How do you measure productivity improvements?

[Tom Ace]

My team and I have reviewed our business processes and discussed satisfaction with our employees to pinpoint areas for improvement that help us sell more, improve customer service and help our people grow as professionals. What measurements can we establish and review to determine whether or not our changes are in fact delivering results?

[Warren]

Set financial goals that your processes are designed to impact. Set sales goals, budget accordingly and set earnings goals. Then find ways to improve.

[Ian Shanno]

I am working with a client company that has a goal of maximizing profitability through lean operations. My job is to help the CEO figure out the best way to do this through scenario based financial modeling. I am starting from a Sales & Operations Planning (“S&OP”) perspective, that will lead to an active Financial Planning & Analysis process that will enable productivity measurements through financial statement review, ratio analysis and KPI views.

Does anybody have any pointers on S&OP best practices? Are there any obvious (or not so obvious) pitfalls in tying an S&OP model and an FP&A process together?

[Author]

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