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: 2020-21 Revenue and Profit Productivity
|
|
Published April 11, 2022
|
Arvind Krishna's 2020-21 Revenue and Profit Productivity Performance
- Evaluating Arvind Krishna's 2020-21 Sales and Profit Productivity
- Arvind Krishna's 2020-21 Sales Productivity by the Numbers
- Arvind Krishna's 2020-21 Profit Productivity by the Numbers
Evaluating Arvind Krishna's 2020-21 Sales and Profit Productivity
What were Arvind Krishna's second-year, 2020-21 revenue and profit productivity performance numbers? For the full years of 2020 and 2021, employee sales (revenue) productivity was down 2.4% and 4.9%, respectively, and employee profit (net income) productivity was down 39.4% but up 25.3%, respectively. To be exact, after two years of Arvind Krishna's leadership, each and every employee is now producing $14,565 less revenue and $5,903 less profit—drops of 7% and 24%, respectively.
As the reader will discern from these charts, employee sales and profit productivities have been dropping for a long time.
Arvind Krishna's 2020-21 Sales Productivity by the Numbers
- Arvind Krishna 2020-21 Sales Productivity
- IBM Revenue or Sales Productivity was down 7.2% since the end of 2019, falling 2.4% in 2020 and 4.9% in 2021. Every one of IBM's 307,600 employees is now producing $14,565 less revenue than in 2019.
- Krishna & Rometty 2011–21 Sales Productivity
- IBM Revenue or Sales Productivity was down 18.7% since the end of 2011. Every one of IBM's 307,600 employees is now producing $42,801 less revenue than in 2011.
- Krishna, Rometty, Palmisano & Gerstner 1999–2021 Sales Productivity
- IBM Revenue or Sales Productivity was down 24.5% since the end of 1999. Every one of IBM's 307,600 employees is now producing $60,605 less revenue than in 1999—not taking inflation into consideration. See the chart below to quantify the impact of inflation—53.6% less revenue production per employee.
- If an IBM 2021 employee were as productive as in 1999—considering inflation, revenues would have been $126 billion, not $57 billion.
- If an IBM 2021 employee were as productive as a Red Hat 2018 employee—considering inflation, revenues would have been $86 billion, not $57 billion.
Arvind Krishna's 2020-21 Profit Productivity by the Numbers
- Arvind Krishna 2020-21 Profit Productivity
- IBM Net Income or Profit Productivity was down 24% since the end of 2019, falling 39.4% in 2020 but increasing 25.3% in 2021. Every one of IBM's 307,600 employees is now producing $5,903 less profit than in 2019.
- Krishna & Rometty 2011–21 Profit Productivity
- IBM Net Income or Profit Productivity was down 45.1% since the end of 2011 and fell 47.5% after reaching a profit productivity high in 2013—almost half as productive. Every one of IBM's 307,600 employees is now producing $16,870 less profit than in 2013. Yes, IBM hit a profit productivity brick wall in 2013.
- Krishna, Rometty, Palmisano & Gerstner 1999-2021 Profit Productivity
- IBM 2013 Net Income or Profit Productivity's brick wall is best visualized in this chart. Although profit productivity before then was nothing spectacular, at least it was flat. Since 1999, IBM profit productivity has fallen 14%—by $3,092 per employee, but almost 50%—$10,283 per employee, when inflation is taken into account.
