Friday, 28 May 2010

Measuring Individual value contribution to a Group

In a huge organisation or group, the first I do is trying to refind my individuality. I can only go with a group if I can measure my individual value contribution. Of course I love to go to great parties like Trance Energy and Mysteryland where tens of thousands of party people flock to, but those are not the groups I mean - although I do my best to contribute there as well by simply having fun, and smiling and dancing at will

Within Capgemini, the only company I ever was employed by, I did this too. I tried to contribute to the business unit I was in.
I'd find out what my role was, where the gaps were that I could fill. At a larger sector level, I'd find out what and how my unit would contribute, and within the entire Group I'd try to find out how my own country was contributing. Contribute, add value, lead, any signs would do

That's how I got to the annual report. It contained loads of stuff about the Group, and all the different sub-groups and individuals it was made up of. I soon found out that the real hard stuff (figures) was in the financial report though, which contained less pictures, paintings and photos

How do you compare 90,000 individuals across dozens of countries, organisations and service lines? Simple. First, you decide what you want to compare (Individual employees from individual countries towards the Group) and those must always be in a pyramid or tree: all on level A belong to only one on level B, all on level B belong to only one on level C, etc. Second, you take relative figures alone (percentage, not absolute figures). Third, you set out bottom relative figures to top relative figures. That's it!

So, I focused on all the SBA's within Capgemini and their relative revenue, margin, cost and profit towards the Group. Then, I took their absolute revenue, margin, cost and profit and divided that by their employees. At that point, I could say: an employee from the BeNeLux makes 17K profit each year, and one from France 4K. I would then take the average Group employee annual profit, and thus I could say: an employee from BeNeLux makes three times as much profit as an employee from France.
Here's a graph of that: this shows each SBA's relative contribution to total Group revenue, margin, cost and profit (click to zoom in)

Then, if you do that for a few years, you can turn that into another graph. I will show you what effect that has: within the blink of an eye you will see in this next picture which SBA has been leading Capgemini for the last years, and what 2008 and 2009 have done to dramatically change that: this shows employee-based relative SBA profit, compared to the Group (click to zoom in)

I hope this has helped you in measuring your individual contribution to your group.
It certainly has helped me

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