Best of 2023: How To Use LER To Measure Productivity Return On Digital Investment, Outlive: The Science & Art Of Longevity & Your Mindset Time Horizon
14 January 2024 Newsletter
“The question isn’t can you handle the situation, the question is can you handle your mind? Can you manage the thoughts and the emotions that are trying to poison your progress? Forgot managing your situation–manage your mind…Train your mind to sit calmly in the eye of a storm ” – Will Smith
Hope you’re Thriving!
I hope your New Year is off to a good start.
Over the holiday season, I’ve collected some of my favourite articles and podcasts from the year to share with you. Kind of like a best-of from 2023.
Couple this with my recommended reading list and hopefully, there is something of real interest and value for you each week.
I’m keeping them short and sharp.
Enjoy your holidays and stay safe.
How to use LER to Measure Productivity Return on Digital Investment
One of our clients, a consulting company in Australia, made a commitment to track and review Labor Efficiency Ratio (LER) every quarter and identify opportunities to improve productivity. The below shows the dLER trend from July 2021 to March 2023.
In July 2021, their Direct Labour Efficiency Ratio was 1.3, meaning that for every $1 invested in Direct Labour (their consultants), they were generating $1.3 in Gross Margins.
Things were not looking good.
As we mapped and analysed their end-to-end money-making process, we identified different processes and digital improvement opportunities we prioritised quarter on quarter.
By April 2022 (after three quarters of improving some of their software systems), they noticed a dLER uplift of $1.99 in GM for every $1 invested in their consultants.
Learn more about how this company took their LER from $1.30 to $2.90 here.
Outlive: The Science and Art of Longevity
I’m close to finishing the book Outlive by Dr Peter Attia, and I can understand why it’s been described as the best nonfiction book of the year. It’s a science-backed approach to longevity and living better longer.
I took a few key points from the book, broadly, in two main sections.
1.Exercise is the most powerful longevity drug
To live well into your tenth decade, you must avoid the four aging diseases: cancer, heart disease, Alzheimer’s disease, and metabolic disease. Insulin resistance is the lead domino for all four aging diseases.
“Studies have found that insulin resistance itself is associated with huge increases in one’s risk of cancer (up to twelvefold), Alzheimer’s disease (fivefold), and death from cardiovascular disease (almost sixfold).”
You can avoid insulin resistance and prolong your life by committing to a longevity training program that includes the following:
Zone 2 training
Zone 2 training involves any aerobic exercise on a stationary bike, treadmill, rower, or outside for 45 minutes, four days a week at a pace you can sustain while barely being able to have a conversation with someone.
VO2 max training
People who increase their VO2 max from below average in your age group, to above average, experience a 50% reduction in all‐cause mortality.
Strength training (with a focus on developing grip strength and hip‐hinging exercises).
“I think of strength training as a form of retirement saving. Just as we want to retire with enough money saved up to sustain us for the rest of our lives, we want to reach older age with enough of a ‘reserve’ of muscle (and bone density) to protect us from injury and allow us to continue to pursue the activities that we enjoy.”
2. Eating for Longevity
No diet is proven to prolong life for everyone. But there are three eating rules anyone without kidney damage can follow to extend life:
1. Consume enough protein to match your weight in grams
2. Don’t eat within 3 hours of bedtime
3. Stick to an eating plan that keeps average blood glucose in a safe range
What’s Your Mindset Time Horizon?
Too often, leaders find themselves stuck in the day-to-day or doing other people’s jobs. Several times in the past few months, I’ve worked with leaders who are tied up with day-to-day issues and who are struggling to execute their big goals.
Some leaders think they should be across every detail of the business, watching the daily numbers or getting involved at the front line. But that’s OPJ – Other Peoples Jobs.
As shown in the image below, the mindset of a leader should be three years out, ensuring the company is capable of executing the strategy and the big milestones the company must achieve.
Then leadership team members time horizon should be from a quarter to a year in order to execute the company plan. Of course, this prescriptive advice depends on the organisation’s size – everyone is different. But frontline workers should be focussed on a daily metric or KPI aimed at productivity and efficiency.
In It For The Money
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