• John Melbye

Season Three, Episode Nine

The Metrics - Evolution

Asking the wrong question begets chasing the wrong solution. Perhaps in the future, we’ll evolve from “Show me the money” to “Show me the metrics”. Because using the wrong metrics causes you to focus on the wrong problem, which often leads to the wrong solution.


What will be the company measures in the future? That remains to be seen. But here’s a couple ideas, that I think (hope) will become mainstream in the future.


1. Wage ratio. We have grown numb to hearing about the millions in salary and benefit packages provided to the C-Suite. Frankly, many of us have grown tired of it. One way that companies can show they are thinking long-term and that they really have the company’s interest at the top of their mind is Wage Ratio. The highest paid employee to lowest paid employee. Calculated by dividing the highest salary by the lowest salary. The result shows how many times higher the highest salary is when compared to the lowest salary. (substitute compensation for salary in bonus situations).


2. Employee Satisfaction Index. What if we could measure the work enjoyment level of our employees? We all know that if our employees are happy, they will have a more positive impact on their work, their colleagues, and the customers. But what are we doing about employee satisfaction? If we could measure the “happiness” of employees as they leave work each day (and maybe as they clock in too) we will establish a warning system so that before everyone quits, we will have a chance to keep everyone from hating their job. Employees are our greatest asset, let’s start acting like it.


3. Jobs Created and Maintained. How many people are employed by the company? And, in which countries? Some companies are headquartered in one country but employ thousands of people in another country. Some foreign car companies build their cars domestically. And some domestic car companies build their cars in foreign locations. I’m not advocating one or the other, but knowing the job creation statistics is relevant.


4. Commitments. Sustainability initiatives completed. Learning and Development initiatives. Employee longevity rating. Actual money spent on employee training by grade level. Diversity and Inclusion efforts or percent diversity in leadership roles. All of these types of information should be kept in the forefront.


5. Contribution Factor. Scholarships granted or donations to charities or non-profit organizations. Community Service contributions. Organized volunteer success stories. Taxes paid, or tax rate, or tax incentives used (for various countries or municipal entities). Any special programs for employees or the community will measure the extent companies “give back”.


This can be used to inform customers as well as to entice employees to join (or stay with) your company.


The world is no longer solely looking at the monetary profit and the stock price. How is fairness manifested in your company? What future vision or leadership direction are you following? Where are your ethics and morals? And why is your company relevant now and into the future?


What future metrics will become expected and normal? Only time will tell for sure. But here is a discussion starting point to give a nudge towards a better future. Please share your thoughts.


John Melbye, DDPP, DDLP, CSCP

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