Lou Gerstner wrote, "People truly do what you inspect, not what you expect." … Lest we forget, these "inspection pages" exist because chief executives are "people" too.
Arvind Krishna: First-Year Revenue and Profit Productivity
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Date Published: July 23, 2021
Date Modified: June 30, 2024 |
Arvind Krishna's First-Year Revenue and Profit Productivity Performance
- Evaluating Arvind Krishna's First-Year Sales and Profit Productivity
- Arvind Krishna's First-Year Sales Productivity by the Numbers
- Arvind Krishna's First-Year Profit Productivity by the Numbers
Evaluating Arvind Krishna's First-Year Sales and Profit Productivity
What were Arvind Krishna's first-year, 2020 revenue and profit productivity performance numbers? For the full year of 2020, revenue productivity was down 3.6% and profit productivity was down 40%. To be clear, each and every employee produced almost 40% less profit in 2020 as they did in 2019.
In a corporation of 400,000 individuals, if each individual employee loses $10 a day in productivity, the corporation loses a billion dollars in a year. Of course, gain $10 a day and a billion dollars is sent to the corporate bottom line. It is employee engagement, passion and enthusiasm—as exhibited through sales and profit productivity—that impacts every corporation.
Almost every year, Watson Sr. told his shareholders, “Our greatest asset is our human assets.” Today a few words need to be added to this quote. Although, Watson didn’t include the words eight decades ago—because he assumed them, they need to be added today: “Our greatest asset is our enthusiastic, engaged and passionate human assets.” Watson focused on employee enthusiasm.
He described this focus in a One Hundred Percent Club meeting sixteen years after taking over the C-T-R Company.
Almost every year, Watson Sr. told his shareholders, “Our greatest asset is our human assets.” Today a few words need to be added to this quote. Although, Watson didn’t include the words eight decades ago—because he assumed them, they need to be added today: “Our greatest asset is our enthusiastic, engaged and passionate human assets.” Watson focused on employee enthusiasm.
He described this focus in a One Hundred Percent Club meeting sixteen years after taking over the C-T-R Company.
We had very little enthusiasm, but what we did have … gave us a great start, and the other men fell in line.
One of Watson’s “enthusiastic” employees of yesteryear would be the very definition of a Gallup 100% “engaged” employee today. Does every employee at IBM wake up in the morning ready to go to work, ready to deliver value, ready to overcome any obstacle—like the latest resource action? These productivity numbers suggest the employees are not engaged, passionate or enthusiastic.
Employees are unable to perform productively under IBM’s constant attacks on their employment security.
Employee productivity has been dropping for a long, long time.
Employees are unable to perform productively under IBM’s constant attacks on their employment security.
Employee productivity has been dropping for a long, long time.
Arvind Krishna's First-Year Sales Productivity by the Numbers
- Krishna 2020 Sales Productivity: Down 3.6%
- Krishna & Rometty 2012–20 Sales Productivity: Down 25.6%
- Krishna, Rometty, Palmisano & Gerstner 2000–20 Sales Productivity: Down 48.9%
Arvind Krishna's First-Year Profit Productivity by the Numbers
- Krishna 2020 Profit Productivity: Down 40%
- Krishna & Rometty 2012–20 Profit Productivity: Down 62% from a 2013 high
- IBM Hit a Profit Productivity Brick Wall in 2013
- Krishna, Rometty, Palmisano & Gerstner 2000–20 Profit Productivity: Down 56%
