PPT Slide
It is recommended that XYZ International undertake initiatives to improve working conditions, especially in Divisions where Pretax Profit per employee (PBIT/EE) is low. The effort should focus on two goals: 1) Decreasing stress, and; 2) Enhancing training & development options. (Both issues need improvement according to the employee survey). Results of our statistical modeling suggest that improving the Work Conditions average by half a unit on a 7 point scale will be worth roughly $190 in new profit per employee per month. Over 12 months for the 3132 employees represented by the survey, this yields a projected enhancement, all other things being equal, of approximately $7.1M. Accordingly, spending $2M for new training & development initiatives (counting downtime costs) should still put XYZ International in a substantially enhanced position.
Linkages allow you to make clear
quantitative predictions about the
drivers that affect performance in
your company. The method lets
you bridge the gap between “soft”
features of the corporate culture
and “hard” metrics that track profit.