CEOs must constantly balance the need to innovate to stay ahead of the competition with making sure the business doesn’t take on too much risk. And because they are the guardians of shareholder value, they often take the safer route. According to research conducted by Todd Gormley and David Masta, “It takes far less effort to stay the course, after all, than to make painful-but-profitable choices like redistributing resources, enforcing pay cuts, or closing a plant and laying off dozens of workers.”
Understandably, business leaders also frequently look at numbers/data to measure the successes of the business – meaning they are constantly looking at where to focus efforts to improve productivity and the bottom line. Perhaps the easiest number to compute when it comes to assessing employee contribution is hours worked. However, without also taking the time to dig deeper, this number can be very deceiving.
We propose that there are three stages for shifting from “hours worked” to a more legitimate measure of employee contribution, and we’ve broken these three stages into chapters. You can read the content sequentially or use the links below to jump to the chapter that’s most relevant to you.