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Problem #15: Productivity in Large Enterprises

Back in the 80s, there was a trend that happened in the US. Salary kept climbing, and there was a suspicion that perhaps productivity (defined as the contribution that an employee makes towards creation of an asset or service) didnt keep up with it. It was the birth of a lot of the automated tools, services and platform companies that we see today. This question plagues Indian Companies today.

IT companies employ people in the thousands (and some has high as 150,000). How do you measure productivity? How do you justify the 40-50% hike that a lot of employees seem to expect / demand and if the numbers you are putting on the appraisal forms mean anything at all.

Service organizations as they are moving up the value chain cannot continue using the formula of hired cost, vs billed cost anymore. Large organizations will go through a stage there they will want to monitor, incentivize and grow the productive workforce, as they transition into their new avatars.

How would you build tools to help?