Cisco reports an 18% increase in its corporate sales-per-employee ratio
as a result of investments in Web support programs.
Meanwhile, the median sales-per-employee ratio
for Soft*letter 100 companies as a group has gained just 18%, from $144,008 in 1992 to a current level of $169,430.
And our Soft-letter 100 data supports this theory, at least in part: The 25 largest Soft-letter 100 companies achieved a median sales-per-employee ratio that's almost double the ratio for the 25 smallest firms on the list.
The highest sales-per-employee ratios show up among Soft-letter 100 companies with 100%+ growth; the lowest productivity rates appear among low-growth (or negative growth) firms, typically in older market segments.
582 billion in calendar 1991 revenue and employed 39,063 people, equal to an average sales-per-employee ratio of $194,085.
For better or worse, sales-per-employee ratios seem to be driving more high-level management decisions than ever before.
Like profitability and sales-per-employee ratios
, the R&D effectiveness ratio is primarily a company-wide metric.
letter 100 data on growth rates and sales-per-employee ratios
(Soft-letter, 4/7/92), a friend of ours posed an intriguing question: Do the numbers suggest that high growth and high productivity are mutually exclusive?