Productivity metrics: what they are and how they work

Productivity metrics give the exact measure of the effectiveness and efficiency of business processes.

Certainly, the best word to define productivity metrics is efficiency.

Productivity metrics are tools often applied in business management, to assess the performance and efficiency of business processes. They serve to measure some resources that companies use to generate a particular product or service.

Through effective process control and reliable and up to date data, productivity metrics identify and correct potential problems in advance and any anomalies in organizational activities, preventing and avoiding losses to customers and the business itself.

For more check out: Continuous process improvement methods here

Understand how productivity metrics work

The importance of productivity metrics lies in the precise assessment and quantification of a list like “employees produce X number of products or generate X services.” The ideal way is to always use them together for quality indicators, creating the ideal setting for the growth and development of the organization.

Productivity metrics work basically as follows: first is to set a standard index for the process to be evaluated, then the result of that measurement process is weighted, and finally a detailed comparison is made between the two.


Process efficiency is precisely the quotient of this relationship.

The importance of knowing the background of the company’s processes to develop productivity metrics.
Unlike the results presented by quality metrics, which always come in percentage figures, productivity metrics show the direct ratio between two different units of measurement: one that measures the applied resources and one that quantifies the outputs produced.

With this in mind, it is very important for managers and other professionals involved to identify and document in detail all of the features and outputs involved in the process, especially whose productivity is to be measured, otherwise the measured results do not correspond to reality, and all of the planning, performance, and growth of the company may be compromised.

Knowing the company processes is also essential because of the fact that often the output of a given process can be an important resource to another. An example is training and lectures (on processes) to empower employees (outputs), and by participating in these events, they become resources to be used in other processes of the organization.


Understand and manage your business processes using BPM – Business Process Management

BPM methodology (which stands for Business Process Management) consists of a set of management techniques that help companies to understand, study and manage all of its processes professionally and integrated, facilitating the use of productivity metrics and ensuring their reliability and credibility. Features such as mapping, control, monitoring and automation of business processes are some basic examples of BPM management techniques.

All of these features and more are present in BPM Software, a tool that allows you to model, execute and manage business processes in a broad, flexible and transparent way, making all management goals of the company clear and agile.

Check out some other articles related to BPM to learn how to understand and manage your business processes better:

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