The Motivation: factor 9 in EBIT
We all know how different the productivity of teams can be. Tom DeMarco analyzed software development teams and identified teams who are a factor 3 more productive than average and teams who are a factor 3 less productive than average. In other words, he observed a span of a factor 9 (!) for different productivity.
This fact is not only observed in the field of software engineering but almost everywhere where knowledge workers are working. The more geographically distributed the teams are the more significant are the differences in their productivity.
Translated into money this means that even if you pay the same hourly rate for two different teams, one of them might be worth only 22€/h/person while the other one is worth 200€/h/person. Up to now I have not met any CEO or CFO who do not care, if their EBIT is a factor 9 less than possible.
The Invisible Value
A lot of research is done to analyze the reasons for different productivity and how to create values that improve the productivity. Most of those values are visible values like the implementation of processes and tools. On the other hand it is well-known that invisible values like trust relationships between (geographically distributed) teams members increase significantly the productivity.
The Research Questions
- Categorize invisible values in a company (e.g. trust culture, cross-divisional cooperation culture, culture of mutual respect, openness…).
- How to strategically evaluate which invisible values are most important for the company in the current situation?
- Strategies for establishing or leveraging those desired invisible values in a company.
- Invisible values are usually difficult to measure. However, what are the possible metrics – or at least measurable indicators – which help to demonstrate the progress?
Please, let me know if you are working in this field or if you plan to work in this field or if you know about already existing research in this field.