RTD's Fool-proof Metrics and Do-it-yourself Reality Checks of Corporate Health

(If you cannot trust management reports, audits, surveys, and even your own eyes,

try these and let me know if they worked or if you want to share some:)

How to Gauge Your Employees' Motivation to Work:

Metric 1: Discreetly count the number of employees who rush out within 15 minutes after the end of office hours (e.g. 5:00 pm). The higher the percentage of this number to total workforce, the lower the motivation.

Metric 2: Ask a customer to come and place an order 5 minutes before closing time for 10 days. Count how many customers will be entertained or served by your employees. (Conversely count how many will be asked to come back the following day.)

Metric 3: Get the percentage of employees who return to their workplaces within 5 minutes after the end of lunch break.

How to Determine the Company's Commitment to Quality and Customer Satisfaction:

Metric 1: Count the number of times the words "customer", " satisfaction", and quality" are uttered during board meetings. The more the higher the commitment.

Metric 2: Check if the words "customer and quality" appear in the company's vision or mission statement. Then if they do, count the number of words that precede the first mention of the term "customer" (or "quality"). The more words the lower the commitment.

How to Gauge the Company's Service Quality:

Metric 1: Call your office from outside and pretend to be a potential customer. Count the number of rings before somebody answers the phone. Ask a question about a product or service. Count the number of people your call will have to be passed over before you get a satisfactory answer.

Metric 2: If you are the CEO, ask an important customer (preferably the one with the biggest account) to call your marketing/sales department and pretend to angrily threaten to close his account if service does not change or improve. Find out how long before (minutes, hours, days, or weeks) this call is reported to you by your staff, if ever it will be reported at all.

Metric 3: Find out the percentage of customer orders delivered on time.

How to Gauge the Company's Product Quality:

Metric 1: (assuming consumer product) Ask (anonymous poll) your employees if they are willing to buy the company's products rather than the competitor's. Get the percentage to total employees polled.

Metric 2: Get the value of products sold as seconds. Get the percentage to total sales.

How to Gauge Production Efficiency:

Metric 1: Calculate the area occupied by all types of inventories. The higher this percentage to total factory floor area, the lower the efficiency.

Metric 2: Calculate the floor area or manhours dedicated to product rework and repair operations. The higher the percentages, the lower the efficiency.

How to Gauge Liquidity:

Metric 1: Get the number of supplier invoices paid on time. Get the percentage to total monthly invoices.

Metric 2: Get the number of accounts that become overdue. Get the percentage to total active accounts for the month.

How to Gauge Customer Retention:

Metric 1: Get the number of new customers who reorder within a year (or any other appropriate duration). Get the percentage to total new customers.

How to Gauge Customer Satisfaction:

Metric 1 (in restaurants): Count the number of clean plates (no leftovers) after customers finished their meal. Get the percentage to total plates served.

How to Gauge Good Housekeeping:

Metric 1: Drop rubbish on the office hallways, or parts in the middle of the factory. Calculate the time until somebody picks them up.

Metric 2: Wipe the top of doors and/or machineries with your hands wearing white gloves. Observe the color of the gloves thereafter.

Metric 3: In factories, count the number of spots you see on the factory floor with oil stains.

How to Gauge your Employee's Waste Consciousness:

Metric 1: Turn on the tap of the toilet faucet. Determine the time until somebody shuts it off.

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Product quality stinks your own employees won't buy them.
Your factory oozes with inventories.
Employees are not talking to one another.
Goods are delivered on time accidentally.
Your company suffers from information overload.
Your customers are falling out of long slow moving queues.
Your factory and offices are dirty and disorganized.
Your board meetings are long and boring
Your company is always in a firefighting mode.
Lines of resistance to change
Do-it-yourself Reality Checks of Corporate Health

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