Effective and Efficient Employees = A More Productive Workforce
Lessons from America’s Most Productive Companies
The phrase “doing more with less” is thrown about somewhat casually, but there are firms out there who take it very seriously – namely, America’s Most Productive Companies (AMPC). These companies are able to achieve equal or higher revenues than their peers with fewer people, meaning they have more effective and efficient employees, who are therefore more productive.
For the third consecutive year, Profiles International has researched these companies by first identifying them, and then probing further to determine what separates them from the rest.
How did they calculate the rankings? Using financial data from over 700 publicly-traded companies, analysts used the formula of adjusted revenue per full-time employee to determine labor productivity. In order to keep the comparison fair, special events such as one-time sale of assets were adjusted for.
How large was the study? More than 16.1 million employees in 742 companies were included in the study. But recognizing that business operate different across sectors, the companies were divided into 17 primary industries and 153 sub-industries from automotive and business services to electronics manufacturing and transportation.
Ten Attributes of America’s Most Productive Companies
How are the AMPC able to boast such effective and efficient employees? Once the rankings were established, the team sought to uncover what makes the AMPC better than their peers. They uncovered ten attributes which are focused on “people” and “strategy and operations”:
- Performance-driven culture
- Effective managers
- High employee utilization
- High employee effectiveness
- Encouragement of innovation
Strategic and Operational Attributes
- Technological sophistication
- Financial sophistication
- Operational sophistication
- Effective distribution channels
- Marketing and brand sophistication
The Profiles research explains the importance and impact of each of these attributes along with recommendations for how non-AMPC leaders can emulate the Most Productive in each category. Also of great interest are the responses from both AMNPC and non-AMPC companies to 10 questions related to the attributes. While some data points appear to show a close race, most display just how much of a competitive advantage the AMPC enjoy over everyone else.
Needless to say, these companies didn’t just decide to be more productive than they were in the past or than their peers. Rather, the accomplishment is borne out of dedicated and disciplined leaders who have consciously managed their business and employees for maximum effectiveness and efficiency.
Learn more about the AMPC’s effective, efficient, and productive workforce. Watch a video overview of the 2011 America’s Most Productive Companies, or download the report.
Edited by: Jeff Meyers