Analyzing Remote Productivity
Remote work is eating the world. And it's because remote teams are more productive. Here's why.
Companies that go remote must undergo a series of transformations by necessity to keep operating the same as when they had an office. Implementing & upgrading digital tools. Building better operations. Training, onboarding, and offboarding employees virtually. Opening up hiring strategies to wider geographies. Upgrading security measures. Targeting new markets. etc. etc.
All of these changes lead to more resilient companies. Smoother-operating companies. More productive companies.
But how do we measure this? Three ways.
1. Time efficiency
2. Goals hit rate
3. Capital yield
At a basic level, productivity is about how much your team can get done at work. Do more / move faster and you get more out of your business. That's what most "productivity" talk tends to focus on.
But what about the quality of that time? That's hit rate on goals. Did you accomplish 3/5 goals for the quarter? 5/5? Productive teams can hit more (reasonably-set) goals.
At the end of the day though, business is about return on capital. Productive businesses yield higher returns on operational expenses. A business generating $200k/mo in revenue on $150k/mo in payroll is less efficient than a competitor hitting the same revenue on $100k/mo in payroll.
Modern remote companies take advantage of the benefits of remote work at all three levels.