What is Productivity used for?

The main use for the Productivity measure is for helping to fine-tune plans and forecasts. As a secondary purpose, it may be used to measure relative differences in Productivity between individuals and teams.

The fine-tuning role is critical. ControliQ is designed to support effective forecasting and planning - based on the belief that these activities will help managers stay in control and hence improve costs, quality and service. A key element of the planning process is the conversion of work into time using planning standards, but for this to be believable, these standards have to be moderated over time to reflect how closely the team performs relative to them (i.e. by adjusting the Productivity).

In short-term planning (normally weekly), planned Productivity should be adjusted in the light of recent experience and known factors (such as loss of experienced staff) to make sure that the plan is realistic. In longer term forecasting, it would be typical to anticipate a general upward trend in Productivity from the existing baseline - based on anticipated improvements in control, staff flexibility, general skill levels, etc.

As a measure of performance, Productivity can only be used in relative terms since the estimation of standard times is never an exact process. To suggest - in isolation from any other data - that one team's 120% Productivity is better than another team's 80% is illogical unless they do the same work. These two figures in isolation merely reflect something about the standard times that are being used by the individual teams. Ideally, the calibration of standard times across your department will bring the starting team productivities in line with your expectations of the team’s performance levels. Still, using direct productivity to rank teams can lead to unfair comparisons. The team performing better could be the one whose Productivity had risen significantly over the past few weeks - which is not apparent from these single bits of information.