Is your company as productive as a “tukang bakso” ?
Wednesday, December 5th, 2007I’ve just heard this very good comparison to get you thinking about whether your company’s productivity needs improving.
Let’s take a “tukang bakso” here in Jakarta. Lets say he charges Rp. 5000 per bowl and lets say he can sell about 200 bowls a day. At the end of the day he will have generated Rp 1 million. So one tukang bakso generates Rp. 1 million per day.
Now if you take your company’s revenue, divided by the number of employees, and divided again by 365, you will get how much each person in your company generates on average. Does this number measure up to what the tukang bakso can generate ? If your company generates Rp 1 million per day per person, then your company’s productivity is the same as the tukang bakso. However, the tukang bakso probably doesn’t even have a complete high school education, whereas your employees most likely have bachelors or masters degree. Shouldn’t the productivitybe way higher ?
To complicate matters you can also divide your equity by the number of employees, to get the equity that each person gets per year.
Lets say the tukang bakso can start his business with Rp. 10 million. This means that with Rp. 10 million he is able to generate Rp. 1 million every day.
How much equity does each person need in your company to generate how much revenue per day ? Does it measure up to the tukang bakso’s numbers ?
Can you beat the tukang bakso’s productivty ? Or maybe you should just start your own bakso enterprise…