Fool-proof Metrics and Do-it-yourself Reality
Checks of Corporate Health
you cannot trust management reports, audits,
surveys, and even your own eyes,
these and let me know if they worked or
if you want to share some:)
to Gauge Your Employees' Motivation to Work:
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.
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.)
3: Get the percentage of employees who return
to their workplaces within 5 minutes after
the end of lunch break.
to Determine the Company's Commitment to
Quality and Customer Satisfaction:
1: Count the number of times the words "customer",
" satisfaction", and quality"
are uttered during board meetings. The more
the higher the commitment.
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.
to Gauge the Company's Service Quality:
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
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.
3: Find out the percentage of customer orders
delivered on time.
to Gauge the Company's Product Quality:
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.
2: Get the value of products sold as seconds.
Get the percentage to total sales.
to Gauge Production Efficiency:
1: Calculate the area occupied by all types
of inventories. The higher this percentage
to total factory floor area, the lower the
2: Calculate the floor area or manhours
dedicated to product rework and repair operations.
The higher the percentages, the lower the
to Gauge Liquidity:
1: Get the number of supplier invoices paid
on time. Get the percentage to total monthly
2: Get the number of accounts that become
overdue. Get the percentage to total active
accounts for the month.
to Gauge Customer Retention:
1: Get the number of new customers who reorder
within a year (or any other appropriate
duration). Get the percentage to total new
to Gauge Customer Satisfaction:
1 (in restaurants): Count the number of
clean plates (no leftovers) after customers
finished their meal. Get the percentage
to total plates served.
to Gauge Good Housekeeping:
1: Drop rubbish on the office hallways,
or parts in the middle of the factory. Calculate
the time until somebody picks them up.
2: Wipe the top of doors and/or machineries
with your hands wearing white gloves. Observe
the color of the gloves thereafter.
3: In factories, count the number of spots
you see on the factory floor with oil stains.
to Gauge your Employee's Waste Consciousness:
1: Turn on the tap of the toilet faucet.
Determine the time until somebody shuts