Let’s think about a world where you don’t have to spend hours aggregating, analyzing and acting on data alone. A world in which there is no doubt in your actions, no decision fatigue and no data silos standing between your people and business data. How empowering will it feel to be proactive in your decision making, instead of reactive?
Just imagine what your daily operations could look Iike… Imagine a world of real-time alerts and reporting on productivity and efficiency by customer, product line or shift, while enabling managers to make timely, critical decisions that impact the overall health of the business.
And a few months down the road, because of the action you were able to take today, your profits are up, your productivity has skyrocketed, and your overall employee morale has improved.
Now just imagine what a difference this data can make - knowing exactly what changes to make within your daily operations to ensure you are hitting your targets, staying on budget, and monitoring your expenses - in six months, one year, or even five years from now.
The core of analytic.li is focused around these 3 areas: Productivity, Profitability, and People. At analytic.li, we believe the 3 P’s are the key to a healthy decision-making strategy.
The Key Metrics to Decision Making: Productivity, Profitability, People
- Productivity: Getting the most accomplished and getting the biggest ROI out of your labor expense
- Profitability: Managing labor expense and controllable costs
- People: Attracting, retaining and motivating the right people
At analytic.li, we have seen that having a focus on productivity often yields positive change for our customers. Productivity is a measure that represents the amount of goods and services that can be produced in a specified amount of time. Two productivity metrics that our customers often focus on are: Units Produced per Hour and Cost per Unit.
When evaluating your productivity, look at the questions below:
- Which plant location or cost center has incurred overtime? At what cost?
- Which employees are approaching overtime? Can I avoid the overtime that is being forecasted as the week progresses?
- Which location has the highest amount Overtime this week? Lowest?
- Which cost center has the most overtime?
- Is there a way to change schedules or work arrangement to better distribute our workload?
- Does the absenteeism rate trend higher near the end of the week when overtime is at a higher possibility?
- Are absent employees also the ones with the greatest number of hours worked? Burnout?
All businesses strive to be profitable. Profitability is the degree to which a business or activity yields profit or financial gain. Many times, businesses do not track the right metrics to easily measure profitability. Understanding productivity and labor expense is a key in determining profitability. Since your labor expense is one of the only controllable costs on the P&L, making decisions around your people can be make or break in determining profitability.
When evaluating your profitability, answer the questions below:
- Which departments are over or under their Labor Expense budget?
- Am I likely to go over my labor budget this year?
- How well are managers performing in managing labor expenses compared to their peers? Cohort analysis?
- How do labor expenses compare from department to department and employee to employee?
- What was my labor expense and Worked Hours per cost center?
Your people strategy is the key input to your productivity and profitability. Without the right employees, your productivity and profitability can be negatively impacted. It is important to attract, retain and incentivize the right people to do the work. Monitoring compensation and turnover are important when it comes to your people strategy.
To better understand your people, ask yourself these questions:
- Am I compensating to drive results?
- How does my employees' performance correlate to compensation?
- How much does salary growth affect turnover?
- Does our benefits package stand up to competition in the market?
- I increased my hourly wage by $x.xx for a specific department/location, how does that impact tenure and turnover?
- For roles that take a long time to fill, how can I ensure my compensation strategy is both fair and competitive? Do I have to offer more per hour to get the new hires I want?
What’s unique about the 3 P’s, is that you can’t have one without the other. Each of these areas need to work together and be closely monitored, to ultimately provide results. Keeping productivity, profitability and people at the core of your decision-making strategy will make all of the difference in the long run. What’s more, is having the ability to make decisions on current data. But it’s not just about having data, it’s about having the right data, at the right time.
Productivity, profitability and people: Breaking your data into these 3 core areas allows you to better monitor the health of your business and make smarter decisions.
That's Why We're Here
At analytic.li, we uniquely understand the need for manufacturers and distributors to actively monitor the 3 P’s. After all, this is the foundation of labor efficiency and productivity.
With our first-ever, cross-functional labor efficiency and worker productivity platform we break down data barriers and organizational barriers to set up operations managers for success. This means businesses can arm their leaders with real-time insights by alerting leaders in all departments of staffing shortages, labor overages, and productivity trends to better manage their organizations.
If you’d like to learn more about ways to impact productivity, profitability and people with data or discuss how analytic.li will work for your organization, reach out to us. We’re eager to connect with you. If now is not the time to consider new software but you liked what you read here, subscribe to our blog below.