Uncommon KPI Reveals Issues with Execution of Strategy

Every business leader measures ROI, ROA, ROE, ROC, and more. But why don’t we ever measure ROP: Return on People?

People are often our biggest expense. Our biggest asset. Our biggest pain in the neck. And our biggest source of competitive advantage. Now, you can benchmark how you’re doing against leading firms in your industry, and develop your plan to improve this key metric.

Download your FREE copy of the undated Return on People Benchmarking Report and simply follow the instructions to calculate your grade. There are fascinating insights that will have you questioning many of the ‘givens’ you’ve always taken for granted about your company and your industry, including:

1. That fixed margins are the norm in your industry. Perhaps you think that everyone operates on about 3%, 8%, 12% or some other “usual” margin. With the Return on People lens, you’ll see that some companies lead their industry by a wide margin. They simply get more productivity from their people.

2. You can only have profit or growth – not both. You’ll see the results of 500 companies in 72 industry categories over a 5 year period and the answer is clear. May are constantly improving their profitability as they grow their revenues, and it all adds up to strong upwards trend lines for Return on People.

3. That Revenue per employee is good enough as a predictor of success. On the contrary, you’ll see that some of the biggest companies in the world on a revenue basis are losing over $250K PER PERSON per year. They might as well have everyone in their company just sit and tear up $100 bills all day long. Revenue and Revenue per employee are two of the most dangerous metrics you can use in your business. Profit per employee measures how well you turn talent into value that you can take to the bank.

Once you put this new lens on your business, you’ll never be able to look at it the same way again, and that’s the catalyst for positive change that’s often missing when we set bold new goals and develop new plans. With a new calendar year just around the corner, this is an ideal time to benchmark yourself on Return on People as part of your strategic planning process. You might just be in for an eyeopener. Go ahead, download your free Return on People benchmarking report today and find out if you’re an A, a B, a C, a D, or an F… and then create your plan to reach a higher grade.