your org chart gets more complicated each year, as the need for new departments and positions arises. You hired people because they were good salespeople, accountants, operations managers, ...

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