By Howie Fenton, for RSA – If you try to apply the lessons from [the movie] Moneyball you might ask, “What metrics are we using that are not as predictive of success as other metrics?” Commercial printers and in-plants often use different metrics to evaluate their performance. In my experience commercial printers tend to focus on profitability and sales growth to measure top-line growth and cost of goods sold (COGS) to control the bottom line. In contrast, in-plants tend to focus more on page growth for top line and use year to date sales vs. budget and overtime to focus on the bottom line.
Two other important metric benchmarks are good “big picture” metrics for both: sales per employee (SPE) ratio and payroll as percentage of revenue (PAPR). Both are good indicators of correct staffing levels and costs but are more big-picture and less about day to day operations.
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SOURCE Rochester Software Associates
