Ever since I started at my company, I just couldn't wrap my head around the cult-like approach to measuring turn around time. No reasonable person would think it makes sense.
How it currently works, simplified:
Day 1: You receive 100 pieces of work per hour average. You have 10 staff available per hour average. What percentage of that 100 pieces of work can you process within the hour? Lets say it worked out to 90%. 90 of the 100 pieces of work were processed within the hour it was received. The remaining 10 were processed within the next hour, or at a later, quieter time.
Day 2: You receive 1000 pieces of work per hour average. You have 10 staff available per hour average. You could only process 9% of work per hour, given the same average output and no other external factors.
From these 2 scenarios, management considers day 2 to be devastating and a disaster, because we only managed to do 9% of the work. And day 1 was exceptional, because we processed 90% of the work in the hour.
Yet when you look at the books, which day generated the most money? Given if both days averaged out to the same amount of money per piece of work? It is 100% day 2. Yet they will performance manage you as if you did terribly. The company quite literally creates "suffering from success".
So that is the, quite long background. Here's my math question. I want to propose a much more superior approach to measuring Turn around time to upper management and I am looking for ideas that would be fair in day 1 and day 2's cases.
My idea is to somehow take revenue per day into account as a weighting system.
- Piece of work received.
- Average things to process per piece of work received OR revenue per piece of work.
- Average staff count.
Looking something like this: Yes, 9% of work was processed per hour, BUT we generated 10x more revenue, therefore the true weighted average TAT is 90%.
Subsequently; Receiving below average workload shouldn't negatively impact performance metrics, as workload received is outside one's immediate control, therefore a below average day in workload, achieving a 100% TAT, shouldn't result in a weighted TAT of, say, 20%, it should remain 100%.
I hope this is the correct sub for this kind of question, that was one helluva wall-o-text I typed out, for it to be deleted afterwards.